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Using Harmonic Pattern with Trend Following System

Harmonic Pattern as system is known for finding possible reversal zones and hence assist in swing trading. But, most effective way of using harmonic patterns is in trend following. This can yield really amazing results when played with proper risk management.

Conditions

In trending market
Established trend followed by pattern

Trade Settings

Enter on breaking out of pattern with 100% recovery
Exit can be placed at farther distance or can also use trailing stop after certain profit.
Need to be cautious on short trades as expectation of high risk reward may end up in negative territory. (Lowest price can be 0)

Advantages

Very high risk reward. Even with less number of wins, can get very high reward.
Less slippage and commission
Simple to trade and takes less human effort.

Disadvantages

Lower win ratio. (Does not impact profit)
Longer trades need more patience

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