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Quad Candle System

  • #801
  • Jul 25, 2017 1:24am Jul 25, 2017 1:24am
Morning Masterrmind, just wondering if I am being a little idle but as I do not understand Harmonics in any great depth in using an 8 5 3 Zig Zag to be a visual chart aid
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  • #802
  • Jul 25, 2017 1:42am Jul 25, 2017 1:42am
Quoting OAPDave
Morning Masterrmind, just wondering if I am being a little idle but as I do not understand Harmonics in any great depth in using an 8 5 3 Zig Zag to be a visual chart aid {image}
Got me playing, even added a 64 5 3 now, starting to look interesting ?
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  • #803
  • Jul 25, 2017 1:59am Jul 25, 2017 1:59am
Quoting OAPDave
Morning Masterrmind, just wondering if I am being a little idle but as I do not understand Harmonics in any great depth in using an 8 5 3 Zig Zag to be a visual chart aid {image}
Harmonics are simply commonly occuring patterns that the market makes due to price action.

What makes them useful is the fact that they very often repeat themselves and have uncanny accuracy.

Especially the simple 1 to 1 projections ie the ABCD pattern.

For example, price might move up 100 pips from some Point A (typically a swing low area for an upward move or vice versa for a short harmonic move) to Point B then pullback 60 pips to some Point C and then continue up 100 pips to Point D, where AB pips equals 100 and CD pips equals 100.

Important to note that AB pips can be any value but it is expected that whatever pips are gained in the AB leg before the pullback that the CD pips will equal the AB pips be it 100 pip move or 250 pip move.

Often price will then reverse off Point D and pullback to a 61.8 Fib retracement of the whole move up (meaning from Point A all the way up to Point D) and this helps us in forming an expectation of how far down the chart we should place our TP level if we were to short this particular symbol... simple as that!

Price moves up then at some point it will pullback and then continue on up to complete a 1 to 1 harmonic move.

They are not difficult to learn and you do not need any zigzag indicators to map them out since the zigzag moves are often non-equal projections of price movement (leg ups or leg downs as the case may be).

Manual drawing of the harmonic moves on any chart is the very best way to do it.

Masterrmind...........
Master your Mind then Master your Trades
  • #804
  • Jul 25, 2017 2:06am Jul 25, 2017 2:06am
Quoting Masterrmind
{quote} Harmonics are simply commonly occuring patterns that the market makes due to price action. What makes them useful is the fact that they very often repeat themselves and have uncanny accuracy. Especially the simple 1 to 1 projections ie the ABCD pattern. For example, price might move up 100 pips from some Point A (typically a swing low area for an upward move or vice versa for a short harmonic move) to Point B then pullback 60 pips to some Point C and then continue up 100 pips to Point D, where AB pips equals 100 and CD pips equals 100. Important...
Thanks for the heads up, going to look into it a little more but I do find this interesting and its all done for me !
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  • #805
  • Jul 25, 2017 2:13am Jul 25, 2017 2:13am
Quoting OAPDave
{quote} Thanks for the heads up, going to look into it a little more but I do find this interesting and its all done for me ! {image}
Things start to become very interesting when you get harmonic moves inside other harmonic moves.

They occur on every TF.

Harmonics is a wonderful discovery.

Masterrmind...........
Master your Mind then Master your Trades
  • #806
  • Jul 26, 2017 5:03pm Jul 26, 2017 5:03pm
Do the murray level indicator repaint if the last levels are broken? I see them change during the day if there is a strong up move.
  • #807
  • Edited Jul 27, 2017 8:42am Jul 26, 2017 6:47pm | Edited Jul 27, 2017 8:42am
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}.Masterrmind...........
I had a family need to be away for several days but have returned and am reading all I have missed.

I particularly like the teaching offerings on this chart. Once again, confluence is involved. And wait, here comes harmonics again. I am certainly learning a bit about harmonics and have not really utilized them before.

I have to honestly say that after two or three days reading through this forum I thought, all in all, it wasn't unduly difficult. However, the more I read, and reread, and explore charts it gets deeper and richer . . . and surely more involved. Of course Masterrmind and OAPDave said this all along it seems.

So I am glad to be back and more cautious that I don't really know too much . . . yet.

FS
  • #808
  • Jul 26, 2017 7:23pm Jul 26, 2017 7:23pm
Quoting gselsidi12
Do the murray level indicator repaint if the last levels are broken? I see them change during the day if there is a strong up move.
Yes.

Break above will shift the MML frame up several octaves.

Similarly for a break below.

