This example illustrates an important advantage harmonic patterns give you: These patterns might precede an upcoming market reversal.
In this case, the formation of a “Bat” harmonic pattern marks the end of the previous downtrend, and the beginning of a new uptrend. And the Harmonic Pattern Indicator does all the hard work and identifies this pattern for you.
Moving on, here’s an example of a bearish Bat pattern identified by the Harmonic Pattern Indicator: