Harmonic Patterns Training Course

[PCMAnalyst]

What is PRZ or Potential Reversal Zone?

It is a zone or a limited area that a trend reversal is the most probable thing to happen. This zone is aggregation of several Fibonacci hurdles. One of the most important confirmations in PRZ area to have the price reversed is divergence. Having just a pattern being formed is not an enough reason to get into risk and open a position and definitely we ought to have a solid, strong and firm on the reversal within the PRZ area. One of the firmest within the area are happening divergence & having the trend line broken. The divergence likely has happened in the time frame the analysis is being applied or one or two time frames lower. As much as the patterns we catch up with are happening in upper time frames (e.g. 30 min to monthly), that is the matter to be more valid.

[PCMAnalyst]

the pattern ab=cd

This pattern has been called as mother pattern and is seen a lot in the market. The pattern Ab=cd comes as one the following forms;



the length of bc equals to %61.8 or %78.6 retracement, and point d (called PRZ) is being located within two Fibonacci ratios.

1. Expansion %100 of ABC
2. Extension %127.2 – %161.8 of BC

To draw via Expansion tool I Metatrader the user will use “fibonacci expansion” tool or three point feature and the point a-b-c will be connected to eachother respectively, this way point d or PRZ will be obtained.
To use this tool within Dynamic Trader the tool “projection” or “APP” will be used.
The point D should be placed on %161.8 Fibonacci retracement, if BC correction move has been corrected to %61.8 of AB. If point BC has been corrected to %78.6 , point D or PRZ will be placing on %127.2 retracement.

AB=CD surrounds targets based on Fibonacci ratios as follows:

1. The first target on %61.8-%78.6 of CD
2. The second target will include %127.2-%161.8 of CD

AB=CD pattern has also several derivatives of its own. So that we have ratios less than %50 or more that %78.6 in BC corrections which you can in the following image:



As an example: if BC has corrected to %38.2 of AB, then point D should be placed on %261.8-%224.2. Generally, regardless of how much AB has been corrected by BC, we could recognize the existence of AB=CD pattern by using fibo expansion tool which is made of connecting A-B-C points together. But as noted to you guys, the ideal AB=CD pattern should be including BC correction from one of %78.6 or %61.8 fibo levels for sure.
By having the pattern formed, if we get the divergence as an important confirmation either in the time frame we got the chart analyzed or one\two time frames lower, it will validate the pattern formation and happening of the reversal.

Several examples of AB=CD pattern:

[PCMAnalyst]

Gartley Pattern

Specifications:

B = 61.8 % XA

D = 78.6% XA

D = 127.2 - 161.8% BC

C = 38.2 - 88.6% AB

Within the pattern usually an AB=CD pattern is being formed.

Note: sometimes point D will be extended to %8806 of XA, which in case to be an adequate confirmation inside PRZ area, the pattern will be acceptable and valid. And sometimes point D will be standing with a small distance from %61.8 of XA, and then we will take care of the pattern if there was an strong and solid trading evidence.



example:

[PCMAnalyst]

The BAT Pattern
The specification:

b = 38.2-50% xa

d =88.6% xa

d = 161.8-261.8% bc

c = 38.2 - 88.6% ab



example:

[PCMAnalyst]

The Butterfly Pattern
The specification:

b = 78.6% xa

d =127.2-161.8% xa

d = 161.8-261.8% bc

c = 38.2 - 88.6% ab



example:

[rianantoko]

is here where interactive learning?PCMAnalystI have a DT as your app, but I can not install

[PCMAnalyst]

is here where interactive learning?PCMAnalystI have a DT as your app, but I can not install

Yes of course my friend
A complete course on setting up & installing DT (the latest ver. We've got) will be illustrated soon enough.
Please keep in touch.
Regards

[rianantoko]

DT I do not fully compatible with Windows 8, the possibility that I have the old version .. where i can get the new version?

[PCMAnalyst]

The CRAB Pattern
The specification:

b =38.2-61.8% xa

d =161.8% xa

d = 224.2-361.8% bc

c = 38.2 -88.6% ab



example:

[raheelrehman]

Well, you have described very good, but it is not easy to understand for those who are new in this market, you must simplify more about these patterns and how to calculate the patterns, like where to put the fibonacci tool, retracement, expension etc, first of all you need to clear this thing, then the reader will understand how to analyze the pattern, though your thread is very nice, and I love to see these patterns, I know about gartly and bat pattern, but I love to know more about it. I hope you will put some lights in this regards, if you are still on this forum.