The trouble i found lately is that harmonic patterns are abused by people selling harmonic pattern indicators, scanners and course materials, etc. It is that they are showing inflated success rate for each pattern. This was even case for many bloggers who are looking to get more website traffics into their post and forum, etc.
Harmonic patterns are geometric price patterns in the financial market with fibonacci numbers. Like other technical analysis methods, the harmonic pattern aims to anticipate the price movement based on past performance.
Com - click for more details the percentage of harmonic pattern success results for each of the harmonic patterns (gartley, butterfly, crab, bat) is over 80 for all patterns and in some cases over 90. Something like over 400 patterns a day are identified, typically.
usually, you want to place your protective stop loss below wave x. Thats the logical place to hide your stop loss because any break below will automatically invalidate the fibonacci requirements for a gartley harmonic. The harmonic pattern success rate is solely dependent on these fibonacci ratios. As a harmonic trader, you want to make sure gartley satisfy these ratios.
M gartley noted that in a 10 year period, the gartley patterns had a high success rate, 7 out of 10 times. What is the harmonic pattern gartley? Harmonic pattern gartley is a retracement pattern and is often said to form near market tops and bottoms in ideal conditions.