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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

  • #36,841
  • Feb 10, 2018 2:11am Feb 10, 2018 2:11am
Quoting Sheeep44
{quote} Haha wasn’t my live accpunt so no worties at all, just found it funny haha.. How much % are you up for this week buddy? Seems like hou had a good week
Beside the earlier highlighted mistakes, it was an amazing week. Got in total this week +2065 ticks.
  • #36,842
  • Feb 10, 2018 4:15am Feb 10, 2018 4:15am
Quoting HighGarden
can anyone explain to me, why all here trade YM? im sorry, im just read 20++ page from first page, all chart is EURUSD, and why now all is YM?
I started with YM, in order to closely follow Damian's expectation versus what I think and/or do. With time, I saw that YM is not bad to trade. Later, I started also to watch/trade NQ and Gold.
With respect to currencies, I only know them when I used CFDs. I got fed up of these spikes which kills your trade. Never tried it again, since no need.
  • #36,843
  • Feb 10, 2018 5:00am Feb 10, 2018 5:00am
Quoting evocpr19
{quote} I started with YM, in order to closely follow Damian's expectation versus what I think and/or do. With time, I saw that YM is not bad to trade. Later, I started also to watch/trade NQ and Gold. With respect to currencies, I only know them when I used CFDs. I got fed up of these spikes which kills your trade. Never tried it again, since no need.
wow, okay, im sorry, what is NQ stand for? it nasdaq composite?
  • #36,844
  • Feb 10, 2018 5:35am Feb 10, 2018 5:35am
Quoting HighGarden
{quote} wow, okay, im sorry, what is NQ stand for? it nasdaq composite?
Why sorry?

E-mini NASDAQ-100 futures (ticker: NQ)
  • #36,845
  • Feb 10, 2018 5:49am Feb 10, 2018 5:49am
Quoting evocpr19
{quote} Why sorry? E-mini NASDAQ-100 futures (ticker: NQ)
sorry because asking very newbie question, and so glad you answer me, thank you.
  • #36,846
  • Feb 10, 2018 8:39am Feb 10, 2018 8:39am
Quoting HighGarden
{quote} sorry because asking very newbie question, and so glad you answer me, thank you.
Do not think about the "value" of a question (I don't do either). If you have a question that someone here can answer, someone will surely help you.
  • #36,847
  • Feb 10, 2018 8:55am Feb 10, 2018 8:55am
Quoting evocpr19
{quote} Do not think about the "value" of a question (I don't do either). If you have a question that someone here can answer, someone will surely help you.
Okay evocpr19

i want to ask question about "233" tick, what is that? can it compare with timeframe?
if yes, what timeframe it is?
  • #36,848
  • Feb 10, 2018 10:55am Feb 10, 2018 10:55am
Quoting HighGarden
{quote} Okay evocpr19 i want to ask question about "233" tick, what is that? can it compare with timeframe? if yes, what timeframe it is?
I took the following explanation from the internet (But it explains it well; I highlighted the key message in bold and a general message in "underlined"):

The bars on a tick chart are created based on a particular number of transactions. For example, a 512 tick chart creates a new bar every 512 transactions. Customize tick charts to the number of transactions you want, for example 5 ticks or 1546 ticks.
Throughout the day there are active and slower times, where many or few transactions occur. Therefore, the x-axis typically isn't uniform with ticks charts. When a market opens there is lots of volatility and action, so tick bars occur very quickly. Five ticks bars may form in the first minute alone.
During the lunch hour, though, when the number of transaction decreases, it may take five minutes before a single tick bar is created.

Comparing a One-Minute Chart to a Tick Chart

When there's lots of activity a tick chart shows more information (more price waves, consolidations and smaller scale price moves) than a one-minute chart.
For example, when a market opens several ticks bars within the first minute or two may show multiple price swings which can be used for trading purposes. If using a one-minute chart only one bar forms in the first minute, and two bars after two minutes. These one or two bars may not present the same trading opportunities as the several tick bars that occurred over the same time frame. In this way, tick charts allow you get into moves sooner, take more trades, and spot potential reversals before they occur on the one-minute chart.
When there are few transactions going through, a one-minute chart appears to show more information. For example, assume you are debating using a 90 tick chart or a one-minute chart. Assume that during the lunch hour only 10 transactions occur each minute. It will take nine minutes for a tick bar to complete and for a new one to start. The one-minute charts shows a bar each minute as long as there is a transaction. In this case, the one-minute chart produces nine times as many bars as the tick chart, showing more price waves, trends, and support and resistance levels that could potentially be traded.
Tick charts "adapt" to the market. Fewer bars form when there are fewer transactions, warning a trader that activity levels are low or dropping.
The one-minute chart on the other hand continues to produce price bars every minute as long as there is one transaction in that minute. This may create the illusion of activity, even though there may actually be little volume in the stock, futures contract or forex pair.
One chart type isn't necessarily better than another. Both can be traded effectively using the right day trading strategy, but traders should be aware of both types so they can determine which works better for their trading style.

