The Harmonic Pattern is so popular and most people agree it really works !!
Many of Harmonic Trading topics are full of succesful screenshots of Patterns like Gartley, Butterfly, Bat ...etc. What about the opposite, the invalidated (also called failed) ones ?
Well, in fact Harmonic Pattern success rate is only about 80%.
I'll start posting some of failed cases and then I will show how to avoid it.
Following examples present invalidated/failed patterns:
This is an emerging Bullish Gartley Pattern, deteced by one Harmonic Pattern Indicator, price was supposed to go up after the pattern is displayed
.. what really happened afterward, price continue went down and the Pattern expand it's right wing and failed eventually
That's why we need an extra confirmation oscillator to increase the successful ration of the pattern, it will filter out failed pattern and also reduce the number of potential trades. But as veteran traders Sive Morten has taught: "...Trader should better accept losing trading chance than losing trading capital..".
Here is an overview of the whole system :
All Signals are generated consistently with the Emerging Harmonic Patterns and help you confidently enter the trade without worrying it would fail
Another successful case :
This Super Oscillator is extra free, provided at FXCM Blog
This post has been edited by Nicole: May 22 2013, 10:46 AM