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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

  • #50,421
  • Feb 24, 2022 7:30am Feb 24, 2022 7:30am
By the way.. I am thinking about started a thread or discord channel to discuss price action behavior. If this sounds like a good idea.. please let me know.
Luck has no place in trading. Leave that for the poker table.
  • #50,422
  • Feb 24, 2022 8:38am Feb 24, 2022 8:38am
Looks like we are in a range now. strong movements in both directions. Do be careful
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  • #50,423
  • Feb 24, 2022 9:04am Feb 24, 2022 9:04am
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As you can see.. I planned this out two days ago. With the war issue, I did calculate the possibility of some extra draw down.
Luck has no place in trading. Leave that for the poker table.
  • #50,424
  • Feb 24, 2022 10:25am Feb 24, 2022 10:25am
My trades for the day
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If you fail to plan, you plan to fail.
  • #50,425
  • Feb 24, 2022 10:31am Feb 24, 2022 10:31am
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This was my second trade for the night. I set my limit orders and then and went to do some cardio. Came back and trailed it. Got stopped out on my trail. This is the Micro NQ. So, each point contains 4 ticks.
Luck has no place in trading. Leave that for the poker table.
  • #50,426
  • Feb 24, 2022 10:33am Feb 24, 2022 10:33am
Quoting Mr. Pip
My trades for the day {image}
I am loving that first entry. The one tick wonder. ha ha ha. Great job! That second trade was also set for a one tick wonder, but it still played out super awesome. Again.. great job.
Luck has no place in trading. Leave that for the poker table.
  • #50,427
  • Feb 24, 2022 11:21am Feb 24, 2022 11:21am
Quoting Pair-me-up
{quote} I am loving that first entry. The one tick wonder. ha ha ha. Great job! That second trade was also set for a one tick wonder, but it still played out super awesome. Again.. great job.
Beginners luck! You know me
If you fail to plan, you plan to fail.
  • #50,428
  • Feb 24, 2022 11:22am Feb 24, 2022 11:22am
Quoting Pair-me-up
{image}{image} This was my second trade for the night. I set my limit orders and then and went to do some cardio. Came back and trailed it. Got stopped out on my trail. This is the Micro NQ. So, each point contains 4 ticks.
Very Nice
If you fail to plan, you plan to fail.
  • #50,429
  • Feb 24, 2022 11:35am Feb 24, 2022 11:35am
Quoting Mr. Pip
{quote} Beginners luck! You know me
I love that Japanese style answer. I like to answer that way too. Although I am not Japanese.
Luck has no place in trading. Leave that for the poker table.
  • #50,430
  • Feb 24, 2022 4:57pm Feb 24, 2022 4:57pm
Quoting Pair-me-up
{quote} I love that Japanese style answer. I like to answer that way too. Although I am not Japanese.
I know ! You know what is sad though? That the absolute value that exist here has not been exploited and despite the unbelieve contribution of a few have also not been enough to keep this amazing thread alive. It's about dead this is the needle in the haystack and very few see it or contribute by sharing their stories or questions.
If you fail to plan, you plan to fail.
  • #50,431
  • Feb 24, 2022 7:52pm Feb 24, 2022 7:52pm
Quoting Daubert
Hello Damien, When you did your back-testing many years ago, did you only focus on your C entries of the ABCD / AB=CD patterns in line with the expectation or did you also include D entries and patterns in your criteria? The reason I ask this question is that I did my back-testing in January and the results were negative. I followed your rules on the expectations and I had much more losses than winners. Not sure if I did anything wrong. Thank you
I hear you on this.

I pretty much stopped taking trades in the direction of trend when the continued expectation is for nsh or nsl. The trend is not my friend apparently.

I narrowed down my approach to only take the pullbacks that occur after an order flow change as I find those to be very high odds. I posted about it in this thread before.

I also made certain changes - such as avoiding taking any trade that does not reach at least the 50 fib - ideally the 618. I think it was you that just recently asked a question about the 382... I stopped taking trades off of it altogether because most instances it's just an inducement to get traders to enter and then price goes against you. The real benefit of the 382 is using it as a mean reversion target after an extended move. Couple that with an orderflow change and you can find yourself in a very fast-acting profitable trade.

Here's an example. I like price to make a new high or low. Then I like it to pull back and break structure, creating an orderflow change. Then I want it to retest (I like using a harmonic pullback) and then fade.

