FOREX THEORY
Third Step in Trading Harmonic Price Patterns
Step 3: Buy or sell on the
completion of the Harmonic Price Pattern
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 really that easy?
Not exactly.
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.
Check out this excellent forum
thread discussing Gartley setups.
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 the pattern is
completed.
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