Geometric Patterns are simply ‘Price Patterns’ but they may be categorised separately from ‘Chart Patterns’ or ‘Harmonic Patterns’.
By having a look at the different type of charts, it may seem very confusing to memorise all of them right before trading.
Chart patterns as indicated above, are simply Price Patterns that manage to put all online buying and selling of instruments into perspective by consolidating the forces of supply and demand into a concise picture. Additionally, chart patterns provide a clearer framework in analysing the constant battle between bulls and bears. More importantly, chart patterns and technical analysis can help determine who is winning the battle, allowing traders and investors to position themselves accordingly.
Harmonic Patterns as shown below, are derived from the Harmonic Trading methodology that utilizes the recognition of specific price patterns and the alignment of exact Fibonacci ratios to determine highly probable reversal points in the financial markets. The key is to identify these patterns, and to enter or to exit a position based upon a high degree of probability that the same historic price action will occur.
The illustrations above may seem very confusing and scary yet we are here to SIMPLIFY all the charts as seen in the ABCD Pattern. The ABCD pattern is not a newly found pattern but it is the core pattern for learning the basic foundation of the Geometric Patterns.