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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #30,541
  • Jul 21, 2017 1:19pm Jul 21, 2017 1:19pm
YM +67 on demo for the week. Much better than previous weeks. I started out strong, dug a big hole, slowed down, and climbing out now.
  • #30,542
  • Jul 21, 2017 1:47pm Jul 21, 2017 1:47pm
Quoting csternfx
YM +67 on demo for the week. Much better than previous weeks. I started out strong, dug a big hole, slowed down, and climbing out now.
Same here.. went live with a small capital and dug a hole this week..
Target is to get out of this the next weeks. lerned much through my mistakes and the losses.
  • #30,543
  • Edited 9:32pm Jul 21, 2017 8:48pm | Edited 9:32pm
Quoting Mr. Pip
Link to the ABCD Pattern Video https://youtu.be/GrCdDmkJMuY
Dear Damian:
As i asked you today on live session ,after watching all your videos and reading through nearly half of the thread pages , still i am missing some little tricky points in making an algorithm of your trading strategy for myself :

1) As i noticed nearly 2/3 to 3/4 of the time you are taking trades in direction of the market trend ,and so trading the C point , either as an aggressive C , which has a quite reasonable logic (good RR ratio), or you take other less retraced, C's , as AB=CD , ABCD or bat pattern, how do you know that which one is going to be a bat or garttly , or AB=CD and ABCD?? , is your decision based on momentum ,and order flow ? , when do you skip taking a C trade ? is it when you don't have enough room to be able to maneuver for Break even ?

(I noticed that you don't wait for C wave to break the B point level for confirmation of AB=CD and ABCD as you mention in this video ?)

2) You also trade PRZ points sometimes, and i have learned the rules (BE at 38.6 and TP on 61.8), but is that when the reversal criteria happens before C wave passes the B point level...?

3) Indeed these were the point that i asked you to clarify in a PDF file , or draw an algorithm chart for it, so that every body by watching your videos and having this algorithm in hand, may hopefully trade as you do ...

Best regards and thank you again for these priceless lessons ( you are born teacher , i was teacher myself for 28 years).
  • #30,544
  • Jul 22, 2017 8:55am Jul 22, 2017 8:55am
Quoting parviz1953
{quote} Dear Damian: As i asked you today on live session ,after watching all your videos and reading through nearly half of the thread pages , still i am missing some little tricky points in making an algorithm of your trading strategy for myself : 1) As i noticed nearly 2/3 to 3/4 of the time you are taking trades in direction of the market trend ,and so trading the C point , either as an aggressive C , which has a quite reasonable logic (good RR ratio), or you take other less retraced, C's , as AB=CD , ABCD or bat pattern, how do you know that...
Thank you for your questions and nice words. I will address your questions and provide chart examples with some notes. Feel free to create the PDF at will and if you want me to take a look at it before your or someone posts it by all means I will take a look at it. Let's get into this.

Quote
1) As i noticed nearly 2/3 to 3/4 of the time you are taking trades in direction of the market trend ,and so trading the C point , either as an aggressive C , which has a quite reasonable logic (good RR ratio), or you take other less retraced, C's , as AB=CD , ABCD or bat pattern, how do you know that which one is going to be a bat or garttly , or AB=CD and ABCD?? , is your decision based on momentum ,and order flow ?

The aggressive C will always be the safer and more profitable trade because as you stated if follows the expectation of a NSH or NSL so I am always interested in taking those. Taking C trades in general are all considered aggressive C regardless of where C corrects to. The deeper the correction the better the R/R. The important thing is to have a clear expectation and a clear correction into a previously determined area of interest.

Bats, Gardley and the variations of ABCD can get tricky as you also point out. Momentum and order flow help me asses the likelihood of the expected target or are of interest having strength or weakness and not much more. In order to determine what formation you are looking at the only way to filter them out is when price invalidates one of it's legs. In a Bat pattern price should not close B leg beyond the 50% of XA. If this happens you are no longer looking at a Bat pattern. Same thing on the other patterns. I have posted the specific rules to each pattern here in the thread and should be in the attachments section. If you need it posted again let me know.

Quote
when do you skip taking a C trade ? is it when you don't have enough room to be able to maneuver for Break even ? (I noticed that you don't wait for C wave to break the B point level for confirmation of AB=CD and ABCD as you mention in this video ?)

We only skip on C when it is against the expectation or when it does not meet the criteria of your trade plan. For me I need at least a 1:1 R:R and an SOS1 signal interaction with a Fib (min 38.2%). Being able to have room to protect your trade is very important. This can be evaluated by asking what am I trading into? If your answer is a brick wall then careful consideration must be made. Does the RR justify the risk???

Waiting for point B to be broken for a confirmation is what a retail trader would do. In a way its a breakout trade. Doing this severely hinders your RR and will often not provide you with a chance to protect your trade. I want the better RR and the room to protect. This also has me at a BE advance of the retail traders and less susceptible to traps.

