The most important harmonic models and how to use them
Rapid Lightning Model:-
The lightning fast model is also known as the AB=CB model, as it is one of the most famous models in the harmonic analysis School.
How the model is configured:-
This model consists of 4 ABCD points, as the price movement starts from point A to B, and then a correction occurs up to Point C, where Point C is determined from the correction of side AB, which should fall between the levels of 38.2%, 50%, 61.8%, 70%, 78.6% or 88.6%.
Then a complementary movement occurs to the direction of rib AB and results in rib CD, where Point D is determined from the correction of rib BC, which should fall between the levels of 113%, 127%, 141%, 161.8%, 200% or 224%.
Stop loss :-
It is higher than point D if the model is bearish (negative).
It is below Point D if the model is bullish (positive).
Target :-
The goals are determined by the Fibonacci retracement ratios of the CD rib.
How to improve Area D after completing the form
It is preferable that the D point, which is called BRZ, is supported by strong areas so that the opportunity to enter is excellent, such as
- Areas of supply and demand
- Support areas and resistance
- Areas of presence of strong moving averages
- Areas of formation of divergences
And if you don't know how to extract these areas you can watch the explanation courses here
How to proactively enter the form
The entry is done proactively before completing the form, immediately after breaking or breaking through point B and closing below, and your goal is defined as Point D at the level corresponding to the correction of Point C from side AB as in the table shown.
Conditions for proactive entry:-
The trading volumes should be large at the time of the break or breakout B and it is preferable to retest them after the break or breakout .
The absence of resistances or supports close to the break or breakout zone, such as moving averages, trend lines, supply and demand zones.
The absence of divergences near the fracture or breakthrough zone.
The best proactive entry levels are a 38.2% or 50% correction of the AB rib so that the goal is large to reach the D levels.
Here are some completed opportunities on the form:-
