16 October 2010

Harmonic Trading - Inzider Cable Journal!

Hi everyone! I will post my tech and analysis here since, I hope you enjoy!

The technic is simple:

When you have a 0-100% (a move), correction will be done around/at 38.2/50/61.8/78.6 or 88.6 % of last move -watch candlestick pattern = ABC
OPTION 1 - Extension for an AB=CD pattern (N) at 1.27/1.618 or more from the top. (Calcul done from correction move = BC legs)
OPTION 2 - The move stop at 38.2 to 88.6 of BC legs and make a Gartley (M/W), kinda double top whit last one lower a little.

So, if its not a AB=CD (N) its going to be a Gartley ( M or W) .
Market CAN'T do any other move, ITS DAM LOGIC!!

Nota bene: calcul are done from last move - so in an ABCD pattern the 1.27/ 1.618 point will be calcul from BC leg, and not AB.

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Harmonic trading use fibonnacci ratio sequence to "predict" PRZ - potential reversal zone = D.

Have a look at those pics:

Option #1Option#2
Option #1Option#2

That's a good start...

If you don't understand yet, exemple and comments will be done over this thread.

All info is listed here for you, so make your homework first plz and keep on the subject.

Consider consolidation like rest, aiming for next level, or potential reversal zone if confluence whit a fibs ratio.
Consider also Zero line concept (or bottom of the bucket) for this method.

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REFERENCE:

All pattern can be found here: Harmonictraders.com
I stongly suggest those PDF:
PDF : From Scott Carney:
PDF : Larry Pasavento : Fibonacci whit pattern recognition

Tools:
Zup indic for automatic pattern on this post!

Side tech:
CandleStick Pattern:
Bottom of the bucket or ZeroLine concept :
MightyOne ZeroLine Concept start around page 150
PitchforkManual!

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Subject cover:

-Scott Carney PDF expose
-Pasevento PDF expose

-Some of my tricks - all over the thread

Pure PA action explain:
-ZeroLine /Bucket Concept -
-Bar to bar action -
-Channel Angle - to come

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EMA meaning:

note: Those are trend guide line and are in contradiction whit Harmonic trading since harmonic style will take some counter trend move.

I use: 30, 62, 200 and 600 ema on all my 1/5/15/1h/4h and daily chart.

From 15 min TF, only long are done over 62 ema, only short are done under 62 ema for safe trade.

Beware of 200 ema and 600 ema, because in between 62ema and those, its a no man land. Price can go any way when ranging in between those.
Waiting a clear break under or over 600 ema will always put you on the good side of the trade.

I rarely take long term trade, mostly scalp 10 pips to 50. SL around 25 to 50 pips.
Hammer, Shooting star or inside outside bar are nice call for me starting from 5and15 TF on a EMA / fibs bounce.

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Last edited by inzider; Dec 8, 2009 at 5:36am.

 The post above is recommended by: JohnHL
Senior Member

Join Date: Dec 2008
Posts: 252
Re: Harmonic Trading - Inzider Cable Journal!

My next posts will expose Mister Carney approch then mister Pesavento. Wil will cover ZeroLine concept/buttom of the bucket and breakout line, as the Alan Andrew's Pitchfork theory.

How fun this is going to be!!! I can't wait! LOL

Senior Member

Join Date: Feb 2008
Posts: 391
Re: Harmonic Trading - Inzider Cable Journal!

oh Yeah. I'm liking this one. Get it done Inzider!

Senior Member

Join Date: Dec 2008
Posts: 252
Re: Harmonic Trading - Inzider Cable Journal!

Let's start whit mister Carney approch.

I will post pics in rafale, I will post exemle afterwhile.
Feel free to post question if needed.
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Last edited by inzider; Dec 8, 2009 at 3:34am.

Senior Member

Join Date: Dec 2008
Posts: 252
Re: Harmonic Trading - Inzider Cable Journal!

Ok, what's the deal!

We have a move, a 0-100%, then price correct at a reversal level. From this point we have 2 options.

1-The starting move can duplicate itself from this point and broke the last high to make an AB=CD pattern. Target are 1.27/1.618 whit the retracement tools (normal fibs) in confluence whit Fibs Expansion tools at FE 1/ FE 1.27 or FE 1.618.

2-Price can't take out the last high, and broke last low to return at base, around 78.8% or even 88.6%. M / W pattern.

How beautiful is that!
I will post exemple of M/W pattern shortly, as AB=CD.
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Last edited by inzider; Dec 8, 2009 at 3:56am.

Senior Member

Join Date: Dec 2008
Posts: 252
Re: Harmonic Trading - Inzider Cable Journal!

What kind of reaction can we expect at Potential Reversal Zone?!?
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Senior Member

Join Date: Dec 2008
Posts: 252
Re: Harmonic Trading - Inzider Cable Journal!

This cover mister Carney approch.

Most of the correction are done at 61.8 or 78.6%
Most of the extension from top are done at 1.272 or 1.618%

You need to identify the AB=CD pattern and the Gartley/Butterfly/Bat/Crab (M/W) patterns.

Sounds soooooo simple

We will cover Pesavento approche next.

I know you like it! LOL

Senior Member

Join Date: Dec 2008
Posts: 252
Re: Harmonic Trading - Inzider Cable Journal!

Some more exemple, to make the thing complitely boring!
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