Mr. Pip mentioned that it 233T is more like 3 to 5 min chart (if I remember right).

NB: I prefer tick charts.
  • #36,849
  • Feb 10, 2018 8:21pm Feb 10, 2018 8:21pm
Quoting Mr. Pip
{quote} Join us next Tuesday and you will see how I do it live and you will be able to ask questions live
I wasn't able to see the entire stream last Tuesday, due to an earthquake issue here in Taiwan. However, I was able to see the rest of it last night. Thanks for going over pointing out the violent reactions. I know that there were tons of questions from everyone and that you didn't have time to address all of my specific questions from the thread. As you mentioned that some of what you do is subconscious. However, your video had great value for me and little by little I am learning how you draw your boxes. I will go back over some of your charts in the thread to analysis your boxes. Anyways.. great thanks again. Every time I rewatch your videos and live streams learn something new. And sometimes you will explain the same thing in another way that gives me that Ah Ha moment that makes me not want to give up. O.k. I am rambling.. hope you had fun on your skii/snowboard trip. I just went snowboarding in South Korea 2 months ago. They have some great snow. And Japan has great snow too.

Luck has no place in trading. Leave that for the poker table.
  • #36,850
  • Feb 10, 2018 9:39pm Feb 10, 2018 9:39pm
Quoting evocpr19
{quote} I took the following explanation from the internet (But it explains it well; I highlighted the key message in bold and a general message in "underlined"): The bars on a tick chart are created based on a particular number of transactions. For example, a 512 tick chart creates a new bar every 512 transactions. Customize tick charts to the number of transactions you want, for example 5 ticks or 1546 ticks. Throughout the day there are active and slower times, where many or few transactions occur. Therefore, the x-axis typically isn't uniform...
Hi evocpr19,

Thanks for this explanation, i know now.
Sadly on my broker dont have tickchart.
I plan to use m5 for now.
And you right about 233T=M5

on Mr.Pip post

https://www.forexfactory.com/showthread.php?p=8685928#post8685928

https://www.forexfactory.com/showthread.php?p=6342575#post6342575
  • #36,851
  • Feb 10, 2018 11:02pm Feb 10, 2018 11:02pm
Quoting evocpr19
{quote} Beside the earlier highlighted mistakes, it was an amazing week. Got in total this week +2065 ticks.

Hi evocpr19 , i been seeing your chart recently , and you seem to hold your profit trade very long , even after certain exhaustion level etc

How you manage your TP and trail stop?

your entry was weird too haha
  • #36,852
  • Edited 5:43am Feb 11, 2018 1:45am | Edited 5:43am
Quoting 6288monkey
{quote} Hi evocpr19 , i been seeing your chart recently , and you seem to hold your profit trade very long , even after certain exhaustion level etc How you manage your TP and trail stop? your entry was weird too haha
I guess that you are referring to the "+140" trade.

I was looking the short term orderflow. The issue here was due to the catastrophic entry (my finger was too slow and then I was finally in and had to life with it), I knew that I would not be able protect early.
I saw the break of structure, expected deep retracement (which we got; I minimized risk by moving my SL previous structure on the left and above those candles) => move 1:1 down. When I saw the acceleration at the end of second harmonic, I decided to hold longer for a third harmonic and not to exit. I protected ("trailed SL" in chart) once price went through the red box. In the last part, I trailed aggressive to the 200 fib.

However, I am really bad at trailing. So I try to move my SL as less as possible.
However, when reviewing this trade, I would be pi...d off to get only +32, instead of +89 for the second harmonic as target. Luckily, I did not ask this question to me during live trading. It can also be an advantage when price moves fast (you do not have time to think a lot).

The second consideration for this trade was on the 233T. We produced a NSH right after a NSL, so expected a deep retracement.

What did you trade? (In my view, it is a bit unfair to ask questions and not to post the own trades, regardless of outcome => a losing trade can also be of help; In your case, I saw in the past a few posted trades...).
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  • #36,853
  • Feb 11, 2018 5:15am Feb 11, 2018 5:15am
Quoting evocpr19
{quote} I guess that you are referring to the "+140" trade. I was looking the short term orderflow. The issue here was due to the catastrophic entry (my finger was too slow and then I was finally in and had to life with it), I knew that I would not be able protect early. I saw the break of structure, expected deep retracement (which we got; I minimized risk by moving my SL previous structure on the left and above those candles) => move 1:1 down. When I saw the acceleration at the end of second harmonic, I decided to hold longer for a third harmonic...

