๐ Capital Market Chronicles – Episode 272: TECHNICAL ANALYSIS – HARMONIC PATTERNS (Part II) ๐๐
“If the ratios don’t align… walk away.” ๐ถ♂️๐
Harmonic Patterns are picky.
Borderline obsessive, actually ๐
And that’s exactly why they work.
Unlike loose pattern-spotting or artistic chart doodling ๐จ✏️, harmonics remember one golden rule:
structure first, emotions later.
Let’s break down the four pillars that give Harmonic Patterns their edge.
๐ข 1. Fibonacci Ratios – The Law
Harmonics don’t use Fibonacci.
They live and breathe Fibonacci ๐ข๐งฎ
The key ratios include:
-
23.6%
-
38.2%
-
50%
-
61.8%
-
78.6%
-
88.6%
-
127.2%
-
161.8%
Every harmonic pattern comes with non-negotiable Fibonacci rules.
Miss the ratio ๐ miss the pattern.
No rounding.
No “close enough”.
No “but it looks nice” excuses ๐
๐ This mathematical discipline is what separates true harmonics from casual chart sketching.
๐ 2. Geometric Structure – The Shape Matters
Harmonic patterns are built from clean, measured price legs:
-
Swings that relate to each other
-
Proportional moves
-
Visual symmetry that actually makes sense
Price isn’t zig-zagging randomly like it’s had too much caffeine ☕
It’s forming repeatable geometric structures.
Once you train your eyes ๐, these patterns stop hiding — and start jumping off the chart.
⚖️ 3. Symmetry – Balance Is Power
Bullish or bearish — harmonics don’t care.
They work both ways ๐
Why?
Because human emotions are symmetrical:
๐ Greed pushes markets up emotionally
๐ Fear pushes markets down emotionally
๐ข Ratios? Calm. Rational. Unimpressed.
Markets may panic — Fibonacci never does ๐
๐ฎ 4. Predictive Power – Planning, Not Guessing
Harmonic Patterns allow traders to:
๐ฏ Define entries before price reacts
๐ Place stop-losses logically, not emotionally
๐ Set targets using structure instead of hope
This isn’t prediction.
It’s preparation.
You’re not asking “What just happened?”
You’re asking “What should happen if this structure holds?” ๐ง ๐
๐ง Final Thought
Harmonics reward discipline, patience, and respect for ratios.
If the maths works — proceed calmly.
If the maths fails — walk away confidently ๐ถ♂️
Sometimes, the best trade is the one you don’t take.
๐ Next Episode:
Meet the foundational harmonic patterns — ABCD & Gartley ๐๐
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