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What are the critical factors to be a successful harmonic trader?

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When you decide to be a harmonic trader, the major rules of harmonic trading must be followed and I say “Must”.


** Some of the rules I use personally are seen in the following points:


*Longer time intervals should be clear and when you see a conflicting pattern or conflicting sigs avoid the instrument until things be clearer.


*Candlesticks and divergences are very important when price reaches the awaited potential reversal zones of a clear pattern(PRZ).


*Each harmonic pattern has its own price behavior. For instance, Gartley offers better chances in the middle of a stronger trend; whilst butterfly pattern should be avoided when the instrument moves inside an ideal classical channel.


*Prices mostly breaches through 23.6% Fibonacci of the CD leg of the pattern and it could be treated as a very soft target for the harmonic pattern.


*Think big! How? Try to gather good number of pips from the harmonic patterns you caught depending on the price actions around Fibonacci levels.


*If a reversal signal is seen on the small time frames, close the trade taken based on the bigger time interval.


*Extensions of the PRZ are there in the market, so be patient enough to see whether the market will reverse or not!

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