# KorHarmonics indicator mq4 Strategy For MT4

Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.

The KorHarmonics indicator mq4 Strategy For MT4 is a trading method developed to find trading setups based on harmonic patterns. It is designed to facilitate pattern recognition so the trader can focus on trading opportunities rather than expending time in getting each pattern's precise measurements correctly.

This article briefly explains what harmonic patterns are and how to trade them. Then it expounds on the korHarmonics indicator and cites examples of this trading system in action.

## FREE KorHarmonics indicator mq4 Strategy

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## Harmonic Patterns Overview

Introduced by Harold McKinley Gartley in 1932, Harmonic Patterns are a different class of chart patterns that are based on geometric shapes measured using Fibonacci numbers. It is not the average pattern where often the naked eye is enough to make a distinction.

When delineated on the chart, such patterns take the outline of the letter "M" or "W." The points where price pivoted are labeled as X, A, B, C, and D are connected by lines referred to as moves. So, the distance from point X to point A, for example, is called move XA.

The most critical move that traders look out for is the completion of move CD as it sets up point D, where an entry is primarily located.

## Why use harmonic patterns?

Harmonics patterns trading is one way to determine potential reversal points on the chart, especially for one that is exhausted of indicators or when the inserted indicators are in disharmony.

On the whole, it's another way to visualize price action and extends out of the common trade setups.

## Challenges of Trading Harmonic Patterns

Still, the main issue when it comes to harmonic patterns is that there is a great deal of precision required to determine each move. And it is these precise measurements that make these patterns difficult to spot. Adding to the complexity, as mentioned, are the Fibonacci numbers needed for estimation.

A certain move must satisfy a precise Fibonacci level for it to qualify as a leg of the pattern. If a particular move does not fit the measurement criterion, then the entire pattern is invalidated.

## Different Harmonic Pattern Types

Harmonic patterns also have different types, and some of the main ones include the Gartley, the Butterfly, the Crab, and the Bat. Moreover, each pattern type is defined by its unique set of Fibonacci numbers.

The Butterfly pattern, for instance, has these Fibonacci ratios 0.382, 0.786, 0.886, 1.27, 1.618, and 2.24. This would mean that the legs of the pattern would have to meet those Fibonacci numbers to be aptly labeled as a Butterfly pattern.

## How to make looking for patterns easier?

But, as stated earlier, pattern recognition can be made simpler with korHarmonics. What this indicator will do is automatically scan any financial instrument on the MT4 for current and historical geometric patterns in all timeframes.

Ergo, the need to manually construct Fibonacci tools on the price is eliminated as the indicator will also indicate the exact Fibonacci numbers that each pattern point landed on.

## How to use the korHarmonics indicator

Once installed on the MT4, the korHarmonics, like any standard MT4 indicator, should be applied to the chart window.

The indicator will then automatically search for any harmonic pattern. If there is a current one developing, the indicator already tracks it until its completion. All the trader must do is act on these patterns as a trading opportunity presents itself.

There is also an option to deselect patterns that the indicator will search for. This allows the trader to filter out only patterns that he or she wishes to trade. And apart from that, alarms can also be set so that the trader will get notified via a pop-up window whenever a new pattern appears.

## Buy Setup – The KorHarmonics indicator mq4 Strategy For MT4

Of course, the trade setups here adhere to the same mechanics of harmonic pattern trading. In the example below, a bullish butterfly pattern was detected. This offers an opportunity to get in on point D. But even before the exact point D was plotted, the indicator projected where point D should be to validate the pattern.

When a clear bounce off point D occurred, a buy trade was taken. Point D then became the stop-loss level after the price distanced itself from the last point of the pattern. The initial target for butterfly patterns is usually in the halfway mark between point C and point D, while its secondary target is point C.

The price started to reverse upon moving past the midpoint, thus securing only the initial target.

## Sell Setup – The KorHarmonics indicator mq4 Strategy For MT4

In this example, a bearish Gartley pattern preceded an opportunity to short the USDSGD pair in mid-October. Again, similar to long setup mechanics, point D will be the key area to take a trade, but it must follow a hint of a reversal of the up move established by CD.

This pattern's usual target is back at point C with its next target at point A or beyond. And this setup did not fail to meet a satisfactory outcome as the price neared point A.

## Zigzag

The korHarmonics indicator can also pinpoint ZigZag patterns, which is useful for Elliot Wave traders to get in on the prevailing trend. In addition to that, the built-in ZigZag indicator also functions as a noise filter wherein a line traces price moves that surpass a set percentage. As a result, the price's bigger picture is elucidated, making it perfect for longer-term traders.

It integrates into this system as a way of finding ratios and confirming harmonic patterns. Below is an example of how the ZigZag pattern was also the skeleton of the bullish butterfly pattern.

## Other indicators for the KorHarmonics indicator mq4 Strategy For MT4

Certain indicators can also aid harmonic patterns by gauging overbought and oversold price levels that coincide with point D. For example, the Relative Strength Index (RSI) or Stochastic can offer such readings that would help a trader add basis for placing a trade. If the harmonic pattern indicates that a bullish setup is in play, an oscillator can support this with an oversold reading.

Warning: When you start trading this system then you should begin with a demo account. Every new trading system requires that you learn new skills. Errors will occur at the beginning and therefore you can save yourself money if you learn on a demo account.

## FREE KorHarmonics indicator mq4 Strategy

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