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4 Harmonic Patterns Every Trader Should Know ๐Ÿ“š

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Hey traders,


In this post, we will discuss 4 phenomenally accurate harmonic patterns that you must know.


1๏ธโƒฃThe first and the simplest harmonic pattern is called ABCD pattern.


This pattern is based on 3 legs of a move:

โœ”๏ธInitial impulse (bullish or bearish). AB leg

โœ”๏ธRetracement leg with a completion point lying within the range of the initial impulse. BC leg.

โœ”๏ธSecond impulse with a completion point lying beyond the range of the initial impulse (it must have the same direction as the initial impulse). BD leg


Equal AB and CD legs indicate a highly probable retracement from D point of the pattern.

โ—๏ธPlease, note that the time horizon and the length of the impulses must be equal.


2๏ธโƒฃThe second harmonic pattern is called Gartley Pattern.


This pattern is based on 4 legs of a move and has a "W/M" shape form.


To identify a Harmonic Gartley Pattern we measure the retracement of B/C points with Fib. Retracement tool and extension of D point of a harmonic pattern with Fib. Extension tool:


โœ”๏ธ - The retracement of B point should lie between 0.618 level and 0.786 level of XA leg (Fib. Retracement of XA)

*it can touch both 0.618 and 0.786

โœ”๏ธ - The retracement of C point should lie between 0.618 level and 1.0 level of AB leg(Fib. Retracement of AB)

*it can touch both 0.618 and 1.0

โœ”๏ธ - D point should lie strictly on 1.272 extension of AB leg (Fib. Extension of AB)

*it should strictly touch 1.272


Such a formation indicates a highly probable retracement from D point of the pattern.


3๏ธโƒฃThe third harmonic pattern is called Bat Pattern.


This pattern is based on 4 legs of a move and has a "W/M" shape form.


To identify a Harmonic Bat Pattern we measure the retracement of B/C/D points of a harmonic pattern with Fib. Retracement tool:


โœ”๏ธ - The retracement of B point should lie between 0.5 level and 0.618 level of XA leg (Fib. Retracement of XA)

*it can touch 0.5 but it canโ€™t touch 0.618

โœ”๏ธ - The retracement of C point should lie between 0.618 level and 1.0 level of AB leg(Fib. Retracement of AB)

*it can touch both 0.618 and 1.0

โœ”๏ธ - The retracement of D point should lie strictly on 0.886 level of XA leg (Fib.Retracement of XA)

*it should strictly touch 0.886


Such a formation indicates a highly probable retracement from D point of the pattern.


4๏ธโƒฃThe fourth harmonic pattern is called Cypher Pattern.


This pattern is based on 4 legs of a move and has a "W/M" shape form with C point lying beyond the range of XA leg.


To identify a Harmonic Cypher Pattern we measure the retracement of B point with Fib. Retracement tool and extension of C point with Fib. Extension tool:


โœ”๏ธ - The retracement of B point should lie between 0.382 level and 0.618 level of XA leg (Fib. Retracement of XA)

*it can touch both 0.382 and 0.618

โœ”๏ธ - The extension of C point should lie between 1.272 level and 1.414 level of XA leg(Fib. Extension of XA)

*it can touch both 1.272 and 1.414

โœ”๏ธ - D point should lie strictly on 0.786 retracement of XC leg (Fib. Retracement of XC)

*it should strictly touch 0.786


Such a formation indicates a highly probable retracement from D point of the pattern.



๐Ÿฆ‰What is good about these patterns is the fact that they are objective.

Since each point of the pattern is measured with Fibonacci levels, one can avoid subjectivity.


Try harmonic pattern trading and you will see how efficient this strategy is.


Do you trade harmonic patterns?

โค๏ธPlease, support this idea with like and comment!โค๏ธ

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