This chapter is from the book
This chapter is from the book
This chapter is from the book
Technical Entities Continued...
In Harmonic Trading: Volume One, I discussed the importance of specific pattern alignments as defined "technical entities." It is important to note that the prescribed set of harmonic ratios that define these structural entities has been differentiated, analyzed, and refined to develop pattern-specific strategies for each situation. Although I covered it extensively in Volume One, it is important to remember that "The Great Gartley Controversy" emphasized the necessity of pattern differentiation and underscored the essential argument that not all patterns (Gartleys) are the same. New "technical entities" in the form of unprecedented harmonic price patterns outlined in this book, such as the 5-0, the Alternate Bat, and the Reciprocal AB=CD, further the basic identification strategies of M-type and W-type price structures. These new patterns adhere to the primary principle of defining specific technical situations based upon their respective ratio alignments. Clearly, the material presented in Volume Two furthers the specification of the Harmonic Trading methodology by offering a new level of strategic analysis. The improved measuring techniques enhance the precision and the overall accuracy of this approach in its ability to define the most critical turning points in the financial markets.
Harmonic Trading: Volume One was a major advancement of the principles of the primary pattern identification theory. The addition of unprecedented measurement techniques such as new harmonic ratios, new patterns, and other comprehensive strategies, expanded the existing array of effective trading tools and substantially bolstered the overall Harmonic Trading discipline. Volume One presented a step-by-step approach with effective strategies for the entire trading process. From initial identification to trade execution to money management, a comprehensive plan was presented with each aspect thoroughly considered. In this regard, I have been pleased that this material provides a solid decision-making framework of probable answers for all possible questions that might arise during the trading process. From pattern identification to the eventual execution of a trade, all possible actions have been outlined to facilitate decisions, especially when unexpected real-time considerations can affect the outcome.
The material in The Harmonic Trader and Harmonic Trading: Volume One effectively defined this system. However, through the years, I have continually strived to improve the Harmonic Trading approach and build upon this foundation. Hence, I present Volume Two. It is important to note that the material within this book takes Harmonic Trading into new territory. Most of the ideas outlined in Harmonic Trading: Volume Two are unprecedented, and they have not been released previously in any other material. Volume Two advances the comprehensive methodology of pattern identification presented in Volume One to incorporate new technical measures that refine and filter the best trading opportunities. Advanced techniques, such as the RSI BAMM, represent my most sophisticated trading techniques to date. It is my desire to distinguish Harmonic Trading as a serious discipline within the field of Technical Analysis. Such distinction has become increasingly important to me in recent years, as certain individuals have attempted to capitalize on the burgeoning popularity of Fibonacci-related trading strategies, while tarnishing the inherent principles of Harmonic Trading.