Slick Trade
A Guide to Harmonic Patterns #1
An Introduction To Harmonic Pattern Trading
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
3
In order to be an expert at recognizing chart patterns,
traders must resort to a great deal of practice and repeated
exposure.
It is only when a trader is able to recognize patterns that
one is able to react according to altering market conditions.
In the world of trading, the patterns on the chart are
Recognizing
categorized as reversal and continuous.
Patterns
These chart patterns can further be categorized as
complex and simple patterns.
With adequate knowledge about these chart patterns and
properties, traders are able to react and take an accurate
trading decision.
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Trend & Consolidation
The prices in the market reflect
trend, consolidation as well as re-
trend patterns. It is during the
transitional phase that they witness
trading ranges in addition to
fluctuations in price.
This range defines pricing patterns
that are easy to identify. The
consolidation phases favor the
prevailing trends on certain occasions
before forming into a trend and later
continue to move in their specific
direction.
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4
Why Are Chart
Patterns Formed?
Such patterns are referred to as the
“Continuation” patterns such as the
Flags and cups, Handle and Symmetric
triangle.
Certain phases, on the other hand,
cause the previous trend to reverse as
well as continue to move in the
reversal direction.
For instance, Double Bottoms,
Broadening patterns and Head &
Shoulders patterns.
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5
H.M. Gartley
Founded by H.M. Gartley in the year 1932,
the Harmonics patterns as well as concepts of
trading were later improved by Larry
Pesavento using the concept of Fibonacci
ratios.
The main concept behind the Harmonics
patterns is the movement in time/price that
adheres to the Fibonacci ratios and their
market symmetry.
Trading Harmonic
Patterns
The main reason for using the
Fibonacci ratios is to determine
the major turning points,
extensions, retracements, swing
low and swing high points.
The projections and
retracements derived after using
such swing points, provides
traders with main pricing levels
for Stops and Targets.
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7
Why Trade Harmonics?
Harmonics patterns offer trusted
price entries, targets and stops
related information.
They can be easily combined with
many other oscillators and
indicators to take accurate trading
decisions.
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8
Benefits of Harmonic Patterns
They help traders in
They work really well
Allow traders to use
Work with all types of
predicting the stops as
with market symmetry
other theories such as
They are repetitive and
instruments available in
well as the movement of
and context and help
the RSI, CCI, MACD,
frequent in nature.
the market in addition to
price in future in
traders to take well
DeMark and other
different timeframes.
advance.
calculated moves.
indicators.
They are independent of
Fits the law of trading i.e.
They define invalidation
They provide attractive
news and feature
buying when prices are
Enables the traders to
level for every pattern
risk: reward ratio.
appropriate price
low and selling when it is
forecast trend reversals.
clearly.
patterns and structures.
high.
Highly advanced
Allows traders to
technical method of
combine pricing patters
Combines price patterns
trading that can be
with the Fibonacci
with Fibonacci ratios.
automated with the help
numbers/ratios.
free indicators.
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9
technical in nature, which makes
it really difficult for traders to
and automate or code the
understand as well as perfect
harmonic patterns.
them.
Disadvantages
complex when the opposing
projections and retracements
chart patterns are formed as a
of Harmonic
make the task of identifying
result of the same swings or
reversal and projection difficult.
other timeframes/swings.
Patterns
seen in the range markets
because of the manner in which
lower ranked and un-symmetric
they are constructed. This
patterns are very low.
causes the traders to lose
opportunities in the markets
that are trending.
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10
That’s it! In my next
presentation, we will begin
to cover some of the
different harmonic patterns
and begin to break
everything down to its
simplest form.
11
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12
Slick Trade
A Guide to Harmonic Patterns #2
Harmonic Pattern Basics & Popular Patterns
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
Harmonic Re-Cap
Founded by H.M. Gartley in the
The main reason for using the
The main concept behind the
year 1932, the Harmonics
Fibonacci ratios is to determine
Harmonics patterns is the
patterns as well as concepts of
the major turning points,
movement in time/price that
trading were later improved by
extensions, retracements,
adheres to the Fibonacci ratios
Larry Pesavento using the
swing low and swing high
and their market symmetry.
concept of Fibonacci ratios.
points.
The projections as well as the
retracements derived after
They can be easily combined
Harmonics patterns offer
using such swing points
with many other oscillators
trusted price entries, targets
provides traders with main
and indicators to take accurate
and stops related information.
pricing levels for Stops or
trading decisions.
Targets.
