We have put together a few articles to help you get started on the platform which can be found below
- How to use Chart tab: Click Here
- How to use Monitor tab: Click Here
- Setup Notification: Click Here
- Interpret Technical Indicator and Trend signal: Click Here
- MT4 EA Instruction: Click Here
- cTrader Indicator Instruction: Click Here
1. What is Harmonic Trading
Harmonic Trading is a methodology that utilizes the recognition of specific structures that possess distinct and consecutive Fibonacci ratio alignments that quantify and validate harmonic patterns. These patterns calculate the Fibonacci aspects of these price structures to identify highly probable reversal points in the financial markets. This methodology assumes that harmonic patterns or cycles, like many patterns and cycles in life, continually repeat. The key is to identify these patterns and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur.
2. Fibonacci numbers
To trade the Harmonic pattern you would need to add some more Fibonacci level into the default setting. (In mt4: right click on the Fibonacci Retracement-> choose property -> Fibo level -> add) Fibonacci Retracement:
Fibonaci numbers to add into Fibonacci Expansion:
** Note for newbie: When draw Fibonacci in mt4, it has 2 legs with 3 points. When we need an expansion/projection of AB, make sure the first point of the Fibo Expansion at A, the second at B and the third at A too. If you forget to drag the third point back to point A, your projection is COMPLETELY WRONG.
3. Potential Reversal Zone(PRZ)
Every harmonic pattern possesses a potential reversal zone (PRZ). This zone is a place where with high probability, a reversal might take place. In the next chapters, we will discuss how to identify the PRZ for each pattern. Let’s get to it!