The final Words on harmonic patterns
Put the Butterfly and Crab patterns in a category and put two BAT and Gartley patterns in another one and try to look at each while wearing the Elliot glasses.
There are a lot of patterns including BAT type 2, Three drive, 5-0 and so on, which none of them with as high performance as four aforementioned patterns and there is no need to follow them up on the chart.
I mean do not look for a vast variety of patterns. Try to get the whole story by good hunting these four patterns on the chart. Specially the Gartley.
Key Tip: Always categorize the patterns based on which level they appear on. It means that if you found out an Ideal Gartley pattern, trade while taking reasonable risk and if it appeared on the other levels than the main ones, the risk should be lowered. I personally even may risk up to 3% which is never advised and it is better to stick to your money management plan.
Key Tip: The patterns like the Crab and the Butterfly could be used to make profit. It means that if you have opened a position at the end of wave 2-4, you can set your T/P at the price where the pattern completes.
Key Tip: If you have decided against the market, try to take the lowest risk and be satisfied with the minimum profits. It is because there may be two different scenarios in front of you, it is whether the trend has reversed and the new trend has started or not? Or it is just a small correction and then it will keep the way it was going before.
Key Tip: Swing Breaking which is the BAMM theory (BAT magnetic action) that is suitable to raise the volume, but personally I do not suggest it, because we are looking for the highest probability gains and there are a huge opportunities out in the market.
Key Tip: knowing when the important news come out is necessary for a trader. Like NFP release on the first Friday of each month or the news regarding to unemployment rate CPI and interest rate changes.