Fib Fan could be used as entry point for trading harmonics. They would give a line which you could enter exactly and place a SL of a few pips behind the line. This means your trading will become much more tighter and would be possible to trade using Ratios of 30:1.
I went through many visual backtests for harmonics found this year on M15 and H1 charts and found that the fib fan entry point did have a significant role. It dont think they validate a harmonic setup, if the setup is to fail it will fail and the fib line would be breached.
However I did see that a large percentage of Harmonic setups that did turn on the Fib Fan lines.
Types of Harmonic:
It seems possible to use fib fan on all harmonics. I do have strong preference for Gartley because the pattern is so powerful that it has high success rate. As before the FibFan does not validate a harmonic but is to be used to get improved entry.
How to do it:
Configure Fib fan to include the following extensions: 1.27 and 1.61
For the following harmonic setups : Gartley, BAT, BUTTERFLY CRAB draw a fib fan from point X to point B.
Look at the fib fan harmonic lines and see if they intersect in the PRZ box (for some patterns this will not be the case in which case I would not enter).
Using Fib Fan will help entry for Harmonics providing insane RR, it will result in loosers aswel but you would only loose a few pips.
Last edited by drlobo; 07-25-2012 at 08:18 AM.