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Comment about Harmonics
To master Harmonics is to train your eye to see the the turns
and understand that not every Harmonic Pattern is tradeable !
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-Just because you see a Crab , Butterfly , Gartley or Bat pattern developing
doesn't mean to jump into the market even if the Fibo-lines are in tune .
There are times to take the call and times when not take the call !
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Here are the 2 biggest problems with learning to understand harmonics
# 1 people are always looking for what is easy .....
if you are looking for easy , You won't survive , its that simple
( you should be more than willing to do your homework and develop a natural eye for this . )
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# 2 the harmonic patterns or signals generated ,
by your computer or a downloaded program
will never tell you where to enter and place a protective stop
Why is this ?
part of the reason is that the zig zag lines adjust
as more bars are added to the charts in the future ,
- just like a Moving Average line also adjusts - ( they are at times ,adaptive )
That's why it is at times very difficult to backtest these zig zag lines.
The zig zag lines in the past are adjusting to what is currently happening in the current say 10-14 bars or so .....
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Why are'nt traders aware of this ? ..........
2 reasons
# 1 , who ever wrote the zizg zag program is totaly unaware that the lines are adaptive
#2 ,
Last edited by marketwavez; 12-28-2007 at 04:51 PM.
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