A Guide to Making Sniper Entries
Talking about forex strategies in making potential profits requires knowledge about trading patterns. There are various types of trading patterns used in forex. As you become skilled in the financial markets, you start to understand charts at the first glance. In Nigeria, there are lots of forex traders and forex enthusiasts who have developed a love for trading overnight and are indeed profitable from what they do. Ask any forex trader out there in Nigeria, they would tell you there are no professionals in the financial markets – just traders who have a good risk management system.
In this article, you would be learning about Harmonic Price Patterns. The financial market in Nigeria can be very rewarding, and also can make you lose a lot of money. How do make sure that you do not lose your trading account to the high volatile markets? It is done by understanding the rules that govern the financial market and also having some good trading strategies to overcome losses to profitability because in the game of forex, it’s either you gain or you lose.
What is Forex?
Forex is as a word is an acronym for Foreign Exchange. But for a better understanding, you’ll be getting the full definition of what forex is. Forex or foreign exchange market is a global decentralized market for trading currencies.
Trading forex in Nigeria needs serious dedication and concentration. Constant reading and attention to detail are required to make the most out of each day you trade. That is why understanding harmonic price pattern is important.
Furthermore, you will be learning about what harmonic price patterns are – and also, the types available with the systematic ways of using them to trade the forex market. Before we proceed, it is important to start by explaining what a harmonic price pattern is.
What are Harmonic Price Patterns?
Harmonic price patterns are chart patterns that help in forming or creating a trading strategy. You, being able to create this will help you in identifying price movements on a chart and also make you predict what is likely to happen in the nearest future. There are two things it helps you to achieve when it comes to making use of technical analysis which is;
- Helps you to identify price changes.
- Helps you to identify trend reversal.
Compared to all other patterns used in Nigeria by traders, harmonic price patterns are result proven when used in executing a trade. Harmonics help you to maintain your patience and psychology when trading and provides strategic insights on what the future of the market holds. Let’s explore the types of harmonic price patterns.
Types of Harmonic Price Patterns
There are different types of harmonic price patterns used by forex traders in Nigeria. Each of these harmonics has its uses and time best preferred to use them to achieve whatever aim that is executed by the trader. They are the following;
- The ABCD pattern
- The BAT patterns
- The Gartley pattern
- The Butterfly patterns
- The Crab patterns
- The Shark patterns
The ABCD pattern
This might look too technical but it is the easiest of all when it comes to entry orders. It happens when AB activates with an impulsive movement which alternates with the correct movement of DC. Trading the ABCD pattern requires patience because you are dealing with price movements.
The BAT patterns
This pattern came from the formation of the bat animal. It is very resourceful for traders – because it enables them to identify a bearish price movement and also a reversal.
The Gartley Pattern
This popular pattern was created by HM Gartley. This pattern is similar to the BAT pattern because it has its own form of retracement. There are two rules in using the Gartley pattern namely;
- Retracement of point B must be lesser than A
- Retracement of point D must be higher than A
The Butterfly Pattern
As the name implies, butterfly. This s a pattern drawn on a chart that has the form of a butterfly. The butterfly pattern was created by Bryce Gilmore. He was able to discover this by using different combinations of Fibonacci ratios to identify a possible retracement.
The Crab Pattern
The crab pattern was discovered by Scott Carney. This pattern allows traders to enter the market at highs and lows in the market. Whether bullish or bearish, it enables a trader to maneuver its entry points anytime.
The Shark Pattern
The shark pattern was also discovered by Scott Carney. Although it has its own similarities to that of the crab pattern, its reversal pattern comes in multiple legs. To execute a proper entry point, it must fulfill and follow all Fibonacci rules.
In Nigeria, there isn’t accurate data for most profitable forex traders. For many, it seems like a never-ending stream of betting. But forex isn’t betting or gambling – although some may see it as such, all that is required is knowledge and knowing when to trade and when not to trade.
The trading patterns discussed above are well–researched contents to help you in your everyday trade to maximize your effort and increase your profitability. As Nigerian trading in Nigeria, if these patterns are properly followed and understood, there shouldn’t be any talks of not making profits. All that is required is the dedication to working with strategies that have been proven to help you succeed in your journey in the financial markets.