Harmonic Price Patterns in the Forex Market

Harmonic Price Patterns in the Forex Market

Now that you’ve got the basic chart patterns down, it’s time to move on and add some more advanced tools to your forex trading arsenal.

In this lesson, we’ll be looking at harmonic price patterns. These bad boys may be a little harder to grasp but once you spot these setups, it can lead to some very nice profits!

The whole idea of these patterns is that they help people spot possible retracements of recent trends. In fact, we’ll make use of other tools we’ve already covered – the Fibonacci retracement and extensions!

Combining these wonderful tools to spot these harmonic price patterns, we’ll be able to distinguish possible areas for a continuation of the overall trend.

In this lesson, we’re going to discuss the following Harmonic Price Patterns:

  • ABCD Pattern
  • Three-Drive Pattern
  • Gartley Pattern
  • Crab Pattern
  • Bat Pattern
  • Butterfly Pattern

Phew! That’s quite a lot to cover!

But don’t you worry… Once you get the hang of things, it’ll be as easy as 1-2-3!

We’ll start off with the more basic ABCD and three-drive patterns before moving on to Gartley and the animals.

After learning about them, we’ll take a look at the tools you need in order to trade these patterns successfully in the forex market.

For all these harmonic price patterns, the point is to wait for the entire pattern to complete before taking any short or long trades. You’ll see what we’re talking about later on so let’s get started!

谐波价格形态

Harmonic Price Patterns 谐波价格形态 1

现在你已经掌握了基本图表的形态概念,是时候继续前进,并为兵器库里添加一些更先进的交易武器了。

在这一课中,我们将会对谐波价格形态进行探讨。这些坏小孩可能会有点难以掌握,但一旦你发现了这些组合,它可以为你获取非常好的利润!

这些形态的主要思路,是帮助人们寻找趋势最近的回撤。实际上,我们还可以配上其他一些工具,如我们之前已经掌握的,斐波纳契的回撤和扩展!

结合这些奇妙的工具,来寻找这些谐波形态。我们就可以区分出,整段趋势的每个,不同运行情况的可能区域。

在这一课,我们将谈论以下的谐波价格形态:

● ABCD形态

● 三重驱动形态

● Gartley形态

● 螃蟹形态

● 蝙蝠形态

● 蝴蝶形态

唉!这形态可包含了不少的知识!

但你不用担心… 一旦你掌握了这些知识,它们会像数1-2-3一样的容易!我们将先从基本的ABCD形态和三重驱动形态开始学习,然后再进入到 Gartley形态和各种动物形态。

当学习完它们之后,我们将一起来看看,你还需要哪些工具,让你可以更成功的使用这些形态来进行交易。

对于所有的这些谐波形态,关键是要等到整个图案完成后,再采取做多或做空交易。 你会在接下来的课程中,看到我们所说的是什么。所以,现在马上开始吧!

The ABCD and the Three-Drive

The ABCD

Let’s start this lesson with the simplest harmonic pattern. So what could be more basic than the good old ABC’s? We’ll just pop in another letter at the end (because we’re cool like that), and we’ve got the ABCD chart pattern! That was easy!

To spot this chart pattern, all you need are ultra-sharp hawk eyes and the handy-dandy Fibonacci tool.

For both the bullish and bearish versions of the ABCD chart pattern, the lines AB and CD are known as the legs while BC is called the correction or retracement. If you use the Fibonacci retracement tool on leg AB, the retracement BC should reach until the 0.618 level. Next, the line CD should be the 1.272 Fibonacci extension of BC.

Simple, right? All you have to do is wait for the entire pattern to complete (reach point D) before taking any short or long positions.

Bearish ABCDBullish ABCD

Oh, but if you want to be extra strict about it, here are a couple more rules for a valid ABCD pattern:

  • The length of line AB should be equal to the length of line CD.
  • The time it takes for the price to go from A to B should be equal to the time it takes for the price to move from C to D.

Three-Drive

The three-drive pattern is a lot like the ABCD pattern except that it has three legs (now known as drives) and two corrections or retracements. Easy as pie! In fact, this three-drive pattern is the ancestor of the Elliott Wave pattern.

As usual, you’ll need your hawk eyes, the Fibonacci tool, and a smidge of patience on this one.

Bearish Three-DriveBullish Three-Drive

As you can see from the charts above, point A should be the 61.8% retracement of drive 1. Similarly, point B should be the 0.618 retracement of drive 2. Then, drive 2 should be the 1.272 extension of correction A and drive 3 should be the 1.272 extension of correction B.

