Harmonic Trading is a methodology that employs the recognition of specific structures that possess consecutive Fibonacci ratio alignments that validate harmonic patterns. These patterns calculate the Fibonacci elements of these price structures to identify probable reversal points inside the financial markets.
When put on the financial markets, this analysis of Fibonacci measurements can define the extent of price action with respect to natural cyclical growth limits of trading behavior.
The collective entity of all buyers and sellers in the particular market continue with the same universal principles exhibiting cyclical behavior.
Harmonic Trading identifies repetitive situations inside the chaos in the financial markets.
Essentially, these patterns are price structures that contain combinations of distinct and consecutive Fibonacci retracements and projections.
This is actually the new edition in the ZUP v135 indicator that identifies the pattern “dragon”.