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  • #50,432
  • Feb 24, 2022 10:42pm Feb 24, 2022 10:42pm
Quoting Pair-me-up
{quote} You are doing great, Ken. Thanks for the compliment. Now you know that you can get some very precise entries based on price action. Not only that.. you know why price is likely to reverse with out have to use those rotation candles. Sure candles can turn the opposite way, but they need a price action reason for their movements. As price action traders, we want to forecast these moves in advanced. Great job.
Thank you for encouraging me always. I almost gave up at some point but you are one of the generous people that made me realize that I can make it in this business.
  • #50,433
  • Feb 24, 2022 10:48pm Feb 24, 2022 10:48pm
Quoting Pair-me-up
By the way.. I am thinking about started a thread or discord channel to discuss price action behavior. If this sounds like a good idea.. please let me know.
This would be so great. The fact that it will still be price action, we can all benefit from this idea. I personally have already learnt a lot from you and we can help other traders that have been part of us to see the big picture of price action. Cheers.
  • #50,434
  • Feb 25, 2022 3:28am Feb 25, 2022 3:28am
Quoting KensTrader
{quote} This would be so great. The fact that it will still be price action, we can all benefit from this idea. I personally have already learnt a lot from you and we can help other traders that have been part of us to see the big picture of price action. Cheers.
I will research the possibilities this weekend, if I have time. There will be some focus on economics and money management. No lagging indicators of course.
Luck has no place in trading. Leave that for the poker table.
  • #50,435
  • Feb 25, 2022 7:53am Feb 25, 2022 7:53am
Quoting KensTrader
{quote} Thank you for encouraging me always. I almost gave up at some point but you are one of the generous people that made me realize that I can make it in this business.
Thank you Jmezz,

Yes, I decided to stay away from the 38.2 fib level. It does not make much sense to me to take those trades. In fact, I'm only interested in a trade if price pulls back to the 61.8. This poses a better risk to reward. I'm busy testing this at the moment. If expectations play out 70% of the time then this should be a winning strategy, but I can only confirm the 70% after my tests. I have also discarded the break-evens. Price either goes to my target or stop. Nothing in between. The reason for this is that so many times the break-even came in the way. Price takes you out for a break-even just to reach your target just after that. I will also do a thorough test on this before implementing it.
  • #50,436
  • Feb 25, 2022 8:59pm Feb 25, 2022 8:59pm
We getting the band back together?

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  • #50,437
  • Feb 26, 2022 8:19am Feb 26, 2022 8:19am
Quoting bmdenton23
We getting the band back together? {image}
We're on a mission from God.
Wow! I've got some experience to gain.
  • #50,438
  • Feb 26, 2022 10:06am Feb 26, 2022 10:06am
Quoting Daubert
{quote} Thank you Jmezz, Yes, I decided to stay away from the 38.2 fib level. It does not make much sense to me to take those trades. In fact, I'm only interested in a trade if price pulls back to the 61.8. This poses a better risk to reward. I'm busy testing this at the moment. If expectations play out 70% of the time then this should be a winning strategy, but I can only confirm the 70% after my tests. I have also discarded the break-evens. Price either goes to my target or stop. Nothing in between. The reason for this is that so many times the...
Traders, All this talk about not taking trades here or there. If price goes over the river and through the woods and then a back flip is nothing more than a lack of confidence and fear. Your trading state is weak and you must gain mastery. Only taking trades that fit your emotional state and thinking you are trading at 70% expectancy is fantasy land nonsense. Your are definitely improving the risk reward but you are also trading at an immeasurable outcome. Your have now placed yourselves in the fortune telling business vs the forecasting business. The probabilities are no longer in your favor. Congratulations!
Let me plant this fact in your minds and I hope it sinks in deep inside that space between your two ears. Beep corrections offer better risk reward without a doubt and they may offer and emotional fix but in reality what does a deep correct tell us? What is the meaning of a deep correction? It means weakness on the driving force. It means breakdown in the order flow process. This weakness is off set by the improved RR.

I'm not telling you to take the trades where they feel good or that you must take even the ones at the 38%. I'm telling you to stop feeding the emotions! If you want to succeed in this or any other venture you need to put on your big boy pants, roll up those sleeve, do the work and get dirty. There are no short cuts on the road to success. What is wrong with you guys? Do you honestly expect to find consistency in randomness? I have shown you the markets are not random but somehow your approach to it is. So, how does that reconcile in a positive or consistent way or even an outcome? Get your shit together or the only consistency you will fine is providing the institutions and the top 10% with liquidity. After all these years all these post and your hard work you find consistency in regression. WOW!
If you fail to plan, you plan to fail.
  • #50,439
  • Feb 26, 2022 10:15am Feb 26, 2022 10:15am
Quoting bmdenton23
We getting the band back together? {image}
I don't know man? I don't really know if anyone can really step up to the place? They are scared of the ball. There are a handful of really amazing traders here that post amazing trades and offer insight and help and nothing.

https://youtu.be/6M8szlSa-8o
If you fail to plan, you plan to fail.
  • #50,440
  • Feb 26, 2022 10:37am Feb 26, 2022 10:37am
Quoting KensTrader
{quote} Thank you for encouraging me always. I almost gave up at some point but you are one of the generous people that made me realize that I can make it in this business.
Ken, I respect you and really mean this with the upmost respect. The realization that you can make it in this business come from within. From a raging fire in your sole that tells you you will not lose. That nothing will stand in your way because this fight requires it. Our encouragement should only be fuel that keeps the fire lit but it can't be the source of ignition. I had nothing of what you all have and got the job done and I have paved a road for all of you. This message is for everyone keep the fire out of control. Comfort is defeat, taking a break is defeat, needing someone to tell you good job you can do it is weakness. You will not win until you become uncomfortable and push through it.
If you fail to plan, you plan to fail.
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