Thread: Different Confirmation Techniques for Harmonic Patterns

1. Originally Posted by Samtastico
Do anyone have a confirmation technique that has been tested on fast moving markets with wide ranging bars?
Samtastico,

I've just started reading the forum threads on the recommendation of one of my colleagues, and I'm enjoying it because I was brought up looking for patterns like the Gartley when I first started trading.

One of the tools that work well with fast moving markets with wide ranging bars that we've had success with is the Flux. It's based in large part on predictive time cycle pattern analysis, using the historical data of a given market and time frame, (say the AUD/USD 15, or the EURGPY 60 for example). The software displays the highest probability time cycle turning times and projects those forward. When that candle opens (or closes, depending on the platform) the Flux draws a corresponding dot above/below and colors it based on the predicted direction of the time behavior cycle. So like the harmonic pattern, you have an expectancy of the move, and it's direction. (the Flux cycle times are known 6-7 days in advance of the move).

I find the concept of combining the real time price pattern with a predicted time cycle fascinating. I'm curious to read more on here and learn how to incorporate the two.

Here's an example of the cycles drawn on the AUDUSD 15. You can see what happened at the predicted times. Would this be useful to someone like you?

2013-01-16_1651 - VideoLibrary's library

2. Has anyone tested the RSIBAM entry confirmation by Scott Carney?

3. So if you had to choose your top 3 confirmation techniques for harmonic trading what would they be?

4. I recommend, you choose the ones you understand best and make best sense for you.

5. Personally I like.
RSI , Supply & Demand and price action in the PRZ.

6. I believe an excellent addition to the confirmation section would be pattern location relative to larger patterns. Eg the location of a Gartley in the BC leg of a larger abcd pattern.
Or a smaller butterfly Pattern at the end of a larger abcd pattern.
I think this would be fantastic.

7. Hi Samtastico,
How about looking left and seeing if the reversal pattern starts at a point of resistance or support? That, together with volume, should give good indication of the chances of a successful trade.

Cheers,

Mike

8. Originally Posted by blott
Hi Samtastico,
How about looking left and seeing if the reversal pattern starts at a point of resistance or support? That, together with volume, should give good indication of the chances of a successful trade.

Cheers,

Mike
Blott that is true but the right pattern location enables you to have lager profit targets thus providing a great risk reward ratio and to trade with the prevailing larger pattern.

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