What is Harmonic Equilibrium Routing?

<p id="isPasted">It's a modern price action methodology based on High Frequency Trading / Alternative trading systems / algorithmic trading and order execution in dark pools and order flows in dark pools, market structure based on European HFT market making regulations and US HFT regulations.</p><p>It also includes sessions and levels which AIMM specifies and next movements using signs of nodes and expired trend sessions and start of them.</p><p>It tracks all of the order flows in specific levels called nodes and clusters and also uses sessions to forecast next movements and reversal zones.</p>

<p id="isPasted">In trading, Harmonic Equilibrium Routing is a modern, non-traditional price action methodology used to forecast market movements based on principles borrowed from High-Frequency Trading (HFT) and algorithmic trading. It is not a standard, academic form of routing (which typically refers to network traffic management or transportation systems).&nbsp;</p><p><strong>Key Concepts</strong></p><ul><li>Market Structure: The methodology analyzes market structure, including order execution in dark pools and order flows, often within the context of specific HFT regulations.</li><li>Sessions and Levels: It uses specific "sessions" and "levels" (referred to as nodes and clusters) to track order flows.</li><li>Forecasting: The goal is to forecast future movements and potential reversal zones by analyzing these order flows and the signs of different nodes and expired trend sessions.</li></ul><p><strong>Distinction from Harmonic Patterns</strong></p><p>While the name contains the word "harmonic," this methodology is distinct from traditional harmonic patterns in technical analysis, which rely on Fibonacci ratios and geometric shapes to predict price movements. </p><ul><li>Harmonic Patterns: These are widely-recognized chart patterns (like the Gartley, Butterfly, or Crab) that use specific Fibonacci retracement and extension levels to identify potential price reversals. They are based on the idea that market patterns repeat themselves in alignment with natural ratios.</li><li>Harmonic Equilibrium Routing (HER): This is a more recent, specialized approach focused on the mechanics of modern, high-frequency trading and order flow dynamics, rather than classic chart pattern recognition.</li></ul><p>In essence, HER is a niche trading approach that uses the concept of 'equilibrium' to describe key levels of order flow in modern, fragmented markets.&nbsp;</p>