Harmonic Trading is a methodology which uses the recognition of specific structures that possess consecutive Fibonacci ratio alignments that validate harmonic patterns. These patterns calculate the Fibonacci facets of these price structures to recognize probable reversal points in the financial markets.
When put on the financial markets, this analysis of Fibonacci measurements can define the extent of price action with regards to natural cyclical growth limits of trading behavior.
The collective entity coming from all buyers and sellers inside a particular market continue with the same universal principles exhibiting cyclical behavior.
Harmonic Trading identifies repetitive situations from the chaos from the stock and forex markets.
Essentially, these patterns are price structures that have mixtures of distinct and consecutive Fibonacci retracements and projections.
This is actually the latest version in the ZUP v135 indicator that identifies the pattern “dragon”.