Summary: Harmonic Price Patterns

Harmonic price patterns enable us to distinguish possible areas for a continuation of the overall trend.

Six Harmonic Price Patterns

There are six harmonic price patterns:

1. The ABCD Pattern
2. The Three-Drive Pattern
3. The Gartley Pattern
4. The Crab Pattern
5. The Bat Pattern
6. The Butterfly Pattern

3-Step Price Pattern Recognition Process

The three basic steps in spotting harmonic price patterns are the following

• Step 1: Locate a potential harmonic price pattern
• Step 2: Measure the potential harmonic price pattern
• Step 3: Buy or sell on the completion of the harmonic price pattern
• Again, harmonic price patterns are so perfect that they are very difficult to spot.
  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.
  With enough practice and experience, trading using harmonic price patterns can yield a lot of pips!