By the time the whole three-drive pattern is complete, that’s when you can pull the trigger on your long or short trade. Typically, when the price reaches point B, you can already set your short or long orders at the 1.272 extension so that you won’t miss out!

But first, it’d be better to check if these rules also hold true:

  • The time it takes the price to complete drive 2 should be equal to the time it takes to complete drive 3.
  • Also, the time to complete retracements A and B should be equal.

Here’s a forum thread discussing the ABCD pattern and a trade setup with the three-drive pattern.

ABCD和三重推进

ABCD形态

让我们从最简单的谐波形态开始本课的学习,而最简单的莫过于ABCD形态了。

为准确的画出该形态,你所需要的是一双慧眼以及斐波那契工具。

对看涨ABCD形态和看跌ABCD形态来说,AB线和CD线称作价格腿 ,而BC线称作回调或回撤线。如果你使用斐波那契回撤位工具,BC的回撤目标应该达到AB之间距离的0.618,而CD线长度应该达到BC斐波那契延伸位的1.272。

很简单,是吗?你所需要做的只是等到整个形态的完成(即汇价达到D点),随后,便可以采取相应的买入或卖出策略。

Harmonic Price Patterns 谐波价格形态 2

对于有效的ABCD形态来说,有以下规则需要我们掌握:

● AB线的长度应该等于CD线的长度

● 汇价由A运动到B的时间应该等于汇价从C运动到D的时间。

三重推进形态

三重推进形态和ABCD形态颇为相似,所不同的地方在于该形态有三条价格腿(现在我们叫做三重推进),并有两条回调或回撤线。很简单,是吧!事实上,三重推进形态可是艾略特波浪形态的祖先。

和平常一样,你需要具备一双像鹰眼一样敏锐的眼睛,并借助斐波那契工具,以及一点点的耐性。

Harmonic Price Patterns 谐波价格形态 3

如图所示,点A应该是第一次推进的61.8%回撤位。与此类似的,点B应该是第二次推进的61.8%斐波那契回撤位,而第二次推进目标应该是A回撤线的1.272延伸位,第三次推进目标也应该是B回撤线的1.272延伸位。

当三重推进形态完全形成时,你就可以采取相应的做多或做空操作。通常情况来说,当价格触及点B,你就可以将空单或多单设在B回撤线的1.272延伸位,那么,你就不会错过即将出现的价格行情。

但是,我们首先最好还是核实一下,这些规则是否也成立:

● 汇价完成第二次推进的时间应该等于完成第三次推进的时间

● 同时,汇价完成A回撤线走势的时间和完成B回撤线走势的时间应该相等。

Trading The Gartley Pattern

Once upon a time, there was this insanely smart trader dude named Harold McKinley Gartley.

He had a stock market advisory service in the mid-1930s with a huge following. This service was one of the first to apply scientific and statistical methods to analyze the stock market behavior.

According to Gartley, he was finally able to solve two of the biggest problems of traders: what and when to buy.

Soon enough, traders realized that these patterns could also be applied to other markets. Since then, various books, trading software, and other patterns (discussed below) have been made based on the Gartleys.

Gartley a.k.a. “222” Pattern

The Gartley “222” pattern is named for the page number it is found on in H.M. Gartleys book, Profits in the Stock Market. Gartleys are patterns that include the basic ABCD pattern we’ve already talked about, but are preceded by a significant high or low.

Now, these patterns normally form when a correction of the overall trend is taking place and look like ‘M’ (or ‘W’ for bearish patterns). These patterns are used to help traders find good entry points to jump in on the overall trend.

Bearish Gartley PatternBullish Gartley Pattern

A Gartley forms when the price action has been going on a recent uptrend (or downtrend) but has started to show signs of a correction.

What makes the Gartley such a nice setup when it forms is the reversal points are a Fibonacci retracement and Fibonacci extension level. This gives a stronger indication that the pair may actually reverse.

This pattern can be hard to spot and once you do, it can get confusing when you pop up all those Fibonacci tools. The key to avoiding all the confusion is to take things one step at a time.

In any case, the pattern contains a bullish or bearish ABCD pattern, but is preceded by a point (X) that is beyond point D. The “perfect” Gartley pattern has the following characteristics:

  1. Move AB should be the .618 retracement of move XA.
  2. Move BC should be either .382 or .886 retracement of move AB.
  3. If the retracement of move BC is .382 of move AB, then CD should be 1.272 of move BC. Consquently, if move BC is .886 of move AB, then CD should extend 1.618 of move BC.
  4. Move CD should be .786 retracement of move XA

Gartley Mutants: The Animals

As time went by, the popularity of the Gartley pattern grew and people eventually came up with their own variations.

