Benefits of the Harmonic Scanner
What Is A Harmonic Scanner?
Trading in financial markets like Forex, stocks, commodities, and futures are balanced by science and art, but mainly are businesses of weighing the possibilities.
Most Harmonic Trading Platforms use Harmonic Patterns; these patterns have been measured, studied, and cataloged as distinct market formations that are known to produce high probability results. Unfortunately, what many people don’t realize is that these patterns are Elliot Wave patterns that have certain ideal Fibonacci measurements. If you want to be more successful with trading harmonic patterns you need to really study “Ratio Trading” and expand your understanding of Elliot Waves and Fibonacci Indicators.
Elliot Wave Pattern Predictions
Ralph Nelson Elliott developed the Elliott Wave Theory in the late 1920s by discovering that stock markets, thought to behave in a somewhat chaotic manner actually traded in repetitive cycles.
In the financial markets, we know that “every action creates an equal and opposite reaction” as a price movement up or down must be followed by a contrary movement. Price action is divided into trends and corrections or sideways movements. Trends show the main direction of prices while corrections move against the trend. Elliott labeled these “impulsive” and “corrective” waves.