Harmony System Explained

Harmony System Explained

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Harmony System Explained

The Harmony Trading System is a culmination of years of research in volume and price action. Once alignment of price and volume present itself, the optimum trading conditions exists. It is a method that takes advantage of when volume and price are structurally moving in the same direction.

  • What IS happening is WAY MORE important than what SHOULD be happening?

THIS MOMENT MATTERS MOST

Harmony Trading truly looks at volume and price action in a visual way so that you can SEE how the volume is internally moving without looking at 5 different indicators on 5 different screens.

Elements of the Harmony Trading System

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Swift Harmony: a proprietary algorithm that calculates moment by moment alignment of blocks of contracts that are moving and closing in the same direction as price. The Dome ladder and volume depth are in synergy with price.

Full Harmony: adds an additional algorithm that measures price breaking away from the range with increased volume & speed.

Shadow Trends: a beauty that measures expansion in momentum in the direction the market trend away from the middle of the range

Aura Clouds: representation of the averages moving in a direction. Gives me a clear idea if the market is going up, down, or sideways

Trend Lines: lets me know if the market is breaking above or below most recent hi/low and how we are progressing

Consistency of the Harmony Trading System

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Why is the Harmony System Consistent? Why is it going to help you, the trader, to be consistent in your trading?

The Harmony Trading system uses the same factors every single day and those factors haven’t change the entire time I’ve been using this system (10+ years). It always uses price and volume synergy…. One thing I had to give up is the idea that using support and resistance lines, pivot numbers, fibs, or many of the tools out there to make my decisions would add to the probability of success. Those ideas produce more confusion and lead you to ask more questions than they give answers.

Types of trades using the Harmony Trading System

  • Same Harmony Elements are used every day for every moment to make consistent trading decisions.
  • Use the 5 factors that defines the trading environment
  • Two well defined entry points (Trigger/Spear Trades)
  • One simple Exit Strategy (One Reversal Candle)

Trigger Long

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1st – You must define your environment. This example is a Harmony trend in the long direction.

2nd – A Trigger Trade is a retracement trade. I am looking for a 2+ candle pull back in the direction of the harmony trend with a 1 candle reversal. This tells me the direction is holding and the buyers are in charge.

3rd – I place my order, then upon entry I look for my exit, which is a one candle reversal. In this case my exit created a quick 10 tic profit.

Trigger Short

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  • What do we have working here?
  • We have the swift harmony, we have the full harmony, we have the shadow trend, and we have the aura cloud all on the short side.
  • Next we look for a 2+ candle pull back with a 1 candle reversal, which happens at the top of the move
  • Now that we are in the trade, we are looking for a 1 candle reversal to exit the trade, which happens at the bottom of the move

Spear Long

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A spear trade is a little bit different than a trigger trade. The difference is I am not waiting for a pull back, the moment that all the elements are a go, I get into the trade.
Guess What? We still are using the exact 5 elements… Swift Harmony Signals

  • Full Harmony Signals
  • Shadow Trends
  • Aura Clouds
  • Trend Lines

Why take an immediate action (spear trade) instead of waiting for a pullback (trigger trade)?
These are a break out trade and capitalizing on the run up insures more success.

Spear Short

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Same thing here…. Our approach NEVER changes. That is why we are consistent. Still looking for the exact same elements.

  • Full Harmony Signals
  • Shadow Trends
  • Aura Clouds
  • Trend Lines

Identifying Transitional Markets

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The most important part about trading is to know when NOT to trade! You want to stay out of a Non-Directional market.

You can see with this example that 5 elements are not engaged at the same time. When the market is in harmony, you trade. When is not in harmony, you take a break until it gets back in harmony.

I can’t tell you how much of a relief it was for me to be able to identify a choppy market and not get caught up in the chop fest.

When in Harmony we Trade,
When in transition we Wait!!

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