Search Patterns v6 Indicator is an indicator that is designed for the harmonic traders. It is responsible for drawing automated harmonic patterns. The indicator requires some form of understanding of the Forex market. It is not the best indicator for the forex beginners but if you have thoroughly understood how it works, you are free to use it.
Search Patterns v6 Indicator draws or forms divergent triangles. The triangles diverge outwards hence signaling possible trade entry levels that the trader may opt to utilize. Unlike many other indicators this indicator doesn’t give precise signal but rather it offers the insights for placing the orders. Different traders may place different trades using this same indicator but yet both will make profits.
This indicator makes use of the fact that the Forex market doesn’t just move in one direction. If the market has an upward trend the market will rise and then retreat a little bit and then rise again. It just does not rise continuously. Therefore using this scenario, one trader may place a sell so as to benefit from the retreat while another may place a buy targeting the long term trend.
Fig.1. Search Patterns v6 indicator explained.
From the above chart, it is evident that it is not always that the trader will have the opportunity to choose between placing two trades. Sometimes the divergent triangle may have the other two vertices being at a lower point than the entry level.
However, you can choose to place limits at one of the vertices which is predetermined to be hit first so that the take profit of the limit is placed at the other vertices. For example, from the above chart the trader may have placed a sell at the top point of the first divergent triangle and place a take profit at the lower point. Then he or she may opt to place a buy limit at the same point with the sell’s order take profit and place a take profit for the buy at the other point.
Fig.2. Placing limit orders using the search Patterns v6 Indicator.
When trading with this indicator, the trader will at all times have trades running in the market. If used well, the indicator is a real profitable tool for the harmonic traders. Its efficiency is way passed the rest of the other indicators. It has an unbelievable 99% to 100% efficiency. Every trade that is placed using this indicator, will result to profits. The only time that the trader can make losses is when he trades wrongly (opposite to what the triangles say).
What about the yellow dashed levels?
This levels are similar to the Fibonacci levels. So they provide the same kind of information as to the Fibonacci levels. They help in determine when to close the orders or at what level to place your stops.
It is best advisable that the trader uses the levels below 100% and specifically the 61.8% level for his or her take profit level. The levels above 100% are rarely attained and thus should not be used; close your trade earlier for you to get a chance to remain in the market.
Download Free Forex Search Patterns v6 Indicator