The following tool aims to automatically categorize which XABCD harmonic pattern is highlighted by the user and to alert when the price reaches the PRZ or D point.
Harmonic patterns make up a major part of the many patterns traders use to make investment decisions. The following tool aims to automatically categorize which XABCD harmonic pattern is highlighted by the user and to alert when the price reaches the PRZ or D point.
The tool can categorize Bat, Gartley , Butterfly , and Crab patterns.
The X, A, B, C, D settings determine the location of the harmonic pattern vertices. The user does not need to change them from the settings, instead only requiring adjusting their location on the chart like with a regular drawing tool. Setting these vertices is required when adding the indicator to your chart.
The upper limit of the PRZ is determined as vertex D plus 38.2% of segment DX , while the lower limit is the vertex D minus 38.2% of segment DX . Various methods exist for the determination of the PRZ, this one is general but the user can use one proper to the detected harmonic pattern .
Finally hovering on the label highlighting the segment ratios return the proper ratio used by each harmonic pattern for that precise segment.