HARMONIC PATTERNS COMBINED WITH TA PARAMETERS

HARMONIC PATTERNS WITH TA PARAMETERS

Harmonic Trading rewards the most during consolidation Days. This article is an attempt to correlate the harmonics with the TA parameters. In Harmonics there are retracements from 38.2% upto 361.8% retracement. To initiate trades and similarly to book out trades one can use the TA parameters along with the Harmonic patterns generated. This holds good for any TF. But one important factor – if one initiates trades based on 5min TF then the booking of targets must fall within the TF. Only at areas when larger TF’s harmonic target seems to be near then it would be prudent to wait along with the prevalent Trend.

 I have taken the past 4 days 5min NF chart i.e. from sept13-sept 16.

CHART -1:

Given below is a 5min NF chart with High’s and low’s marked and trending upwards within two trend lines (cannot be called as channels as it does not appear parallel)..

Chart -2 – Bearish Crab pattern – Pertaining to Hour TimeFrame:

The above chart shows a Bearish Crab pattern.

XA = 5172 – 4901

   B = 5038 = 44.7% retr of XA

   C = 4907 = 94.43% retr of AB

   D = 5153 = approx. 200% retr of BC.

Now the Harmonic Patterns present within the Wave CD is depicted in the following Chart-3.

Chart -3 – Harmonic patterns present within the wave CD of Chart -2:

The Details of the Pattern are as follows:

1.     Bearish Crab pattern:

XA =5038-4901

   B = 4966 = 50% retr of XA

   C = 4908 = 94.3% retr of AB

   D = 5022 = 200% of BC

2.     Bullish Shark pattern:

OX = 4908 – 5022

              A =4983 = 38.2% retr of OX

  B = 5049 =38.2% retr of XA

  C = 4959 = 161.8% of AB

3.     Bearish Gartley pattern:

XA = 5049 -4959

   B = 5014 = 61.8% of XA

   C = 4978 = 61.8% of AB

   D = 5124 = 361.8% retr of BC.

D is marked as 5153 on the charts. Why??? Even after the maximum retr of 5124 is completed,

(1)  sept 15 being an event day,

(2) the Hour TF pattern comes into play at 200% retracement.(refer Chart 1).

 In such times when Hour TF ratios are near to the minute TF ratios one can wait for the extension to complete before booking profits.

After the above mentioned Bearish Gartley – a Bullish pattern is being developed.

4.     Bullish  Crab pattern:

XA =4978 -5153

   B = 5072 = 44.7% ret of XA

   C = 5131 = 76.4% retr of AB

  Current D = 5076 = 61.8% retr of BC .

         

Now the next question would be

1. How to get to know that the pattern is complete during real-time market hours?
2. It would be easy to mark the completion points on a Historical Chart!!

Answers for the above two questions lies in TA parameters. Now for Chart – 4:

Chart 4 – Harmonics combined with TA parameters and S. macd Chart:

The above chart gives us a clear picture as to when and where we can book out the intraday trades.:

Bearish Crab pattern
XABCD	5038	4901	4966	4908	5024
TA parameters	Week 5ema	Week Lema	Day pivot	Week Lema	Day R1

The rest of the patterns day TA parameters are given on the Chart. The divergences in the SMacd also help.

Having in hand the important numbers of the Day and matching it with the retracement ratios would give us good trades especially during a Range Bound markets.

HAPPY TRADING!!!! :) :)