AUSFOREX official website: How to do unilateral technical analysis of harmonic patterns?

Recently, the market has been extremely intense, especially gold, silver, and crude oil. Gold has risen all the way from 1800 to the current 2340, with a maximum of 2450. Silver has risen from 20 to the current 32. Crude oil has risen from 66 to 82. Both have ushered in a continued strong unilateral rally. The understanding of professional harmonic patterns may sometimes lead to some misunderstandings. Some people think that harmonics are only suitable for volatile markets, or are useless in unilateral markets. In fact, as a trader who has studied professional harmonic patterns courses, not only will they not be troubled by these, but they can also use various homeopathic trading strategies in such markets.

AUSFOREX official websiteThe core idea of harmonic trading is based on "a complete market", which we call "XA segment". If this market is rising, then the subsequent golden section or other harmonic patterns formed by the same "XA segment" are all carried out under the core concept of "buy the dip and participate in the rising trend". In other words, the logic of the harmonic pattern is still "go long the upward trend", but participate in the trend at a better price through the golden section and harmonic patterns.

Harmonic Trading Tactics in Unilateral Rising

Even if the market has been rising unilaterally and there is no pullback, there is no need to worry. The "structure" and "pregnancy line" introduced in the Harmonics course are designed to participate in the "XA segment that has not yet stepped back to the 0.618 level" market, rather than frequent attempts to short in an uptrend that keeps refreshing highs. The key is to identify the current unilateral trend, and Harmonics traders also participate in the current trend through the "pregnancy line" and "structure". It can be understood that Harmonics trading is still catching up with the original XA segment, so there is no reason to short against the trend.

The operation strategy in a unilateral rising trend In a unilateral rising trend, the way to participate in the trend to do long is usually to chase up and buy low, and the harmonic pattern is a trading prevention means to buy low. If the current unilateral rise finally reaches the entry level of the previous larger bearish harmonic, how should we deal with it? This requires flexible adjustment of trading strategies according to the actual situation, combined with harmonic patterns and other technical indicators. It may be necessary to act cautiously or stop losses in time to avoid risks. By deeply understanding the harmonic pattern trading strategy, traders can respond flexibly, seize opportunities, avoid risks, and achieve more stable trading returns, whether in a volatile market or a unilateral market.