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

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Oct 13, 2011.

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  1. Administrator

    Administrator Just Administrator :-)

    Sep 24, 2007
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    Part II. Harmonic Numbers and AB=CD pattern. [​IMG]
    Commander in Pips: All approaches to the trading of Harmonic Patterns are based on Geometry, Fib ratios and Harmonic numbers. Very often in different study materials, the teachers skip the discussion of harmonic numbers. This makes trading Harmonic numbers flawed. Knowledge of the harmonic numbers principle will give you outstanding advantage in trading Harmonic patterns. Since we’re speaking mostly about Forex and precisely about EUR/USD – we will specify them for that pair. Also, we will show how you can estimate harmonic numbers for any asset or currency – stocks, bonds, commodities etc.

    Pipruit: This stuff seems interesting, but Commander, may be we should specify what “harmonic” really means?​


    Commander in Pips: Yes, I just want to do that. Dealing with harmonic numbers moves you in physics sphere of vibrations that tells us:

    Harmonic - is a component of a periodic oscillation whose frequency is an integral multiple of the fundamental frequency”

    Pipruit: What? How does physics touch Forex at all?​

    Commander in Pips: Very simple. First, this definition tells us that something called “harmonic” could be combined in larger substance proportionally to some multiple coefficients.

    Pipruit: Commander, please… Do me a favor!​

    Commander in Pips: Ok, ok. If you will take a close look at any market, you will see that all swings have non-random values. They repeat and repeat again with the approximately the same value that is called the “Harmonic number” or harmonic swing of particular market. Depending on the market behavior – contracting (during range trading or consolidation) or expanding (trend move) other swings consist of some amount of the base Harmonic swing. Taking a careless view – you will see nothing, some random vibrations. If you will attempt to apply harmonic number – you’ll see amazing order and repetition of the same swings again and again.

    Tell me, what do you see here?.

    Chart #1 | EUR/USD Daily

    Pipruit: I do not know, some upside move may be, nothing special.​
    #1 Administrator, Oct 13, 2011
    Lasted edited by : Apr 10, 2016
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