Chart pattern: Difference between revisions

Revision as of 19:12, 26 June 2025

Revision as of 19:13, 26 June 2025

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== Harmonic pattern ==

Harmonic Pattern<ref>[http://www.informit.com/store/harmonic-trading-volume-one-profiting-from-the-natural-9780137051502 Harmonic Trading, Volume One: Profiting from the Natural Order of the Financial Markets By Scott M. Carney Published Apr 12, 2010 by FT Press.]</ref> utilizes the recognition of specific structures that possess distinct and consecutive Fibonacci ratio alignments that quantify and validate harmonic patterns. These patterns calculate the Fibonacci aspects of these price structures to identify highly probable reversal points in the financial markets. This methodology assumes that harmonic patterns or cycles, like many patterns and cycles in life, continually repeat. The key is to identify these patterns and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur.

Below is a list of commonly used harmonic patterns:

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Traders use the Potential Reversal Zone (PRZ) as an important level of support/resistance in their trading and price action strategy.

== Geometric ABCD Pattern ==

In the evolving study of chart formations, several refinements to the classic ABCD pattern have emerged. In 2025, financial trading educator Kenny Simon introduced the *Geometric ABCD Pattern*—a structural model that blends traditional price symmetry with geometric alignment, used to improve entry timing and risk precision.<ref name="Simon2025">Simon, Kenneth. "Decoding the Geometric Trading Pattern: A Structure-Based Approach to Precision Entries." Medium. June 2025. [https://medium.com/@profkenny/decoding-geometric-pattern-structure-trading]</ref>

== Candlestick pattern ==