Euro/ Pound Scott Carney's/ Divergence Software Harmonic Scanner---Possible Product Review---
Okay, I have some serious mixed feelings today. I dont typically trade on mondays as today is the shake up of the market from the weekend and people's emotions from the market. So, I thought I would buy Scott Carney's harmonic scanner for trading view. the software was very pricey and i honestly had i very high hopes for the software. i wanted to use the software for the smaller time frames like the 1 minute and 5 minute interval as it takes a while to chart the patterns properly just so i could add a few more trading oppritunities to my day.
here we have the pattern software pick up a bat pattern on the euro pound. Im very picky about my patterns, especially my anchor legs as those are going to be the frame for the patterns backbone to build off (the abcd pattern).
i like my anchor legs to be significant swing high/ low points as they provide great areas of S/R levels as well. the swing points printed on the screen are 27 and 88. that means 13 or 44 candles must print either lower highs or higher lows prior to the swing point and the same after in inverse order as they happened coming up to the swing point. the softwares algorithm is picking up XA points in some random spots which i think is causing alot of the patterns to be invalid before the pattern is even completed.
Now, I understand this is Scott Carney's lifes work, trading career wise, and im a self taught student of his teachings straight from his books. i just bought the 3rd volume and it answered a ton of questions i had and filled in a lot of gaps. i wish i had the old patterns i had drawn up previously when i first encountered his work and tried to mimick it on my profile so you can see the progression. so, no way am i saying this stuff is wrong im just saying it seems the software is printing in random spots that seem to fit a coding argument.
So, now the pattern. here is a bat pattern with the anchor leg coming off the bottom of brief consilidation period and bit of a over reaching wick For a bat pattern even with the +/- 5% spill over (introduced in his 3rd book) for the "B" point but PA closes above the 50 which is something i started to consider in my trading and was calling those spill over patterns "Dirty," becasue in his previous boks the measurements were to be precise; however, through my own analysis i noticed the patterns i did not chart but later did were successful. So much so it could not be chalked up to randmoization but not freuent enough to be considered a pattern revision.
The "C" point is also a bit odd in placement. as you can see in my pattern i chose the higher swing point which in turn when drawing the abc extension it will cast a 1.27 (an alternate abcd pattern ratio) closer to the xa 886 which is also closer to a major support area which could and has served as a great area for PA to rest and rebound off.
Overall in the future i will post patterns printed by the software, but only the ones i feel like meet my stringent criteria. Again in scotts older books and videos he strictly says not to trade every pattern, and only trade the best ones and what im going to post are only the best ones on the 60m and higher.
I cant post lower than the 15, and i probably wouldnt if i could, because hey i need to keep a little for myslef :P
long post im sorry but i hope it was helpful!
