Recently, while studying harmonic trading, I found that this approach does have a threshold. But once you master it, your ability to identify trading opportunities can be significantly improved. I’d like to share my learning notes with everyone.

When it comes to harmonic trading patterns, there are commonly about eight types. Among them, ABCD is the most basic—an arrangement of three waves and four points. BC usually retraces to the 0.618 level of AB, and the length of CD is equal to AB. This pattern is the easiest to get started with, and many beginners begin here.

Next is the Bat pattern, determined by Scott Carney in 2001. Compared with ABCD, it adds one X point—making it look more complex but with higher precision. The B-point retracement must be at 50% of XA. And the CD extension must reach at least 1.618 times BC. This pattern can precisely pinpoint potential reversal zones, and many professional traders put a lot of trust in it.

The Butterfly pattern was discovered by Bryce Gilmore. The key is the 0.786 retracement level of the XA segment. The Crab pattern uses a 1.618 extension of XA to determine the reversal zone, and it’s especially suitable for bottom-fishing or calling the top in extreme high or low levels. There’s also a variant called Deep Crab, whose main difference is that the B-point retracement changes to 0.886.

The Gartley pattern has two iron rules: the B point must be 0.618 of XA, and the D point must be 0.786 of XA. The Shark pattern is more complicated. It has five waves and five points and must meet these three conditions: the AB segment retraces between 1.13 and 1.618 of OX, the BC segment equals 113% of OX, and the CD segment reaches a 50% Fibonacci retracement of BC.

There’s also a rarer three-drives pattern that requires perfect symmetry between price and time. It consists of five points, and drives 2 and 3 should be extensions of 127.2% or 161.8%. This pattern appears infrequently, so don’t force yourself to look for it on charts.

As for the win rate of harmonic trading, it’s said to average around 78.7%. But the prerequisite is that you truly understand the numerical logic behind each pattern. I recommend starting by practicing the ABCD and Bat patterns, repeatedly marking them on the chart using Fibonacci tools until you develop a feel for it. The essence of bullish and bearish patterns is the same—the only difference is that their directions are opposite.

If you want to start using harmonic trading, first you need to spend time understanding the underlying theory, and then determine whether you’re going long or going short. Before going live, it’s best to practice extensively with a demo account to find your own rhythm. Many people, when they first start learning harmonic trading, tend to force-fit patterns onto charts—that’s a big taboo. If the chart shape isn’t symmetrical enough or has gaps, give up on that signal and don’t push it.

In plain terms, harmonic trading is using Fibonacci ratios and price patterns to predict market turning points. If you master it, you really can buy the bottom or escape to the top at key locations. However, this approach requires patience and discipline—it’s not something you can learn in a day or two. Let’s do this together.