Harmonic patterns cheat sheet for stock market - Part 1

Harmonic patterns cheat sheet for the stock market

There are 8 different types of harmonic patterns. The harmonic pattern is derived from the mathematics and Fibonacci number. These harmonic patterns help us to identify the reversal point in the market.

The first type of harmonic patters

1. Bearish Bat harmonic pattern
2. Bullish Bat harmonic pattern

Bat harmonic pattern works with 5 paints as shown in a figure these are X-A-B-C-D

To identify the Harmonic bat pattern check whether these parameters are followed or not by the chart.

Bearish Bat harmonic pattern

1. In the bearish bat harmonic pattern, AB leg can retrace 38.2% to 50% of XA leg
2. In the bearish bat harmonic pattern, BC leg can retrace 38.2% to 88.6% of AB leg
3. In the bearish bat harmonic pattern, CD leg can retrace 88.6% of XA leg
4. The starting point of CD is 1.6% to 2.6% of AB leg
5. Short the stock with stop loss  X from D point
6. The first target for this Pattern is 61% from D leg 
7. The second  target for this Pattern is 1.2 % from C leg 
8. The third target for this Pattern is the level of point A 

Bullish Bat harmonic pattern

1. In the bullish bat harmonic pattern, AB leg can retrace 38.2% to 50% of XA leg
2. In the bullish bat harmonic pattern, BC leg can retrace 38.2% to 88.6% of AB leg
3. In the bullish bat harmonic pattern, CD leg can retrace 88.6% of XA leg
4. The starting point of CD is 1.6% to 2.6% of A point
5. Buy the stock with stop loss  X from D point
6. The first target for this Pattern is 61% from D point
7. The second  target for this Pattern is 1.2 % from C leg 
8. The third target for this Pattern is  127% of the point D

Learn Harmonic pattern cheat sheet for the stock market - Part 3
Learn Nifty 50 - Why Option Chain Analysis fails?
Calculate Option Chain Probability - Implied Volatility Excel Sheet

We will update the remaining patterns in our nex blog. we provide the updates daily

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