What Is Forex Harmonic Trading?

If you’re like most Forex traders, you’re probably not making consistent money yet. You’ve also probably spent hours and hours looking for the best system, or even any system that will produce consistent profits.

And if you’re like most Forex harmonic scanner features, you’ve probably seen a large variety of “systems” out there, but you’ve realized that many of them are very vague: while they give concepts, they don’t give specifics. You’ve read the details over and over again but you can’t find concrete rules for exactly when you’re supposed to enter and exit, and as a result, most of your trades end up losing money. In fact, you may even suspect that the systems were deliberately vague on purpose so that their creators can hold no accountability.

Thus, your search continues…

Consider harmonic trading. Harmonic trading is substantially different from most of the Forex systems you have encountered. For starters, harmonic trading doesn’t rely on indicators. Surely you’ve encountered dozens of systems that use a combination of indicators or even some proprietary indicators, and you know by now that they don’t work because they’re just derivatives of price and really have nothing to do with price itself.

Harmonic trading looks at patterns that price is making, and based on historical instances of those patterns, produces a likely future scenario for the instrument you are trading. In other words, harmonic patterns reveal when you have the best chances of making a profit by going long or short, because in the past when price set up the same type of pattern, price moved the same way.

The nature of harmonic trading results in exact entry and exit signals. There is no vagueness or wondering what you should do. This alone will be a welcome change to most Forex traders who are tired of getting confusing signals from their old systems.

Harmonic trading can also be programmed into an auto trader (sometimes called an “Expert Advisor” program). Auto traders analyze Forex charts in real time and give you specific entry and exit signals. In fact, auto traders can even be programmed to take trades for you so that you don’t have to stare at your charts 24/7.

So once again, harmonic trading is something you should look into if you:

– prefer preciseness and exact buy and sell signals as opposed to vague concepts
– don’t like indicators
– are looking for something new that most people have not even heard of before

 

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