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Thread: disadvantages and drawbacks of Harmonic patterns trading

  1. #1
    Wizard
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    disadvantages and drawbacks of Harmonic patterns trading

    We have started new mini project to discuss and conclude on:
    the benefits and the disadvantages of the harmonic patterns trading

    The list of Disadvantages of Harmonic Trading:
    1. Clear rules for entry and SL level, so easy to manipulate and take traders SLs before the run in proper pattern direction
    2. Too many patterns everywhere, difficult to focus on quality and highest probability ones
    3. Possibility to have conflicting signals from different timeframes
    4. Very technical
    5. Requires time and experience to build Fibonacci clusters and measure swings relations
    6. Identify good pattern location
    7. Predicting when a pattern/swing extension will happen
    8. Harmonic patterns are often described in www materials and books as Price relations between swings, but no Time rules are defined nor provided.
    9. Many patterns fail, and/or morph into another pattern.
    10. Risk / Stop Loss levels are much better defined than Take Profit levels.
    11. People invent new patterns and pattern names, without proper understanding of the nature of the HT and HT patterns.
    12. Too many Fibonacci ratios, not easy to locate the PRZ.
    13. Too many Fibonacci ratios, mass on the chart after applying all of them.
    14. Price retraces outside of the PRZ when Time factor or pattern location is not used properly.
    15. Internet flooded with "HT creatures"
    16. Trading trainers choose Harmonic Trading as it's easy to talk loooong hours and days about Fibonacci, ratios, patterns, PRZ, etc, etc.
    17. Low quality harmonic patterns indicators on the www, commonly used by newbes.
    ... more to be added SOON
    Last edited by kor4x; 11-02-2013 at 07:05 PM.
    dezire likes this.

  2. #2
    Wizard
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    just to update, we have reached the 12 valid advantages and 12 practical disadvantages (difficulties) of Harmonics trading, but we will keep them in the discussion group for now. Thanks to everyone who contributed here.

  3. #3
    Senior Member
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    I do not see the 12 of any... Why am I supposed to do something else, than learning, or contributing to this community site???
    What is this all about? Do you here have a value proposition for participating?
    Just to clarify my pioint, I am on this site to learn, and maybe share my limited experience ...this " go and do that" approach stinks...
    Do you have to share sthg, then share it, if not, pls do not drag into the advertising business! It is just my view, can be wrong, or can be right of course as anything based on the random walk of the market theory .
    So, I do not see any added value of this post... DO YOU?
    If there is none, why do you not scratch it?
    However I do think it was a very good topic, but no idea, how to revive it.

  4. #4
    Wizard
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    :-) ....
    We had a group of people that participated into it and the results where shared within the group only. Simple rules. We are not helping lazy traders that come just to GET without putting any efforts. Not fair.
    btw: There is no "business" here, as you see all was and is free on the site. Free in terms of $$$, ...but not anymore free in terms of efforts.

    love
    Roy likes this.

  5. #5
    Senior Member
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    Quote Originally Posted by kor4x View Post
    :-) ....
    We had a group of people that participated into it and the results where shared within the group only. Simple rules. We are not helping lazy traders that come just to GET without putting any efforts. Not fair.
    btw: There is no "business" here, as you see all was and is free on the site. Free in terms of $$$, ...but not anymore free in terms of efforts.

    love
    Any news for helping? So what can anybody learn here? Pls help and advice! Any progress here? Thanks a lot for any good help!

  6. #6
    Wizard
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    regarding Disadvantage #1, here is a good example: disadvantages and drawbacks of Harmonic patterns trading-harmonic-trading-take-stops-run-2013-11-02_1901.png
    z32300zxtt likes this.
    Harmonics Tube - daily trading setups based on harmonic patterns
    Forex Harmonic Trading - Harmonic trading practical tips, tricks and hints
    AMPmonitor - harmonic and price patterns recognition Scanner that I use
    TradingArsenal Quiz project - best edu material regarding the Harmonic Patterns Trading

  7. #7
    Junior Member
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    also:
    Lack of backtested stats for each pattern completion vs failed vs stop hunted patterns
    z32300zxtt and agora like this.

  8. #8
    Junior Member
    Join Date
    Nov 2013
    Posts
    10
    also:
    Lack of backtested stats for each pattern completion vs failed vs stop hunted patterns

  9. #9
    Junior Member
    Join Date
    Nov 2013
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    1
    Quote Originally Posted by kor4x View Post
    We have started new mini project to discuss and conclude on:
    the benefits and the disadvantages of the harmonic patterns trading

    The list of Disadvantages of Harmonic Trading:
    1. Clear rules for entry and SL level, so easy to manipulate and take traders SLs before the run in proper pattern direction
    2. Too many patterns everywhere, difficult to focus on quality and highest probability ones
    3. Possibility to have conflicting signals from different timeframes
    4. Very technical
    5. Requires time and experience to build Fibonacci clusters and measure swings relations
    6. Identify good pattern location
    7. Predicting when a pattern/swing extension will happen
    8. Harmonic patterns are often described in www materials and books as Price relations between swings, but no Time rules are defined nor provided.
    9. Many patterns fail, and/or morph into another pattern.
    10. Risk / Stop Loss levels are much better defined than Take Profit levels.
    11. People invent new patterns and pattern names, without proper understanding of the nature of the HT and HT patterns.
    12. Too many Fibonacci ratios, not easy to locate the PRZ.
    13. Too many Fibonacci ratios, mass on the chart after applying all of them.
    14. Price retraces outside of the PRZ when Time factor or pattern location is not used properly.
    15. Internet flooded with "HT creatures"
    16. Trading trainers choose Harmonic Trading as it's easy to talk loooong hours and days about Fibonacci, ratios, patterns, PRZ, etc, etc.
    17. Low quality harmonic patterns indicators on the www, commonly used by newbes.
    ... more to be added SOON
    wow! There's a lot more disadvantages coming ..

  10. #10
    Wizard
    Join Date
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    if you have some suggestions feel free to post here.
    Harmonics Tube - daily trading setups based on harmonic patterns
    Forex Harmonic Trading - Harmonic trading practical tips, tricks and hints
    AMPmonitor - harmonic and price patterns recognition Scanner that I use
    TradingArsenal Quiz project - best edu material regarding the Harmonic Patterns Trading

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