Harmonic chart patterns are a much more advanced form of chart pattern technical analysis that is primarily based on Fibonacci ratios and numbers. They are known as harmonic because these formations have an integral link with the Fibonacci sequence and are believed to have a repetitive harmonic progression.
Each harmonic chart pattern is different in its shape and, most importantly, in the Fibonacci ratios that create its formation. And trust us, knowing all the harmonic formations and ratios by heart is nearly impossible.
But we are here to help you. First, you can download our harmonic patterns cheat sheet and use it whenever needed. Also, if you need more explanations about each harmonic pattern, you can visit our page on the most widely used and accurate harmonic chart patterns. In there, you can find full guides, including videos for each of the harmonic chart patterns.
Harmonic Patterns Cheat Sheet Download (PDF File)
In the documents below, we have attached all shapes and ratios of harmonic chart patterns so you can integrate them into your trading strategy.
Why Should You Use a Harmonic Pattern Cheat Sheet?
Unlike classic and single candlestick chart patterns, remembering all the harmonic chart pattern formations and ratios could be quite a challenge for every trader. That’s why a cheat sheet is a handy tool to keep the most important harmonic chart patterns beside you whenever you need them. Simple as that.
Many traders are struggling to figure out what harmonic pattern they need to use in different market scenarios and know the exact Fibonacci ratios (as well as the extension ratios), which is why a cheat sheet comes in handy. You’ll also learn how to draw Fibonacci support and resistance levels on a price chart. Frankly, the main difficulty in trading harmonic chart patterns is spotting them correctly on trading charts and drawing these patterns with the correct ratios.
Often, it would also be complicated to search for a guide online on a specific harmonic pattern and identify it on a chart. But if you have a cheat sheet, you can quickly see what these formations look like and what ratios you must use, so the patterns are valid.
Types of Harmonic Chart Patterns
Although there are many harmonic patterns, some of these patterns are the most popular and widely used among traders. These are:
- Butterfly chart pattern
- Crab chart pattern
- Diamond chart pattern
- XABCD chart pattern
- AB=CD chart pattern
- Cypher chart pattern
- Shark chart pattern
- Bat chart pattern
- Gartley chart pattern
If you are interested in trading the markets using harmonic patterns, you’ll certainly have to learn how to identify and trade these nine harmonic patterns. This is because they are considered the most accurate and reliable harmonic chart patterns. And most importantly, you can find many guides and educational material to learn how to use these patterns, which is not the case for some less popular harmonic patterns.
To help you get started, you can find the harmonic chart formations in our free downloadable file above.
Harmonic trading is certainly an excellent way to trade the markets, but it requires knowledge, patience, and practice to master these patterns. There are no magic tricks to succeed in trading harmonic patterns. You must learn how to use them correctly by analyzing the previous trend and backtesting your trading strategy before you apply it in the live markets. Moreover, you should learn how to use the Fibonacci retracament tool.
And as you can assume, there is a reason why harmonic patterns can be a helpful tool and have gained such huge popularity among traders. Due to the combination of Fibonacci ratios, harmonic chart patterns have a high winning probability compared to other chart patterns. If you learn the technique of using them, you will be equipped with one of the most powerful tools in trading.
To start, you must learn how to identify and trade each harmonic pattern. We suggest you read our harmonic pattern guides and understand the process of where and when you must enter a position, place a stop loss, and take a profit target. Additionally, download our free harmonic patterns cheat sheet and start practicing on a demonstration account.