Required Text: Fibonacci Analysis, Constance Brown, 2008
It has become rather amusing on one hand and yet very sad on the other. Seeing people year after year being taken by the virtual hand and walked over the edge of the same ole cliff, led by some of the most bizarre forms of personal economic suicidal philosophy in existence in the online trading world.
Yet, with genuine regularity (like clockwork) the repetitious nature of the Sheppard without a staff syndrome, leading his flock of Sheeple into destiny's personal economic entanglements never ceases to amaze one way or the other. Sad, but all to true as well.
Among the vast intellectual tundra of ideas about how to trade the forex, one will inevitably encounter the auspicious and fully fortified range of tactics, methodologies, strategies, and systems that were never born of the rigorous technical developmental environment that yields the kind of fruit promised by the author.
Improperly tested philosophies, theories and ideas about when to enter and exit the market abound in the valley of Almost Made It ideas. Yet, in the end we seem to end up right back where we started. In search of the "grail" (or, just a Cup these days) that will rescue our previous efforts and make them alas a worthwhile expenditure of our valuable time.
---------------
The sole purpose of this thread is to open the eyes of those traders whose eyes can be opened. I will begin this thread with a very insightful quote taken from Candice Brown, in her book Fibonacci Analysis:
There should come a time in the lifespan of every trader, where they actually seek causation and not merely the effect. To be decision oriented predicated only on the effect of cause, is to be led down the primrose path like Sheep in a herd headed for another round of perpetual shearing to within an inch of one's hide.
--------------
There will be two (2) different by related threads. Concepts Part I, will be for the discussion of Confluence Zones, Fibonacci Frequencies and Fibonacci Cycles. Application Part II, will be a second thread that I create for the real-time trading of such technical tools.
In addition to Constance Brown's contribution to this thread, I will make my own contribution by revealing the systematic approach to trading Harmonic Patterns that I developed completely by accident and without original intent. Nonetheless, the ideas are original.
It is the combining of Dynamic Confluence Zones and Harmonic Pattern Intercepts, that will give the trader eyes to see what the market is planning "next."
If you have not already read her book, then I strongly suggest that you make it a part of your trader's library sooner rather than later, as that book will be the foundation within this thread upon which you will build your understanding of market/price behavior. Subsequently, I will reveal my take on Harmonic Patterns and how I use them in routine trading situations.
If you have not been properly introduced to Harmonic Trading (Fibonacci Ratio Analysis), then I would strongly suggest reviewing the following videos (below) by Scott Carney, Costas Vayonis, and Larry Pesavento, as two good visual primers. Scott, uses the baseline Gartley Pattern in this video, while Larry, takes a broader visual approach to showing you the core components a Harmonic Pattern.
These videos are simply intended to give those that are unfamiliar with Harmonic Ratios and Patterns, an overall view of what I will be discussing with my concepts on Harmonic Pattern Intercept, which are trading concepts that neither Scott, nor Larry, address in their presentations. However, you need an understanding of the basic components: X, A, B, C, D and Projection points, as well as the XA leg, AB leg, BC leg, CD leg and D to Projection segment.
Important Notes About the Videos:
A) I do not make commercial endorsements of any kind. So, view the videos as sources for Introductory Information about Harmonic Patterns only, and not as a sales pitch. If you buy something, it is because YOU wanted to buy it and not because I sold you something. I have nothing to sell - period.
B) These videos are heavily embedded with with specific Fibonacci Ratio Numbers. For the purposes of this thread, do not get concerned about not being able to keep up with the numbers. In fact, we will see later that the numbers prescribed in most Harmonic Trading Patterns, are not as "necessary" as the author informs. We will discuss why this is true at a later time.
C) Simply pay attention to the Structure of the Harmonic Pattern and the components that give the pattern its shape (Points: X, A, B, C, D and Projection which I will define later).
D) I am not advocating the use of Astrology in Trading. Some traders do, however. In Larry's videos, he alludes to his use of such information for trading. I simply provide the video here, as a basic introduction into "Harmonic Patterns," not "Astrological Patterns," for trading forex. So, if you see fit, simply fast forward through the video until he gets to the Pesavento Pattern components.
I'll be back after some of you have had a chance to get up to speed on the basics of Harmonic Patterns, to begin the conceptual discussion and to develop your understanding of what Constance Brown means when she talks about Confluence Zones. In the meantime, you can use these videos to help get you up to speed and/or you can search the web for links on: Harmonic Trading Patterns.
Regards,
ST
------------------------
Scott Carney: Gartley Pattern Basics
Costas Vayonis: Gartley, ABCD, Butterfly and 3-Drives Pattern Basics
Larry Pesavento: Pesavento Pattern Fundamentals
** If you have finished viewing all of these videos, then there is no doubt that you should have a reasonably good basic framework for Harmonic Patterns at this point - which will be necessary to fully appreciate Confluence Zones and Harmonic Intercepts **
It has become rather amusing on one hand and yet very sad on the other. Seeing people year after year being taken by the virtual hand and walked over the edge of the same ole cliff, led by some of the most bizarre forms of personal economic suicidal philosophy in existence in the online trading world.
