Technical Analysis Guides

Harmonic trading is a rule-based form of technical analysis that compares the proportions of connected price swings. Its purpose is not to predict an exact turning point. It is to narrow a chart to a potential reversal zone, or PRZ, where several measurements converge and a trade can be assessed with a defined invalidation level. That distinction matters. A familiar shape can still be unusable when the pivots are unclear, the measurements conflict, the PRZ is too wide or price reaches it with strong momentum. The value comes from the complete process: structure, ratios, location, price response and risk.

Daniel Harris