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# Chapter 17, Part II. Harmonic Numbers and AB=CD pattern. Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 21, 2013.

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1. ### Sive Morten Special Consultant to the FPA

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Commander in Pips: I suppose 30 days will be enough.

Pipruit: And maybe there is some other way, more simple ha?​

Commander in Pips: Well this method is most accurate and preferable, but there is another one – 3% rule. You may multiply current currency rate (or asset value) by 3% - and use this as harmonic number. For instance, if the current EUR/USD rate is 1.4276. then the harmonic number – 1.4276 x 3% = 0.0428.

Pipruit: Sir, but this is 428 pips! How should I use it, say, on 30-min chart?​

Commander in Pips: Don’t panic. I’m not done yet, relax.

As we’ve noted, a harmonic swing could consists of smaller swings with some multiplier. These multipliers depend on two factors – time frame and market environment (contracting or expansion). I’ll show you the major multipliers.

Multipliers based on time frame

These are the simplest ones. You should just divide or multiply harmonic swing on integer number – 1, 2, 3…10..etc. You should do this with carefully. For, instance, if we divide our number of 428 pips on 10, we will get 43 pips.

I can tell you, that observation method tells, that for 30-60min EUR/USD chart harmonic number is 37-40 pips and 37-40x2 = 74-80 pips. See, 3% rule approximately works.

And vice versa, analyzing daily chart of EUR/USD it tells that harmonic swing equals approximately 10x30-min harmonic swing or ~ 400 pips.

Pipruit: I see, and what the relationship between timeframe and daily harmonic swing? How we could know the multiplier?​

Commander in Pips: Well, here still, you will have to make some observation with major number from 3% rule (428 pips) by applying different multipliers and comparing the numbers that you’ll get with real repetitive swings on a particular time frame. But this work is simpler, because you already know what swing’s value to watch for.

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Lasted edited by : Apr 10, 2016