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15
16
Now that we know what Harmonics patterns are, let’s
take a look at some of the examples of the same.
Most of the traders today use the Gartley chart pattern
for trading.
Examples Intro
Other popular harmonic patterns that are traded (and
that we will cover in-depth throughout this series) include
the Bat, Butterfly, Crab and Cypher patterns.
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The Gartley Pattern
Created by H.M Gartley, this pattern
was introduced by him in the book
‘Profits in the Stock Market’. This
pattern is also referred to as the
Gartley 222.
The chart features black lines that
represent 4 price movements within
the chart.
While, blue lines as well as the
values in percentage represent the
retracement point between each and
every level, the arrows in green
represent the potential movement in
the price patterns.
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17
The Bat Pattern
This pattern is a modified version of
Gartley chart pattern and was
designed by Scott Carney.
A look at the chart will reveal that it
has lines which are symmetrical in
shape. In fact, the pattern’s most
crucial ratio is 88.6 percent Fibonacci
retracement ratio.
You see that the Bat pattern draws
similarity with the Gartley pattern, but
with different retracement levels.
However, both the patterns are known
as internal patterns.
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18
The Butterfly Pattern
Yet another modified version of Gartley
pattern is the Butterfly pattern that
features the same 4 price movements.
However, the levels of retracement are
completely different. This is known as the
extension pattern because the ‘D’ leg in it
stretches outside the XA leg.
Thus, when you look at the Bearish and
Bullish Butterfly chart patterns, they
indicate that AD price move should be
stretching beyond the earlier price
movement of XA. This is exactly why the
Butterfly pattern is referred to as the
external chart formation.
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19
Patterns
As already mentioned, there are many types
of Harmonics patterns. We will cover these in
more depth in the upcoming presentations
and I will do my best to keep things as simple
as possible throughout each:
ABC Bullish/Bearish
AB=CD Bullish/Bearish
3-Drives Bullish/Bearish
Butterfly Bullish/Bearish
Gartley Bullish/Bearish
Bat Bullish/Bearish
Crab Bullish/Bearish
Shark Bullish/Bearish
Cypher Bullish/Bearish.
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20
How To Trade Each
Along with the different harmonic
pattern coverage, we will also go in-
depth on how to trade each, so that
you are comfortable with
accurately identifying patterns, the
correct entry, stop loss and take
profit range.
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21
That’s it! In my next
presentation, we will begin
to cover the mathematics
behind harmonic patterns
and break everything down
to its simplest form.
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23
Slick Trade
A Guide to Harmonic Patterns #3
All About Fibonacci
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
Re-Cap
In my last presentation
we began to cover
Now we will take a
some of the popular
look at Fibonacci
harmonic patterns and
basics
concepts behind them
All About Fibonacci
Also known as the Fib ratio, the Fibonacci
numbers and ratios are essentially a number
sequence wherein every number is derived
after adding the previous 2 numbers.
Following is the Fibonacci number
sequence:
1,1,2,3,5,8,13,21,34,55,89,144,233,317,610
and so on.
The important Fibonacci ratios are
calculated through square roots,
squaring as well as reciprocation of the
real Fib numbers.
Following are the important Fib trading
ratios:
Fibonacci
Ratios
0.382, 0, .618, 0.786, 1.0, 1, 1, 2.0, 2.62,
3.62 and 4.62.
The secondary Fib ratios include: 0.236, 0,
0886, 1.13, 2.236, 3.14 and 4.236.
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28
Fibonacci Applied
ratios can be applied in
are Fibonacci projections,
various ways for advanced
retracements, fans, arcs,
technical trading and
price, time zones and price
analysis.
among other others.
software offer tools for
retracements, extensions as
drawing Fibonacci levels.
well as projections.
applied to both price and
time, which allows traders
to trade successfully.
More On Fibonacci
When it comes to using the Fibonacci ratios as well as
numbers along with Harmonic patterns, it is important
that traders look for patterns in the longer timeframes. I
personally use the D1 timeframe.
It is also advisable that traders make a note of the trades
approaching the Potential Reversal Zone or PRZ level.
Traders can then resort to auto alerts and trade
manually. I use 2 different harmonic pattern indicators,
along with price action to send our members in the Slick
Trade room market commentary analysis.
More On Fibonacci
If the traders are unable to keep a track of the price
movements on a constant basis, then they can consider
inserting pending trade orders which will get automatically
activated when the price movement matches specific criteria.
Lastly, traders can review the previous trades pertaining to the
assets that they are looking to trade.
