As trading is an industry that allows you to trade the rise or fall of currencies, it requires a great deal of knowledge to succeed. When it comes to knowledge, we have harmonic patterns. Wondering what these are, find out in this article, the necessary information about them.
Harmonic patterns in a nutshell
Breaking through in trading while taking good positions requires mastery of technical analysis. For this purpose, we have as analysis tools the harmonic patterns on which you will get more information on https://patternswizard.com/technical-analysis/patterns/harmonic-patterns/. Indeed, these harmonic patterns are very effective tools that will help you predict the possibilities of reversal of upward or downward trends on the markets. In addition, these patterns are accurate and allow you to take your positions at the beginning of trends. Being of various patterns, each of these patterns has its own specificities. In fact, harmonic patterns are patterns drawn in M-shape and W-shape, so these different types of patterns have their own specificity due to Fibonacci retracement and extension.
Some harmonic figure patterns
As harmonic patterns aim to perfect your technical analysis while allowing you to increase your rate of return, they come in various patterns. Indeed, speaking of these patterns we have as an illustration those with five ends XABCD in the form of W and M. Indeed, as far as these harmonic figure patterns are concerned, we have several of them. These are the Gatley, Bat, Butterfly, Cypher, Butter Fly, Shark and the Crab. In fact, for each of them, the BC segment has a precise retracement level and the CD a precise extension level. We also have the special N-shaped harmonic pattern with three ABCD ends. This is also based on the Fibonacci series. Thus, B has a precise retracement level and D has a precise extension level.