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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

  • #50,161
  • Mar 26, 2021 7:49am Mar 26, 2021 7:49am
Quoting Matts Micro
{quote} Hey Daubert, Structures and Areas Of Interests are a little tough. I struggled for a long time where and how to identify them, I still get a little confused today if I stare at the charts too long and hard. They are quite plain on the face of it though. A structure is basically where price stops and consolidates for a while before moving off to the next level. A lot of people try to name a particular "price", this happens by drawing a singular horizontal line (like you see often posted on the EU thread). Mr Pip teaches however, that these...
Thank you Matt,

I guess I just have to play around with this until I find my own way of drawing these areas of Support / Resistance. I have seen so many methods of this that it confused me, but I think it is time to consolidate all that knowledge into my own way of seeking these areas.

Thank you once again.

Daubert
  • #50,162
  • Mar 26, 2021 9:50am Mar 26, 2021 9:50am
Quoting Daubert
{quote} Thank you Matt, I guess I just have to play around with this until I find my own way of drawing these areas of Support / Resistance. I have seen so many methods of this that it confused me, but I think it is time to consolidate all that knowledge into my own way of seeking these areas. Thank you once again. Daubert
It does take practice to get an eye for it and if you stare too long you can get a little cross-eyed. This how I practiced it for myself. I did this often to practice and eventually it is easier to see them. The square doesn't need to get all the move just as many tops and bottoms that happen in the range.

This is my current chart. Ignore all but the orange square and the arrows that I put there for this exercise.
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As the lights go by so too do the shadows move
  • #50,163
  • Mar 29, 2021 5:55am Mar 29, 2021 5:55am
Quoting Matts Micro
{quote} It does take practice to get an eye for it and if you stare too long you can get a little cross-eyed. This how I practiced it for myself. I did this often to practice and eventually it is easier to see them. The square doesn't need to get all the move just as many tops and bottoms that happen in the range. This is my current chart. Ignore all but the orange square and the arrows that I put there for this exercise. {image}
Hi Matt,

It is still a little confusing to me. I still don't know which tops and bottoms to include in the zones. At the moment it is very subjective and it feels like a thumb-sucking exercise. I would have preferred it to be more scientific.
  • #50,164
  • Mar 29, 2021 6:02am Mar 29, 2021 6:02am
Quoting Daubert
{quote} Hi Matt, It is still a little confusing to me. I still don't know which tops and bottoms to include in the zones. At the moment it is very subjective and it feels like a thumb-sucking exercise. I would have preferred it to be more scientific.
This is how I understand the zones. Not sure if my zones make any sense. Please share your thoughts.
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  • #50,165
  • Mar 29, 2021 8:08am Mar 29, 2021 8:08am
Quoting Daubert
{quote} This is how I understand the zones. Not sure if my zones make any sense. Please share your thoughts. {image}
Hey Daubert, you're right structures can be a little subjective but it's not something to get too stuck on. Remember we are just using them as confluence to enter trades along with other factors such 1:1's and Fibonacci levels. Basically you're looking to the left of the chart and if there is short ranged PA there, then know it could create support or resistance.

Your top blue structure is spot on. The other two lower blue boxes are more like Areas Of Interests.

If PA was to come down from the top then expect in that middle box for it to halt on top of support.

Say PA was currently below the bottom box and was coming up, then it would stop and argue with resistance at the top of the bottom box.

I'd say the structure was between the middle and bottom boxes. So on the chart you have shown there are 2 structures. 1 at the top, correctly marked and the second as said, between the middle and bottom boxes.

Hope this helps,
Matt.
As the lights go by so too do the shadows move
  • #50,166
  • Mar 30, 2021 8:15am Mar 30, 2021 8:15am
Quoting Matts Micro
{quote} Hey Daubert, you're right structures can be a little subjective but it's not something to get too stuck on. Remember we are just using them as confluence to enter trades along with other factors such 1:1's and Fibonacci levels. Basically you're looking to the left of the chart and if there is short ranged PA there, then know it could create support or resistance. Your top blue structure is spot on. The other two lower blue boxes are more like Areas Of Interests. If PA was to come down from the top then expect in that middle box for it to...
Ah man, thank you Matt.

I now know exactly what you mean and what mistakes I made and better yet...how to do it properly in the future. You see, I have done a course with Chris Capre and they do it differently, hence the confusion. They draw a line at the tops and bottoms of structures and call those areas. With Mr Pip, it is basically the areas in between those lines.

