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<p id="isPasted">Harmonic trading refers to the idea that trends are harmonic phenomena, meaning they can subdivided into smaller or larger waves that may predict price direction.</p><ul><li>Harmonic trading relies on Fibonacci numbers, which are used to create technical indicators.</li><li>The Fibonacci sequence of numbers, starting with zero and one, is created by adding the previous two numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.</li><li>This sequence can then be broken down into ratios which some believe provide clues as to where a given financial market will move to.</li><li>The Gartley, bat, and crab are …</li></ul>
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<p id="isPasted">The math behind harmonic analysis involves decomposing functions into simpler sinusoidal components using tools like the Fourier series and Fourier transform. It is based on the idea that any periodic function can be expressed as an infinite sum of sines and cosines (Fourier series), or that a function can be represented in the frequency domain (Fourier transform). </p><p><br></p>