Do you know why Harmonic Patterns has exceptional results in the Forex Market?
Well, that is so because the Forex Exchange Market consolidates 70% of the time and trend 30% of the time and harmonic patterns work well during market consolidation. The pattern completion level you are essentially trading the opposite direction, the stop and reverse. Even when we trade the reverse, it doesn’t mean that it can’t be used in trending markets.
Trading with the APE framework
Analyse Market Movement – Is the overall trend Bullish, Bearish, Sideways. Tradable or Non-Tradeable Setup
Plan – With the trading strategies(tools) that we are using, are we trading as a trend trading, trend following, counter-trend trading, break-out trading. Have your SETs(Stop, Entry, Targets) and follow your trade plan.
Execute – After executing the trade, just wait and follow your rule, resist from the trader’s deadly symptom, which is the itchy-finger syndrome to sabotage your own trade in the long run.