Harmonic Trading Made Easy

Have you heard any recent “buzz” about something called Harmonic Trading or Elemental Trading? Until recently not many people in the investment and trading world were familiar with these techniques. Fortunately, you don’t need to be a mathematician or engineer from employing these highly probably chart patterns as part of your overall technical analysis.in order to get results in your trading

Part of the knowledge now known as harmonic trading began with H.M. Gartley who published a book in 1935 called Profits in the Stock Market. This video illustrates what the original Gartley pattern is and how this pattern as well as the more recent discoveries can be easily employed in your trading business in Forex, stocks, commodities, and futures.

When a pattern forms with specific high and low proportions that are measured with fiboncacci ratios it has been discovered that these patterns will be followed by a “potential reversal zone” which creates a highly probably trading opportunity. Besides the original Gartley pattern including the bullish Gartley and bearish Gartley, there are patterns discovered more recently by Scott Carney in 2000 and 2001. Carney is credited with discovering and researching these patterns including the bullish bat, bearish bat, bullish crab, bearish crab, Traders who are familiar with Elliott Wave will also see how these patterns correspond to Elliott Wave patterns but are a specific type of pattern that is known to be highly probably for producing a turning point and a trade entry that is likely to work out as a profitable trade.

The structure of the Butterfly pattern was discovered by Bryce Gilmore. The butterfly includes a 78.6 Fibonacci retracement of the XA leg as the B point. The CD leg is extended to 127% or 161.8% of AB.

These patterns have now been incorporated into an indicator for Metatrader 4 which draws the pattern clearly on the chart when it forms and produces a trading alert which can be emailed or sent as SMS text to a cell phone. At least one company other than Scott Carney’s company is now selling the indicator with some training and support while a Russian developer has been making a free version available. For information on what really works in Forex trading go to www.forextradingseminar.com