For some odd reason, the discoverers of these variations decided to name them after animals (Maybe they were part of PETA?).Without further ado, here comes the animal pack…

The Crab

Gartley Variation: Bearish CrabGartley Variation: Bullish Crab

In 2000, Scott Carney, a firm believer in harmonic price patterns, discovered the “Crab”.

According to him, this is the most accurate among all the harmonic patterns because of how extreme the Potential Reversal Zone (sometimes called “price better reverse or imma gonna lose my shirt” point) from move XA.

This pattern has a high reward-to-risk ratio because you can put a very tight stop loss. The “perfect” crab pattern must have the following aspects:

  1. Move AB should be the .382 or .618 retracement of move XA.
  2. Move BC can be either .382 or .886 retracement of move AB.
  3. If the retracement of move BC is .382 of move AB, then CD should be 2.24 of move BC. Consquently, if move BC is .886 of move AB, then CD should be 3.618 extension of move BC.
  4. CD should be 1.618 extension of move XA.

The Bat

Gartley Variation: Bearish BatGartley Variation: Bullish Bat

Come 2001, Scott Carney founded another Harmonic Price Pattern called the “Bat.” The Bat is defined by the .886 retracement of move XA as Potential Reversal Zone. The Bat pattern has the following qualities:

  1. Move AB should be the .382 or .500 retracement of move XA.
  2. Move BC can be either .382 or .886 retracement of move AB.
  3. If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, then CD should be 2.618 extension of move BC.
  4. CD should be .886 retracement of move XA.

The Butterfly

Gartley Variation: Bearish ButterflyGartley Variation: Bullish Butterfly

Then, there is the Butterfly pattern. Like Muhammad Ali, if you spot this setup, you’ll surely be swinging for some knockout-sized pips!

Created by Bryce Gilmore, the perfect Butterfly pattern is defined by the .786 retracement of move AB with respect to move XA. The Butterfly contains these specific characteristics:

  1. Move AB should be the .786 retracement of move XA.
  2. Move BC can be either .382 or .886 retracement of move AB.
  3. If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC. Consquently, if move BC is .886 of move AB, then CD should extend 2.618 of move BC.
  4. CD should be 1.27 or 1.618 extension of move XA.

伽利形态和动物形态

从前,有一位超级精明的交易者,他的名字叫哈罗德·麦金利·伽利(Harold McKinley Gartley)。

在上个世纪30年代中期,伽利开了一家股票咨询服务公司,该公司跟随者甚众。伽利所开的咨询服务公司是最早将科学和统计方法用于分析股票市场的机构之一。

在伽利看来,他最终能够解决交易者最为关心的两大问题:应该买入什么以及什么时候买入。

没过多久,交易者们认识到,这些形态也可以运用到其他市场中。随后,众多的书籍、交易软件以及其他的技术形态(如以下所讨论到的),都基于伽利研究而衍生出来。

伽利“222”形态

该形态是由伽利首先在1935年提出的。在他的著作《股市中的利润》(Profits in the stock market)的第222页介绍了这个形态,所以又被称作伽利222形态(Gartley 222 Pattern)。

伽利形态包含了我们之前已经讲过的ABCD形态,但是多了一个明显的高点或低点。

当总体趋势出现回调,走势就像“M”形或“W”形时,通常形成伽利形态。这些形态用于帮助交易者在总体趋势中找到良好的入场点位。

Harmonic Price Patterns 谐波价格形态 4
当价格一直延续近期上升(或下降)趋势,但已经开始显现出回调迹象时,伽利形态便可能形成。

伽利形态难以描绘出来,当你借助斐波那契工具尝试描绘伽利形态时,你可能陷入迷惑状态。而避免陷入这种迷惑状态的关键在于,严格按照步骤一步一步的来。

无论怎样,伽利形态都包含看涨或看跌ABCD形态,但在ABCD形态之外多出了X点。

对于伽利形态来说,最重要的特征就是,X、A、B、C、D之间的特殊位置关系。XA腿是伽利形态中最大的价格运动趋势。

完美伽利形态具有如下特点:

1、B点的位置应该达到XA运动区间的61.8%斐波那契回撤位;

2、BC的回撤位置要么是AB运动区间的38.2%,要么是88.6%的斐波那契回撤位;

3、如果BC的回撤位置是AB运动区间的38.2%回撤位,那么CD位置应该是BC运动区间的127.2%回撤位,
如果BC回撤位是AB运动区间的88.6%回撤位,那么CD应该是BC运动区间的161.8%回撤位;

