Forex trading has its challenges and its success stories. Some people try several methods before they find something that suits their personality and their vision for the future. Harmonic Pattern Trading is a method that is different to what most people are used to. Based on Fibonacci measurements, it is one of the more probable ways of trading the forex.
Patterns such as those discovered by Gartley are becoming more popular thanks to the educational site FXGroundworks.com. FXGW have an attitude of low to no risk when and where possible.
Their approach to currency trading is based on reversal points within what is called the Potential Reversal Zone or PRZ for short. Patterns are formed via the movement of currency based on human emotion and on the theory that people repeat their actions over and over again. There are varying strengths of patterns, with some patterns more notorious for success than others but all based on the Fibonacci levels of measurement.
The PRZ is an area where price action stalls at or near various Fibonacci points and then reverses. It is at these reversal points that savvy traders who use this method, benefit. The Pattern points are used as exit points for profit taking, with specific targets in place for people who have difficulty in knowing when to exit a trade.
The Harmonic Pattern trading method, once dominated by male traders is slowly being infiltrated by lady traders who are drawn to it either from its reputation of being in harmony with the world at large or its attractive pattern presentation. Either way, it’s a nice way to trade.
As for me….I’m technically harmonic !