Using the harmonic scanner, traders can attain an accuracy of up to 90% in their predictions. This scanner is basically a tool that is able to detect the different types of patterns in the harmonic trading system. To understand why this scanner is important, it is essential to know what the different patterns are. They include the pattern of:
Each currency pair usually has a different pattern and for you to succeed, you have to study all of them so as to come up with a trading strategy.
However, a harmonic scanner helps to avoid the need to study all these by providing a platform where all the patterns are displayed on a dashboard.
What the harmonic scanner requires though, is for you to be able to able to recognize these patterns, which are all based on the Fibonacci number system.
Fibonacci Numbers and Ratio
The very nature and definition of patterns is repetitiveness and therefore when combined with math, you can be able to come up with accurate trading methods with very precise predictions.
That said, the scanner’s forex is based on a primary golden ratio, which is either 0.618 or 1.618. This ratio is used because it is natural and can be found in natural structures, events and is even repeated in society.
Since forex and financial markets are affected by the natural environment through the currencies at play, it is logical to apply this ratio as the scanner’s base.
Therefore, by understanding how these patterns are mathematical in nature, you can easily apply the Fibonacci sequence based on the harmonic scanner’s primary ratio so as to correctly predict the turning points in the harmonic trading system.
This will help you to develop a unique and precise trading method that is 90% accurate.
Does the Harmonic Scanner Really Work?
Due to its mathematical base, harmonic trading is very complex. With each pattern, there is the potential reversal zone, which is not exact because two projections are required to form a point D on the pattern.
If the projection zones are close to each other, then it is easier for a trader to make an accurate prediction. However, if they are wide apart, a prediction is quite difficult and the best solution is to source for other information so as to predict the price direction.
You can use a stop loss to check the validity of a pattern by placing it outside of the furthest projection. If the stop loss is reached, then the pattern is invalid because the price moved outside the predicted boundary.
Basically, with all these variables, to perfect the use of a harmonic scanner requires a lot of practice and patience. However, trading without this tool requires you to learn all the details about geometry, math, Fibonacci and many more.
All in all, FSO harmonic scanner presents a much easier trading platform because checking and measuring patterns is simplified for more accurate predictions. This will enable you to earn more, learn more and invest more for better growth.
Alternatives Trading System
Working with harmonic scanner still requires manual execution. If you’d prefer automatic trading, you can try forex EA like Wallstreet Forex Robot or Forex Diamond. With the right EA, you may expect of easy trading with small risks and big potential of rewards.