I need to make more time for Forex, but things are just a little busy at work this time of year. I have made notes of all Mr. Pip's videos. Just need to go through those again and get back on the road.

Are you a full-time trader Matt?

Thank you

Daubert
  • #50,167
  • Mar 30, 2021 3:13pm Mar 30, 2021 3:13pm
Quoting Daubert
{quote} Ah man, thank you Matt. I now know exactly what you mean and what mistakes I made and better yet...how to do it properly in the future. You see, I have done a course with Chris Capre and they do it differently, hence the confusion. They draw a line at the tops and bottoms of structures and call those areas. With Mr Pip, it is basically the areas in between those lines. I need to make more time for Forex, but things are just a little busy at work this time of year. I have made notes of all Mr. Pip's videos. Just need to go through those again...
I'm not sure how Chris Capre does it but your right, it is the same reasoning. The resistance is at the bottom of the structure and support at the top. I think with having the box covering the whole zone allows some lee-way in the price action. Candles break levels so I wouldn't know how and when to trade when the levels are broken. No doubt there is a strategy.
The thing about boxes for structures that I like is that it gives the candles room to move. With Mr Pips rotation candles for example, the candles move within the boxed structure and then gets spat back out by the rotation candle which is an excellent indication for a trade. Put it together with other confluences like Fibonacci levels etc. and your probabilities are increased greatly.
As the lights go by so too do the shadows move
  • #50,168
  • Mar 30, 2021 9:40pm Mar 30, 2021 9:40pm
Quoting Daubert
{quote} Ah man, thank you Matt. I now know exactly what you mean and what mistakes I made and better yet...how to do it properly in the future. You see, I have done a course with Chris Capre and they do it differently, hence the confusion. They draw a line at the tops and bottoms of structures and call those areas. With Mr Pip, it is basically the areas in between those lines. I need to make more time for Forex, but things are just a little busy at work this time of year. I have made notes of all Mr. Pip's videos. Just need to go through those again...
I find issue with Mr. Pips boxes. Yes, he uses them in a way that works for him. However, he never explains where his anchor points are based on. The same thing for his rotation candles. Price doesn't just turn around for no valid reason as one candle consuming another. Of course, I don't use rotation candles, because from my experience they lag the true price action and take focus away from the over all picture of price action. However, maybe they are awesome and I just don't understand them. For those boxes.. I use the reginal highlight tool to appear on all charts. That ways, if there is an area of interest on the larger orderflow, then it can be a powerful area for buy or sell zones on all time, tick,etc orderflow below it. Anyways..may the odds be in your favor.

For now I go to https://discord.gg/3Q7TtegU to hang out with more futures traders.
And of course https://discord.gg/K8D5nEhp to hang out with other futures traders from here as well.
Luck has no place in trading. Leave that for the poker table.
  • #50,169
  • Mar 31, 2021 5:01am Mar 31, 2021 5:01am
Current trade setup. These are my structure boxes atm. Don't worry about colours, they are part of on going experiment strat. I currently have a 1:1 at a good fib level and I am looking for a good rotation candle in the structure. The short candles are quite heavy at the moment however, which is where I use the rotation candle as confirmation. Ideally we want the candles to balance out (get smaller) within the structure before a rotation candle otherwise momentum could be too far against the trade. But a slight balancing and then a good rotation I find, creates stronger probability for a trade success. Otherwise we want a really strong rotation candle, but that's not great for R:R.

Update while typing. PA has shot through the structure without pause. This is another benefit. It says the shorts are too strong to contemplate a trade at this level, regardless if PA was to come back into the structure, best to leave it alone.
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  • #50,170
  • Mar 31, 2021 5:27am Mar 31, 2021 5:27am
This is a little individual spin of a rotation candle that I find quite reliable.

PA has reached the structure, the candle inside structure has a tail at the bottom (for long), the next candle is a trend continuation candle (bear in this case) and the next candle is a rotation candle.