Yet, with genuine regularity (like clockwork) the repetitious nature of the Sheppard without a staff syndrome, leading his flock of Sheeple into destiny's personal economic entanglements never ceases to amaze one way or the other. Sad, but all to true as well.
Among the vast intellectual tundra of ideas about how to trade the forex, one will inevitably encounter the auspicious and fully fortified range of tactics, methodologies, strategies, and systems that were never born of the rigorous technical developmental environment that yields the kind of fruit promised by the author.
Improperly tested philosophies, theories and ideas about when to enter and exit the market abound in the valley of Almost Made It ideas. Yet, in the end we seem to end up right back where we started. In search of the "grail" (or, just a Cup these days) that will rescue our previous efforts and make them alas a worthwhile expenditure of our valuable time.
---------------
The sole purpose of this thread is to open the eyes of those traders whose eyes can be opened. I will begin this thread with a very insightful quote taken from Candice Brown, in her book Fibonacci Analysis:
"To those who believe Fibonacci Ratios are of little value; let them continue to do so, as those of us who work to develop these concepts will continue to see bankable results." -Chapter 2, Page 41.
There should come a time in the lifespan of every trader, where they actually seek causation and not merely the effect. To be decision oriented predicated only on the effect of cause, is to be led down the primrose path like Sheep in a herd headed for another round of perpetual shearing to within an inch of one's hide.
--------------
Getting You Up To Speed
There will be two (2) different by related threads. Concepts Part I, will be for the discussion of Confluence Zones, Fibonacci Frequencies and Fibonacci Cycles. Application Part II, will be a second thread that I create for the real-time trading of such technical tools.
In addition to Constance Brown's contribution to this thread, I will make my own contribution by revealing the systematic approach to trading Harmonic Patterns that I developed completely by accident and without original intent. Nonetheless, the ideas are original.
It is the combining of Dynamic Confluence Zones and Harmonic Pattern Intercepts, that will give the trader eyes to see what the market is planning "next."
If you have not already read her book, then I strongly suggest that you make it a part of your trader's library sooner rather than later, as that book will be the foundation within this thread upon which you will build your understanding of market/price behavior. Subsequently, I will reveal my take on Harmonic Patterns and how I use them in routine trading situations.
If you have not been properly introduced to Harmonic Trading (Fibonacci Ratio Analysis), then I would strongly suggest reviewing the following videos (below) by Scott Carney, Costas Vayonis, and Larry Pesavento, as two good visual primers. Scott, uses the baseline Gartley Pattern in this video, while Larry, takes a broader visual approach to showing you the core components a Harmonic Pattern.
These videos are simply intended to give those that are unfamiliar with Harmonic Ratios and Patterns, an overall view of what I will be discussing with my concepts on Harmonic Pattern Intercept, which are trading concepts that neither Scott, nor Larry, address in their presentations. However, you need an understanding of the basic components: X, A, B, C, D and Projection points, as well as the XA leg, AB leg, BC leg, CD leg and D to Projection segment.
Important Notes About the Videos:
A) I do not make commercial endorsements of any kind. So, view the videos as sources for Introductory Information about Harmonic Patterns only, and not as a sales pitch. If you buy something, it is because YOU wanted to buy it and not because I sold you something. I have nothing to sell - period.
B) These videos are heavily embedded with with specific Fibonacci Ratio Numbers. For the purposes of this thread, do not get concerned about not being able to keep up with the numbers. In fact, we will see later that the numbers prescribed in most Harmonic Trading Patterns, are not as "necessary" as the author informs. We will discuss why this is true at a later time.
C) Simply pay attention to the Structure of the Harmonic Pattern and the components that give the pattern its shape (Points: X, A, B, C, D and Projection which I will define later).
D) I am not advocating the use of Astrology in Trading. Some traders do, however. In Larry's videos, he alludes to his use of such information for trading. I simply provide the video here, as a basic introduction into "Harmonic Patterns," not "Astrological Patterns," for trading forex. So, if you see fit, simply fast forward through the video until he gets to the Pesavento Pattern components.
I'll be back after some of you have had a chance to get up to speed on the basics of Harmonic Patterns, to begin the conceptual discussion and to develop your understanding of what Constance Brown means when she talks about Confluence Zones. In the meantime, you can use these videos to help get you up to speed and/or you can search the web for links on: Harmonic Trading Patterns.
Regards,
ST
------------------------
Scott Carney: Gartley Pattern Basics
Inserted Video
Costas Vayonis: Gartley, ABCD, Butterfly and 3-Drives Pattern Basics
Inserted Video
Larry Pesavento: Pesavento Pattern Fundamentals
Inserted Video
Inserted Video
Inserted Video
Inserted Video
Inserted Video
Inserted Video
Inserted Video
Inserted Video
** If you have finished viewing all of these videos, then there is no doubt that you should have a reasonably good basic framework for Harmonic Patterns at this point - which will be necessary to fully appreciate Confluence Zones and Harmonic Intercepts **