Business & Investment

Harmonic Pattern Detection Indicator MT4-Trading System-January 29, 2021

A trading indicator is the realization of a particular theory, trading strategy, or trading idea for real-world trading. There is always a gap between theory (that is, ideas and strategies) and practice. This is also the case with harmonic pattern trading.

Therefore, not all harmonic pattern detection indicators are the same. The main variations of harmonic pattern indicators can be divided into four types: Users need to understand the strengths and weaknesses of each variation in order to maximize trading performance with harmonized patterns.

Type 1: No delay (high-speed signal), but repaint

Options to enter from the turning point. The indicator does not show the failed pattern on the chart and the last pattern can be redrawn. This is considered almost a standard harmonic pattern indicator. Harmonic pattern traders will accept it as it is, even if it is repainted. With a 99% chance, this is a harmonic pattern product available on the market, whether free or paid. You can use this metric to trade live, but you cannot use historical patterns to fine-tune your strategy.

Type 2: Delay (slow signal) is not repainted

There is no option to enter the turning point (that is, the early signal). This type of indicator rotates the harmonic pattern indicator as slowly as a moving average crossover. It may not be an overly attractive option for your transaction. The indicator does not indicate a failed pattern. Therefore, you cannot use historical patterns to adjust your strategy, but the last pattern will not be redrawn. You can use this metric to trade live, but you cannot use historical patterns to fine-tune your strategy. Perhaps about 1% of harmonic pattern indicators are of this type.

Type 3: Detects pattern at point C but redraws

Options to enter at turning points. The indicator detects the pattern too quickly and has to wait a considerable amount of time for the price to move closer to point D. In fact, the price may not move near point D. You may just waste time waiting for the pattern. The indicator does not show the failed pattern and the last pattern can be redrawn. You can use this metric to trade live, but you cannot use historical patterns to fine-tune your strategy. Perhaps about 1% of harmonic pattern indicators are of this type.

Type 4: No delay (high speed signal) and no repainting

Options to enter from the turning point. At the same time, the pattern has not been redrawn. It is a hybrid of all three systems above and can be considered the most powerful harmonic pattern indicator. You can trade live using this metric. You can also use historical patterns to fine-tune your strategy. With this metric, you are fully compliant with the statement “trade what you see.”

MetaTrader 4 is one of the most popular trading platforms since 2010. Free access to all traders around the world. We offer a wide range of powerful harmonic pattern detection indicators, especially for the MetaTrader 4 platform. Below is a list:

1. Harmonic Pattern Plus (2014)

Harmonic Pattern Plus is a very good product in terms of price. It has dozens of powerful features such as pattern completion interval, potential reversal zone, potential continuation zone, automatic stop loss and profit sizing. Type 1 harmonic pattern indicator.

Below is a link to Harmonic Pattern Plus

https://www.mql5.com/en/market/product/4488

https://algotrading-investment.com/portfolio-item/harmonic-pattern-plus/

2. Harmonic pattern scenario planner (2014)

With the added ability to predict future harmonic patterns, this is a highly tactical harmonic pattern indicator with advanced simulation capabilities in addition to the powerful features of Harmonic Pattern Plus. Type 1 and type 3 harmonic pattern indicators.

Below is a link to the Harmonic Pattern Scenario Planner

https://www.mql5.com/en/market/product/6240

https://algotrading-investment.com/portfolio-item/harmonic-pattern-scenario-planner/

3. X3 Chart Pattern Scanner (2019)

The X3 Chart Pattern Scanner is a next generation tool for detecting profitable patterns in the forex market. Using non-redraw and non-delay algorithms, this tool can detect advanced harmonic patterns, Elliott wave patterns, and X3 pattern structures for trading. As a bonus, it also offers your Japanese candlestick pattern. This is a Type 4 harmonic pattern detection indicator. This means that you can use historical patterns to fine-tune your strategy when you are trading the same pattern in live trading.

https://www.mql5.com/en/market/product/41993

https://algotrading-investment.com/portfolio-item/profitable-pattern-scanner/

Harmonic Pattern Detection Indicator MT4-Trading System-January 29, 2021

https://www.mql5.com/en/blogs/post/742552?utm_campaign=RSS&utm_medium=display&utm_source=MQL5+EN+Blog Harmonic Pattern Detection Indicator MT4-Trading System-January 29, 2021

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