NZDJPY - How to use ED channel to increase your winning %

FX:NZDJPY   New Zealand Dollar/Japanese Yen
Hey traders, I am sure many of you guys trade Harmonics here.

Just sharing a simple setup which I have used to increase my winning % in trading Harmonics.

I learned directly from Scott Carney and I am more than willing to share whatever he taught me.

1. Draw an ED channel in the H4 or higher setup.

2. If channel is sloping down, look for bearish harmonic patterns to sell near extreme of channel.

3. If channel is sloping up, look for bullish harmonic patterns to buy near extreme of channel.

4. Before execution, always watch out for RSI divergence at PRZ.

5. Limit use of pending orders to less than 20% of your total trades *** (Most important)

For this NZDJPY             sell setup, it fulfilled all the items on my checklist for a good sell opportunity.

I will monitor RSI for divergence when it reaches my PRZ.

Most importantly, no patterns no trade!

EP: 75.25- 75.35
SL: 76.40 (115 pips)
TP: 73 (225 pips)

Also, take note that Cypher is not a authentic pattern from Scott Carney, stick with the Shark pattern at all times!

I will be more than willing to answer any questions you have as the Shark pattern is my #1 favorite pattern to trade!

Comment: Hey guys, for those of you who are interested how I trade, I prepared a report on how I will trade in Week 42.

Download report by clicking link below, no signups/login required.

Comment: Check out my gameplan for week 44 here

Comment: This week's market outlook is out!
Had a chat with my mentor Scott(Scott Carney) yesterday, we spoke about how we view the various markets.
I will share about what he revealed to me about the S&P index in this week's report.

Download report at absolutely no cost today!
thanks a lot for your help
This is interesting
Hey Terry, Nice analysis.
What kind of "confirmation" do you use to know if the price will bounce and not break the PRZ?
TerryHarmonicTrading DamianSchelling
1. Firstly, it has to cover the full zone of the prz.

2. Within the next 3 candles it has to close into the prz zone preferably with a rsi divergence. That is when I will go short.
+1 Reply
DamianSchelling TerryHarmonicTrading
Ok, I undertood!

Thank you very much.
Thanks for sharing Terry.
What are the rules for a Shark pattern and why do you prefer them over Cypher?

1. These are the rules http://www.harmonicforex.com/the-shark-pattern

2. Cypher is not created by Scott Carney, it lacks alot of elements that makes harmonic patterns effective. The BC 1.618 is the key element missing. Almost all cyphers turn into sharks which gives better entry price and R:R
good pattern
time to short.....
I want it to hit 75.30 first. The zone has not been fully challenged.
ummuhijrah TerryHarmonicTrading
74.950 - 75.400 area intraday,... good idea
I also posted this recently- good spot, great potential for a nice profit!
Nice spot. Entry price reaching soon. Where are you from Kyle?
KyleMcQuade PRO TerryHarmonicTrading
I'm from Scotland! Recently started trading harmonics, thoroughly enjoying them!
Hi terry, I have a question for the statement on Cypher pattern. I've look through shark pattern and it seems that it is part of 5-0 pattern. Is that right? Have you ever back tested cypher pattern?
Hi Sandro, I have talked about the cypher a few times to my followers.

It is not a real harmonic pattern created by Scott.

It lacks the critical bc 1.618 fib element

Therefore it has low success rate and I highly suggest not trading it.

At many times, cypher turns into shark.

If you trade the shark, you get higher winning rate and you enter at a much better price.

Feel free to pm me if you have any questions.
hey mate do you think its appropriate to short now
Download now! –> Terry’s Week 43 Forex Market Outlook Report

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