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USDCAD ADVANCE HARMONICS PATTERN GARTLEY PATTERN USDCAD has formed an advance harmonics pattern Gartley on its hourly chart. The price is trading the EL: 1.36936. ST: 1.36777. target1: 62% XA: 1.37522 79% XA: 1.37798 Target2 127% XA: 1.38590 162% XA: 1.39149 Little about Harmonics : The concept of )armonic 1atterns was established by ).M. Gartley in 2. Gartley wrote about a 5-point pattern (known as Gartley) in his book 1rofits in the 4tock Market. -arry 1esavento has improved this pattern with Fibonacci ratios and established rules on how to trade the “Gartley” pattern in his book Fibonacci 3atios with 1attern 3ecognition. There are few other authors who have worked on this pattern theory, but the best work to my knowledge is done by 4cott $arney in his books of “)armonic Trading.” 4cott $arney also invented patterns like “$rab,” “Bat,” “4hark” and “5-” and added real depth of knowledge for their trading rules, validity and riskmoney management. The primary theory behind harmonic patterns is based on pricetime movements which adhere to Fibonacci ratio relationships and its symmetry in markets. Fibonacci ratio analysis works well with any market and on any timeframe chart. The basic idea of using these ratios is to identify key turning points, retracements and eYtensions along with a series of the swing high and the swing low points. The derived proKections and retracements using these swing points ()ighs and -ows) will give key price levels for Targets or 4tops. )armonic patterns construct geometric pattern structures (retracement and projection swingslegs) using Fibonacci seRuences. These harmonic structures identified as specified (harmonic) patterns provide uniRue opportunities for traders, such as potential price movements and key turning or trend reversal points. This factor adds an edge for traders as harmonic patterns attempt to provide highly trustworthy information on price entries, stops and targets information. This may be a key differentiation with other indicators oscillators and how they work.
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by TradeChartPatternsLikeThePros