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How I "Manually" identified the following Harmonic Patterns:The Butterfly PatternThe Crab PatternThe Cypher PatternThe Gartley PatternWith These 4 Harmonic Pattern I use a 3 step simple process to manually identified them. I did not use and automated system. What are Harmonic Patterns in Forex.
They are formation, shapes, or pattern seen on a price chart. They also comes in distinct shapes. But to identified them you will need a use my 3 simple techniques first, and then confirm these formation by using specific Fibonacci ratios for each pattern type.
So, the next questions is why use Fibonacci ratios. Here is the answer. It is because Harmonic trading relies on Fibonacci numbers.
Fibonacci ratios are sequence of numbers, broken down into ratios or percentage. These starts with zero and one, is created by adding the previous two numbers: to the present numbers. The results are increased by the number 3.
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