Harmonic Trading is a methodology based on pattern recognition and alignment of exact Fibonacci ratios to determine highly probable reversal points in the stocks market (don't use it on Futures Market).
This methodology assumes that trading patterns or cycles, like many patterns and cycles in life, repeat themselves. The key is to identify these patterns, and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur. Although these patterns are not 100% accurate, these situations have been historically proven. If these set-ups are identified correctly, it is possible to identify significant opportunities with a very limited risk.
