Pattern Completion Interval and Basic Order Management for harmonic Pattern Trading
Many harmonic pattern trader uses arbitrary order management. Some just uses Fibonacci levels but they are not able to measure or think how each winning and losing trades can affect their trading balance. You do need to know this to grow your capital safely. Risk and Order management is not the concept you can skip regardless of your trading strategy and signals.
Pattern Completion Interval is the concept, first introduced in the Book (Guide to Precision Harmonic Pattern Trading), to help you to trade with harmonic pattern in more scientific risk management. Here is the link to the Book: Guide to Precision Harmonic Pattern Trading.
Especially, it helps you to achieve the desired Reward/Risk ratio while you are trading in real time tick by tick data. Here is one of many approaches how you may use the Pattern Completion Interval concept for your trading. Of course, this approach is compatible with your Harmonic Pattern Plus and Harmonic Pattern Scenario Planner. We produce this diagram so you can understand this approach intuitively without any calculator in your hands. Tr = Take Profit Ratio and Sr = Stop Loss Ratio. The diagram shows the case of two orders but you can even generate more orders taking this example further. Hopefully this new diagram is easier to understand than previous one.
Of course, this precision trading frame work is applicable to our Harmonic Pattern Indicator ranges including Harmonic Pattern Plus, Harmonic Pattern Scenario Planner and X3 Chart Pattern Scanner.