Harmonic and Classic Patterns

Peter, what Indicator do you use?

Thanks

Attached is a decent translation of the most recent ZUP from Russian to English.

I'm still working on replicating it 100% (so it compiles) to the Russian original but its quite the indicator with a lot of moving parts.

Anyway, anyone using ZUP can get a better understanding of the inner workings.

korHarmonics v6.7.6 is available now from TradingArsenal.com - TradingArsenal.com

Regards
kor4x

first experiments with Potential Reversal Zone

My chart on UCAD.. March 31..Bullish butterfly..anticipating PRZ in 1.0113 price zone

Here's a good setup for next week!

I included a screenshot for ease of use, but this is what I was thinking.

Scale in two orders at 7234 + 7221
Stops at 7262

First target at 7094
Second target at 7000

So I would be risking 69 pips to make 140 on my first target and 221 on my second.

Potential Reversal Zone:

1,3063 - 1.3031

161,80% from 135,35 (04/20) - 132,00 (04/23) 1,3063
161,80% from 132,83 (04/08) - 136,91 (04/12) 1,3031

How you like that!

Double Dutch.

Market symetry and confluence of fib levels mark potential reversal zones.

Hi all,

Today we had a classic Gartley 222 set-up to go short the GBP/JPY at 144,30 (point D).
1. AB=CD
2. Confluence? X-A leg 61,80 Fib at 144,31 and B-C leg 161,80 extension at 144,33.
3. Reversal candle stick pattern?: we see a Doji and consolidating candles.
4. Previous area of Supply/Demand?: weak Supply/Demand area because no real consolidation occurred.
5. Conclusion: 3 out of 4 is good enough.
Sell limit GBP/JPY 144,30,
StopLoss: 10 pips above the high of the Doji (144,50) at 144,60.
Risk 30 pips:
Target:
T1a 143,52 based on symetry B-C leg and high of B
T1b 142,71 fib level above supply zone at 142, 63
Risk/Reward ratio T1a 78 pips:30/78 = 1/2,5 (bit lower due to spread/slippage) Close 1/2 of the position size)
Risk/Reward ratio T1b 176 pips:30/176 = 1/6 (bit lower due to spread/slippage)
Total pips 254 pips:30/254 = 1/8,5

Sounds good right? To bad the market did not reverse at point D and we get stopped out at the European open for -30 pips.

Now the Gartley 222 is a very powerful pattern which a lot of people know already, so no surprise we got stopped out at the open of Europe.
The area in which we sold did not have a good consolidating period so the market got our stop easily. Most traders now quit and say to themselves;
harmonic trading does not work! Now here is the special sauce: The pattern is still valid as long as point D does not exceed point X. But how to trade then if the classic pattern fails?--> Add an Anrew's Pitchfork based on the B-C leg and draw it in your chart. Use the 261,80 extension of the B-C leg to complete the pitchfork and predict where and when the market will turn!!!

1. AB=CD failed. Market is in serious overbought condition and makes a new high at D1. Look for consolidation / reversal pattern at next big fib level.
2. Fib level 76,40 of the X-A leg is at 144,95.
3. Reversal candle stick pattern? : we see a classic shooting star reversal pattern.
4. Previous area of Supply/Demand?: strong previous area of Supply/Demand where consolidation occurred.
5. Conclusion 4 out of 4. perfect trade.
Sell limit GBP/JPY 144,95,
StopLoss: 10 pips above the high of the shooting star (145,20) at 145,30
Risk 35 pips:
Target: T2a 144,30 based on symetry B-C leg and Confluence X-A leg 61,80 Fib at 144,31 and B-C leg 161,80 extension at 144,33.
T2b 143,52 based on high of B and previous target T1a of Classical Gartely 222 pattern.
Risk/Reward ratio T2a 65 pips: 35/65 = 1/2 (bit lower due to spread/slippage) Close 1/2 of the position size.
Risk/Reward ratio T2b 143 pips: 35/143= 1/4
Total pips: 208 pips: 35/208= 1/6

Notice how price to the pip touched the 38,20 fib of the X-A leg in the Supply/Demand zone after the D1 high AND to the pip touched the 161,80 level of the B-C leg
at 144,33 before reversing again. Now what should you be thinking? AB=CD so we can project that the next likely reversal pattern will emerge at the 142,50 area.
There we have a fib confluence of X-A 23.60% 142,63, B-C 38,20% 142,69, 142,50 psychological level and a rising trend line from the A low.
So, for next week look for a high probability trade in the 142,50 area!

DoubleDutch.

Hi, any update on your GBPJPY analysis ?

i am interested kor new version my email:[email protected]

can get from here http://tradingarsenal.com/

i dont get it

its free but trails out ... what happens then .. i study the indicator and then it wont work anymore ?
what is the latest version.. and does skype alert work =?


thank for answer

... working on the Knowledge Base and Harmonics trading Overview (every day 1 picture and/or concept presented ...also to motivate myself :-) )

... currently all slides and ideas are posted on the Facebook Wall:
http://www.facebook.com/pages/Tradin...27059470640778

, but when section is completed will be available from:
http://www.tradingarsenal.com/

If anyone with ideas/comments/suggestions comming from the trading experience -> please let us know and participate.

kind regards
kor4x
PS. korHarmonics went thru redesigns for optimalizations and functional changes (hopefully improvements), but we are no thinking on publishing till finally this theoretical part is done (it was too many questions where we had to answer - "Not available yet, sorry")

ES

Hi,
I placed first 8 out of 21 diagrams covering the Trading Gartley subject.

I would be happy to hear your comments and suggestions.
You can leave them on the Facebook below each diagram

http://www.facebook.com/pages/Tradin...27059470640778

... but also on the Arsenal forum where we will be placing some further related comments before publishing the next versions with updates:

http://tradingarsenal.com/

I hope you find it any useful,
thanks,
kor4x

Have you considered turning your indicator into an EA?

No plans about it.
Automat will not achieve the Success Ratio like manual trading. On the facebook slides i am explaining the validations that can be performed to achieve best Gartley Success Ratio. It would be huge effort to implement all these validations in the EA. ...but if there is a valunteer...cool, i will gladly support.

all about trading the Gartley pattern

http://tradegartleypattern.blogspot.com/

your comments are very welcome.

http://harmonicstube.blogspot.com/20...t-bearish.html