Harmonic Trading Profiting from the Natural Order of the Financial Markets, Volume 1

by Carney, Scott M.

• ISBN13: 9780137051502
• ISBN10: 0137051506
• Edition: 1st
• Format: Paperback
• Copyright: 2010-04-12
• Publisher: FT Press

Summary

The Definitive Introduction to Harmonic Trading--Bythe Originator of This Approach, Scott Carney! "I have always found it fascinating that, in the field of securities analysis, so few important gains have been made in the body of knowledge since the 1920s and 1930s. There are a small number of modern-day pioneers among us who must be sought out. Scott Carney is one of those pioneers who has devoted himself to the task of uncovering the hidden logic in the movements of the markets.Harmonic Trading: Volume 1provides a system of critical decision-making based on the natural order of life, which allows investors to replace emotions and guesswork with logic and symmetry so necessary to becoming a successful investor." --PAUL DESMOND, President of Lowry Research Corporation "I am well aware of the authorrs"s dedication and degree of excellence in his work. Scott has not only thoroughly researched and covered the subject well, he has taken that most important step of showing you how to use these tools and apply them to your trading and investing. I currently oversee the management of more than $3 billion in assets using a technical model. I know firsthand that a trading methodology that does not have buy, sell, and trade-up rules will never be successful. Every effort needs to be made to make the process free of subjectivity.Harmonic Tradingwill help you organize your trading and keep you in sync with the markets. No one has done this better than Scott." --GREG MORRIS, Chief Technical Analyst, Stadion Money Management, and author ofCandlestick Charting ExplainedandThe Complete Guide to Market Breadth Indicators Harmonic Trading creator Scott Carney unveils the entire methodology to turn patterns into profits. These strategies consistently identify the price levels and market turning points that reveal the natural order within the chaos of the financial markets. Analogous to the predictable behavior of many of lifers"s natural processes, Harmonic Trading examines similar relationships within the financial markets to define profitable opportunities in an unprecedented manner. Carney introduces new discoveries such as the Bat pattern, Alternate AB=CD structures, the 0.886 retracement, and more. These strategies are entirely new to the trading community, and they represent a profound advancement beyond all other Fibonacci methodologies! After yours"ve discovered how to identify harmonic patterns, Carney presents a complete methodology for applying them in trade execution and handling them throughout the entire trade management process. From savage bear to rampaging bull, Harmonic Trading can be employed in all markets--equities, currencies, commodities, and foreign markets--for both short- and long-term timeframes.

Author Biography

Scott Carney, President and Founder of HarmonicTrader.com, has defined a system of price pattern recognition and Fibonacci measurement techniques that comprise the Harmonic Trading approach. He has named and defined harmonic patterns such as the Bat pattern, the ideal Gartley pattern, and the Crab pattern. He is the author of three books: The Harmonic Trader (1999), Harmonic Trading of the Financial Markets: Volume One (2004), and Harmonic Trading of the Financial Markets: Volume Two (2007). In 2005, Carney joined A.I.G. Financial Advisors as a Registered Investment Advisor. He has since left A.I.G. Financial Advisors after two years to start his own firm. In addition, Carney is a full member of the Market Technicians Association (www.mta.org) and the American Association of Professional Technical Analysts (www.aapta.us). He has been a regular columnist on several well-known websites, such as StockCharts.com, TradingMarkets.com, and eSignal.com. Carney is a featured guest on CNNfn, and he presents seminars nationally.

Table of Contents

Introduction     1

Chapter 1        Harmonic Trading     7

Chapter 2        Fibonacci Numbers     11

Chapter 3        Pattern Identification     35

Chapter 4        The AB=CD Pattern     41

Chapter 5        The Bat Pattern     71

Chapter 6        The Gartley Pattern     97

Chapter 7        The Crab Pattern     121

Chapter 8        The Ideal Butterfly Pattern     149

Chapter 9        Trade Execution      171

Chapter 10      Price Action in the Potential Reversal Zone (PRZ)     185

Chapter 11      The Harmonic Trade Management System     203

Chapter 12      Pattern Violations     233

Conclusion     251

Bibliography     253

Index     255