06/04/2021
Harmonic Patterns are a type of complex patterns that occur naturally in financial charts based on geometric price action and Fibonacci levels.
The patterns were introduced to the trading world by Harold McKinley Gartley in 1932. Gartley created a pattern which he named after himself and outlined in his 1935 book, Profits in the Stock Market.
When properly identified, harmonic patterns allow traders to enter the trade in a high probability reversal zone with minimal risk. Harmonic trading techniques utilize Fibonacci price patterns and numbers to quantify these relationships.
They offer a means to establish where the turning points will occur.