This is an indicator that calls for a bit of understanding of the Forex market and trading. The PZ Harmonic Trading indicator it was designed to fit the educated harmonic traders thus the title PZ Harmonic Trading indicator. The traders willing to use it are those looking for a top-notch indicator. It is not about how fancy an indicator can be but how good and accurate the indicator can be. That is the reason this indicator isn’t fancy at all.
The indicator have to acutely been placed into a trading system which is easily downloadable for use.
The indicator is used for harmonic trading. The harmonic trading is a method that utilizes the acknowledgement of certain specific price outlines/patterns and the positioning of the exact Fibonacci ratios so as to determine the highly likely reversal points in the financial/Forex markets. This method assume that patterns or cycles in the forex market prices, like many patterns and cycles in life, recurrence themselves. The crucial part identifying these patterns and enter or to exit an order based upon a high degree of probability that the same notable price action will occur. Even if these patterns are not one hundred percent precise, these status quo have been historically proven. The PZ Harmonic Trading indicator identifies arrangements correctly, hence identifying significant opportunities with a very limited risk.
Fig.1. Showing how the PZ Harmonic Trading indicator detects harmonic patterns using triangles.
How to execute trades.
When a notable pattern is spotted, the following steps have to be taken. However, it is not necessarily that the steps will lead to opening of a trade. It may lead to opening or discarding the trade. The pattern depends on how it is spotted and the period over which it is spotted over. Therefore the pattern may vary according to the above factors. As a harmonic trader you should try and assess the weight of the pattern and the possible reversal region before getting into the market.
The following are the steps that the indicator follows:
- Pattern Recognition. Here the PZ Harmonic Trading indicator automatically detects and gives an alert of any harmonic pattern.
- Find the Potential Reversal Zone (PRZ). The indicator goes ahead and evaluates the Fibonacci forecasts plotted on the chart by the indicator and it also looks for their weight signs.
- The trader should then wait until the PRZ is rejected by the market.The PZ Harmonic Trading indicator can be tested and rejected by one single Terminal Price Bar, or the market can move to the opposite direction and breakout the PZ Harmonic Trading indicator without testing all the Fibonacci projections. In any case, you should wait for the market to move for you to take the trade. You are a follower, not a predictor.
- Then the trader can then enter the market and set the proper stop-loss. You should trade the breakout or the rejection of the PZ Harmonic Trading indicator and set the proper stop-loss.
- After you place you trade and you make profits it is good if you use trailing stops to ensure that when the market reverses you will get out with a profit but not a loss.
Fig.2. How to execute trades using the PZ Harmonic Trading indicator.
Download Free Forex PZ Harmonic Trading Indicator
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