How to use the best candlestick patterns in Forex trading ?

How to use the best candlestick patterns in Forex trading ?
Table of contents
  1. Important Harmonic Price Patterns in Forex
  2. The steps to trade with the Harmonic price model ?
  1. Step 1 : Identification of potential harmonic patterns :
  2. Step 2 : Measure the Fibonacci ratios :
  3. Step 3 : Enter the trade or stay out of the market :

For traders who follow the price action school, he is probably no stranger to price or candlestick patterns. Indeed, price patterns have become very common in the trading process when they provide security to traders. The following article introduces you to the price patterns to use in Forex trading in Harmonic and its steps.

Important Harmonic Price Patterns in Forex

Above all, it must be remembered that harmonic price patterns are classified in the advanced group due to their rather complex nature. Not only must there be special shapes through visual observation, but the harmonic patterns must also be determined with precision the proportions of lines and edges that form these special shapes. If you also want to know the best technical patterns on patternswizard, click on the site. It should be known that when the model is properly defined, its commercial effectiveness will be immense. However, there are many variations of the original Harmonic pattern. Among them, there are important and commonly used patterns in Forex trading. These include :

  • Gartley ; 
  • Bat ; 
  • AB=CD ; 
  • Three discs ; 
  • Butterfly ; 
  • Crab.

The steps to trade with the Harmonic price model ?

The process of trading with harmonic patterns can be divided into 3 stages as follows :

Step 1 : Identification of potential harmonic patterns :

With observation of the behavior, the movement of the price on the chart, you can determine whether the price is forming a harmonic pattern or not. All price models have distinctive and evocative shapes so that you can completely observe with your eyes and imagine. Of course, it depends on everyone’s ability to observe and think about the images.

Step 2 : Measure the Fibonacci ratios :

The goal is to ensure that this is exactly one of the harmonic patterns. You use Fibonacci to measure ratios at reversal points in the pattern. To make it easier to compare the measured results and sampling rates on each pattern, you can create a graph of the Fibonacci ratios of the harmonic patterns, as shown below. Then write down the measured ratios on paper and compare.

Step 3 : Enter the trade or stay out of the market :

If the measured Fibonacci ratios match one of the harmonic ratio patterns, you enter the trade after the pattern has just ended or wait for the appearance of the harmonic ratios. Confirmation candlesticks. On the contrary, you should stay out and continue to observe the price behavior.

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