4、CD的运动目标应该是XA运动区间的78.6%斐波那契回撤位。

动物形态

随着时间的推移,伽利形态受到越来越多人的欢迎,人们最终在伽利形态的基础上,总结出了更多的变体形态。

出于一些古怪的原因,这些变体形态的发现者将这些形态以动物的名字命名,可能是这些形态和相关的动物有些类似吧。以下就是相关的动物形态:

螃蟹形态
Harmonic Price Patterns 谐波价格形态 5
在2000年,斯科特·卡尼(Scott Carney),一名谐波价格形态的坚定拥护者,发现了“螃蟹形态”。

在他看来,在所有的谐波形态中,螃蟹形态是最为精确的,因为该形态能够测量出潜在的反转区域水平位,而通常反转目标为XA的161.8%延伸位。

该形态拥有较高的风险回报比,因为你能够设置非常紧的止损。“完美”的螃蟹形态必须具有以下特征:

1、AB必须达到XA的38.2%或61.8%斐波那契回撤水平;

2、BC运动目标要么是AB的38.2%,要么是88.6%的斐波那契回撤位;

3、如果BC达到AB的38.2%回撤水平,那么CD运动目标应该是BC的224.0%延伸位。
相应的,如果BC达到AB的88.6%回撤水平,那么CD运动目标应该是BC的361.8%延伸位;

4、CD应该是XA的161.8%延伸位。

蝙蝠形态
Harmonic Price Patterns 谐波价格形态 6
到了2001年,卡尼发现了另一种谐波形态,他称为“蝙蝠形态”。在蝙蝠形态中,潜在的反转区间为XA的88.6%斐波那契回撤水平。蝙蝠形态具有以下特征:

1、AB运行目标应该是XA的38.2%或50.0%回撤位;

2、BC运行目标是AB的38.2%或88.6%回撤位;

3、如果BC运行目标是AB的38.2%回撤位,那么CD运行目标应该是BC的161.8%延伸位。
相应的,如果BC运行目标是AB的88.6%回撤位,那么CD运行目标应该是BC的261.8%延伸位;

4、CD运行目标应该是XA的88.6%回撤水平。

蝴蝶形态
Harmonic Price Patterns 谐波价格形态 7
最后,我们来了解一下蝴蝶形态。蝴蝶形态的创始人是布莱斯·吉尔默(Bryce Gilmore)。在完美的蝴蝶形态中,AB的回撤目标为XA的78.6%。蝴蝶形态具有以下特征:

1、AB的回撤目标应该是XA的78.6%;

2、BC的运行目标是AB的38.2%或88.6%;

3、如果BC的回撤目标是AB的38.2%,那么CD的运行目标应该是BC的161.8%延伸位。
相应的,如果BC的回撤目标是AB的88.6%,那么CD的运行目标应该是BC的261.8%;

4、CD的目标应该是XA的127.0%或161.8%延伸位。

3 Steps in Trading Harmonic Price Patterns

As you may have guessed, profiting off Harmonic Price Patterns is all about being able to spot those “perfect” patterns and buying or selling on their completion.

There are three basic steps in spotting Harmonic Price Patterns:

  • Step 1: Locate a potential Harmonic Price Pattern
  • Step 2: Measure the potential Harmonic Price Pattern
  • Step 3: Buy or sell on the completion of the Harmonic Price Pattern

By following these three basic steps, you can find high probability setups that will help you grab those oh-so-lovely pips.

Let’s see this process in action!

Step 1: Locate a potential Harmonic Price Pattern

Locate a potential Harmonic Price Pattern

Oh wow, that looks like a potential Harmonic Price Pattern! At this point in time, we’re not exactly sure what kind of pattern that is. It LOOKS like a three-drive, but it could be a Bat or a Crab…

Heck, it could even be a Moose! In any case, let’s label those reversal points.

Step 2: Measure the potential Harmonic Price Pattern

Using the Fibonacci tool, a pen, and a piece of paper, let’s list down our observations.

Measure the potential Harmonic Price Pattern

  1. Move BC is .618 retracement of move AB.
  2. Move CD is 1.272 extension of move BC.
  3. The length of AB is roughly equal to the length of CD.

This pattern qualifies for a bullish ABCD pattern, which is a strong buy signal.

Step 3: Buy or sell on the completion of the Harmonic Price Pattern

Buy or sell on the completion of the Harmonic Price Pattern

Once the pattern is complete, all you have to do is respond appropriately with a buy or sell order.

