Chapter 3. New Harmonic Patterns
The 5-0 Pattern
Although I have been aware of the structure for quite some time, the 5-0 pattern is a relatively new discovery within the Harmonic Trading approach. I have studied thousands of cases to define the best 5-0 structures. Although I will not cover execution or trade management strategies, the principles are the same as for all harmonic patterns and can be found in Harmonic Trading: Volume One. Although this new pattern possesses many characteristics that are consistent with all harmonic structures, several traits truly differentiate it from the rest.
The 5-0 pattern is a unique structure that possesses a precise alignment of Fibonacci ratios to validate the structure. Although the 5-0 is considered ...