Last week's USDJPY and EURUSD harmonic detection results

Hello!

This is Satori, researching FX.

Today, continuing from last time, I will inform you of last week's harmonic detection results.


The tool used for verification is capable of detecting the four main harmonic patterns

MT4 Harmonic Search Indicator Main 4 Patterns.

Currency-free and time-frame-free.



Last week, on the USDJPY 1-hour chart, the harmonic butterfly pattern suggested selling near the top on the 11th.

Since this sell occurred near the top, if held until the weekend there was a profit-taking opportunity up to 180 pips.




As shown above, even before the butterfly bearish appeared, Gartley bullish had appeared, so buying just before the butterfly pattern could have yielded about 30 pips profit.



The four main harmonic patterns are Bat, Butterfly, Gartley, and Crab.

For the definitions,MT4 Harmonic Search Indicator Main 4 Patternsplease refer to the page.


When bullish, i.e., buying, the pattern forms an M shape; when bearish, i.e., selling, it forms an inverted M shape (almost a W shape).

There are W tops and W bottoms, but depending on interpretation, you can think of it as reverse or mirror images.

The reason to focus on these four patterns is that they are of the same family of shapes, making it easier to grasp the patterns.


It can be said that they are relatively easy to master.


In hindsight, the Butterfly bearish on USDJPY 1-hour on July 11 last week hit the top as expected.


Meanwhile, in EURUSD on the 13th, there was a Gartley buy on the 4-hour chart with a profit target of 60 pips.



※ By the way,MT4 Harmonic Search Indicator Main 4 Patternsshows the pattern names clearly, and with arrows, Fibonacci, and a reference SL line, making buy/sell decisions easier.





Harmonics are patterns aimed at identifying tops and bottoms and have attracted attention from Western institutional investors; however, of course, not everything should be taken at face value.


Nevertheless, when a top or bottom is identified, there are cases where profits of 100 pips or more are possible.

As Fibonacci targets for taking profits are cleared, for a sell position you can progressively move the stop down, increasing the likelihood.

Also, there are cases where it is better to view it as W top and W bottom in reverse, so as you gain experience, your judgment improves.