Harmonic Currency Pair Cross Index | Currency Futures

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Harmonic Currency Pair Cross Index

  #4 (permalink)

Edmonton, Canada
Posts: 187 since Apr 2011
Thanks: 12 given, 162 received

Fat Tails,

Four (4) of the beautiful things that I like personally about these kinds of patterns, is precisely what Larry, just stated:

1) They are leading indicators/signals. So, they do not lag the market like traditional indicators and you get near instant feedback about whether or not your entry level was good or not.

2) Their entire existence is predicated on pre-calculated price levels (Ratios) that can be known well in advance of the market's arrival at those levels. So, the trader has time to objectively note the conformity of the pattern before making an entry decision.

3) These patterns do not put the trader on the "side lines" during horizontal markets. You can trade these patterns straight through Bull, Bear and Flat markets - which leads to number 4.

4) These patterns give the trader a heads-up on whether the observed time-frame is in its Bullish, Bearish or Horizontal phase and they also indicate whether the market is Contracting or Expanding in Magnitude.

Harmonics, basically expose the flaws hidden in traditional trend trading, by showing the trader that trends are really just part of a larger Harmonic leg in one or more time-frames.

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