After you get some basic charts down, you can move on to something like harmonic price patterns in the financial markets.
The idea behind these patterns is that they are going to be retracements of recent trends. In other words, they are often a reversion back to a recent trend that just took place in the market. Think of it as the market going for one more loop around the block for a trend that it has just established recently.
When you use the tools necessary to spot a harmonic price pattern, you may be able to decide to jump in on the trend that is playing out yet again. Some of the harmonic price patterns to be on the lookout for include:
- Bat pattern
- Crab pattern
- Butterfly pattern
- Three-Drive pattern
- Gartley pattern
- ABCD pattern
All of these and many others like them are critical towards developing something that you can spot in the market and take advantage of. Say what you will, but there is a lot to be gained by looking at patterns that are recognizable and that you know what to do with. Always remember for harmonic price patterns the key is to be patient and wait until the whole pattern is completed before determining any long or short trades.
When someone is looking for a way that they can take advantage of price movements in the market, their best option may be to spot some of these patterns and make the most of them.
Over the next few articles, we’ll show you what they are and how to spot them!
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