In this video I explain what I was taught in terms of a Harmonic pattern "working". In this example I initially look at a BAT pattern and I walk you through what it means for it to "work" and later on I show the same for a GARTLEY pattern.
In essence when price turns at D, you can consider the pattern having worked once price passes A. You can take profit or even exit the trade before that, but that has more to do with an individuals trade management, in this case I am specifically focusing on what I understand as a Harmonic pattern "working".
Hope this helps.
تعليق
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nice example of a Butterfly pattern "working" which in this case means it has taken out A.
تعليق
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Rippple Gartley pattern which has worked i.e. taken out A
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Lisk Butterfly
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Bitcoin Butterfly has taken out A which means it has "worked"
You must incorporate TypeI v TYPEII harmonic patterns classification.
jcuypers
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What about the following definition: Each harmonic pattern is defined by a certain set of rules/constraints. Whenever a setup forms, we might identify/classify it as a certain pattern. Based on this classification, we can make assumptions and make estimates on further progression. a continuation of the pattern abiding to all the rules is called a "working" pattern, ANY break in one of the rules can be called a "non-working" pattern (we might be dealing with another pattern...)