Madterrmind.........
Master your Mind then Master your Trades
  • #809
  • Jul 26, 2017 8:17pm Jul 26, 2017 8:17pm
GBPCHF [Update]

Both stops now tightened up to reduce overall risk on the account.
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The sum total of all stops applied must not exceed my self assigned 5% limit.

On a US$1000 account this means the total loss over all current stops must be <= US$50 (5% of US$1000).

I simply mouse over all SL lines on the chart and then sum the values.

For the 2 current SLs these are:
Trade #1 US$12.66
Trade #2 US$26.88

This sums to a total of US$39.54 which represents about 3.95% risk over all current trades (Trade 1 and Trade 2).

Plans moving forward:

I may add in another long entry soon near the 2/8 MML.

However, the 3rd SL must represent a reasonable position on the chart (5%-3.95%=1.05% currently) so that total risk across all trades remains <=5%.

If a reasonably placed stop cannot be executed even after minor adjustments to the 2 current trades then the additional long must not be applied.

Note 1: This process appears simple and it is but it is very important to know where each stop is located on the chart with respect to other trades and how additional trades impact on the SLs of all other trades and yet remain under the 5% risk limit.

Note 2: The growth phase of the account on these longer term setups occurs when the additional trades are entered, price moves favorably, risk% limit is not exceeded and the trades are managed throughout.

Masterrmind...........
Master your Mind then Master your Trades
  • #810
  • Jul 26, 2017 8:29pm Jul 26, 2017 8:29pm
Quoting Forest-Sea
{quote} I had a family need to be away for several days but have returned and am reading all I have missed. I particularly like the teaching offerings on this chart. Once again, confluence is involved. And wait, here comes harmonics again. I am certainly learning a bit about harmonics and have not really utilized them before. I have to honestly say that after two or three days reading through this forum I thought, all in all, it wasn't unduly difficult. However, the more I read, and reread, and explore charts it gets deeper and richer . . . and...
Pleased to have you back here again Forest-Sea.

Plenty of material to cover but it is fairly logical and given enough time to absorb it you'll get the hang of each component.

Feel free to ask questions at any time.

Good trading,

Masterrmind...........
Master your Mind then Master your Trades
  • #811
  • Jul 26, 2017 8:45pm Jul 26, 2017 8:45pm
Quoting Masterrmind
GBPCHF [Update] Both stops now tightened up to reduce overall risk on the account. {image} The sum total of all stops applied must not exceed my self assigned 5% limit. On a US$1000 account this means the total loss over all current stops must be <= US$50 (5% of US$1000). I simply mouse over all SL lines on the chart and then sum the values. For the 2 current SLs these are: Trade #1 US$12.66 Trade #2 US$26.88 This sums to a total of US$39.54 which represents about 3.95% risk over all current trades (Trade 1 and Trade 2). Plans moving forward: I...
GBPCHF [Update]
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Trade #3 has now been added.

3 long trades running.

Total risk over all 3 trades is close to 5% based on SL levels.

As price moves favorably up the chart SLs will be reduced.

Note 1: Trade #3 slightly aggressive entry with a SL close to 1% risk and entered on a slight pullback of previous D1 candle just above 2/8 MML.

Note 2: If price decides to reverse I may adjust the stops on any or all of the 3 trades to provide enough breathing space for any given trade.

Note 3: A 1% loss of the account will occur if this most recent trade is stopped out.

Note 4: If I am at the terminal at the time of a strong reversal then I may adjust any stops deemed necessary.

Masterrmind............
Master your Mind then Master your Trades
  • #812
  • Jul 26, 2017 8:52pm Jul 26, 2017 8:52pm
The key concept here is to add in as many trades as possible provided they represent a reasonable addition but remain within an assigned risk tolerance limit.

Increase the number of entries as much as possible at key locations on the chart but be sure to manage your risk.

Patience must be exercised.

Simple as that!

ps. An aggressive entry is acceptable provided it makes sense to add it into the group and that risk is not exceeded.

Masterrmind...........
Master your Mind then Master your Trades
  • #813
  • Jul 26, 2017 9:06pm Jul 26, 2017 9:06pm
Thanks for the reply, have you also thought about taking other price action signals, such as engulfing, pin bars, at severe overshoot/extreme levels? Also, what are your thoughts on using the levels for lower time frames, with again other price action patterns? Don't want to derail the thread of the 4 bar pattern.
  • #814
  • Jul 26, 2017 9:33pm Jul 26, 2017 9:33pm
Quoting gselsidi12
Thanks for the reply, have you also thought about taking other price action signals, such as engulfing, pin bars, at severe overshoot/extreme levels? Also, what are your thoughts on using the levels for lower time frames, with again other price action patterns? Don't want to derail the thread of the 4 bar pattern.
In Post 1 I have outlined to some extent Quads, MMLs, Candlestick patterns and Harmonic projections as well as some fundamentals.

