The Pros And Cons Of Using Harmonic Forex Trading Patterns

Harmonic price patterns are used to make use of price action with a bit of math, to analyze Forex trading markets better and successfully predict market trends. Being able to figure out where the markets will move before it happens will give you a great competitive edge. Statistics show a 70% accuracy in terms of prediction. For Forex traders who want to minimize on capital loss and play carefully, harmonic trading patterns will help incredibly. 

Forex Trading Strategies

These patterns are based on the Fibonacci approach, extremely popular in Forex trading markets. Harmonics are calculated keeping in mind that a trend will always reoccur. And the difference in Fibonacci numbers gives a clear look at support/resistance level in the markets. These very harmonics also provide reversal rates for traders to utilize. 

Harmonics aren't confined to a box; they come as different patterns, each with their own set of traits and benefits. Some common patterns include Crab, Gartley, Bat, Shark and Butterfly. These patterns help obtain a crystal-clear idea of where the market might move and what shifts prices will see. Here are the advantages and disadvantages of using harmonics: 

Pros: 

1) High Success Rate: 

Harmonic trading patterns have a massive rate of accuracy, which in turn leads to success. So it is safe to assume that with a good set of these patterns to guide, acing trades is no difficult ordeal. 

2) Catches Trend Reversals: 

Another significant advantage of using harmonics is that these patterns help catch trend reversals. Several Forex Trading Strategies rely hugely on the occurrence of trend reversals, and with a good plan, reversals can lead you to big wins! 

Cons: 

1) Math-Intensive And Complicated: 

The downside of harmonics is that the learning curve is incredibly steep. You will need a strong understanding of currency markets, and be able to perform complicated calculations that Fibonacci strategies bring to the table.

2) Risky If Employed Without Practice: 

The profit aspect of harmonic trade patterns leads several to employ it without any prior practice - don't make this mistake! Study through thoroughly and practice it till you're adept enough. 

Always try out your approach on a Forex Demo Account platform in Indonesia before taking things to the real-time markets. Utilized right, harmonic trading patterns can make you land several victorious trades and see stellar profits swiftly! Reach out to WesternFX today, and avail from our arsenal of expert Forex trading services. Guided by our seasoned trading veterans, you will find your spot in the top ranks!