How to draw harmonic pattern – a lesson you will not find elsewhere!

Learn how to draw harmonic pattern and trade Musical Harmonics

Are you curious how harmonic patterns indicator look like? Watch our latest video to learn how to draw harmonic pattern and to find areas of support and resistance, using musical harmonics.

How to draw harmonic pattern – a lesson you will not find elsewhere!

Hello, and welcome to Diary of a Trader. And in this video, we’re going to be going over finding areas of support and resistance, using musical harmonics and I hope you enjoy this video.

And in this video we’re going to be going over something called musical harmonics and I know that it may sound a little strange, a little odd, a little weird, but believe me this is something that you will see probably nowhere else in a lot of different sites that say they offer good education. This is a more advanced and contemporary form of analysis. This actually came from a gentleman by the name of Tony Plummer and it came out of his book, “The Law of Vibration. The revelation of William D. Gann” and if you ever heard me reference Gann before, that is the style of trader I am. I am a Gannist, that’s what we call ourselves. And Gann is a guy who focused on naturally occurring numbers on geometry and he approached the market from the point of view that it was not random, that it was fixed, that it had a pattern and that time was ultimately the reason for trend changes and price changes. It wasn’t news, it wasn’t war, it wasn’t a tweet, it wasn’t the season, well, yes, actually it was sometimes seasons, but it wasn’t anything that we could do as humans. In other words, Gann really focused on the theory that it is important for us to be within the natural trend and movement of a market, as opposed to thinking that we can influence it and that ultimately that is what he left us with a lot of his work.

Tony Plummer really expanded on a lot of this and it’s very, very, very kind of out there thinking, but what Tony Plummer found was that, if you could apply the same harmonic frequencies that occur in musical notes, onto a price chart, and this is actually very fascinating. So, if you remember us talking in previous videos on support and resistance, we’ve talked about horizontal areas of support and resistance, where we look for prices that have been traded before and have had some bottom. So, certainly we see here, this would probably be a good area to put a horizontal line indicating there’s some support here because price has come down to this region before and tested it. We try to think of these zones as being more like an area or like that there’s a shield like in Star Trek or Star Wars, there’s a shield around these zones that price has got to get through. And if we look even up here, there’s probably one that we could think of. And really, this is all just taking past price action and creating those zones based off of those levels. But, what if there’s something more natural? What if there is a method to the madness? We look at all these Candlesticks here, we see all these weaks, we see these random, why does price stop at these random areas? Why does it seem to halt here, there and all over the place? Well, that’s because there are actually, I don’t want to say they’re hidden, but we haven’t actually identified them yet. There are actual levels of price that fall in natural harmonic structure, just like music. So what I’m talking about is Do, Re, Mi, Fa, Sol, La, Si, Do. That is Solfege or Tonic Sol-Fa. My first major was in music, in music education, I was a Euphonium player, if you were wondering. So, to me, this was very fascinating, because I had no idea that this was true, but I created an indicator and I’m going to add it to our chart here. And what this is going to do is it’s going to look a lot like a Fibonacci tool, but this is reserved just for here. And so, when I talk about a harmonic level, I’m talking about numbers that increase, that they double essentially, from a value of 1. So, a middle Si has a vibrational frequency of 256, and an octave above that, the next major Si above that, resonates at 512 vibrations, and then the next octave above that it’s 1024, okay? So, there are values we basically start at 1, we double 1, we get 2, times 2 that’s 4, times 2, that’s 8, so we go from 2, 4, 8, 16, 32, 64, 128, 256, 512 and so on. Those are actually prices that will put on these charts. So, if I’m looking at Bitcoin right now, and we’re trading at 7698, I know that there is a value between that. 4096 is one of the harmonic levels and then the octave above that is 8192. So, I have to put in the low here. This is the tool and you can see the style, they’re named Do, Re, Mi, Fa, Sol, La, Si, Do, ori Do, Si, La, Sol, Fa, Mi, Re, Do and we’re going to plot them out. But it’ll do it automatically. You won’t to actually have to put these in yourself, so I just highlight this and I know the number that I want to start with, and this will be explained in the accompanying article that’s with this video, please reference that, that will give you the levels and the numbers to use.

