Detecting Harmonic Patterns with Fibonacci Ratios and Historical Outcomes

Summary

This document describes an indicator that detects harmonic chart patterns by checking price swings against Fibonacci ratios. It scans zigzag data for completed and projected formations, including patterns that may be approaching a potential reversal zone. Users can adjust which patterns and projections appear, inspect ratio and timing details, and apply filters based on ratio tolerances, reversal-zone quality, or the relative duration of pattern segments.

The indicator also tracks historical pattern outcomes on the current instrument, counting cases where a pattern reversed in the potential reversal zone or failed to do so. These counts are presented as descriptive reversal frequencies, not reliable forecasts; the document explicitly cautions that past performance may not predict future results. It explains that developers can extend the matching process with custom filters and alerts or other observations, but provides no independent performance study or evidence that the patterns are profitable.

Key ideas

• Harmonic patterns are identified by matching swing ratios to Fibonacci-based tolerances.
• The indicator can display emerging projections as well as completed formations.
• Filters can screen patterns by ratio fit, reversal-zone composition, and segment timing.
• Historical success and failure counts summarize how often patterns reversed in the potential reversal zone.
• Historical pattern frequencies do not establish future profitability, and the document supplies no independent validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.