Harmonic pattern detection indicators are a powerful tool for solving market geometry puzzles that technical indicators often cannot solve. What about automatic harmonic pattern detection for your trading?
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 harmonic 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 almost always considered 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 trading. The indicator does not show the failed pattern. Therefore, you cannot use the history pattern to adjust the strategy, but the last pattern is not 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, so you have 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. Just waiting for the pattern can be a waste of time. 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 history patterns to fine-tune your strategy. With this metric, you are in full compliance with the statement “Trade what you see.”
To complete this post, you can read the complete blog post on the types of harmonic pattern indicators from the links below.
In addition, you can watch YouTube videos and get a feel for what the automatic harmonic pattern indicator looks like. For reference, we provide two YouTube videos with the following titles and links.
YouTube “Harmonic Pattern Indicator”: https://youtu.be/CzYUwk5qeCk
YouTube “Non-Repaint Non-Rag Harmonic Pattern Indicator”: https://youtu.be/uMlmMquefGQ
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Harmonic Pattern Detection Indicator MT5-Trading System-November 23, 2021
https://www.mql5.com/en/blogs/post/746823 Harmonic Pattern Detection Indicator MT5-Trading System-November 23, 2021