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Quad Candle System

  • #781
  • Jul 23, 2017 8:00pm Jul 23, 2017 8:00pm
Quoting Masterrmind
{quote} GBPAUD [Harmonic move] Did anyone plot out a 1 to 1 harmonic move on this pair ? {image} I meant to post this yesterday but the harmonic is clearly still in action. Harmonic moves offer some form of an expectation of where price is likely to go. Harmonic moves are right more often than they are wrong on any time frame. Then attempt to get chart structure and other confluence on your side to form a technical opinion of where price might be headed. If you think I'm being biased and drawing the harmonic move from below the recent high then...
GBPAUD [Ongoing analysis and harmonic moves with MML]
Attached Image (click to enlarge)
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Study this GA chart its worth it.

2 harmonic moves shown but I'm focusing on the inner 'red' harmonic marked with ABCD.
Both harmonic moves share a common C point.

In harmonics it is common to expect a pullback to the 61.8 level after completion of the 1 to 1 move to Point D.

However, a trader needs to get this into context with the rest of the chart.

Look at where price is now.

Look how far it must move to hit the 61.8 Fib retracement (colored blue)
Look at the location of the 4/8 MML central pivot.
Look at the other MMLs such as 5/8 and 6/8.

Now draw a Fib on your own chart from Point C to Point D and note where a 31.8 fib level retraces too.

How likely is it that price will hit the 61.8 Fib of the entire red ABCD move just above the 1.70 handle (about 1.70200ish) ?

Note 1: do not get confused by how busy the chart looks ... simply break it down into its component parts and discover how they all fit together to form a story of where price is likely to go.

Note 2: Will price get there ? Maybe not so what we need to do is find "obstacles" in our way and see how PA reacts to these on its push to higher levels.

Note 3: Zoom Out and look at the bigger picture especially the bullish run up the left hand side of the chart ... price pulled back to the 61.8 of this 1700 pip move and then bounced but the next time price drove right through it (also at the 4/8 MML) and then bounced off the 78.6 Fib of this big move ...

Masterrmind............
Master your Mind then Master your Trades
  • #782
  • Jul 23, 2017 8:57pm Jul 23, 2017 8:57pm
GBPAUD [Monthly Chart]
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Price is not yet in the extreme MML zones on the monthly.
But would a trader want to wait until it is to consider taking a trade ???

GBPAUD [Weekly Chart]
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Likewise on the weekly chart.

If in the case where HTF charts appear to be vague or the additional information does not jump out of the chart and hit you then often its better to simply put such a chart on the back-burner and concentrate on a chart that makes more sense to your analysis.

I see no issue with looking at W1 and MN Charts for a broader outlook but I will not take longer term trades from them.
D1 is the highest time frame chart for making entries into the market.

In terms of the MN chart I simply take a quick look and see where the next MMLs are both up and down the chart and attempt to put these into context on a D1 Chart as potential target zones with just the 1 monthly octave usually being enough (1 octave = 976.6 pips on GA currently so to hit 1 level as a TP is a home run in my book).

Note: It was OAPDave who made the suggestion to look at the next monthly MML zone as a possible TP which is sound advise in my view provided the trade is managed throughout ... a trader still needs to be alert even if the trade is on auto pilot mode.