Quote
2) You also trade PRZ points sometimes, and i have learned the rules (BE at 38.6 and TP on 61.8), but is that when the reversal criteria happens before C wave passes the B point level...?

The PRZ of the ABCD or its variations tend to be the more difficult trades to take because they are against the order flow and you are trading a correction or retracement not the expectation. What makes them a worthwhile opportunity is that from a Harmonic perspective we know the market has reached exhaustion and a correction is imminent. We must also find strong SOS 2 or SOS3 confluence in that PRZ. I will provide chart examples of all this below.
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If you fail to plan, you plan to fail.
  • #30,545
  • Jul 22, 2017 10:09am Jul 22, 2017 10:09am
Quoting Mr. Pip
{quote} Thank you for your questions and nice words. I will address your questions and provide chart examples with some notes. Feel free to create the PDF at will and if you want me to take a look at it before your or someone posts it by all means I will take a look at it. Let's get into this. {quote} The aggressive C will always be the safer and more profitable trade because as you stated if follows the expectation of a NSH or NSL so I am always interested in taking those. Taking C trades in general are all considered aggressive C regardless of...
Tank you so much for this detailed quick response:

1) I definitely will make a algorithm flow chart as soon as i feel confident about getting it all clear out for myself
2) let me tell you a story: i did not know the meaning of the SOS abbreviation and i was not going to ask you about it, because i was shy to ask such a stupid question, so i tried to google it ,and the result : it is definitely a gene problem in a very bizarre syndrome ?!! , so i tried to find SOS in forex trading : it is a Chinese index of something?!! , and again tried to find it in forex factory , yes i have found it not only the SOS 1 ,but all of them was there even the SOS2 and 3 , so i have opened the link and ....., it was the link to this response messaage of you ....
  • #30,546
  • Edited 10:59am Jul 22, 2017 10:37am | Edited 10:59am
Quoting parviz1953
{quote} Tank you so much for this detailed quick response: 1) I definitely will make a algorithm flow chart as soon as i feel confident about getting it all clear out for myself 2) let me tell you a story: i did not know the meaning of the SOS abbreviation and i was not going to ask you about it, because i was shy to ask such a stupid question, so i tried to google it ,and the result : it is definitely a gene problem in a very bizarre syndrome ?!! , so i tried to find SOS in forex trading : it is a Chinese index of something?!! , and again tried...
if you really want to work on the pdf you can spend some time with me on skype and it might be quicker and more effective look me up damiancastilla

SOS means Strength of Signal. 1 being the weakest just having a fib ratio SOS2 is confluence of ratio and structure to the left. This is obviously a stronger signal as a basic expectation is for structure to hold. Lastly SOS 3 contains ratio, structure, and harmonic confluence all three.
If you fail to plan, you plan to fail.
  • #30,547
  • Jul 22, 2017 11:11am Jul 22, 2017 11:11am
Quoting Mr. Pip
{quote} if you really want to work on the pdf you can spend some time with me on skype and it might be quicker and more effective look me up damiancastilla SOS means Strength of Signal. 1 being the weakest just having a fib ratio SOS2 is confluence of ratio and structure to the left. This is obviously a stronger signal as a basic expectation is for structure to hold. Lastly SOS 3 contains ratio, structure, and harmonic confluence all three.
Dear:
I definitely love to have this opportunity , but you know i hesitate to do so ,because :English is my second language , and i am imagining myself trying to talk to you , you don' get half of what i am trying to say ,and i don't get half of what you are responding ....and at the end i would be like...and you .....
This is why i am more comfortable with writing , since here i edit it several time to be understandable for every one ,looking in dictionaries to find the proper words ,and so on and so fort....
  • #30,548
  • Jul 24, 2017 3:11am Jul 24, 2017 3:11am
Mr. Pip if i may ask can you tell your brokers name and platform you are using, Id like to check it out please. I'm currently using IC markets but it doesn't have any option to trade futures and it alarms me when you said that forex brokers are shady in your recent Videos.
If you could provide a link would appreciate it very much.. Great videos btw! Thanks Mr. Pips. God Bless!
  • #30,549
  • Jul 24, 2017 7:25am Jul 24, 2017 7:25am
Quoting GrantTheMan
Mr. Pip if i may ask can you tell your brokers name and platform you are using, Id like to check it out please. I'm currently using IC markets but it doesn't have any option to trade futures and it alarms me when you said that forex brokers are shady in your recent Videos. If you could provide a link would appreciate it very much.. Great videos btw! Thanks Mr. Pips. God Bless!
He uses Ninjatrader 8 and the broker is Dorman
  • #30,550
  • Jul 24, 2017 7:58am Jul 24, 2017 7:58am
Quoting evocpr19
{quote} He uses Ninjatrader 8 and the broker is Dorman
Thanks for answering that is correct.
If you fail to plan, you plan to fail.
  • #30,551
  • Jul 24, 2017 9:13am Jul 24, 2017 9:13am
Quoting Mr. Pip
Hello Traders, Here is today's live stream. I hope it addressed your questions the order flow and how to navigate through it with confidence. As always any questions or concerns please post them and I will answer them. Also please remember to subscribe and comment on the video. This will help you catch when I add content or when the next one is coming, as well as help me see the interest and comments as well. Thank you all!! https://youtu.be/fdj4sFjvVMo
Mr Pip, thanks a lot for another great session. It clarified quite a bunch of questions.
  • #30,552
  • Jul 24, 2017 9:16am Jul 24, 2017 9:16am
Quoting pereiraalex
Hi Mr. PIP. When you have the time can you please take a look at a discord server I set for you ? there are a bunch of guys there already and it would be essential you could be there also ! This link should never expire : https://discord.gg/7CKNXD2
Hi folks. It may seem quiet here but most of the traders are communicating via the link above. Check it out.....
  • #30,553
  • Jul 24, 2017 9:54am Jul 24, 2017 9:54am
My trade today. Still looking for short.
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  • #30,554
  • Jul 24, 2017 2:44pm Jul 24, 2017 2:44pm
Mr pip,

