Introduction to Harmonic Pattern Plus
Harmonic Pattern Plus is a Harmonic Pattern scanning software designed to work in MetaTrader 4. The purpose of the Harmonic Pattern Plus Software is to identify the turning point (or the trend reversal point) of the current trend by detecting the harmonic patterns with high prediction power. Harmonic patterns are made from multiple lines joined with significant Fibonacci ratios such as 0.618 and 0.382, which are used by many professional traders to gauge the price breakout level.
These harmonic patterns repeatedly occurs in the financial markets and the big trend reversal often follow after these patterns. These patterns were proven to accurately identify the turning point by many professional traders for more than 50 years. Also many statistical studies show the significant prediction power of harmonic patterns too. These patterns work well in the Forex Market and the risk reward ratio is great. The software has many useful features for full time and part time Forex traders. This type of a tight risk controlled trading style is also suitable for investors with serious money.
Main Feature of Harmonic Pattern Plus
- This software can send an email to you when Harmonic pattern is detected on any charts. So even when you are outside, you can be still notified and trade as long as you have a small laptop with you.
- You can attach this Harmonic Pattern over many different charts as the scanning times are pretty quick. Recommended timeframe is M15, H1, H4 and D1.
- The software will identify the significance of the Harmonic pattern using the size of pattern. You can immediately decide if it is tradeable pattern or non-tradeable pattern when you are notified.
- The software saves historical patterns over the past price data in the memory and you can bring the historical patterns on chart and build your own strategy using these historical patterns. This can be readily done by changing Max number of patterns to display variable in the property window.
- Automatic channel drawing function and the channel can be used together with harmonic patterns for more accurate decision making.
- Without too much tweaking or with default setting, the software is ready to use.
Note that each Harmonic pattern, channel and Fibonacci retracement level are independently built into the software. Therefore, you can switch off any of them if you don't want to see them on the chart. Also each variable description can be read from the indicator property window. To use the email notification, you need to enable the email notification in your MetaTrader 4 terminal. There is a good article on how to set up your email account with MetaTrader 5 terminal at https://www.mql5.com/en/articles/80.
Other Useful Information about Harmonic Pattern Plus
- The Harmonic Pattern Plus automatically draw Fibonacci Retracement level. Therefore the trader can just place their take profit and stop loss according to this Fibonacci Retracement level. Note that drawing Fibonacci Retracement level can be also switched off by user.
- The trader can decide how many harmonic patterns to display in the chart. Sometimes showing too many patterns can be distracting but showing too little pattern can be less informative. You have an option to change this in the property window (Default = 3).
- All the found harmonic patterns can be either printed in the expert journal or written on the text file. You can set this option using input variables. If you set to write all the harmonic patterns, then the file will be generated on the terminal folder of your MetaTrader platform.
- As a default, all the bearish patterns will be colored in dark pink and all the bullish patterns will be colored in blue. The trader can change this setting using input variable.
How to use Harmonic Pattern Plus for your profitable trading
There are many different ways to trade using Harmonic pattern. Normally when the pattern is formed, you can take a quick profit first and then exit. In the second entry, you will use moving average and you will enter the market when more solid trend is formed. In your thrid entry, you place multiple of orders according to moving average signal as the trend is developed and in this timing you will use the momentum strategy to catch the large trendy movements. For a good rally market, you will have a chance to place your orders for first, second and thrid entries. This will give you an opportunity to buy on the very bottom and sell it on near the top. You are supposed to attach this "Harmonic Pattern Plus" software to multiple of charts. I personally attach this Harmonic Pattern Plus indicators on 30 different hourly and 4 hourly charts and wait for the good signals. I get notified even I am outside as the "Harmonic Pattern Plus" will send you email for newly formed harmonic pattern. You will get at least more than 5 trading opportunities a day. If you want to find out more about how to trade using harmonic pattern, please send me a private message. This is a great trading strategy and even beginner can use it well.
Information for beginners: what is Harmonic Pattern?
Harmonic Pattern was first used by H.M. Gartley and the Gartley pattern was introduced in his book "Profits in the Stock Market with Charts" in 1935. Since then many professional traders improved and found other profitable patterns. Another useful source for harmonic pattern trading is the Scott M. Carney's book, Harmonic Trading (Profiting from the Natural order of Financial Markets). Each harmonic pattern consists of many lines joined by Fibonacci number. Therefore the harmonic patterns are considered as natural representation of trader's reaction and reflection of trader's psychology.
With the observed statistical significance and with the proven profitability by many professional traders, you should be very attentive when the harmonic pattern is formed in your chart. The harmonic pattern will provide the good turning point (trend reversal point) providing you the opportunity to enter the market a way quicker than other traders. Therefore your reward is often far greater than your risk. The Harmonic Pattern Plus software can detect most of known Harmonic patterns discussed by many professional traders and currently 9 different harmonic patterns can be detected using Harmonic Pattern Plus software. These 9 different harmonic patterns were selected by author as they tend to outperform other patterns, as well as they have longer history than other patterns. The 9 harmonic patterns are:
- Alternate Bat
- 5-0 patterns