MohamedMagdy
Long

The Power of Harmonic Patterns

FX:GBPUSD   British Pound/U.S. Dollar
48 0 3
This historical technical analysis for GBPUSD             just for learning purpose to show to you the use of Harmonic Patterns as a Powerful tool of technical analysis . You can consider it a tutorial

First , the Buy Entry 1 in line shown in the green box was confirmed by the completion of point D for 3 harmonic patterns which are The Bat , The Crab and the Inverse ABCD (AB=1.27CD) . Beside Harmonic Analysis , the double low that was made by the stochastic oscillator confirms the bullish reversal from that point D to the up

Then another 2 harmonics gave a good sell opportunity shown for point D in the red box in the right of the chart . Those two patterns were the deep crab and the inverse abcd and also a third oscillator such as stochastic confirms the bearish turn of the price with its divergence

If you look at the price action around point D in both buy and sell opportunities stated above , you will find candlestick patterns as a 4th technical tool confirming the reversal of price action at both case .

This example shows the powerful use of many technical analysis tools to give you high opportunities of profitable trades with low risk because the stop loss will be above point D in both cases of buy and sell .

Hope that example helps the newbie in the field of technical analysis .
You should plan much well for your trade before placing your order , and questions like why you will enter that trade and when you will close it in case it fails and when you are going to take your profits and how you gonna manage it and move your stoploss to protect your profit .. All those questions and topics you should be able to deal with using a demo account before trading with real money .

Many thanks for reading
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