Introduction to Harmonic Pattern Plus
this Harmonic Pattern Plus indicator, made to work in MetaTrader 5, seems for harmonic patterns on the graph. The Harmonic Pattern Plus program is designed to determine the reversal points of the current trend – it locates harmonic patterns with high predictive power. Harmonic patterns include several lines linked by important Fibonacci ratios, for example 0.618 and 0.382, that are frequently used by professional traders to measure the cost breakout amount.
Such harmonic structures are constantly formed in the financial markets and often such patterns are followed closely by large trend reversals. These models 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.
The main features of the Harmonic Pattern Plus indicator
- The indicator can send you e-mail messages when a harmonic pattern is detected on a chart. This way, even when you are not watching the terminal, you will get a notification about it.
- You can overlay the Harmonic Pattern indicator on multiple charts, as it scans the chart quite quickly. Recommended timeframes: M15, H1, H4 and D1.
- The indicator will determine the significance of the harmonic model based on the size of the found model. You can immediately decide whether to trade on this model.
- The indicator stores historical patterns based on the latest price data in memory, and you can display historical patterns on the chart and build your own strategy using these historical patterns. This can be easily done by changing the value of the Max number of patterns to display variable in the properties window.
- Automatic channel construction function, which can be used together with harmonic models for more accurate decision making.
- The Harmonic Pattern Plus indicator also contains methods for recognizing candle patterns. With more information on hand, it will be easier for you to solve the riddles of the Forex market. Therefore, you should never underestimate the value of additional information.
- The program is ready to use without the need for complex configuration and even with default settings.
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.
Given the statistical significance and profitability tested by numerous professional traders, pay attention to the harmonic patterns formed on the chart. The harmonic model will show the trend reversal point, providing an opportunity to enter the market faster than other traders. Therefore, your reward is often much greater than your risk. The Harmonic Pattern Plus indicator detects the most well-known harmonic patterns. At the moment, it finds 9 different harmonic patterns. These 9 models were chosen by the author because they tend to be superior to other models and also have a longer history than other models. Models used:
- Alternative Bat
- Models 5-0