This would help them in understanding how price movement
confirmed reversals previously.
That’s it! In my next
presentation, we will cover
how to determine entries,
stop losses, targets and
trailing your stops for
maximum pip potential.
32
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33
Slick Trade
A Guide to Harmonic Patterns #4
How To Trade Harmonic Patterns, Identifying Patterns,
Setting Your Stop, Targets and Trailing Your Stops
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
How to Trade Harmonic Patterns
As stated in the previous presentations, the common
Harmonic patterns are the 5 point patterns i.e.
Gartley, Crab, Butterfly, Cypher, Crab, Bat and Shark
patterns.
These Harmonic patters come embedded with 3
point i.e. ABC and 4 point i.e. ABCD patterns.
Each and every swing in price that take place within
these very points are interconnected as well as come
with Harmonic ratios that are based on Fib pattern.
How to Trade Harmonic Patterns
These patterns either form or resemble a complete W
or M shape or even W and M combinations (in 3 drives
case).
The 5 point Harmonic patterns feature a crucial origin
point ‘X’, which is followed by impulsive wave i.e. X .
This, in turn, is followed by corrective wave that forms
an ‘EYE’ at point B, thus completing an B leg.
Again, this is followed by tend wave i.e. BC and is
eventually complete by CD or corrective leg.
How to Trade Harmonic Patterns
The crucial harmonic ratios that can be seen
between the legs indicate whether it is
retracement or extension-based pattern, thereby
defining the very name of the pattern i.e. Butterfly,
Crab, Gartley etc.
Traders must remember that all 4 point and 5 point
patterns come embedded with ABC i.e. 3 point
chart patterns.
All the 5 point patterns follow same principles as
well as structures.
These patterns differ only in terms of ratios, which
makes them easily identifiable.
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38
How to Determine Trade Entries
and Stops in Harmonic Pattern
Trading
Most of the traders who use the Harmonic
pattern for trading expect that the pattern
would reverse as well as make an attempt
to trade them within the reversal area.
However, during the process they end up
placing counter or contrarian trades.
Before entering a trade, traders must seek
price action reversal along with change in
reversal trend.
Trade Entries
When it comes to trade entries using the Harmonic patterns, most of them happen around the ‘D’ level
inside the trend reversal zone.
In bullish patterns, this could either be a Sell or a Buy.
Typically, ‘D’ can be identified through a meeting of retracements, projections as well as extensions of
previous swings or legs that are universally referred to as the ‘reversal area/zone’.
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40
Trade Entries
When the prices begin to approach this particular zone, it
is a great opportunity for trade but not the signal for
placing a trade.
Before entering the trade, traders must take numerous
other important factors into consideration such as the
existing volatility, trend underlying, pattern’s volume
structure as well as internal market factors etc.
If there is a valid pattern reversal and the trend underlying
as well as the internal market factors agree with it, then
the traders can calculate the entry levels on the basis
volatility, pricing ranges as well as other factors.
42
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The stop can be place either below or above the
final or the last pivot point.
Where To Place Your
It must be noted that in the case of 5 as well as 4
point Harmonic patterns, the stop
is place below the
Stop Loss
‘D’ for bullish patterns and above ‘D’ when there are
bearish patterns.
Target Zones
Apart from trade entries as well as stops, traders must
also compute the target zones when using the
Harmonic chart patterns.
These are calculated on the basis of extensions,
projections and retracements of corrective/impulsive
swings along with the Fib ratios from the pattern
structure’s action point.
Traders must know that within the Harmonic chart
patterns, a target zone is determined from the
standpoint of probability rather than the certainty
standpoint.
In order to trade the Harmonic pattern successfully,
traders need to have solid risk and money management
strategies as well as in-depth knowledge about the
pattern.
43
When it comes to trading the Harmonic patterns, the
trader must identify his/her entry point and also create
the right strategy for exiting the market.
Traders can use multiple methods for trade
Setting Take Profits and
management once they have recognized a harmonic
adjusting the Stop Loss
pattern.
for Harmonic Patterns
An effective and easy method that traders can
implement is to wait until the price is confirmed as well
as place their stop loss immediately beyond the swing
point.
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Traders who are already aware of the right time of entering the
market as well as the exact position where they would
place their
stop loss must know the duration for which they would remain in
their trades.
Taking Profits in
As a trader you
already know that the harmonic patterns targets must
be associated with the pattern’s levels itself.
Harmonic Pattern
For instance, above we have
taken bullish
Butterfly pattern on
USD/CAD into consideration.
