Harmonic Trading with The Phoenix
This thread is dedicated to the identification and trading of Harmonic Price Patterns. Harmonic Analysis is a little-known field of technical analysis that utilizes Fibonacci Ratios and Price Pattern Recognition techniques. Pioneered in the 1930s by analysts such as H.M. Gartley, George Cole, and Wycoff and later practiced by such analysts as William Dunnigan in the 1950s, these techniques were popularized more recently by Larry Pesavento and Scott Carney (who coined the term Harmonic Analysis).
Many fine examples of Harmonic Patterns can be viewed at Pesaventos website:
tradingtutor.com
Scott Carneys Website: harmonictrader.com
An excellent tutorial on Gartley and Butterfly setups can be found at this site:
longorshort.com
While Harmonic Analysis has much in common with disciplines such as E-Wave and Astrologic Charting, it can stand alone as an analysis and trading method. (I do not practice either E-Wave or Astrological Analysis). As far as I know, I am the only practitioner of Harmonic Analysis who posts regularly on SI. I have been identifying and tracking Harmonic Patterns here, and on a private Yahoo Group, for about a year. Im starting this thread as a place to consolidate my work in this area, and to post future patterns that I identify.
The first half dozen or so posts here will revisit the patterns identified over the past year and track the markets followthrough once those patterns completed. This section can serve as sort of a Harmonic Analysis Primer for those looking for an introduction to this field of study. Later posts will be real-time identification and tracking of new patterns as they emerge.
While my focus is the stock indices, these patterns work in any tradeable, whether stocks, commodities, currencies, etc.
Table of Relationships
Key Ratio / Square / Square Root / Reciprocal
0.382 / -------- / 0.618 / 2.618
0.618 / 0.382 / 0.786 / 1.618
0.786 / 0.618 / -------- / 1.272
1.000 / 1.000 / 1.000 / 1.000
1.272 / 1.618 / 1.128 / 0.786
1.618 / 2.618 / 1.272 / 0.618
2.618 / -------- / 1.618 / 0.382
0.500 / 0.250 / 0.707 / 2.000
0.707 / 0.500 / 0.841 / 1.414
0.841 / 0.707 / -------- / --------
1.414 / 2.000 / -------- / 0.707
2.000 / 4.000 / 1.414 / 0.500
WATCH LIST as of 3/17/03
Date Symbol Pattern Timeframe PRZ Stop Target Status
3/17 $SOX Bearish Gartley Daily 329-333 350 299 Approaching PRZ
3/17 $NDX Bearish Bat Daily 1071-1085 1110 1000 In PRZ
3/14 $SPX Bullish Bat Daily 788-790 759 879 Hit PRZ, Reversed, Approaching Target
3/12 EWJ Bullish Butterfly Daily 6.42-6.45 6.0 6.85 Hit PRZ, Reversed
2/28 $TNX Bullish Butterfly Daily 3.61-3.66 3.5 3.9 Reversed up from below PRZ, Near Target
2/13 MSFT Bullish Gartley Daily 23.25 -23.77 21.5 26.5 Near Target
2/13 $INDU Bullish Gartley Daily 7574-7616 7150 8390 Near Target
2/13 $COMPX Bullish Gartley Daily 1266-1273 1230 1390 Target Reached 3/17
1/15 HD Bullish Butterfly Weekly 20.13-21.35 19 25 Hit 24 |
