Being Aggressive — Aggressive Harmonic Trading
Harmonics trading can come in many shapes and forms.
While most traders trade the patterns only when they are formed, there’s another way, less common and familiar way, that can be highly profitable if you know how to use it.
The Aggressive Harmonics Entries are trade entries which are based on a speculation that once the price reached potential C point of an harmonic pattern, it will continue and advance from this point to complete the pattern formation — These entries are also called Aggressive C entries.
Aggressive C entry — Rules and Guidelines
As mentioned above, Aggressive C entry means that you trade the C point assuming that the price will continue towards D and complete the potential pattern you have recognized during your chart analysis. Let’s see an example:
$EURCAD Trading Example
In the chart above we see two different Aggressive C entries traded recently on $EURCAD.
First Aggressive Entry — Bullish Aggressive C entry in a Butterfly pattern (blue pattern):
The first step in considering a potential aggressive C entry is to recognize the potential harmonic pattern completion you wish to trade.
In the first pattern you see above (blue), the B point reached the 78.6 Fibonacci ratio of X to A, and following another 78.6 retracement (of A to B), the option for a bearish Butterfly pattern completion has emerged (Butterflies include a 78.6 B point).
The second step is to find the technical reason to take the Aggressive C entry trade:
- Fibonacci levels to trade the C point — like 61.8 and 78.6 retracement of the A to B leg. In the blue pattern’s case, the 61.8 Fib was the reversal level (with spike towards 78.6).
- Intra-day indicators suggesting that the price reached oversold territory.
- Structure zones to find potential reversal level to trade (see structures 1 and 2 in the chart above)
Once you’ve found the technical reason to take the trade, the next step is to set stop loss and target zones…..
