🌟 Capital Market Chronicles – Episode 275: TECHNICAL ANALYSIS – HARMONIC PATTERNS (Part V) 📐📊
“Powerful tool. Not a magic spell.” ⚠️✨
Harmonic Patterns can be incredibly effective —
But only if you approach them with discipline, humility, and patience.
The reward structure.
They punish ethe go.
And they have zero sympathy for traders who cut corners 😅.
🛠️ How to Use Harmonics Properly
✔ Identification – Let the Market Speak
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Allow price to complete the structure
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Never force symmetry just because you want a trade
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If ratios don’t align, walk away 🚶♂️📉
Harmonics are picky — and that’s a feature, not a flaw.
✔ Entry – Where It Actually Matters
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Entries are planned near Point D
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This is the Potential Reversal Zone (PRZ) — not the “jump in early and hope” zone
Patience here saves money. Impatience pays tuition fees 🎓😄.
✔ Confirmation – Trust, but Verify
Harmonics suggest.
Indicators confirm.
Use tools like:
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RSI divergence 📉
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Volume behaviour 🔊
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Candlestick structure 🕯️
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Broader trend context 🧭
No confirmation = no trade. Simple.
🛑 Risk Management (Absolutely Non-Negotiable)
✔ Place stop-loss beyond the invalidation level
✔ Size positions based on structure, not confidence
✔ Accept small losses cheerfully 😌
📌 Big losses usually mean:
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A forced pattern
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An early entry
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Or a rule conveniently “forgotten” 😬
Markets forgive nothing — but they teach generously.
🧠 Final Takeaway
Harmonic Patterns:
❌ Don’t predict certainty
❌ Don’t work on every chart
❌ Don’t forgive laziness
But when used correctly, they:
✔ Improve precision
✔ Define risk clearly
✔ Keep emotions on a tight leash 🐶
Harmonics don’t make money.
Indicators don’t make money.
Charts don’t make money.
Discipline does. 🧭📊
⚠️ Disclaimer: This Blog is for general guidance only and does not replace personalised financial advice.
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