Now that you’ve got the basic chart patterns down, it’s time to move on and add some more advanced tools to your forex trading arsenal.
In this lesson, we’ll be looking at harmonic price patterns. These bad boys may be a little harder to grasp but once you spot these setups, it can lead to some very nice profits!
The whole idea of these patterns is that they help people spot possible retracements of recent trends. In fact, we’ll make use of other tools we’ve already covered – the Fibonacci retracement and extensions!
Combining these wonderful tools to spot these harmonic price patterns, we’ll be able to distinguish possible areas for a continuation of the overall trend.
In this lesson, we’re going to discuss the following Harmonic Price Patterns:
ABCD Pattern
Three-Drive Pattern
Gartley Pattern
Crab Pattern
Bat Pattern
Butterfly Pattern
Phew! That’s quite a lot to cover!