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In this example, we have also included 4 potential targets beyond the price
movement aside to stop
loss.
The 1st target is associated with point-B on the
harmonics chart. This indicates the
Taking Profits in
drop in price at the time
of a decrease in AB.
The 2nd target is point-C and there is an increase in the price
post the increase in BC.
Harmonic Pattern
The 3rd target is related to increased price that
appears owing to an increase of XA.
The 4th target is represented by 161.8 percent level of extension of the price
movement in CD.
At the time of trading Harmonic setups, one should also take trailing stop into
consideration in order to benefit from large pricing movements and safeguarding
one’s capital amount.
Traders should adjust their Stop Loss on the basis of the pricing action to earn
Adjustment of Stop Loss
profits.
Hence, when we take the previously mentioned USD/CAD price chart into
consideration, each time the pricing fulfills a target, we must modify Stop Loss
order and locate it under the lowest or bottom level during target break.
That’s it! In my next
presentation, we will
cover the Gartley
Harmonic Pattern in-
depth.
48
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49
Slick Trade
A Guide to Harmonic Patterns #5
How To Trade The Gartley Harmonic Pattern
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
52
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Created by H.M. Gartley, the Gartley chart patterns
Gartley Harmonic
are utilized for technical
analysis as well as are
renowned for using Fibonacci ratios and numbers. It
Pattern Trading
is a reversal chart pattern that offers clear rules
in
Strategy
addition to excellent rewards.
53
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Like any other pattern trading, Gartley pattern trading also entails
How to Trade
identifying the right methodology for entry.
Typically, one should
enter only after a confirmation or
when there is a break in the
momentum.
Gartley Chart
The Gartley pattern should fulfill the below mentioned Fibonacci
Patterns
rules:
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AB=Retracing to 0.618 Fibonacci level of XA.
BC=should be minimum 38.2%
as well as maximum 78.6% Fibonacci
Rules
level of the AB leg.
CD=Must pose a target that is anywhere between 1.27-1.618 Fibonacci
extension of the AB leg or a target of the 0.786 of the XA leg.
Things To Remember
the Gartley pattern gives us a
patterns which result in
potential point of entry and does
double bottoms and double
not tell us much regarding where
bottoms are excellent indication
we should place the stop loss
of market reversals.
order as well as where we must
take our profits.
indicator or knowledge of price
action will help to give you a
clear understanding of where to
set each.
1
Stop Loss
In the example above, you would place your stop
loss below the D level or last pivot point
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56
Take Profit
Levels
1
2
3
In the example above, you
TP 2 at the C level
TP 3 at the A level
would place your TP1 around
220.00 where consolidation
range formed
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57
That’s it! In my next
presentation, we will
cover the Crab Harmonic
Pattern.
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59
Slick Trade
A Guide to Harmonic Patterns #6
How To Trade The Crab Harmonic Pattern
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
Crab Harmonic Pattern Trading Strategy
The Crab Harmonic pattern experiences extremely volatile and sharp pricing action
frequently.
It is crucial to anticipate high volatility at the time of executing trades as and when the
pattern reaches its point of completion.
Thanks to advanced technology as well as the presence of a wide range of trading platforms,
identifying the bullish Harmonic Crab pattern has become quite simple and easy.
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Trading The Crab
Pattern
The Crab
AB=should retrace in the range of 0.382-0.618 Fibonacci of the
XA.
pattern
must fulfill
BC=Must be minimum 38.2% as well as maximum 88.6 percent
these
Fibonacci of the AB.
Fibonacci
Retracement
CD=Poses target in the range of 2.24-3.618 Fibonacci extension
of the AB or a typical target point of 1.618 of the XA.
rules:
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1
2
3
4
Rules
Timing is crucial with
The first step to
Next, you must trade
The D point of Crab
Typically, you should
the Crab Pattern
trading the Crab
near the D point.
must satisfy the
place your stop loss
pattern is to draw it
needs of CD=2.24-
order right above
on the chart.
3.618 of AB.
3.618 Fibonacci
extension level.
Stop Loss
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1
In the example to the right, you would
place your stop loss below the D level
or last pivot point
Take Profit Levels
1
2
3
In the example above, you
TP 2 at the B or “eye”
TP 3 at the C level
would place your TP1 at the X
level
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That’s it! In my next
presentation, we will
cover the Butterfly
Harmonic Pattern.
