Harmonic trading-harmonic patterns

Lots of bearish patterns forming on GJ, GU, EU, and UJ

I totally missed this one on GBP/CHF yesterday morning. I think I was still setting up my charts and had it zoomed out too far. Darn.

Oooooo, I've been salivating over this EUR/AUD chart for what seems like for ever! Come on baby just a little lower.... I haven't traded CRAB yet!

Hey, check out the CHF/JPY chart.

Looks like a Bullish 5-0 pattern has formed inside a Bearish Gartley pattern that is still forming.

This effectively gives us a start zone and an end/reversal zone.

AUD/CAD 1hr chart has a fully formed BEARISH BUTTERFLY right now, also it has formed the first leg of a BEARISH 5-0 pattern. Watch for a reversal - She's in the zone.

Also that EUR/AUD CRAB I mentioned earlier has hit the reversal zone nicely.

bearish harmonic patterns forming on UJ, GJ, EU, and GU

Update on the CHF/JPY: Just pulled a conservative 47 pips off the 5-0 pattern to the Gartley reversal zone!

I hate when it just bounces off the very bottom of the reversal zone and looks like it might turn. Take this NZDUSD example right now. Tough decision!

Same thing with this EURJPY.

Well I gritted my teeth and took the NZDUSD short trade.

Anyone else?

I figure the candle reversals look good even though it barely touched the zone and the R:R ratio is still good since it's a CRAB pattern.

Now I cross my fingers.

Have confidence in your trades, and no worries as long as you use sound money management and good SL, good luck

Thanks Karmo.

I went to bed and woke up to see that the price has formed a perfect mini AB=CD (Bullish) from pretty much where I entered. Doesn't leave me alot of confidence but at least it didn't break above the high of the reversal zone range.


Also there may be a Bearish BAT for the AUD/NZD right now if anyone's interested. Although I would generally prefer the pattern to be better contained within the XA range.

I liked that trade so much that I find myself looking for the 5-0 pattern all the time now!!

I've just suddenly realized that although Scott M. Carney invented this all by himself, the A-B-C-D points could also be Wolfe Wave 1-2-3-4 points!

This is awesome! Previously W.W. point 4 was virtually untradable because the possible reversal zone was enormous (somewhere between point 1 and 2). Now Mr. Carney has given us a very precise zone where we can expect the point 4 reversal and by using W.W. we can TP close to where point 5 should be!

Just FYI, GL!

Whoops, hold that thought.

I just read in another forum, that Mr. Wolfe teaches that his waves should be made up from a converging wedge and not a broadening wedge.

(an extended trendline drawn across W.W. 2 and 4 points should be contracting with a trendline drawn across W.W. 1 and 3 points and not expanding.)

It would appear that the 5-0 is a distinct pattern after all, as I think the A-C and B-D trendlines would mostly form a broadening wedge (given the alotted fibos we're to use.)

bunjow; thanks for posting all the examples. I have been following along.
How long did it take you to get good at spoting the patterns? For me its hard to see them.

Karmo; I have been following your trade journal and Im pretty amazed by how you trade. Good stuff.

Your welcome Numb3rs.
I'm still learning the intricacies myself.

I only just finished reading Scott Carney's 1999 book "The Harmonic Trader" last weekend. Then first thing Monday morning (as soon as I opened my charts) I found that marvelous GBP/USD Butterfly that I jumped in for +133 pips! From then on I was hooked!

That book is the ONLY one that I would say is actually worth purchasing! I have to confess that I didn't buy it, but rather found a copy floating around... I'm seriously considering buying his new books Vol1 and Vol2, although I think that he's already gave the important stuff away and those are probably more trade management kind of stuff.

The NZDUSD CRAB pattern that I'm in right now also looks like it might have a MAJOR Wolfe Wave reversal going for it too!!

I found the posts by "SliverB" most helpful for establishing a reversal zone for the Wolf Wave. Thanks Man!!

Here's the posts I'm talking about:

http://www.forexfactory.com/showthre...e+wave&page=46

http://www.forexfactory.com/showthre...wave#post88246

It seems like the Dollar is going to gain some power next week, Let's enjoy it and hopefully the Fed won't mess it up for us.

Geez, that nzdusd is really pissing me off! Blew right through the rev.zone for the W.W. and now the crab isn't looking so hot...

The EURJPY I posted earlier looks like its in the zone now.

Here are some other possible setups I see as well.

To top it all off, the NZDUSD was also a GARTLEY pattern! Can you believe that?!

Shoot! I slept through an alarm for a great entry!

Check out the price action in the zone... Now that's what we want to see baby!

(In hind site, I think maybe I should have set my alarm for a lower price level anyway, given the action that happened.)