Post Tue Aug 13, 2024 9:38 pm

Advantages of Harmonic Analysis

Detecting geometric patterns: Harmonic analysis helps traders detect specific geometric patterns such as the shell, butterfly, and golden wing patterns. Similarly, these patterns provide signals about the potential reversal of the price trend.
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Identifying entry and exit points: Harmonic analysis provides signals to identify potential trade entry points when the patterns are completed, as well as identifying potential target levels and stop points.

Using Fibonacci ratios: Harmonic analysis is largely related to Fibonacci ratios, which are a powerful tool for identifying correction and extension levels in the price.

Accuracy in forecasts: When the harmonic pattern is completed and its points coincide with the Fibonacci ratios, the signals can be accurate and provide strong forecasts for the price movement.