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Slick Trade
A Guide to Harmonic Patterns #7
How To Trade The Butterfly Harmonic Pattern
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
Butterfly Harmonic Pattern Trading Strategy
The Butterfly Harmonics pattern strategy for trading is excellent for earning huge
profits.
The Butterfly pattern draws similarity from the Gartley 222 pattern and one of its
major benefits is that it allows you to purchase as well as sell at fresh lows/highs
since the D wave terminates right ahead of the XA wave's starting point.
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Similar to other Harmonics pattern, the
Butterfly pattern is essentially a 4-leg
Trading The Butterfly
The pattern must fulfill the
ned Fibonacci retracement
Patternbelow mentio.
rules:
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Trading The
Butterfly Pattern
AB= It must complete a target of 0.786 or 78.6 percentage of the XA
leg.
BC=This must be a minimum 38.2 percent as well as maximum 88.6
percent Fibonacci retracement level of the AB leg.
CD=Presents a target which is between 1.618 percent -2.618 Fibonacci
extension level of the AB leg i.e. between 1.272-1.618 of the XA leg.
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the chart pattern and identify the D point
point is: AB swing leg's extension in the range of 1.618-2.618.
st also provide an XA swing leg's
extension in the range of 1.272-1.618.
Rules
r anywhere in the range of 1.618-2.618 Fibonacci retracement level.
the stop loss order above 1.618 of the XA
Stop Loss
e example above, you would place
your stop loss below the XD line
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Take Profit
76
In the example above, you would
place your TP1 at the “eye” or B line
TP2 at the A level
TP 3 continue the trailing stop for
maximum pip potential
That’s it! In my next
presentation, we will
cover the Shark
Harmonic Pattern.
77
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78
Slick Trade
A Guide to Harmonic Patterns #8
How To Trade The Shark Harmonic Pattern
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
Shark Harmonic Pattern Trading Strategy
The Shark Harmonic pattern is distinct from other Harmonic
setups owing to its 5-point setup including O, X, A, B and C.
In addition to this, the B leg terminates at the point above the X
wave. It extends to a minimum of 1.13 as well as a maximum of
1.618 Fibonacci levels.
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The Shark
AB=should retrace between 1.13-1.618 Fibonacci
Harmonic
extension of the XA.
pattern
Trading The Shark
should fulfill
BC=must extend to 113 percent Fibonacci
the below
extension of the OX.
mentioned
Pattern
Fibonacci
CD=should pose the target of 50 percent
ratio needs:
Fibonacci retracement of the BC.
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Trading The Shark
Pattern
In order to trade this pattern, traders must make an entry at the
opening of next candle right after the Harmonic indicator spots
the Shark Harmonic pattern.
In other words, traders should enter the market once the Leg C
has been established.
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Stop Loss
84
In the example above, the stop loss
would be at the D level
Target Zone
85
In the example above, the TP1
would be at the B level
TP2 would be at the A level
Continue to trail your stop for
maximum pip potential
That’s it! In my next
presentation, we will
cover the Bat Harmonic
Pattern.
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87
Slick Trade
A Guide to Harmonic Patterns #9
How To Trade The Bat Harmonic Pattern
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
Bat Harmonic Pattern Trading
Strategy
90
different trading markets. However, as a trader you must
remember that using the Bat pattern on time frames that are
lower can be quite challenging. This is because this particular
pattern often shows up less frequently on time frames that
are low.
Bat Harmonic Pattern Trading
Strategy
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uses different Fibonacci levels.
structure is Point B which when it does not exceed the 50 percent Fibonacci
retracement level of XA leg is considered to be a Bat Harmonic pattern.
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The Bat
AB=should be minimum 38.2 percent as well as maximum 50 percent
Fibonacci retracement of the XA.
harmonic
pattern
Trading The Bat
BC=Must be minimum 38.2 percent as well as maximum 88.6 percent
must fulfill
Fibonacci retracement of the AB.
these
Pattern
Fibonacci
CD=should be 88.6 percent Fibonacci retracement of the XA or in
the
range of 1.618 percent- 2.618 percent Fibonacci extension of the
AB.
rules:
93
Trading The Bat
Pattern
Once the trader has drawn the Bat Harmonic pattern on the chart,
he/she must enter at 88.6 percent Fibonacci retracement level,
which is an exact market changing point.
This is because at 88.6 percent Fibonacci level, traders enjoy a
much better risk to reward ratio.