Thanks for your clarification , very good answer and clear explain of what you are trying to achieve.

and i see from your word that your initial SL was above structure and not on top of the swing. ( i believe this should be done only after you are more advance on reading order flow and knowing that the structure area was too strong to be break , else very unlikely price will go to expectation )

I will post my trade in the future but i am still very new to this thread and strategy , just around here for 2 month plus

from my own experience , i found that we could easily choosing the wrong swing to be traded , and the answer i get for now was that , we need to determine swing with confluence of harmonic , example a 1 to 1 was to expect a correction to 61.80 , and this 61.80 correction could or could not go pass the very immediate structure or C-D leg . So , shall it create a immediate order flow NSH on 61.80 , we can either expect NSH follow the immediate order flow , or we can look A-D as a whole swing to trade NSL expectation , afterall order flow / strength and weakness reading was crucial to know which swing to trade.

Then we could also combine higher timeframe as another confluence especially when meeting long term structure area which on lower timeframe chart we cant see it.

Thanks you Evocpr19
  • #36,854
  • Feb 11, 2018 5:27am Feb 11, 2018 5:27am
Quoting 6288monkey
{quote} Thanks for your clarification , very good answer and clear explain of what you are trying to achieve. and i see from your word that your initial SL was above structure and not on top of the swing. ( i believe this should be done only after you are more advance on reading order flow and knowing that the structure area was too strong to be break , else very unlikely price will go to expectation ) I will post my trade in the future but i am still very new to this thread and strategy , just around here for 2 month plus from my own experience...
No, initial SL was on top of the swing. Price could have also retrace more. Only when price pressed down in accordance with the immediate flow, I started to reduce risk by placing the SL above structure. I had to find a compromise with my rubbish entry versus risk and expected target area. It was clearly not the best trade, but once in the trade "it is what it is"
  • #36,855
  • Feb 11, 2018 5:32am Feb 11, 2018 5:32am
Quoting evocpr19
{quote} No, initial SL was on top of the swing. Price could have also retrace more. Only when price pressed down in accordance with the immediate flow, I started to reduce risk by placing the SL above structure.

That need experience to know when to move BE according to order flow.

Certain time , we need to BE agressive ,certain time let it run etc etc

forget to mention , i am trading forex , dont have the capital to ym yet , but since it was the same to trade , will stick to forex until success

your reply was fast haha
  • #36,856
  • Feb 11, 2018 5:39am Feb 11, 2018 5:39am
Quoting 6288monkey
{quote} That need experience to know when to move BE according to order flow. Certain time , we need to BE agressive ,certain time let it run etc etc forget to mention , i am trading forex , dont have the capital to ym yet , but since it was the same to trade , will stick to forex until success your reply was fast haha
To be clear. It was not BE, it was only reducing risk.
  • #36,857
  • Feb 11, 2018 3:53pm Feb 11, 2018 3:53pm
Quoting HighGarden
{quote} Hi evocpr19, Thanks for this explanation, i know now. Sadly on my broker dont have tickchart. I plan to use m5 for now. And you right about 233T=M5 on Mr.Pip post https://www.forexfactory.com/showthread.php?p=8685928#post8685928 https://www.forexfactory.com/showthread.php?p=6342575#post6342575
Hey HighGarden,

questions are fine, we all have them. One thing I would say is make sure you have read the thread and watched most of Mr Pips videos (gold dust!!!). Most answers will be found there.

Also, something that may help for tick charts. The platform I trade on does not have tick charts, so I set up a demo account through Ninja Trader and use that for my chart reading, finding entries and exits ets. Then I execute my trades with my broker on my separate platform (normally on my iPad next to my laptop).
  • #36,858
  • Feb 11, 2018 5:27pm Feb 11, 2018 5:27pm
Quoting PipTrendz
{quote} Hey HighGarden, questions are fine, we all have them. One thing I would say is make sure you have read the thread and watched most of Mr Pips videos (gold dust!!!). Most answers will be found there. Also, something that may help for tick charts. The platform I trade on does not have tick charts, so I set up a demo account through Ninja Trader and use that for my chart reading, finding entries and exits ets. Then I execute my trades with my broker on my separate platform (normally on my iPad next to my laptop).

Hi PipTrendz , can you share to us how to setup a demo NT for YM? i got once get Forex NT , and broker was fxcm ,their price were not " true " . but i do get tick chart , no use if price were not real getting tick chart.

and i tried to use the backtest tool but seem complicated for me , i am metatrader user for long time .
  • #36,859
  • Feb 11, 2018 8:16pm Feb 11, 2018 8:16pm
Quoting PipTrendz
{quote} Hey HighGarden, questions are fine, we all have them. One thing I would say is make sure you have read the thread and watched most of Mr Pips videos (gold dust!!!). Most answers will be found there. Also, something that may help for tick charts. The platform I trade on does not have tick charts, so I set up a demo account through Ninja Trader and use that for my chart reading, finding entries and exits ets. Then I execute my trades with my broker on my separate platform (normally on my iPad next to my laptop).
Hi PipTrendz,

thanks for suggestion, i will try it.
  • #36,860
  • Feb 12, 2018 12:44am Feb 12, 2018 12:44am
NQ trade: +44 ticks
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