JoymistaWhat Are Harmonic Patterns?
Harmonic patterns are five-point price patterns, X, A, B, C and D, defined by Fibonacci ratios between their legs, such as the Gartley and the Bat.
Explained
Each pattern has its own ratios: in the Gartley, for example, point D sits at 78.6% of the XA leg. Point D is the possible reversal zone, and an entry there needs confirmation and a clear stop beyond the pattern.
Example
Example with made-up numbers for a bullish GartleyX at 100 and A at 200, so the expected point D is at 200 − 0.786 × 100 = 121.4.
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Related terms
- Fibonacci RetracementFibonacci retracements are levels that measure how far price pulls back from a prior…
- Support and ResistanceSupport is a price zone where falls stopped before because buyers took over; resistance…
- DivergenceDivergence is a mismatch between the direction of price and a momentum indicator such as…
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Open in JoymistaEducational content, not investment advice.