I love using harmonic package of pattern indicators with the basic market structure indicator. Both sets of indicators have reduced the time I spend on analysis.
Harmonic Pattern Collection Lite
Officially licensed for Thinkorswim
I am pleased to announce the only harmonic pattern indicator for Thinkorswim that is fully endorsed by Scott Carney, the president and founder of HarmonicTrader.com. Scott owns all of the trademarks associated with the harmonic patterns and is the hands-down expert in teaching others how to trade the patterns.
If you purchase the HPC Lite package you will receive a free Gold membership for Scott’s Harmonic Trader program where you will learn how to trade the patterns from the expert. The phrase “harmonic trading” and all related pattern names are trademarked by Scott M. Carney and are used with his permission.
This indicator is based on information from his book Harmonic Trading: Volume 1. To learn more about harmonic patterns directly from the author, visit his website—HarmonicTrader.com. Scott offers video training through the free, basic membership on his website.
The harmonic pattern collection lite indicator identifies the following patterns:
Example of Bearish Bat PatternThings to notice in the video:
- The pattern is automatically labeled
- Once identified, the ideal pattern completion point is projected via the dashed lines
- The potential reversal zone (PRZ) is highlighted in purple near the ideal completion point
- After price has reached the PRZ, the three, user-configurable, target lines are drawn in purple
Works on Thinkorswim Mobile
Harmonic Trading utilizes the best strategies of Fibonacci and pattern recognition techniques to identify, execute, and manage trade opportunities. These techniques are extremely precise and comprise a system that requires specific conditions to be met before any trade is executed. The Harmonic Trading approach offers information regarding the potential state of future price action like no other technical methods.
I have found several of Robert’s scripts to be helpful in my trading; the latest addition being the Harmonic Patterns (I purchased the bundle). The script is a very beneficial tool in the identification of harmonic patterns.
This indicator will work on any chart time frame and with any instrument (stocks, futures, currency pairs, etc.).
This indicator does not include entry or exit signals. The trader is responsible for deciding when to enter and exit a position.
The Potential Reversal ZoneThis area is marked as a highly probable area for a reversal. This potential reversal zone (PRZ) is marked once point “C” is identified. By calculating the various Fibonacci aspects of a specific price structure, harmonic patterns can indicate a specific area to examine for potential turning points in price action. In the video below, the PRZ is shaded blue and is seen once the butterfly pattern has been identified.
Finding potential trades
A scan script is included to easily find stocks that are forming a harmonic pattern.