This section describes the harmonic patterns that the HAT seeks out, click on each pattern name to learn more information.

The Harmonic patterns are based on humans being creatures of habit and therefore the patterns on price charts are shown to be repeatable.
The original Gartley was discovered in 1935 and since has been refined into a number of different patterns based on a similar structure. These patterns have been tested over 75 years to produce a consistent win ratio of 70% in all markets and timeframes.

The Gartley pattern is where harmonics started. We have an XA leg that has a retracement to a 0.618 followed by our typical 0.382 to an 0.886 AB retracement. The unique part about a gartley is what happens next; we get a 1.13 to a 1.618 extension for the CD leg with an XA retracement of a 0.786. The difference is that unlike most other harmonic patterns that have a D point above the X point, this falls into the category where we are below the X point. The other pattern where we see this is the Bat pattern.

The Gartley pattern was the first to be mentioned in HM Gartley's book and later had fib measurements added to define its structure in a clearer way. It's a pattern that many harmonic traders lose with, but they also have a hard time selecting the ones that are better to trade than others.

Gartley patterns are unique because there is only one situation in which you have a great chance of winning the trade so I wouldn't want to advise you to start trading a gartley until you know how to increase your odds. These patterns and their statistics are all determined through measuring hundreds of thousands of patterns and the data speaks for itself.

You will want to be very careful where and how to use this pattern as it does call for specific situations and events to unfold. More on this when you become a member.

The Bat pattern is a pretty common structure that you can find in the markets which in 2001 was discovered by Scott Carney. But not only is the pattern common it often works very well when you use the vetting criteria that is taught at FXGroundworks. The pattern starts off with a strong XA leg movement before retracing to between a 0.382 to a 0.50. Now, this pattern can also have a retracement of a 0.618 although it is not preferred. It does allow us an easier target to hit and will be more successful. The risk vs reward might not work out all the time which is why it's not preferred, although when it does it's a favored pattern with many harmonic traders. After we have our typical 0.382 to 0.886 retracement it is followed by a 1.618 to 2.618 extension that doesn't exceed the XA retracement of 0.886 marking in our PRZ.

Because the pattern is so common we get many opportunities to place trades every day by using the method we teach inside our members area. Each pattern is used in certain situations and can sometimes be used in multiple situations. To learn more about the pattern and the vetting process that we use in our pattern alerts come join us in our members area.

You will want to be very careful where and how to use this pattern as it does call for specific situations and events to unfold. More on this when you become a member.

The Butterfly pattern is one of the patterns that occur most often, along with the bat and gartley and makes up the major harmonic patterns. It falls into the class of an extension pattern because of the extended CD leg. The pattern starts off with an XA movement with one of the highest retracements of a 0.786. We then have our typical AB retracement between a 0.382 and an 0.886. This is followed by the CD leg which is an extension of a 1.618 to a 2.24 with the XA going beyond a full retracement to a 1.27 to 1.41.

The structure of the pattern and how the bars come together to construct the pattern is critically important. Just as if you were to build an office building you wouldn't just put 4 support columns; you would want as many as possible to stabilize the structure. Similarly, with the butterfly pattern and our other harmonic patterns, we also want to see a good size number of bars to create the pattern to trade it. More on this and the numbers that we've been able to determine by running our tests on over half a million patterns, in our members' harmonic pattern trading course that is available to you.

You will want to be very careful where and how to use this pattern as it does call for specific situations and events to unfold. More on this when you become a member.

The Crab pattern is another unique pattern discovered by Scott Carney in that its structure has a very long CD leg which gives it a projected extension. So although we start off with an XA retracement that is anywhere between a 0.382 and a 0.618 (in itself a pretty wide range), we then have our typical BC retracement between a 0.382 and an 0.886. The next part of the pattern is where things get very characteristic, that being the 2.618 and 3.618 extension, matched by the 1.618 XA extension.

This is an extreme move and when looking at crabs on the chart you're probably going to find them pretty easy to identify, with their large extensions. Not only that, but if you look carefully, the butterfly pattern and the crab pattern's ratios can be aligned right up to the very end of the CD leg, where it will eventually turn out to be a butterfly or morph into a crab.

And how would you know which pattern to trade? Should you wait for the crab or should you play the butterfly? Don't get frustrated. There is an easy way to decide which one you're going to play. I'm sure it's not anything you're thinking about at this point, yet many of our members find it so effective that it's built into their core trading plan. Come join us inside Fxgroundworks.com and we'll show you the secret.

You will want to be very careful where and how to use this pattern as it does call for specific situations and events to unfold. More on this when you become a member.