The Wave and Harmonics drawing tool can be used to visualize (Elliott) waves in trends and corrections, count and plot turning points of those waves and display various related data, such as:

▫       Number of bars between two turning points

▫       Amount of time between two turning points

▫       Absolute change or percentage change between two turning points

▫       Percentage retracement of a correction in relation to the preceding wave

In addition, the last possible Gartley Pattern and other Harmonics can be shown for the most recent reference points of the wave. The Gartley Pattern was introduced by H.M.Gartley in his book Profits in the Stock Market and measures Fibonacci relations between five turning points of a wave.

The reference points of a wave are positioned at alternating pivots (High – Low – High – …). A new High must always be drawn higher than the last Low, a new Low must be drawn lower than the last High. You can draw any number of reference (turning) points for a wave. When drawing Harmonics or a Gartley Pattern, you must define at least five turning points. As the price develops on the chart, you can manually add reference points to the wave.

The first reference point is labeled with 0 by default, all following reference points are either labeled numerically (1, 2, 3…) or alphabetically (A, B, C…). The usual convention is to label long-term trends with numbers and short-term corrections with characters. You can easily switch between numerical and alphabetical labeling while drawing.

 

You can change the color and style of all lines, adapt the labeling of turning points (including the start value) and display of relative values, and show / hide the Harmonics for the last five reference points of a wave: See Customizing Wave and Harmonics.

▪       Click on the Wave and Harmonics icon on the Drawing toolbar:

▪       Click on the chart at the starting point of the wave (zero point).

▪       Click on the chart to add reference points (turning points).

▪       To switch between numeric and alphabetic labeling, press the Shift key. The automatic counting will be reset to zero automatically on every switch. To restart the counting at zero manually, press the 0 key.

▪       Press the Esc or Enter key to finish drawing.

▪       Draw a wave with at least five turning points (as described above).

▪       By default, the possible Harmonic Pattern and its relative values should now be shown automatically.

 

If the Harmonic Pattern is not visible on the chart:

▪       Right-click on the wave and select Properties.

▪       On the left side of the dialog, select the name of the drawing object, and then Harmonics. For example: Wave and Harmonics1 > Harmonics.

▪       On the right side of the dialog, select Show Lines and / or Show Fill to show the Harmonic Pattern with its reference and relation lines.

▪       Click on the drawing object to select it.

▪       Click on the right-most reference point that is positioned next to the last turning point of the wave and drag it to the next pivot.

▪       Click on the chart to add more reference points (turning points) if desired.

▪       Press the Esc or Enter key to finish drawing.

▪       Click on the drawing object to select it.

▪       Press the Backspace key to remove the last (right-most) turning point of the wave.

▪       To remove several turning points at once, double-click the first (left-most) reference point that you want to remove. This turning point and all turning points to the right will be deleted.