#CurrencyPairPrediction Harmonic patterns are geometric price structures that traders believe can predict future price movements with high probability. These patterns are based on specific Fibonacci retracement and extension levels, creating distinct shapes like Gartley, Butterfly, Bat, and Crab patterns. The underlying principle is that these patterns represent points of potential reversal in the market. Identifying harmonic patterns involves recognizing specific price swings and measuring the relationships between these swings using Fibonacci ratios. For example, a Gartley pattern has specific Fibonacci retracement levels that must be met at certain points within the four-leg structure (X-A, A-B, B-C, and C-D). When these Fibonacci ratios align correctly, the point D is considered a Potential Reversal Zone (PRZ). Traders often look for confluence of Fibonacci levels from different swings within the pattern to increase the reliability of the PRZ. Once the price enters the PRZ, traders watch for confirmation signals from other technical indicators before entering a trade. Harmonic patterns are favored by some traders for their precise entry and exit points and their reliance on Fibonacci geometry.