The currently running live account should show many different examples over time (a long time perhaps) which will include many of the examples you have listed.

What you have listed is within the confines of this thread so no probem there.

Although the D1 TF is the major time frame applied in this thread, if longer term D1 entries do not present on the charts then the trader has the option to either wait for such a D1 setup to occur or to look at lower TFs for setups.

I do not recommend the Quad pattern for any time frame except D1 and although W1 and MN are certainly ok to trade using Quad pattern the SLs are massive and too large in my opinion to be workable but not impossible (a much larger trading account say in the hundreds of thousands could be used if not millions but I would still use a D1 chart).

MML can be traded on lower TFs if preferred such as H4, H1, M30 and M15 (lower TFs best suited to refine the entry on an M15 or higher planned entry).

Candlestick patterns and Harmonics can be applied on any TF with the higher TFs throwing in more weight in my opinion.

When the D1 trading has completed on the currently traded GBPCHF symbol then I will look to trade other examples so the account shows several different variations and methods.

For example,

Symbols [Currency Pairs (majors+volatiles), Commodities (hard+soft), Indices, CFDs etc]
QUADs [D1 only]
MMLs [D1, H4, H1, M30, M15]

Harmonics, candlesticks, fundamentals and sentiment all apply.

On a 1K account at a minimum lot size of 0.01 and a risk of 5% there is only so much I can trade if I wish (and I do) to remain within assigned risk.

I will add funds to the current live account after several examples have been traded live and this will free me up to trade combinations of D1 and shorter term MML type trades which for MML I prefer the M15 TF for intraday type trades.

But until that happens the current symbol should provide plenty of trading information and trade management concepts.

I prefer to set the scene by describing the process in words but better still is the application of this information on a live trading account which is what I'm attempting to show now.

I understand the process is a bit slow on higher time trame setups but this is the reality of "real" trading so I'm not going to make any excuses.

Masterrmind...........
Master your Mind then Master your Trades
  • #815
  • Jul 27, 2017 12:36am Jul 27, 2017 12:36am
Thanks Mastermind sounds good will keep an eye on this thread, also don't know if it's been mentioned here but I remember a forex course I had purchased mentioning fibonacci confluence zones, basically overlaying different lengths of waves and you would get some levels that would group near each-other, might be useful with harmonics, MM.

Also, on the daily the EUR/USD is hitting overshoot levels I guess we should be looking, for long USD setups soon?
  • #816
  • Jul 27, 2017 3:23am Jul 27, 2017 3:23am
Quoting gselsidi12
Thanks Mastermind sounds good will keep an eye on this thread, also don't know if it's been mentioned here but I remember a forex course I had purchased mentioning fibonacci confluence zones, basically overlaying different lengths of waves and you would get some levels that would group near each-other, might be useful with harmonics, MM. Also, on the daily the EUR/USD is hitting overshoot levels I guess we should be looking, for long USD setups soon?
Confluence is what that represents.

Same can be said about multiple harmonic moves within eachother.

Masterrmind........
Master your Mind then Master your Trades
  • #817
  • Jul 27, 2017 7:50am Jul 27, 2017 7:50am
GBPCHF [Update]
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If price hits the 4/8 MML the plan will be to enter twice the position size.

I will not at this stage enter another trade off the 3/8 MML because we all know what price did last time.

Awareness is key.

Note: stops on all 3 longs have been tightened in preparation for the double entry (2 additional entries at the same level applying minimal lot size).

Masterrmind...........
Master your Mind then Master your Trades
  • #818
  • Jul 27, 2017 9:05am Jul 27, 2017 9:05am
NZDUSD [D1: Harmonic projection to the upside]
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Masterrmind...........
Master your Mind then Master your Trades
  • #819
  • Jul 27, 2017 9:08am Jul 27, 2017 9:08am
Quoting Masterrmind
NZDUSD [D1: Harmonic projection to the upside] {image} Masterrmind...........
Thanks for that very helpful ?
  • #820
  • Jul 27, 2017 9:12am Jul 27, 2017 9:12am
Quoting Masterrmind
NZDUSD [D1: Harmonic projection to the upside] {image} Masterrmind...........
NZDUSD [D1: Zoomed out]
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Fibonacci retracement of the bigger swing shown on the chart puts the 61.8 ratio right at the 8/8 MML or close enough to the 78 handle.

Price action also worth a look.

Confluence!

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