And so, if we do 4096 and we look at our chart, that is what we are looking at, and actually, maybe we want to decrease the size, first, of those octaves. And if we maybe turn this over to a four-hour chart and we go back to the beginning of it, keep scrolling here, notice how strongly price reacts to these lines and these notes as natural ranges. And notice also, that they are not equal distance, this is not a series of eight lines that are evenly distributed, okay? They are in a percentage, or a proportion of the octave, so Do is here, Re is a quarter of the way, Mi is at eighth, the fourth two thirds halfway, three fourths and two thirds and then finally we have a full octave. So it’s Do, Re, Mi, Fa, Sol, La, Si, Do. And we can also tell, with these levels, these are natural zones that they act very strongly not only as support and resistance zones, but they kind of tell us how far something’s going to trade. What is the range it would trade in? How far is it going to move from one space to the next? We can see that happen. And, let’s say, okay, well that happened, what about all this area up here, what does that look like? We do the same thing, we’ll just add another layer here, and I just start with the last level here, and that was 8192, and so, for this, I will put that 8192, and there is my new harmonic structure. Again, notice how strongly those harmonic levels act as natural areas of support and resistance. Look at most recently, I re-did this video for the most contemporary price that we were trading, and this is where we’re at. We can see that these price swings were very easy to identify. It was very easy to know where to trade, for instance, right now, price is trading against a harmonic level and all I have to do, is I have to look at some time frames and look what’s happening. I know that if price were to break down below here, I would like to see it retest this zone, before I would want to take a short on here, or I would want it to bounce off of that zone and show a couple of candlesticks higher, before I’d want to go long again.

This tool does not exist on any other site, with any other service, with any other education provider. I do not know of another single technical analyst or trader who would teach this to you, or who would want to teach it. But, I know the struggles that traders go through and if I can help identify actual real static values of support and resistance, I think that can help your beginnings as a trader. And again, this is a very valuable tool you will find it useful in any market. Seriously, we could apply this anywhere. Somebody might ask “Okay, well, this is easy to do with whole numbers. What if we’re trading something like Cardano?” You know, we’re trading in sense, might have to do the reload there. Now we have to use some common sense as well because we can change these values into decimals we could change them into other divisions, we could break them down how we want, so 8192 could be 81 dollars and 92 cents, or could be 8 dollars and .192 cents. There’s a lot of things that we could do, let’s just maybe look at Cardano-Ethereum and what’s the what’s the present trading at 32785, that’s actually right around our harmonic level of 32768, but we would have some difficulty, actually, finding that. Well, we could do that, let’s just build it off that level, okay? So we’ll build up off this level, and so we’re looking for 0.00032768, and would you look at that? I never cease to get amazed by how accurate and how strong these zones are, so built off of that harmonic level, look at those zones. The peaks, the highs and the lows, the valleys, the troughs, they all show strong respect to these harmonic levels. I don’t think you will find a lot of things that show proof or evidence of the market being a natural phenomena and not a random phenomena. The tool that you’ll use in your trading or even in your own investing, this tool, you will be light-years ahead of anybody else who is trying to learn from another service because all they will tell you is to draw straight lines based on previous price action. And there is nothing wrong with that. It’s just not as accurate. That is a dynamic form of strength and resistance, that is not as accurate, nor as helpful, nor as profitable as finding static zones of support and resistance. In our future videos, we’ll have some other natural numbered ways to identify support and resistance. This is in musical harmonics and there’s another form of harmonics, based on natural squares. We’ll get to that in other videos, but we’ll go over those at a later date.

Hope you found this video useful and applicable to your trading. Again, thank you for watching and I look forward to speaking with you in our future videos. Bye-bye.

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