Let’s have a look at a long term harmonic pattern forming on the monthly chart of the GBP/CAD.
This seems to be an interesting situation, since the harmonic pattern seems to have completed the 5 waves…at a confluence of other support levels.

As we can see in this chart, a bullish Gartley pattern has been completed, with pretty accurate fib levels.
Hence one would expect price to rally from this reversal level “D”

If we look at some more factors for confirmation, we can see that we also have a bullish divergence, and a support level which has formed at a fib projection of 127.2.

Hence this level becomes an important support zone and one would expect it to hold the price.

Even after such strong indications, we must still wait for price to give us a confirmation, before we take long trades.

Entry - For a harmonic pattern, an ideal entry is on the break of the “B” level, since this is an important barrier of resistance/support.
So, we would be taking trades, only if price closes above this level.
Stop - Ideally to be placed below the low of “D”
Targets - The minimum price objective for a harmonic pattern is usually the measured move of the wave “B-C” of the harmonic pattern.
If we plot this distance on the low of “D” we have an initial target zone, which also coincides with the 61.8 fib level of the move “C-D”.
If price surpasses this target, then further targets would be the 127.2 / 161.8 fib projection of this wave “C-D”

Again, we follow the “If-Then” principle, and look for long trades only if price satisfies our entry conditions.
And most important, we follow the trade with proper money management.
The advantage of using the fib ratios / harmonic patterns is that one can pre-define the anticipated target levels.
Hence one can manage the trade, by taking profits at the fib levels, and still participate in the trade if price moves further.

Sunil.