In this case, you should buy at point D, which is the 1.272 Fibonacci extension of move CB, and put your stop loss a couple of pips below your entry price.

Is it really that easy?

Not exactly.

The problem with harmonic price patterns is that they are so perfect that they are so difficult to spot, kind of like a diamond in the rough.

Check out this excellent forum thread discussing Gartley setups.

More than knowing the steps, you need to have hawk-like eyes to spot potential harmonic price patterns and a lot of patience to avoid jumping the gun and entering before the pattern is completed.

三步交易谐波形态

你可能在想,能够获得巨大收益的谐波价格形态的运用关键在于,能够描绘出这些“完美”的形态,并在形态完成过后买入或卖出。

描绘谐波价格形态的过程可细分为以下三步:

● 第一步:锁定潜在的谐波价格形态

● 第二步:测量潜在的谐波价格形态

● 第三步:在谐波价格形态完成后,买入或卖出

如果按照上述三步走,它将帮助你获得高的胜算并实现高盈利。

现在,让我们看看在实际运用中的操作过程吧。

第一步:锁定潜在的谐波价格形态

Harmonic Price Patterns 谐波价格形态 8

哇,该图形看上去好像一个潜在的谐波价格形态!但是,此时我们并不是非常确定,它到底具体属于哪种形态。该形态看上去好像是三重推进,但又有可能是蝙蝠形态,或是螃蟹形态…

更要命的是,它有可能是一个“四不像”形态。

第二部:测量潜在的谐波价格形态

利用斐波那契工具、一支笔、一张纸,让我们记录下我们的观察数据。

Harmonic Price Patterns 谐波价格形态 9

1. BC的运动目标为AB的61.8%斐波那契回撤水平;

2. CD的运动目标为BC的127.2%斐波那契延伸位;

3. AB的长度大体上和CD的长度一致。

最后我们得出,该形态具备看涨ABCD形态的特征,它发出的是强劲买入信号。

第三步:在谐波形态完成后选择买入后卖出

Harmonic Price Patterns 谐波价格形态 10

一旦该形态完成,你需要做的仅仅只是选择下买入定单或卖出定单。

在本例中,你应该在D点买入,D点的价格水平为CB的127.2%的斐波那契延伸位,同时,你能够在你的入场位下方设置止损点。

我们的操作就是这么简单吗?

并非完全如此。

使用谐波形态的问题在于,它们的走势并非如此完美,以至于它们难以被描绘出,走势不完美的谐波形态就好比一颗未经雕琢的钻石。

相比以上三步来说,更重要的是,你需要有一双能够识别潜在谐波价格形态的慧眼、等待形态彻底走完之后入场的耐性。

Summary Of Harmonic Price Patterns

Summary of Harmonic Price Patterns

Harmonic price patterns enable us to distinguish possible areas for a continuation of the overall trend.

There are six harmonic price patterns:

  • The ABCD Pattern
  • The Three-Drive Pattern
  • The Gartley Pattern
  • The Crab Pattern
  • The Bat Pattern
  • The Butterfly Pattern

The three basic steps in spotting harmonic price patterns are the following

  • Step 1: Locate a potential harmonic price pattern
  • Step 2: Measure the potential harmonic price pattern
  • Step 3: Buy or sell on the completion of the harmonic price pattern

Again, harmonic price patterns are so perfect that they are very difficult to spot.

More than knowing the steps, you need to have hawk-like eyes to spot potential harmonic price patterns and a lot of patience to avoid jumping the gun and entering before the pattern is completed.

With enough practice and experience, trading using harmonic price patterns can yield a lot of pips!

总结:谐波价格形态

Harmonic Price Patterns 谐波价格形态 11
PS:通过斐波那契数据的频繁使用,谐波价格形态能够帮助交易者描绘出趋势的回撤水平。

谐波价格形态让我们能够识别出价格开启延续总体运行趋势进程时所在的可能区域。

有以下6种谐波价格形态:

● ABCD形态

● 三重推进形态

● 伽利形态

● 螃蟹形态

● 蝙蝠形态

● 蝴蝶形态

描绘谐波价格形态的过程可细分为以下三步:

● 第一步:锁定潜在的谐波价格形态;

● 第二步:测量潜在的谐波价格形态:

● 第三步:在谐波价格形态完成后,买入或卖出。

使用谐波形态的问题在于,它们的走势并非如此完美。

相比以上三步来说,更重要的是,你需要有一双能够识别潜在谐波价格形态的慧眼、等待形态彻底走完之后入场的耐性。