1. Profiting with Harmonics
Leslie Jouflas Founder of Presents Profiting with Harmonics©

2. Books By Leslie Jouflas
“Larry Pesavento and Leslie Jouflas, the quintessential traders of chart patterns and the techniques of past masters of technical trading, have put together a compilation of their studies. Their experience extends over forty years. This book covers the essence of chart patterns trading plus the mental preparation necessary for successful trading. There is something in this book for both the beginner and experienced trader, Highly recommended.”
- John Hill, President, Futures Truth Co.
TRADE What You SEE
How to Profit from
Pattern Recognition

3. Books By Leslie Jouflas Essentials of Trading:
It’s Not WHAT You Think
It’s How You Think

4. Leslie Jouflas - Founder of tradingliveonline.com
Leslie began trading in 1996 and left a 17-year airline career in 2000 to pursue a full-time trading career. She has studied many trading methodologies, including Elliott Wave, options strategies, momentum trading, classical technical analysis, and Fibonacci ratios and patterns. After trading stocks and options on stocks, she now trades futures and commodities with an emphasis on the S&P 500 market. She has managed private accounts as well as trading her own private account.
Leslie is a member of the Northwest Hedge Fund Society and has co-authored two books, Trade What You See – How to Profit from Pattern Recognition (Wiley & Sons, 2007), published in English and Japanese and Essentials of Trading: It’s Not WHAT You Think, It’s HOW You Think (Traders Press, 2006), and has many published articles for such publications as Trader’s Journal, Active Trader, and Technical Analysis of Stocks & Commodities.
Leslie founded website which is an educational website and live trading room where traders learn real time trading skills. The website also offers the Trading Live Online Mastery Coaching programs for traders wanting to learn a proven trading method, learn a process to increase trading skills, and learn to trade to achieve consistent results.

5. What we will cover Defining a Harmonic Number
Vibrations in Price Swings
Repetition in Price Swings
Primary Harmonic Numbers in the SP 500 and other markets
Practical Use of Harmonic Numbers
Introduce the concept of using Harmonic swings and learning to recognize when the market is making repetitive swings

6. Harmonic Numbers
Har-mon-ic – Physics – Any component of a periodic oscillation whose frequency is an integral multiple of the fundamental frequency
Harmonic numbers are vibratory swings
These are repetitive swings in each market and stock
Harmonic numbers are at the root of the basic pattern structures
Harmonic numbers can be used in trading applied to entries, exits and stop loss placement
The specific term was coined by Jim Twentyman

7. Markets Do 1 of 3 Things 1. Move Up
The strength of an up or down move tells us if the markets are contracting or expanding

8. 2. Move Down

9. 3. Move Sideways
When Markets or stocks form sideways moves or coils, they are storing energy, eventually the energy will be move out of the range one direction or another.

10. Vibrations in Price Swings
A Harmonic can be thought of as a ripple effect when an object is dropped into a pool of water

11. Vibrations can be small to medium
The size of the ripple depends on the size of the object

12. Or Vibrations can be large and sudden; example of a large vibration and expansion following a FOMC announcement
News events can create large, sudden and extreme moves, this move in the bonds was over a full 2 pt move in a matter of minutes

13. This chart may at first appear, chaotic, no order or trend to it
Random Price?
At first glance this price chart may appear chaotic and random

14. Look also at the down moves and how similar those are.
Harmonics
Using a simple cloned line you find the harmonics or repetitive swings in any market or stock

15. Swings that are similar in size are ‘Harmonic”
Euro market forms frequent ranges, storing energy and then sudden moves in either direction out of those ranges

16. Example of Coil in Euro – 15 Minute Chart
Contraction or coiling with sideways movement followed by large move up

17. Adding Order to Chaos Random Swings Harmonic Swings
Some would call these random swings, these are very harmonic swings

18. The Harmonic Swings form Tradable Patterns
30 minute chart of goog illustrates how the harmonic swings form patterns that are tradable

19. SP 500 Harmonic Numbers
These are common Harmonic Numbers in the SP 500; the 4 Point swing is a common swing in the SP 500 Emini followed by these harmonic swings
5.4 points – a primary harmonic in this market
6.85 points – derived using 5.4 x 1.27
8.7 points – derived using x 5.4
10.8 points – derived using 5.4 x 2
16.2 points – derived using 5.4 x 3
21.6 points – derived using 5.4 x 4
Use the numbers as more of a range rather than the exact tick

20. SP 500 2 Minute Chart – Primary Harmonics
Here is repetition of the 4 pt swing and expansions of it

21. SP 500 5 Minute Chart - Swings in Points
Moving to a 5 minute chart you can see the swings are multiples of the basic harmonics

22. SP 5 Minute Chart - Expansion
Here the swings are expanding

23. Bond Market
Almost perfect harmonic swings that formed this ab=cd sell pattern in bonds, the first swing is within 4 ticks of a full point and the second swing is within 2 ticks of a full point.

24. Bond Market – 20 ticks Crude Oil – 44 and 88
Harmonics in other Markets – from page 34 of Trade What You See – How to Profit from Pattern Recognition
Bond Market – 20 ticks
Crude Oil – 44 and 88
Dow Jones – 35, 105 and 70
Euro Market – 35 and 70
Gold Market – 11 and 17
Silver Market – 18, 36 and 12
Wheat – 11 and 17
Soybeans – 18 and 36

25. Practical use of Harmonic Numbers
Help you understand the rhythm and price swings of a particular market or stock
Help you in using stop – loss placement.
Help you in taking profit targets
Help you in awareness of market contraction of expansion stages
Help you in your understanding of Harmonic numbers with Fibonacci ratios and the formation of specific pattern and trade setups