I have been very interesting in your thread and already took one winning trade today.. Is my analysis good on the GBPUSD H4: http://prntscr.com/fzravb

Or should it more look like this?http://prntscr.com/fzrbr1

I know I didn;t put the Momentum - Projection and Depth on the second chart but it was quickly drawn to give you a quick idea of what I meant

Thanks so much in advance, I'll hope you will read this someday.

-Sheeep
"Luck is when opportunity meets preparation"
  • #30,555
  • Jul 24, 2017 4:49pm Jul 24, 2017 4:49pm
Does anyone happen to have a detailed list of the rules of this system?
  • #30,556
  • Jul 24, 2017 6:23pm Jul 24, 2017 6:23pm
Hi Mr. Pip,

Thank you for the thread. I have been learning this methodology and took a trade on 20th July. my account is very small and took very small position. 70 cents per pip. I took some profits already and have moved the stops to break even. I am looking to add to this trade at 1.2985-1.3000 area. May I know if you would have added to this trade earlier or its time to take profit.... I expect this trade to reach 1.3250 area.... Thank you.
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  • #30,557
  • Jul 24, 2017 7:07pm Jul 24, 2017 7:07pm
Quoting Sheeep44
Mr pip, I have been very interesting in your thread and already took one winning trade today.. Is my analysis good on the GBPUSD H4: http://prntscr.com/fzravb Or should it more look like this?http://prntscr.com/fzrbr1 I know I didn;t put the Momentum - Projection and Depth on the second chart but it was quickly drawn to give you a quick idea of what I meant Thanks so much in advance, I'll hope you will read this someday. -Sheeep
they both look correct at a quick glance

the difference is that one is the immediate order flow and one is (mid / longer term) order flow
  • #30,558
  • Jul 24, 2017 7:45pm Jul 24, 2017 7:45pm
Quoting Mr. Pip
{quote} Thanks for answering that is correct.
thank you very much.. il check it out soon.
  • #30,559
  • Jul 24, 2017 9:44pm Jul 24, 2017 9:44pm
Hi Damian,

I have been watching your videos and following the thread for quite some time now. I have started trading using the methodology.However, I get confused whenever there is a change in the direction of trend.

I am trying to present my understanding in the attached snapshot: Blue line is the main swing which is correcting now and formed a LH and expectation is a NSL. This trend direction will change when the green horizontal line is broken upwards. In this trade my stop would be just above the LH. Am I correct in inferring this.

Thanks a lot for such a wonderful thread which has opened my eyes.
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  • #30,560
  • Jul 24, 2017 11:26pm Jul 24, 2017 11:26pm
Quoting brrand
Hi Damian, I have been watching your videos and following the thread for quite some time now. I have started trading using the methodology.However, I get confused whenever there is a change in the direction of trend. I am trying to present my understanding in the attached snapshot: Blue line is the main swing which is correcting now and formed a LH and expectation is a NSL. This trend direction will change when the green horizontal line is broken upwards. In this trade my stop would be just above the LH. Am I correct in inferring this. Thanks a...
Hi Brrand. Here is my take on your charts:

Your blue line shows only 2 swings of the immediate order flow. You will need to take a clear high and a clear low in order to define the main swing. Therefore you will need to extend your blue line all the way up to the highest point of the chart in order to consider this as your main swing. Your first yellow line is the correction of this main swing(blue line), should you decide to trade based on this order flow - which I can see that you shorted just after the rotation to the downside. I would rather wait for price to correct higher to roughly the 61.8 retracement where there is more structure. You may also find more confluence of a 1 to 1 completion of the immediate order flow in the area of interest and RR is way better too.

You must decide which order flow you intend to trade. The way I see it, you have 3 time frame to choose from:
1) The immediate order flow - the yellow line(which just formed a NSH)
2) The medium term order flow - the blue line and should extend all the way up to the highest point of the chart(which just formed a NSL)
3) The longer term order flow - the lowest point to the highest point of this chart.

Just my 2 cents. Good luck!
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