Below you’ll find the ultimate database with every single harmonic pattern (and all the other types of technical analysis chart patterns if you are interested: candlestick patterns and traditional patterns). Each harmonic pattern has a dedicated detailed article. Even though these patterns are quite complex patterns, we tried to make it as simple as possible and each article goes into detailed explanation, giving you examples and data. It’ll help you clearly understand each pattern and give you the knowledge and confidence to spot them and use them in real life. No more doubt about what makes a specific pattern and how well it works.
This extensive cheat sheet will definitely give you an edge and let you understand and recognize every pattern. Plus at PatternsWizard, our absolute focus is to bring you data-driven performance statistics. So for most patterns (articles below) you’ll find data about their performance and reliability (how often they confirm, reach the target or stop, how often they appear, …) to adjust your trading strategy.
Harmonic patterns follow very strict requirements
Scott Carney discovered and formalised most of the harmonic patterns of various financial markets. These patterns are a succession of up and down legs (price moves). Depending on the pattern, they are composed of 3 to 5 legs (created by 4 to 6 points). In addition, these legs follow strict mathematical ratios. Fibonacci levels are the main retracement levels used for harmonic patterns. Also, each Fibonacci ratio has a different fundamental to it (like the golden ratio: 1.618).
The Fibonacci retracements or extensions create potential reversal zones. Each pattern takes these notions into their conception with some specificities. For example, the most famous ones are the crab pattern, cypher pattern, shark pattern and many more.
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