Masterrmind...........
Master your Mind then Master your Trades
  • #783
  • Jul 23, 2017 11:25pm Jul 23, 2017 11:25pm
Quoting Masterrmind
{quote} Patience is certainly a requirement for the longer term setups and trade management through to completion. On any account but better on a larger account that you are trading a 1.5% gain over a 3 week period is quite good. However the realized DD also needs to be considered here and a quick look at the chart you posted shows that the realized DD to TP is good. It appears that a Quad short was not taken so I'm assuming its a fundamental type trade. Still a good result and better yet the fact that you outlined it before the fact to make it...
Basically it was a fundamental type of trade and all the reasons for taking the trade, including the pair behaviour were mentioned at the time of taking the trade.
D1 chart showing the completed trade is attached.
Attached Image (click to enlarge)
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Practice makes a person perfect
  • #784
  • Jul 23, 2017 11:34pm Jul 23, 2017 11:34pm
Knowledge digested thoroughly.... thanks Masterrmind..
everytime i read this thread...i was like..its the best thing i need to concentrate on.
first time in my 18 months of trading..i am understanding how and why i would take trade.
awesome thread....thanks again
  • #785
  • Jul 23, 2017 11:47pm Jul 23, 2017 11:47pm
Quoting simnz
{quote} Basically it was a fundamental type of trade and all the reasons for taking the trade, including the pair behaviour were mentioned at the time of taking the trade. D1 chart showing the completed trade is attached. {image}
Yes ok I see its not a Quad nor an MML but a fairly good zone to take a short albeit somewhat aggressive.

Worked out well though and a fairly good read.

Masterrmind............
Master your Mind then Master your Trades
  • #786
  • Jul 23, 2017 11:52pm Jul 23, 2017 11:52pm
Quoting kar2wlan
Knowledge digested thoroughly.... thanks Masterrmind.. everytime i read this thread...i was like..its the best thing i need to concentrate on. first time in my 18 months of trading..i am understanding how and why i would take trade. awesome thread....thanks again
If the market drives the GBPCHF down another 60 pips lower from current price my stops will be taken out and there will be quite a deal of additional material to read after I make commentary about the trades I took.
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Losing some trades is the reality of live trading but certainly was not wishing for a loss at the start of the account especially after being in the first trade for about 28 trading days.

However, losses are also part of the business of trading, they can occur at any time and so we need to learn to deal with them.
Looking for price to hold above the 1.23 handle ... but will it ... that's to be seen.


I'm pleased you have devoted the time to read through the material.

Masterrmind..............
Master your Mind then Master your Trades
  • #787
  • Jul 24, 2017 12:32am Jul 24, 2017 12:32am
Quoting Masterrmind
GBPAUD [Monthly Chart] {image} Price is not yet in the extreme MML zones on the monthly. But would a trader want to wait until it is to consider taking a trade ??? GBPAUD [Weekly Chart] {image} Likewise on the weekly chart. If in the case where HTF charts appear to be vague or the additional information does not jump out of the chart and hit you then often its better to simply put such a chart on the back-burner and concentrate on a chart that makes more sense to your analysis. I see no issue with looking at W1 and MN Charts for a broader outlook...
I have taken Sell trade at 1.6353 with SL 1.6470 and TP 1.6070 with trade duration probability of 10 days. RR: 123 pips risk reward 277 pips)
The rationale for trade: technical - Average Range, confluence with 2/8th Pivot MM, historical levels.
Fundamental: GBP correction led by USD strength gain following Fed Meeting not affecting AUD much.
Attached Image (click to enlarge)
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Practice makes a person perfect
  • #789
  • Jul 24, 2017 2:21am Jul 24, 2017 2:21am
Quoting gopal33200
{quote} its almost more than 1 month over still account is not even 1 percent profit and if sl hit it will take long time to recover that so better put the money in the bank you will get 5 to 7 percent at year end instead of losing with no risk reward stragety and 2 buy 2 sell is an market maker tricks donot fall into it like other amatuer traders
Quick to pass judgement even before the first 2 trades are closed out.

Even if the 2 trades are stopped out does this suggest the method is poor?

Your assessment of this trading method shows your lack of understanding.

A successful trading method is as much to do with the processes as it is with risk management not to mention the discretionary abilities of the trader.

The bank will not offer an interest rate anywhere close to the one you suggest and certainly not in my country.

Since you mentioned an annual return by a bank then would it not be fair to give me 12 months to compare the gains at the end of this period.

Unfortunately there will always be risk attached to trading.

Margin requirements ensure this will occur at the moment a trade hits the market.

Good luck in your trading because Im certain you will need luck since your comment clearly suggests that it is you who is the amatuer.

