Let’s continue on our 3 steps to trading harmonic price patterns.
Using the Fibonacci tool, a pen, and a piece of paper, let’s list down our observations.
This pattern qualifies for a bullish ABCD pattern, which is a strong buy signal.
Once the pattern is complete, all you have to do is respond appropriately with a buy or sell order.
In this case, you should buy at point D, which is the 1.272 Fibonacci extension of move CB, and put your stop loss a couple of pips below your entry price.
Is it that easy?
The problem with harmonic price patterns is that they are so perfect that they are so difficult to spot, kind of like a diamond in the rough.
More than knowing the steps, you need to have hawk-like eyes to spot potential harmonic price patterns and a lot of patience to avoid jumping the gun and entering before it completes the pattern.
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