Harmonic pattern and Eilliot wave theory-- Advanced technique!

Hi traders,

I'm a full-time traders and trade Harmonic patterns and Elliot wave theory. I want this thread to be a place to share our harmonic setups and elliot wave counts. Especially, I will give all of traders here the insight or power behind the COMBINATION of Harmonic patterns and Elliot wave theory. ( Profit can be 1000 pips for a trade)

The techniques used in this course are at advanced level so I would recommend any new traders to practice each technique (Harmonic pattern and Elliot wave theory) separately first before trying this one. Below are the resources where you can learn about these techniques:

Harmonic patterns:
+ Bat Pattern: http://financialwhirlpool.com/index....ic/bat-pattern
+ Gartley Patern: http://financialwhirlpool.com/index....rmonic/gartley
+ Butterfly pattern : http://financialwhirlpool.com/index....onic/butterfly
+ Cypher pattern: http://financialwhirlpool.com/index.php/harmonic/cypher
+ Crap pattern : http://financialwhirlpool.com/index.php/harmonic/crab
+ Deep crap pattern: http://financialwhirlpool.com/index....onic/deep-crab
+ Shar pattern : http://financialwhirlpool.com/index.php/harmonic/shark
+ Trade execution: http://financialwhirlpool.com/index....-profit-target
+ Pattern failure: http://financialwhirlpool.com/index....attern-failure

More harmonic pattern setups and examples can be found here : http://financialwhirlpool.com/index....gory/forex-bat
I would recommend this book :

Elliot Wave theory :
I would recommend this book : http://www.amazon.com/Elliott-Wave-P.../dp/1616040491
Elliot wave will be a very hard technique to grasp but when you understand it, you will see its power.

Our Technique:

We will use the combination of Harmonic pattern and Elliot wave theory in your trading. Below is the step
1. We identify the Elliot wave count in our currency.
2. We spot wave 3 and 5.
3. We identify harmonic patterns that have a PRZ coinciding with the end of wave 3 or 5 or both and take the trades. Below is an example on AUD/USD h4 chart with 2 Butterfly pattern




The harmonic pattern might only appear at the end of wave 5 but not wave 3 or vice versa. Luckily we have both in this case. When harmonic patterns show up at the end of wave 3 or 5, we have a perfect setup to trade. Especially at the end of wave 5, a trade can catch all wave A-B-C and profit hundreds of pips. Trade at the end of wave 3 will be a bit risky but sometimes it gives us a very nice reward. Of course, identify when wave 3 or 5 ends is extremely difficult. But with the help of harmonic patterns, it become possible and very profitable.

If you would love to receive some training on Harmonic pattern + Elliot wave or Forex in general, I find a 3-month program here. It will use THomson Reuters EIkon in teaching which can give you insight into the world of professional traders. The information can be found here: http://financialwhirlpool.com/index.php/forexcourse


This thread is not a place to ask about the experience or profit of a professional traders so please don't ask it here.The techniques used in this thread are at advanced level so I would recommend any new traders to practice each technique (Harmonic pattern and Elliot wave theory) separately first before trying this one. I hope you guys enjoy the technique. If you do, please leave a comment and we might continue to discuss harmonic patterns and Elliot wave theory here.

Harmonic07,

thanks for sharing

Hi @Ren1058
Thank you. Here is my view on EUR/JPY now. I made 600 pips trading the Bat pattern at the end of wave 3 two weeks ago. Now it has finished wave 5 I think.

Interesting thread.....subscribed....

Hi Dilmeshsingh, thank you for your interest. As you might notice, this setup is extremely selective and profitable. We don't need to trade much to make profit. The less we trade, the less we subject to error and commission (spread). I can give one more example of this setup here: I made 1000 pips selling wave 5 of Usd/jpy with the Deep Crab pattern. The special about this wave count is that Wave 4 is a triangle and the PRZ of Deep crab pattern coincide with the target of that triangle!!! I remember this trade, after the Non-farm came out strong for the US. It immediately reach the target. Despite the strong NF data, I entered short this pair



Zoom in the deep crap pattern:

Hi Harmonic07, I completely agree with you. However, you have stated that this pattern is most probable/profitable in 5th wave. So, a trader must have the knowledge to count the first three waves properly. I mean it will need some good practice. Also, does the success rate change too much in lower time frames, say in 4hr or 1hr? Its really a very nice concept. Thanks a lot for sharing.

Hi Dilmeshsingh, technically speaking, it doesn't make any different in any time frames. However, I find the higher time frame more reliable and more profitable. The problem with lower time frame is that the market doesn't have time to absorb the liquidity. The forex market is just too volatile !! Plus, spread and slippage will eat up your profit significantly on lower time frame.

Regarding the Elliot wave count, I agree this is a very difficult topic to master. However, You can obviously spot a the Fifth wave easier than the 3rd wave. The more the waves unfold, the easier you can spot it. The trick here is to identify a short wave 1, then followed by wave 2 retracement, which normally retrace more than half of wave 1. Then wave 3 is SUPER STRONG and you can spot it easily. Wave 4 is normally a triangle or flag following wave 3. Then wave 5 comes in and you have your chance. Remember the characteristics of each wave will help you identify wave 5 easily. The easiest thing to look at is wave 3 - very long and strong. From there, you can deduct others wave to trade !!

Hope it helps

Hi Harmonic07, Wise words!! You are sharing some really good work. Would love to see some more examples to get a better feel of this method. Great thread!! Many thanks.

Sure. Let me show you 1 more. This setup is a small but powerful one. AUD/USD with a BAT pattern. The special thing about this setup is that wave 5 is "truncated", which means it didn't pass wave 3. Normally we wouldn't expect it. But with a Bat pattern, it is possible now.



Zoom in the BAt pattern:



This technique requires extensive knowledge in Elliot wave count. Also, you will need to be very good at harmonic trading That's why this is not for a newbie. It requires a lot of practice. There are tons of "simple" system on this forum but as you might expect, most of them do not work. If it's that simple, there will be no 90% forex traders burn their accounts in 90 days.!!

May I ask how many trades u take on a weekly/monthly basis on average. Do you have a program to create the patterns or do u draw them yourself?

Thx

Hi there, welcome to Forexfactory. With this technique, I normally take 3-4 trades a month. My profit target for each trade is around 600- 1200 pips. With this technique, I trade long-term and hence don't need to sit in front of the computer all day.

I don't use any program or software to identify pattern as I find it not as accurate as my eyes. Sure you can try some automated software which help identify Harmonic patterns. However, with Elliot wave count, there is nothing can help you. You need to practice on your own, train your eye and be patient. Trust me, you can master all of it if you really want to. I can spot pattern in seconds so I don't need any software to help me then.

do u have any open trades at the moment? or any possible ones?

Here is my long position at the butterfly pattern. Sorry I can't show you the order as it is for my fund and my client. They will be exposed.

AUD/USD - Butterfly pattern at the end of wave 5 gives us a perfect Buy position

Current wave count on Oil. Looking for short opportunity with Harmonic pattern

Oil is running wave 5 right now

Update on Oil

http://financialwhirlpool.com/index....-about-oil-now

thx

Thanks for introducing the idea of enhancing Harmonic with Elliot, or vice versa. Sound, proven and high probability skillset to enhance a trade is valuable.
I wish to learn if statistics such as success rate of different harmonic...stand alone or in combination with Elliot, in different time frames.

It's almost impossible to tell the exact Stats for each pattern. However as indicated in the Harmonic section, you have a way to trade a failed pattern as well.

Seems as soon as the Designation Commercial Trader is Applied the individual Loses interest. How about charging a fee as does Linked In and Twitter--Com X?