Introduction to Harmonic Pattern Plus

the Harmonic Pattern Plus indicator, made to work in MetaTrader 4, looks for harmonic patterns on the graph. The Harmonic Pattern Plus program is designed to ascertain the change points of the current tendency – it locates harmonic patterns with high predictive power. Harmonic patterns consist of several lines linked by important Fibonacci ratios, such as 0.618 and 0.382, which are often used by professional dealers to measure the price breakout level.

Such harmonic structures are constantly formed in the financial markets and often such patterns are followed by big trend reversals. These versions have proven to be effective in pinpointing pivot points in use by professional traders for more than 50 years. In addition, many statistical studies point to strong predictive capabilities of harmonic models. These models work well in the forex market and show an excellent profit-risk ratio. This program contains many useful features for full-time traders and those who trade from time to time. This style of trading with strict risk control is also suitable for investors working with serious money.

Useful information about Harmonic Pattern Plus

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• The Harmonic Pattern Plus indicator automatically draws the Fibonacci retracement levels. Therefore, you can simply place your take profit and stop loss according to this level. Note that the drawing of the Fibonacci retracement line can also be disabled.
• You can select the number of harmonic patterns to be displayed on the chart. Sometimes too many models on a chart can be distracting, but a small number of models is less informative. So you can configure this parameter as you wish in the properties window (default = 3).
• All found harmonic models can be displayed in the expert journal or recorded in a text file. This option is configured in the input variables. When you enable recording of all harmonic models, a file will be created in the terminal folder of your MetaTrader.
• By default, all bearish patterns will be colored dark pink, and all bullish patterns will be colored blue. You can change this setting in the input variable.

Information for beginners: what is a harmonic model?

The harmonic model was first used by H. M. Hartley, and the Hartley model was introduced in his book Stock Market Profits in 1935. Since then, professional traders have improved the pattern and found other profitable patterns. Another useful source on harmonic model trading is Scott M. Carney’s book, Harmonic Trading (Profiting from the Natural Order of Financial Markets). Each harmonic pattern consists of a set of lines connected by Fibonacci numbers. Therefore, harmonic structures are considered as a natural representation of the reaction of traders and a reflection of the psychology of traders.

• Butterfly
• Hartley
• Bat
• Alternative Bat
• AB=CD
• Shark
• Crab
• Cipher
• Models 5-0

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