Masterrmind........
Master your Mind then Master your Trades
  • #790
  • Jul 24, 2017 4:14am Jul 24, 2017 4:14am
Quoting simnz
{quote} I have taken Sell trade at 1.6353 with SL 1.6470 and TP 1.6070 with trade duration probability of 10 days. RR: 123 pips risk reward 277 pips) The rationale for trade: technical - Average Range, confluence with 2/8th Pivot MM, historical levels. Fundamental: GBP correction led by USD strength gain following Fed Meeting not affecting AUD much. {image}
A rather tight stop on such a volatile pair simnz.

Not even above the 4/8 MML but this is your call.

A small charge up by the bulls and the trade is over.

I wish you well on this trade though.

Masterrmind..............
Master your Mind then Master your Trades
  • #791
  • Jul 24, 2017 4:22am Jul 24, 2017 4:22am
Quoting Masterrmind
QUADs EURAUD {image} NZDCAD {image} NZDJPY {image} XAUAUD {image} XBRUSD {image} XPTUSD {image} MMLs Check your templates. Masterrmind............
EURAUD [Quad Long]

Any trader considering going long on this pair ?
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Harmonic move to the downside
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Fibonacci of the harmonic move down
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Price has pulled back nicely but still a rather large stop would be suggested.

Check the SL then check the reward to risk ratio by considering the expectation that price will hit your TP level.

Masterrmind.............
Master your Mind then Master your Trades
  • #792
  • Jul 24, 2017 4:50am Jul 24, 2017 4:50am
Quoting Masterrmind
{quote} EURAUD [Quad Long] Any trader considering going long on this pair ? {image} Harmonic move to the downside {image} Fibonacci of the harmonic move down {image} Price has pulled back nicely but still a rather large stop would be suggested. Check the SL then check the reward to risk ratio by considering the expectation that price will hit your TP level. Masterrmind.............
If price completes a 1 to 1 harmonic move to the downside where will it likely complete ?

Answer: closer to the 1.41 handle but only if price remains under the most recent swing high near to the 1/8 MML.

How likely is this ?

Answer: refer to the currency pairs fundamental and sentimental outlook.

Note: For a 1 to 1 harmonic move to complete to the downside it means that the MML will also reset.

Masterrmind...........
Master your Mind then Master your Trades
  • #793
  • Jul 24, 2017 5:06am Jul 24, 2017 5:06am
I jumped in on the EURAUD this morning,lets see how it gos...mastermind,i just got the feeling that this system need some sort of filter to unlock itself fully .
  • #794
  • Jul 24, 2017 5:17am Jul 24, 2017 5:17am
Quoting nozzer
I jumped in on the EURAUD this morning,lets see how it gos...mastermind,i just got the feeling that this system need some sort of filter to unlock itself fully .
Yes I agree that this method needs a filter.

That filter = YOU (the trader).

Masterrmind............
Master your Mind then Master your Trades
  • #795
  • Jul 24, 2017 5:22am Jul 24, 2017 5:22am
lol all I see is different coloured lines,sometimes price reacts spot on with the lines,other times the lines might as well not be there..its tough for sure !
  • #796
  • Jul 24, 2017 5:54am Jul 24, 2017 5:54am
Quoting nozzer
lol all I see is different coloured lines,sometimes price reacts spot on with the lines,other times the lines might as well not be there..its tough for sure !
Yes all the lines are simply that just lines.

Where these lines fall on a given chart may suggest a key level especially if it is in confluence with other chart structure, big 000 psychological numbers, fib ratios etc.

What we seek is whether or not an expectation is met by PA or not.

The 1 to 1 harmonic moves are very powerful because they very often complete as expected.

If it does not then we look at the next level, check for reactions there and so on and so forth.

The idea is to achieve as much confluence as possible by observing how price reacts in and around these lines and then applying sound risk management techniques to all trade entries.

Plenty of chart time and example trades is needed to gain the experience.

