Tuesday, July 3, 2018

Why Swing Trade the Harmonic Pattern Make Sense Part 2

Harmonic Pattern is a not every day signals for higher time frame. I am not using lower time frame because of bad results and I give up day trading anyway.

Harmonic Pattern in a trending or volatile day always give so many counter trend signals especially in lower TF. If you trade it blindly, high chance you will lose more than profit as you trade against the market sentiment.

Harmonic Pattern rarely give a comfortable trades. It feels like we buy when price going down and vice versa. And if it goes wrong, you got stopped out very quickly.

So with all advantages, then why Harmonic Pattern is a good choice for trading? One simple answer is because it forced you to be disciplined and methodical. In another word because it change My Trading!!

With Harmonic Pattern, no overtrading. No Pattern No Trade. Simple

With Harmonic when market not moving, very few signals and most of it not valid. Another no overtrading.

With Harmonic no need to trade every day. No Pattern No Trade.

With big RR of profit and losses, you can sustain many losses even with 30% winning ratio you still make money.

Confluence with other pattern like Channel and Pivot Points to filter pattern. We can create methodical trading system that even beginners can trade.

Harmonic works usually 2 or 3 days after big events or big moves. So no urge to chase the market. Keep calm and be patient. Another good ease of mind.

Combined with fundamental analysis we can create a powerful technique to trade when the big banks accumulating positions. The best feeling when we can enter early of the trade.

Swing Trading means waiting for days for the trade to reach TP. We can manage the accounts with lots adjusting. Big SL means small lots. I believe swing trading will avoid the stop hunter and algos since the target is too far away.

Harmonic is combination of fibonacci confluence. Adding with another confluence like sentiment, pivot, and trend will boost the success rate to another level.

In conclusion, Harmonic is not a stand alone indicator. It is the essential but cannot be used alone. So far it works for me. Big pips target, no stress trading with small lots, and focus not how much money we make but more at trading rules and percentage.

Next time I will update more and more awesome setup like I did when shorting EJ on Monday and long Gold yesterday. It is all based on so many confluence in one trade that me myself don't have other choice but to trade the setups.


  

1 comment:

  1. Harmonic price patterns are precise, requiring the pattern to show movements of a particular magnitude in order for the unfolding of the pattern to provide an accurate reversal point.

    Regards,
    Cherryjoy
    MMF Solutions

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