Damion's Tribute

Just had a glance at my June's performance. Not the best of the months, but nothing to complain about really.

15 trades in all. 6 winners 9 losers.

Account is down 0.5% this month for closed trades (recovered most of my losses this week with EURJPY trade)

2 open positions in USDCAD and NZDUSD now. Net floating is square right now, let's work hard in this coming month! Targetting for a 5% gain.

Soya, my chart is saying wait for a bearish candle but at the top daily trendline.

Soya,

I see this pair making higher lows and higher highs. I would like to see how it behaves closer to the daily trendline. Maybe resistance is being converted to support - maybe not.

I will wait.

Well actually on your chart price has made a clean break of the down trendline and looks really bullish!

I need to re-look at my trendline anchor points.. or could be a difference due to broker feeds.

Nice chart, definitely worth a trade. I'm at work now with no access to my charts, will have another look when I get home.

Yes, Soya, I was looking at more of a long than a short. However, there would be rooms for a short as well depending on how much room there is. But long is the way to go at the moment - unless if price takes another course.

Hi Guys,
I thought I post something here for educational and discussion purposes.Attached is the usdyen 4hr tf which I focused on,these couple of weeks and I like to share what sort of key ABCD pattern we should look for.

This was a combined of Gartney, ABCD and an Inverted King's crown formation.A total of 4 trades were taken back to back with R:R 1:1.5.

Thanks to Mike,for the king's crown lesson.That really helps.

I m thru trading today.I m having R&R now.

Hope you guys had a pip drunk week.

Nimrod,

Very good stuff.

Out of all DRA's trade, the sexiest (if I may use this word) are the harmonics (butterflies and gartlies) that form at the trendline or at the rear of the trendline where support turns to resistance and resistance turns to support.

See the two bullish gartlies one at the test and the other one forming at the trendline.

Aren't they sexy?

Nimrod,

This is how I traded it. I only trade 1 mini lot.

The risk:reward ratio is 1:2.48 only to the 61.8% retracement.

The risk:reward ratio is 1:3.44 to the 78.6% retracement.

Hi Nimrod,

I do not want to divert from DRAs system that Soya has started here and so I will make this my last post with the way I like to combine the DRA system with harmonics.

This was a risky trade I took on the cable simply because my target profit was below the CD leg. I also mentioned that I only trade 1 mini lot - so I have the opportunity to only enjoy my profit target 1.

I am trading 1 mini so that I can kill that voice which is telling me - "mate, just imagine if this was on a standard account...just imagine."

However, I took it. I have posted the 4HR chart with the trendline, then the 15 mins on which I took the trade and exited at Profit target 1, but also marked profit target 2, profit target 3 (AB=CD) and last one being profit target 4 which is the completion of the butterfly.

The risk:reward ratio would look like this.

Profit 1 @ 61.8%= 47:193 - 1:4
Profit 2 @ 78.6%= 47:255 - 1:5
Profit 3 @ AB=CD= 47:363 - 1:7
Profit 4 @ 1.272%= 47:476 - 1:10 - On many occasions we have seen that price goes to 1.272 and even 1.618.

Sorry about that Soya - will make that my last post.

Hi aftab,
I love the thread you guys started and will continue to support it.The very core of my trading strategy is the Dra's ABCD1234 and if there is some combination of patterns such as gartney or butterfly it would add bonus to this tread as I see they are related IMHO.

keep up the good work guys.This is my personal favorite thread ever and the stuff you guys post are priceless.I m at ease knowing that I can always refer to this tread for as my library , to seek out clarity and knowledge.

I m sure Soya approve us posting the gartney , king crown and of course the DRA's ABCD.

aftab , bro, are you using an indicator to measure the gartney pattern?

The charts you posted are SEXY, bro,can't take my eyes away from them......LOL

Yes, dude, I realized that, this thread should be dedicated to the Dra's system.That way we can master it completely.

No I am not using any indicators.

But yes, I do have a few filters that I use. For example let's say we have the trendline drawn and are waiting for price to kiss us the 3rd time, the AB=CD should complete before the trendline. If it does not, then price will break the trendline with long bars. This is easy because we can see this on the 4HR.

I will post a few charts tomorrow.

But let's forget about what I have just said for a while...okay.

The Gartley and the Butterfly are known to work 70% of the time.

With the minimum risk:reward ratio offerred (like the example above) and each pair offerring at least 2 trades a month - you would have to loose 4 trades in a row to break even. You and I both know that with this system, it is almost impossible to loose 4 trades in a row on one currency pair. Right??