The shorts are heavy at the moment so I may TS this aggressively if I get the chance.
(ignore 1:1 lines from earlier, haven't cleaned chart)
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As the lights go by so too do the shadows move
  • #50,171
  • Mar 31, 2021 6:29am Mar 31, 2021 6:29am
Quoting Matts Micro
This is a little individual spin of a rotation candle that I find quite reliable. PA has reached the structure, the candle inside structure has a tail at the bottom (for long), the next candle is a trend continuation candle (bear in this case) and the next candle is a rotation candle. The shorts are heavy at the moment so I may TS this aggressively if I get the chance. (ignore 1:1 lines from earlier, haven't cleaned chart) {image}
TS 10 pips.
I saw my Rotation Candle Sequence happen at where I would expect the shorts to come back in. I entered short at exit of buy.
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As the lights go by so too do the shadows move
  • #50,172
  • Mar 31, 2021 9:07am Mar 31, 2021 9:07am
Quoting Matts Micro
{quote} TS 10 pips. I saw my Rotation Candle Sequence happen at where I would expect the shorts to come back in. I entered short at exit of buy. {image}
BE+.
A bit peeved I lost a few pips, I was waiting for a candle break of the current LL but wasn't to be.

The point of the these two trades was to show structures and the rotation candles (a bit of extra spice with my Rotation Candle Sequence). I managed to grab a bottom and a top (in the complex correction) using structures and rotation candles. The mid range structure can be seen where I entered the second trade (the PA actually broke above, but the selling power is evident in the structure) but I haven't marked it in.
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As the lights go by so too do the shadows move
  • #50,173
  • Mar 31, 2021 10:17am Mar 31, 2021 10:17am
Sticking with structures and rotation candles...

Here is my trade plan for long atm. I have a structure marked out and below it there is a rotation candle. The candles broke through my structure too easily however with the rotation candle below resistance. So even though there is a good rotation candle it is misplaced and not a good area for me to trade so I sit out and see if I can get a better entry. I may miss the trade but the entry doesn't fit my trade plan.
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  • #50,174
  • Mar 31, 2021 10:34am Mar 31, 2021 10:34am
Long. Rotation candle in structure.
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As the lights go by so too do the shadows move
  • #50,175
  • Mar 31, 2021 3:03pm Mar 31, 2021 3:03pm
Quoting Matts Micro
Long. Rotation candle in structure. {image}
SL -16 pips.

Crappy PA today -a low and a high and just crap in between. That last bear surge knew something I didn't as it didn't take a breath until it cleaned the liquidity at the bottom, is now heading back up atm. Probably not much money in the market this week so is being pushed around at will.
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  • #50,176
  • Apr 1, 2021 10:36am Apr 1, 2021 10:36am
Quoting Matts Micro
This is a little individual spin of a rotation candle that I find quite reliable. PA has reached the structure, the candle inside structure has a tail at the bottom (for long), the next candle is a trend continuation candle (bear in this case) and the next candle is a rotation candle. The shorts are heavy at the moment so I may TS this aggressively if I get the chance. (ignore 1:1 lines from earlier, haven't cleaned chart) {image}
I see an expectation failure followed by an ABCD pattern to the downside.
  • #50,177
  • Apr 7, 2021 9:59am Apr 7, 2021 9:59am
Took a trade yesterday...haven't been trading for a while now.
AUDNZD...let's see how it plays out
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Also watching USDJPY for a possible buy at my AOI
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That's it for this week.
  • #50,178
  • Apr 7, 2021 10:49am Apr 7, 2021 10:49am
Quoting BlacMoni
Took a trade yesterday...haven't been trading for a while now. AUDNZD...let's see how it plays out {image}Also watching USDJPY for a possible buy at my AOI {image}That's it for this week.
One more possible trade
sell EURUSD
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  • #50,179
  • Apr 9, 2021 3:30am Apr 9, 2021 3:30am
Quoting BlacMoni
{quote} One more possible trade sell EURUSD {image}
Traded but ended in a Loss
  • #50,180
  • Apr 9, 2021 5:07am Apr 9, 2021 5:07am
Hi guys,

I am in two minds about this strategy. Although I like the scientific approach to this system, I have no proof or trace record that Mr Pip was actually making money with this system. I'm sure he did because he was doing this from home, but some form of confirmation would have been great. I really like Mr Pip and he is a genuine and transparent guy. My uncertainty now is, do I invest my time and energy any further into this system or do I go for something new. The other thing that bothers me still is the areas of interest. Mr Pip did not really discuss this in greater details.

There are trading systems and signals out there that are making good money and they have a track record as proof of their trading performance. I have to choose wisely. Time is of the essence since the company I'm working for is falling apart.

What are your thoughts, guys?

Thank you

Daubert
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