Harmonic Pattern as system is known for finding possible reversal zones and hence assist in swing trading. But, most effective way of using harmonic patterns is in trend following. This can yield really amazing results when played with proper risk management.
Conditions
In trending market
Established trend followed by pattern
Trade Settings
Enter on breaking out of pattern with 100% recovery
Exit can be placed at farther distance or can also use trailing stop after certain profit.
Need to be cautious on short trades as expectation of high risk reward may end up in negative territory. (Lowest price can be 0)
Advantages
Very high risk reward. Even with less number of wins, can get very high reward.
Hi there, would you be able to explain the 100% recovery and 10X a little bit more please?
Trendoscope
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@dadada4635 100% recovery refers to breakout of harmonic patterns. 10x profit is intended target with respect to risk reward. This is just an example on how trend following can be implemented. you can tweak the breakout level and target level as per your backtest.