Harmonious Trade

Harmonious trade - is a methodology which uses the recognition of certain pricing models and harmonious Fibonacci numbers to determine the most likely points of a turn in the markets. This methodology assumes that trading patterns or cycles, like many models, and in the life cycles are repeated. The key point is to identify these models and to join or withdraw from the market, based on a high degree of probability that will happen the same historic price action.

Harmonious model identifies specific price structures, which are defined by the Fibonacci ratio calculations. In essence, these models are the pricing structures that contain a combination of excellent and consistent recovery and Fibonacci projections. Evaluating various aspects of Fibonacci certain pricing structure, harmonious patterns may indicate a region that is worth to explore for potential turning points in price action.

One of the earliest references to harmonious trade was made Dzh.M.Harstom in his course of lectures on the cycles in the early 1970's. His principle of harmony was as follows: "The times of the neighboring waves in the price action tends to be bound by a small number." (Harst JM, Course Harsta, 1973).. An important concept to be understood is that these price wave, or some price movements are related to each other. In addition, the Fibonacci numbers and pricing models have shown these relationships and provide an opportunity to identify where the turning points occur. When these turning points are correctly identified, the transaction carried out on the price level where the cycle is changing. In fact, this type of trade respects the natural flow and outflow of purchases and sales. At the same time, these transactions are made "in harmony" with the market. For example, when market-based instruments bought at a turning point, the majority of sales, which were the price down, are very close to completion. Very often, harmonious methods identify the transaction in the exact point or very close to them. Analysis of harmonic models based on the elements of simple geometry and the principles of Elliott Wave. However, in contrast to the overall calculation of waves in the analysis of Elliott, harmonious trade is concentrated on the accurate pricing structures. Definitely, harmonious trade explores accurate 5-punktovye pricing structure, differentiating these movements on their Fibonacci ratios.

For example, most technical analysts familiar with the "M" - and "W" - rehabilitative models explained in the analysis of Elliott Waves. These structures are vital corrective to the reliability of counting the waves and the theory of Elliott. However, the "M" - and "W"-model may be more deeply studied, to determine where each point is within a specific price structures. These pricing structures should show the exact relationship that should not be violated.

It is important to note that the harmonious trade works on any time scale - within days, day, week, or monthly schedule. I believe that the most precise trading opportunities arise in daily schedules for the position of deals or transactions to fluctuations. However, intra-day charts provide excellent short-term deal. Also surprising that these techniques also work on long-term schedules, weekly or monthly charts provide excellent opportunities for the measurement of global historical turning points in most markets.

Here are a few important concepts that define a harmonious trade:

Models in the Chaos: It is important to note that some pricing structure is continuously repeated in the chaos of markets.

Some price structures: like Elliott wave analysis in his study of price movements, harmonious trade requires certain relevant ratio Fibonacci to confirm these structures.

Signals the potential price action: the most important point is that the harmonious patterns can signal the potential future price action.

Confirmation of other methods: Harmonious trade system is not a "black box", and this analysis is to use other technical tools and approaches, and take into account the main trends to validate the models.

Harmonious trade is a powerful technical analysis. Using the methods of recognition of harmonious pricing models and Fibonacci ratios could reveal trade opportunities for profit in specific situations, being in harmony with the market. (As an example of harmonious trade see "Harmony models" in the number 32)

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