Stop Loss and Take Profit with Harmonic Pattern
In this article, we will explain how to set stop loss and take profit with Harmonic Pattern. For any professional trading strategy, there are ways to set stop loss and take profit. Fortunatley, Harmonic Pattern can provide easy way to set stop loss and take profit with Pattern Completion Zone. Pattern Completion zone is not the rocket science. It is a rectangle box drawn around the point D of any Harmonic Pattern. It can be drawn for any Harmonic Patterns including Gartley Pattern, Butterfly Pattern, Bat Pattern, Crab Pattern, Cypher Pattern, 5-0 Pattern and so on.
You can consider the pattern completion zone as the trading zone simply speaking. If you are not sure what is the trading zone, then think it as the price range, often used in the support resistance trading or supply demand trading or volume spread analysis or any other technical anlaysis. You can read more about the pattern completion zone and trading zone in Guide to Precision Harmonic Pattern Trading. However, if you have not read the book yet, we can assume it as the price range around the point D in the Harmonic Pattern. Typically, the pattern completion zone will be provided with Harmonic Pattern Indicator or Scanner you are using for the purpose of the risk management. Pattern completion zone is useful to visualize the price trajectory around the point D of the Harmonic Pattern. For example, price can have several trajectory inside or outside the pattern completion zone.
With the Pattern Completion Zone, sometimes you can observe that price can penetrate through the pattern completion zone. Sometimes, price might just make a good turning point within the Pattern Completion Zone. This implies that we need to set the sensible stop loss when we trade with the turning point. This means that we need to watch out the size of the stop loss and take profit. In another words, we need to think about Reward to Risk ratio. This is really important quantity to understand if you want to become a profitable trader.
You can read more about setting stop loss and take profit with Harmonic Pattern from this original article at algotrading-investment.com. The original article will provide through guide on setting stop loss and take profit with Harmonic Pattern.
Below, we provide the landing page for Harmonic Pattern Plus, Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner for your information.
Harmonic Pattern Plus
One of the first automated Harmonic Pattern detection tool released in 2014. It can detect 11 most popular harmonic patterns with well-defined trading entries and stops. Pattern Completion Interval, Potential Reversal Zone and Potential Continuation Zone are supported. In addition, other dozens of powerful features are added like Japanese candlestick detection, etc. Because of affordable price, this harmonic pattern detection indicator is loved by many traders. Please note that this is repainting and non lagging harmonic pattern trading system.
Harmonic Pattern Scenario planner
It is an advanced Harmonic Pattern indicator. On top of the features of Harmonic Pattern Plus, you can also predict future harmonic patterns through simulation. This is the tactical harmonic pattern tool designed for Professional harmonic pattern trader. Because of affordable price, this harmonic pattern detection indicator is loved by many traders. Please note that this is repainting and non lagging harmonic pattern trading system.
X3 Chart Pattern Scanner
Both Harmonic pattern plus and Harmonic Pattern Scenario planner are the excellent trading system at affordable cost. However, if you do not like repainting Harmonic pattern indicator, then we also provide the non repainting and non lagging harmonic pattern trading. Indeed, the X3 Chart Pattern Scanner is the most advanced Harmonic Pattern and Elliott Wave pattern scanner. Beside, X3 Chart Pattern Scanner provides many other powerful features like the customizable option and advanced channel and so on
Image and article originally from www.mql5.com. Read the original article here.