Harmonic Analysis Tools and Harmonic Trader Software

Harmonic trading is fast becoming a popular way to trade forex. This is because, like other pattern based trading, harmonics analysis focuses purely on trading what you see, not what you think. The psychology of currency trading is just as important as the fundamental and technical elements. Traders are often advised to leave their emotions at the door.

Leaving your emotions at the door is extremely difficult. Softwares, auto traders, and expert advisors take some of the emotion out of trading. There are a few indicators and harmonic softwares out there with varying degrees of popularity.

ZUP stands for Zigzag Universal Pattern. ZUP is considered one of the more relevant indicators where harmonic analysis is concerned. It connects swing highs and lows with trend lines, to find forex trading patterns. This is why it is favored by pattern traders, but it is not designed specifically for harmonic patterns, and so;

• Is commonly slammed for giving a lot of alerts that need to be sorted through to find anything relevant to harmonics analysis.
• Notorious for the complexity of its programming, making it very hard to program into an ea.
• Known to repaint because it works on historical data and can readjust itself. Repainting is a common behaviour of many indicators and is also known as lag.
• Alleged memory leaks, causing excessive memory use of the forex traders hard drive.

Anyone trading live knows how important the speed and reliability of hardware, software and internet connection is.

Where harmonic analysis is concerned, the ZUP indicator doesn't take into account the swing high or low preceding an emerging harmonic pattern because it is a zigzag indicator, not a harmonic indicator. The ZUP indicator is better used in conjunction with other tools. At the moment there isn't a harmonic expert advisor made with ZUP available.

KorHarmonics for Meta Trader 4, looks specifically for harmonic patterns. This harmonic indicator can be used on any market, not just the foreign currency exchange. There are many good reviews on the forex forums and KorHarmonics is also frequently updated to be bigger, better, faster! You get the picture, there's support with this software.

AMP Indicator

An indicator in the pipelines at the moment is the AMP indicator. Still in beta testing stages with tradearsenal.com, AMP stands for Any Market Pattern. At the moment it is still in development, but if it is released at the end of testing it will include harmonic price recognition with alarm/alert tool and be flexible across any market, not just forex.

Elemental Trader

Elemental Trader is promoted as an entire training and trading course, that will teach the user to build profits over time, that's pretty cool, because that's what an investment is supposed to do. Elemental Trader includes training modules and learning manuals to increase the users knowledge base on harmonic analysis and trading. This software costs near on $2000, but a lot of the reviews on many of the reputable forex forums are saying that it is quite honestly, very awesome stuff.

Harmonic Analyzer

Harmonic Analyzer is considered one of the best tools out there for harmonic traders. It is standalone charting software that requires esignal software and a compatible data feed, but does not need a platform to run.

Like all good softwares, it doesn't come cheap. Harmonic Analyzer will set you back to the tune of $1499.95 a year, or you can purchase it for something in the vicinity of $4500. It is also leased on a quarterly year basis or a 30 day trial for $30. According to many forums, this software is worth every cent for the serious harmonic trader.

Like anything, profitability of these tools relies solely on the trader, and how they are used. Anyone can trade on the foreign currency exchange, not everyone can profit consistently. One key to being successful in any endeavor, is knowledge. Just like the famous phrase (attributed to Sir Francis Bacon, the biblical Book of Proverbs, and Ferdowsi's Shahnameh) says, knowledge is power.

Trading using Harmonic analysis requires a lot of learning, and study on the subject. Once mastered a trader can fully appreciate the profitability of trading what you see, and not what you think.

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