Special Chart Patterns

Harmonic Chart Patterns

Harmonic Chart Patterns
• Formed by Harmonic Progression
• Or simply, Fibonacci ratios(in our case)
• Helps predicting future price action possibility
• Just like simple chart patterns, these are not 100%
correct all the time, but have higher accuracy than
those.
Types
• Gartley
• Butterfly
• Bat
• Others: Shark, Cipher, AB=CD, Crabs etc.
Tool Used
Ratios to Look for:
Ratios for each pattern
Gartley Bat Butterfly

XA→B 0.618 0.382-0.50 0.786

AB→C 0.382-0.886 0.382-0.886 0.382-0.886

XA→D 0.786 0.886 1.272-1.618

Take Profit AD → 0.236-0.618 AD → 0.236-1.618 CD → 0.618-1.272

Stop Loss Up or Below X Up or Below X XA → Up or Below 1.618

Liberty in ratios of each pattern:
You can take a liberty of 10% for each mentioned ratio.
Trading tips for Harmonics
• Leg D for each pattern is significant.
• You need to find confluences for Leg D
• Confluences can be
– Simple horizontal levels
– Order blocks
– FVGs
– Trendlines
– POCs
– Moving average
– Basically anything that can aid that leg D to have a strong reaction.
QNA Session