Nothing comes easy in trading and retail trading has so many factors against the trader its a difficult process forsure.

Masterrmind............
Master your Mind then Master your Trades
  • #797
  • Jul 24, 2017 6:28am Jul 24, 2017 6:28am
Harmonic moves and fibonacci ratios do not need to be used in this Quad Candle and MML Method.

However they are a useful tool in forming an opinion of where price is likely to go.

Take a given move, wait for some type of retracement and simply project a 1 to 1 move from say a 38.2, 50.0 61.8, 78.6 or 88.6 ratio.

Example as follows:
Attached Image (click to enlarge)
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Wait for your expectation to be met and then make a decision at that time.

The fact that price action has moved the way you anticipated is a confidence building exercise.

This will then allow you to become a confident trader and to think several 'moves' (or candles, bars) ahead.

If price does not pullback as expected then realign your expectations with what price action has just shown and then form 'new' expectations.

In this regard you become a dynamic thinking trader always attempting to anticipate where price is likely to go.

After much practise the chart starts to make some sense and you can use these new found skill to make intelligent trade decisions.

Masterrmind...........
Master your Mind then Master your Trades
  • #798
  • Jul 24, 2017 6:45am Jul 24, 2017 6:45am
Quoting Masterrmind
Harmonic moves and fibonacci ratios do not need to be used in this Quad Candle and MML Method. However they are a useful tool in forming an opinion of where price is likely to go. Take a given move, wait for some type of retracement and simply project a 1 to 1 move from say a 38.2, 50.0 61.8, 78.6 or 88.6 ratio. Example as follows: {image} Wait for your expectation to be met and then make a decision at that time. The fact that price action has moved the way you anticipated is a confidence building exercise. This will then allow you to become a confident...
Throw in the 1.66 psychological level as additional confluence at the 4/8 MML.

Wait for price to come to you on your terms and then make trade decisions.

Then start searching for Quads, MML extreme zones, harmonic completions, psych levels, fibs and go for trades that fit within favorable reward to risk ratios and don't forget to have a fundamental and sentimental bias on each currency of a given symbol.

It should all start coming together after plenty of practise and the thinking will become almost second nature.

This is how you need to think about every longer term trade setup.

Even after all of this confluence gathering the trade can still turn into a loser but because you adhere to a strict risk management plan your trading account is able to withstand multiple losses before a big winner comes your way and drives your growth upward.

Everything must be in sync with a minimum of sloppiness applied to trade setups.

Over a longer time horizon this approach should serve any trader well because the probability is on your side and the trader acts as a professional would act.

Masterrmind............
Master your Mind then Master your Trades
  • #799
  • Jul 24, 2017 7:30pm Jul 24, 2017 7:30pm
Quads

GBPAUD
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GBPUSD
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Masterrmind............
Master your Mind then Master your Trades
  • #800
  • Jul 24, 2017 8:19pm Jul 24, 2017 8:19pm
GBPUSD [D1 Quad]

Harmonic projection to the upside.
Remains in force unless the lows at Point C are taken out then it becomes invalid.
It is expected that the completed harmonic (black ABCD) will be close to the +1/8 MML.
Attached Image (click to enlarge)
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Zones of interest shown on the chart.

Sellers have previously come in strong at the current price level and knocked it down to the 2/8 MML.
So the danger of going long now is that this could once again occur.

Inner harmonic move (maroon colored ABCD)
Remains valid unless small Point C at the 4/8 MML gets taken out by PA.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 55 KB


Look where the inner harmonic completes.
Same level as the outer harmonic ... coincidence or is it confluence ?

It is possible to put a SL at close to the 3/8 MML and a TP up closer to the +1/8 MML IF a trader were keen to go long but apply a smaller stop than what would be required for the outer harmonic setup.

The danger from a technical perspective is that price heads down the chart to retest support closer to the 2/8 MML.

Masterrmind.............
Master your Mind then Master your Trades
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