Harmonic and Classic Patterns

See u tomorrow, but u have to explain to me the zigzag parameters .

it didnt fail in my book. it reached the B point. would i have taken the trade? not sure. it would depend if i could get in and put my stop in a logical place which would give me a 1:2 rvr. The previous low would be a logical place. You have to use Support and Resistance lines with harmonic trading or you will get burned.

Had a closer look at the chart. reasons i wouldnt take this trade are
1. arent enough candles in the patern, i want 30 or more. the thinking is that the bigger the structure the stronger the likelyhood of something decent being built on it. Flimsy foundations makes for a flimsy building type thing.
2. the logical place i would put my stop would be at the recent low. that wont give me a 1:2 rvr to the B point.
3. i dont know if there is any news coming out.

here

- Could u please foxmehrabi give us an example from your day trading, you can satisfy ur 3 conditions, because those 3 conditions redefine taking a trade for me. Thanks

- Here is another pattern on M15 Eur/Gbp, I took this trade yesterday it was bullish butterfly then it became bullish bat then I jumped and I wait Why? because I looked to FF economic calendar and I found 2 important news on both euro and pound and here is my prize a precious 30 pips and gone.

- If my logic is unclear to u please ask & if u have any comment u are welcome.

this is a trade i took a few days ago. i took 181pips and was stopped out for the remainder of my trade.

my criteria was achieved.

1. more than 30 candles in the pattern.
2. no news at the entry time of trade.
3 ivar was on a steep curve down near the 0.2 line. (ivar wont stop me taking a trade but it will influence my leverage)
4. a logical place for my stop. i placed an inital 61 pip stop. moved it to break even after a 50% move to the B point. Took my profit at B point left a little on to ride a bigger move but got stopped out as the price retraced after hitting the B point.
5. my risk reward was respected. i only trade a 1:2. in this case i risked 61pip s for a potential 181 so that is 1:3 - i can live with that :-)
6. the prz was in a support level that was hit on 2 previous occasions which gave confidence that the price should head north again.
7. my only concern about this trade was that the pattern wasnt crystal clear. it was a messy pattern. a sharp move down to the D point. a total of 380 candles on a M30 seems excessive to me, however it was enough for me to take a maximum value trade.

- Thanks for the example and explanation .

- Can u upload your ivar and how does it make a harmonic pattern strong?

read about how to use it here http://optimaltrader.net/hurst_exponent.htm

http://www.trade-forex-harmonic-patt...-exponent.html

- Thanks for the help iqyu5an I was completely lost on this site.

Hello foxmeharbi & iqyu5an, I've entered the link u gave it to us but I must admit its the first indicator I haven't understand , even if I have tested more than 1000 indicators, so help me:-

1) If it is above 0.5 what does it mean and also below 0.5? (they use persistence - randomness, strange language for me )

2) Why did u use the value 0.2?

3) What is the best time frame to optimize ivar with settings 0.5?

- Thanks in advance.

I never understand why they need to use such complicated vocabulary. Trading is a very simple thing to do, i say simple but not necessarily easy or else the world would be full of millionaires, but i think it needs to by hyped a little to give it credence. strange things us humans.

Regarding the indicator.

there are three levels you want to be looking at.


The total range of the indicator is between 0 and 1.

if the price is close to the 0.5 level (either above or below it), this means that anything can happen. ie the price could go up, down or remain where it is. So this isnt very helpful to give weight to a trading decision.

if the price is nearer the 0 level, this means that a reversal of the current movement is probable. I like to see a steep downward movement towards the 0 level to give weight to my trade, but that is a personal thing.

when the price is nearer 1. this means that what is happening now will probably continue to happen. so if price is going up and the indicator is in the 'near 1' zone then you can expect the price to continue going up. Similarly if price is heading down, you can expect it to continue going down.

I hope that makes sense. I didnt use the word persistent or Time series.

- Thanks for the explanation now I understand it, but u still didn't answer 2 & 3.

Gold m5 :

Buy stop @ 1616.50
tp @ 1622.94

i used the value 0.2 because that was where the ivar was when i referred to the chart.

it works on all tfs. traders have their preferences though.
I use it on all tfs.

GOLD :
CRAB

- Hello Mehrdadovic, I know you are interested in Gold, but could u please post some of your Forex trading and why you take that trade?

- Thanks in advance.

- I want to know everybody opinion in adding Ichimuko cloud to help us entering and exiting from a harmonic pattern.

dear ziko

hi
my target was 1616 and now price is......
Now i had purpose....sell @ 1623.44
because bearish crab

Harmonic Trading QUIZ. Test your knowledge and have fun :-)

http://tradingarsenal.com/forumdispl...c-Trading-QUIZ