Mind you we are only discussing the first two profit targets. Quiet honestly because we are trading with the trend (usually), we should be looking at profit targets 3 & 4 and also at times profit target 5 at 1.618%. Now do the math - just don't fall off the chair.

Do you still think you need an indicator with such a low risk and high reward?

Mate, I am trading a mini so I can kill that demon in me - with an indicator, I will be looking at charts and my grand children will be executing my trades.

Wow, hahaa. I thought i knew a thing about Gartley from what Dra taught me, but you guys are really into it.

Please, i welcome such sharing as I see Nimrod you have done really well. I understand Mike loves harmonic trading especially with ABCD and fib extensions haha.

Honestly, I feel traders like Mike and the 2 of you probably do much better than me in trading!

But I am satisfied with my slow and steady gains Dra's method is a pip machine when market is trending!

Hi,

I just wanted to share something personally.

I have been trading the harmonics since Nov 2008. I realised very quickly if there was any way one could suck the market dry, it was through harmonics. Sure you loose, but that is part of the game right. The question is how much do you want to loose. Again the harmonics do well here. Check the risk:rewards and do the maths above.

But after a point in time, I lost harmony. I do not know but I lost it. The lines drove me mad, I was loosing my plot so to speak.

Then I found DRAs thread. I found my harmony back, so putting it more bluntly, I was not looking at the higher time frames and was not trading with the trend. As I became fond of the 3rd KISS, I gradually started incorporating the harmonics back.

Now I know we trade the trend. But with DRA's system there is such a huge gap between 3rd KISS and the next trade. Not only that, the harmonics provide superb R:R when trend seems to be changing or ranging.

The chart below is a continuation of the completed butterfly posted above. For those who are new to harmonics, look at the butterfly as a probable trend changer and a gartley as an opportunity to get into the existing trend. Another way of looking at it is a butterfly is a failed gartley (do not worry so much about this statement for the time being - it will fall into place gradually).

The trade below is that of a butterfly, after the pip sucking gartley.

Lets take this one step at a time.

1. The first chart completes the butterfly.

2. The second chart is how we came to take the trade. Mind you, I have shown a lousy entry, the reason being is that one would be very suspecting to take a counter trade. Just being realistic with emotions. Inspite of that it offers a 1:1.6 risk:reward ratio.

3. The actual trade. Treat each trade as it is. Set the stops, profit targets and walk away.

4. Now the gartley shows up. Remember the trendline is broken on the 4HR, so DRA says, look to go short at the test of it. This is that trade - an opportunity to get a piece of the action if you missed the butterfly. Remember if the trade goes beyond the 1.618 it's a trend continuation in that direction. I love to take my enteries at the 1.140 so as to sqeeze as much as possible. When stops are so small - I do not wait for confirmations. The R:R of this trade is 1:10. I know I am not going to loose 10 trades with this system.

Again, I am being very very realistic with just the first target profits. We have seen target profits 2 met repeatedly.

I hope this helps.

Hi Bean, if it make you feel better, I too ama beginner in this method.I m taking as much time as I could the old fashion way, slow and steady.I too trade mini account and I must tell you guys that I m proud of you guys, how you guys take your trading meticulously and diligently.I love the fact we have a system that can easily incorporates money management.Successful traders are the ones who manages losses and rides profits.I m proud trading the turtle way, slow but imminent profit.A small profit is profit bro.

There are traders out there who brag about blowing standard account in just matter of time.I m totaly with you mate,I dont stare at the screen all day, I just trade what I see and manage the loss.Loss is part of this game.

Please Soya, continue the good work, post charts good and bad.we learn from one another.You guys are great.

I agree with you aftab bro, when I first started trading demo or live, one thing that never crossed my mind was loss.Every time I was counting the chicks first before the eggs hatches.Never calculated the risk and that was the mistake that I m grateful to make.Trading evolve for me, as now I think of the risk before the profit.
Traders who been doing this for years knows and ask themselves what is the trade risk before anything else.So, that way if I loose , I m happy to know the amount in the first hand.

Fantastic charts , aftab, they are already in my vaults.Thanks brother that helps a lot.
cheers.

wow! soya

this thread is gonna blow up!

Well, ABCD is a larger than life integrated system. the concept of it is like elliot wave count. if u count ur ABCD well and have the psychological frame of mind to trade it then u r made!

ABCD is the core of all harmonic patterns but i dont trade all. I only trade gartley and i use it as a convergence to locate point C so that i can trade it along the trend only.

am happy that soya started a nice work here and i bliv this will come a long way to stay.

thanks all
Mike

I was wondering what took you so long to post here Mike.

I have read your posts and now with your posting on this thread, this thread is going to take off.

Anybody stalking this one?