Harmonic Trading is often 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 distinguish probable reversal points in the markets.
When put on the 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 buyers and sellers in a particular market continue with the same universal principles exhibiting cyclical behavior.
Harmonic Trading identifies repetitive situations within the chaos with the stock and forex markets.
Essentially, these patterns are price structures that have combinations of distinct and consecutive Fibonacci retracements and projections.
This is the latest version of the ZUP v135 indicator that identifies the pattern “dragon”.