HARMONIC PATTERN INDICATOR META TRADER 4:
The harmonic indicator is an indicator used for most common trends and patterns in the indicator. This indicator also helps to find a triangle that appears in the market trend. It creates geometric price formations it defines the most price points of the market inflexions. It also predicts future price movements.It has specificity that it detects specific price patterns and exact Fibonacci ratios to get the high possibility of trend changings in market level.
Harmonic pattern indicator is a reliable and quite precise indicator. Traders can use this indicator because it gives accurate price movements and detects real changes in the indicator. This indicator is the most profitable. This indicator also gives some false signals because every indicator is not suitable for every trade that is why it also has great advantages advantage of taking profit and stop loss.
The Harmonic Pattern indicator is a custom indicator that is developed in 2014. This indicator is designed for Meta trader 4 platforms and it is also designed for Forex trading system. Different movements of the price trends make patterns in this indicator. This indicator also has a Fibonacci relationship that helps to make accurate patterns.
The harmonic pattern indicator has different types. Some of the types are mentioned below:
- Butterfly pattern
- Bat pattern
- ABCD pattern
- Crab pattern
- Gartley pattern
- Shark pattern
- Cypher pattern
The butterfly pattern is a reversal pattern that shows the movement of current price in the market trend. This pattern is composed of four legs like signals. This pattern allows the traders to enter in high market trends.
The bat pattern is a continuous pattern that appears when a small reversal change occurs in the price movements. It also gives a good opportunity to traders to enter in a good price trend.
The ABCD pattern is a common pattern that gives a rhythmic style in which market trend moves. It is also a geometric shape which is composed of three price swings in the market trend.
The crab pattern is same as butterfly pattern because it shows the reversal pattern of the price changings in the market trend. This pattern also allows the traders to enter in high and low price movements in the market.
The Gartley pattern is a harmonic pattern that depends in Fibonacci numbers and its ratios for identifying high and low market trends.
The shark pattern is also a reversal pattern. It is similar to bat pattern. Its geometric form is similar to bat pattern’s geometric form except the point C. it also tells about the common points in the market trends.
The cypher pattern is a technical pattern that shows the sharp reversal signals of the price in the market. This pattern also tells about up and downs in the market trend.
USES OF HARMONIC PATTERN INDICATOR
The harmonic pattern indicator has too many uses because it has the most advanced features. This indicator is an oscillator in nature. This indicator tells about the up and down in the price of the market. It also shows reversals in the market with the help of different patterns. This indicator uses different patterns for different identifications of the market trend.
Harmonic pattern indicator also tells about the accurate changings in the market trends. It also shows that the market price is trend in bearish or bullish trend. It uses different geometrical shapes for ease of understanding. This indicator is very easy to use and understand if you follow all the rules to use this indicator.