Start with the map.
Harmonia is FAT WICK's auction-market framework for organizing price around meaningful market structure. Instead of treating every candle or price level independently, Harmonia provides a map for understanding where price is trading, where the auction may be attempting to travel, and where important decisions are likely to occur.
The framework does not attempt to predict every market movement. It provides locations and conditions that allow traders to evaluate what the market is actually doing.
The Harmonia Map
EQ — Equilibrium
EQ represents the central balance reference of the developing auction. Price returning toward EQ can indicate rotation back toward balance. EQ should generally be viewed as an important destination or decision area rather than automatically being treated as an entry signal.
20%
An important internal Harmonia reference used when evaluating acceptance, continuation, and developing directional auctions. Price behavior around the 20% area can help determine whether the market is beginning to establish acceptance away from equilibrium.
50%
A major structural midpoint and important line in the Harmonia auction. Movement through the 50% area can materially change the quality of a setup because the market has traveled significantly through the current auction path.
80%
The outer internal area of the Harmonia structure. Price reaching this area means the auction is approaching its outer extreme and traders should begin evaluating whether the move is continuing efficiently or showing signs of deterioration.
EXT — Extreme
EXT represents the outer Harmonia auction extreme. It is one of the most important locations in the framework. EXT is NOT automatically a reversal level.
At EXT, the trader asks: "Is the market accepting price beyond the extreme — or failing to continue?" This distinction is the foundation of Model 1.
LOCATION CREATES CONTEXT. BEHAVIOR CREATES THE TRADE.
Next: understand why markets move between balance and imbalance.
Continue to Auction Market Theory →