Above is the different Measurement to determine a specific pattern. Take note to early detect what kind of Pattern the chart is forming we have to look on the retracement of XA which is the length of AB.
AB = retracement of XA
IMPORTANT
Bat Pattern will always have retracement of 38.20% to 50% of XA like above pic
Butterfly Pattern will always have retracement of 78.6% of XA
Gartley Pattern will always have retracement of 61.8% of XA
BC = retracement of AB
For BC all patterns will have 38.2% to 88.6% retracement of AB, if BC retracement is the same hight of AB then there will b no pattern that is going to make.
ABCD Pattern
IMPORTANT
All Pattern must have ABCD Pattern it has to be the 127% or the 161.8% of BC
You could also start trade on C point where the ideal stop lost will be A point and the take profit will be 1.27% or 1.618% for conservative approach take profit will be 38.20% or completion of formed triangle.
D point
IMPORTANT
Bat will strictly be on the 88.6% retracement of XA and in between 161.8% to 261.8 of BC
Butterfly will strictly be on the 127% retracement of XA and in between 161.8% to 261.8% of BC
Gartley will strictly be on 78.6% retracement of XA and in between 127% to 161.8 of BC
to trade you must be on the D point stop lost on Bat and Gartley must not be beyond X point
all this measurement are based on lessons from
http://en.tradimo.com/learn/technical-analysis/chart-patterns/gartley-chart-pattern
http://www.profitf.com/articles/patterns/harmonic-pattern-bat/
You may Want to watch the whole Video on how to identify them
The videos on harmonic patterns are very easy to understand. But how can i download them so that i can watch them anytime i want?.
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