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he example
above, the stop
Stop Loss
loss would be at the
X level
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In the example
above, the TP1
TP2
would be at
TP3 would be at
Target Zone
would be at the B
the C level
the A level
level
That’s it! In my next
presentation, we will
cover the Cypher
Harmonic Pattern.
96
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97
Slick Trade
A Guide to Harmonic Patterns #10
How To Trade The Cypher Harmonic Pattern
Charles Comber
www.SlickTrade.net
Disclaimer
When trading any financial asset, there is a possibility that you may sustain a partial or total loss of your
investment funds when trading. As a result, it is advised that you should never invest with, or trade upon, money
which you cannot afford to lose through this manner of trading.
Trading involves a real risk of loss. Please ensure you read through our terms and conditions of use carefully
before making investments. It is the responsibility of all visitors to the website to ensure that their interaction
with Slick Trade is strictly within the law and corresponds to the strictures enforced in their own country of
residence. Customers should be aware of their potential individual capital gain tax liabilities in their country of
residence. Past Performance DOES NOT ensure future results.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, SLICK TRADE EXPRESSLY DISCLAIMS ALL
WARRANTIES OF ANY KIND, EXPRESSED, IMPLIED OR STATUTORY, RELATED TO THE SITE, PLATFORM, CONTENT,
AND SERVICES, INCLUDING AND WITHOUT LIMITATION THE WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF PROPRIETARY RIGHTS, COURSE OF DEALING OR COURSE
OF PERFORMANCE. SLICK TRADE DISCLAIMS ANY WARRANTIES, EXPRESSED OR IMPLIED REGARDING: (I) THE
SECURITY, ACCURACY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE SITE, CONTENT, PLATFORM, AND
SERVICES; AND (II) THE SITE, PLATFORM AND SERVICES WILL BE UNINTERRUPTED, ERROR-FREE OR THAT ANY
ERRORS WILL BE CORRECTED; AND (III) REGARDING THE PERFORMANCE OF OR ACCURACY, QUALITY, CURRENCY,
COMPLETENESS OR USEFULNESS OF ANY INFORMATION PROVIDED BY THE SITE, PLATFORM AND SERVICES.
100
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4 leg reverse
pattern. The frequency of appearance of this
Cypher Harmonic
pattern is much less when compared to
the other
pattern. This is because the market, in
general,
Pattern Trading Strategy
finds it difficult to
satisfy these rigid
ratios.
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The Cypher
AB= should be in the range of 0.382-0.618 Fibonacci
Harmonics
retracement of XA swinging leg.
pattern should
Trading The
fulfill the
BC=should extend to a minimum of 1.272 as well as a
below
maximum of
1.414
of XA
leg.
mentioned
Cypher Pattern
CD=must retrace to the 0.786 of XC leg.
Fibonacci
levels:
102
Trading The
Cypher Pattern
Buy when the CD leg has reached 0.786 level of the Fibonacci retracement of XC.
Next, you need to identify the point where you would place your stop loss order.
In the case of Bullish Cypher Harmonics pattern, you should consider placing your stop loss order
right below X point.
If there is a break below that level then the pattern will automatically become invalid.
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103
he example above, the stop
Stop Loss
loss would be at the X level
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In the example above, the TP1 would be at
the B level
TP2 would be at the A level
Target Zone
Continue to trail your stop for max profit
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That’s it! I hope that you
have enjoyed this
harmonic pattern series
and I will see you in the
room!
105
For a limited time, we are currently offering you an additional 15% lifetime
discount on our Sapphire membership fees to thank you for your interest in
our products and services.
To obtain this special discount please contact our friendly support team
at slicktrade2014@gmail.com quoting “A Guide To Trading
Harmonics”
ABOUT SLICK TRADE ONLINE TRADING
ACADEMY & CEO Charles Comber
After a major car wreck in 2007, Charles Comber suffered
major bodily injuries along with a traumatic brain injury and
was told that it was unlikely that he would ever function fully
again. He spent a challenging year in recovery and, against all
the odds re-learned how to walk, talk and simply be a
functioning member of society again. With a strong
determination, he was able to get back into college, earn his
degree and launch his first business venture.
Charles had a vision͙ a vision to create a community of online
traders where everyone involved could make an income. He
spent months perfecting his first strategies and creating the
foundation of Slick Trade; which has steadily grown over the
years. Seeing members focus on the education, implement the
strategies and trading tools and increase their trading
knowledge is what has made all of his hard efforts worth it.
His ambition to create a platform where individuals - whether
new or experienced could generate an income and create
wealth through trading has created an entirely new way to
achieve financial freedom.
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