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Ratios & Harmonics: a Different Way to Trade

  • #1
  • First Post: Edited Feb 4, 2016 7:50am Dec 26, 2012 5:43pm | Edited Feb 4, 2016 7:50am
SPECIAL NOTE:

Hello Traders, read the introduction below and then start on this post http://www.forexfactory.com/showthread.php?p=8722695#post8722695 This will save you mountains of time going through the hundreds of pages. I am doing something special here. Thank you.

Hello Traders,

I’m Mr. Pip; I am a fulltime trader and trade ratios and harmonics. I’m starting this thread with the purpose of providing some insight on the topic of ratios and harmonic trading.


I understand this is an advance method of trading but let’s not let that affect our ability to learn from this style of trading. I will not be providing you with any resume as to how long I’ve been trading nor will I be answering questions about my results, how many pips I make per week and all the other questions that follow suit. Let’s understand that my result will not be equal to yours and therefore are irrelevant to the purpose to this thread.


Results have more to do with the trader then the system traded. You will either see value or you won’t. If you do great stick aroundand we can learn from each other. This is a never ending journey and learning should always be #1 on your priority list.


This system is based on price action, ratios and harmonics. NO indictors will be added or used. Please do not post any as they are not part of this system. All traders and their ideas deserve the upmost respect and that is the only rule for now.


As I mentioned I am a full time trader and my focus will be to my trading first. I will after my trading is finished for the day come here to post and answer questions. Please let me know if there is an interest in harmonics and ratios so I can continue on our journey.


I welcome and call out all harmonics and ratio traders to participate and post. I wish everyone the very best in all your endeavors.


Best Regards,

Mr. Pip


I would like to thank Kilian19 for the wonderful jester of maintaining a summery journal of my most important post. This is a wonderful reference for us all. Many thanks again!!!

http://www.forexfactory.com/showthread.php?t=403393
If you fail to plan, you plan to fail.
  • #2
  • Dec 26, 2012 5:57pm Dec 26, 2012 5:57pm
What is market harmonics? Is it possible that the marketsare not random? The answer is yes there is nothing random about this or any other market or instrument you wish to trade.

Harmonics is the process of identifying the market’s rhythm or its pulse if you will and exploiting any and all opportunities. There are visual occurrences that have tendencies to repeat themselves over and over again. It is our job as chart technicians to identify them and trade them. The principles of harmonics and ratios have no boundaries. They can be applied to any instrument or timeframe. We will peel away the myth of the term “noise” and learn to focus on the only thing that matters on a chart, PRICE.

Regard,

Mr. Pip
If you fail to plan, you plan to fail.
  • #3
  • Dec 26, 2012 6:15pm Dec 26, 2012 6:15pm
Looking forward to your input. Perhaps your harmonics are what I am considering as waves.

Best wishes
  • #4
  • Dec 26, 2012 6:16pm Dec 26, 2012 6:16pm
really looking forward to better understanding the lens through which you view the market. thanks for starting this thread.
It's a buy the dip scheme, ya feel me?
  • #5
  • Dec 26, 2012 6:24pm Dec 26, 2012 6:24pm
A taste of things to come. Enjoy the chart!
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 12_26_2012.jpg Size: 90 KB
If you fail to plan, you plan to fail.
  • #6
  • Dec 26, 2012 6:35pm Dec 26, 2012 6:35pm
Quoting tapspile
Looking forward to your input. Perhaps your harmonics are what I am considering as waves.

Best wishes

I am not in tune with wave theory. The whole thing opens up to subjectivity which is an aspect I have removed from my trading. We will discuss swings but the process has been simplified. I keep things simple because I believe it’s in our nature to complicate everything.

I trade what I see not what I think. We will begin the process of identifying on a chart where decisions are made. We do not chase price around we wait for it to come to us. This adds to the value of the setup because it validates our analysis. PRZ (Price Reversal Zones) are magical places you will come to love.

Regards,

Mr. Pip.
If you fail to plan, you plan to fail.
  • #7
  • Dec 26, 2012 7:05pm Dec 26, 2012 7:05pm
Can't wait to see what you have to show.
  • #8
  • Dec 26, 2012 7:06pm Dec 26, 2012 7:06pm
I made this short video a while back for a group I was mentoring. It is a great foundation we can build on. View the video on Fibs and Harmonics.

Regards,

Mr. Pip

http://www.youtube.com/watch?v=6SvcmyIkmtM&feature=player_detailpage
If you fail to plan, you plan to fail.
  • #9
  • Dec 26, 2012 8:45pm Dec 26, 2012 8:45pm
Let’s talk about areas of confluence. Confluence areas are where trading decisions are made. In these areas positions are covered and others are opened. They are by far the best areas for high probability trade setups.


It is a coming together of different technical tools that adds tremendous strength in the decisive nature of price movement. The more elements that meet at a specific place and time the stronger the hurtle for price to overcome. Price often takes the path of least resistance.


The market is what is it is, the collective sum of its participants. It is an impossibility for anyone person to think what any one trader is thinking much less the millions that trade it. It is an emotional machine steered by the 2 most basic human emotions fear and greed. Confluence helps us identify where traders collectively have the highest probability to make these decisions with unprecedented precision. The chart below shows the power of confluence.


What is involved in areas of confluence?


Support/Resistance, Fib Ratios, Fib Ext., Harmonic Patterns and on occasion trend lines. We are always building a case for entry. There must always be a reason for getting into a trade. If you cannot answer why you want to take this trade then you should not take that trade.

Regards,


Mr. Pip
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 12_26_2012.jpg Size: 95 KB
If you fail to plan, you plan to fail.
  • #10
  • Dec 26, 2012 9:18pm Dec 26, 2012 9:18pm
Quoting Mr. Pip
Let’s talk about areas of confluence. Confluence areas are where trading decisions are made. In these areas positions are covered and others are opened. They are by far the best areas for high probability trade setups.


It is a coming together of different technical tools that adds tremendous strength in the decisive nature of price movement. The more elements that meet at a specific place and time the stronger the hurtle for price to overcome. Price often takes the path of least resistance.


[size=3]The market...
Hey Mr Pip!
Congrats on starting your thread. I hope it attracts a lot of interest.
I had the exact same PRZ as you this am. There was lots of confluence at the 1.3250 area today. Best trade of the day.
Very impressive how harmonics/ratios can project where PA has a high probability of reversing.
I 've been following ratios and harmonics for a couple of weeks and this happens everyday!
I look forward to following your thread . I'll contribute to the thread as best as I can.
Barry
  • #11
  • Dec 26, 2012 9:28pm Dec 26, 2012 9:28pm
I don’t expect you to understand this yet but I like to show chart examples. I just want you to see the confluence. When and if price gets to the PRZ the market will be overbought and there are simply too many obstacles for price to overcome.

I will not confuse you with fancy supply and demand terminology and will keep things simple for the newer folks here. The expectation is for weakness to give way to strength. The bears will be waiting here for an opportunity to take price lower. The path of least resistance will likely prevail.

Don’t focus on this pattern too much just want to show you a current example of confluence at a pattern completion point. We will get into patterns and harmonics later on.

Regards,

Mr. Pip
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 12_26_2012.jpg Size: 105 KB
If you fail to plan, you plan to fail.
  • #12
  • Dec 26, 2012 9:34pm Dec 26, 2012 9:34pm
Quoting Bary
Hey Mr Pip!
Congrats on starting your thread. I hope it attracts a lot of interest.
I had the exact same PRZ as you this am. There was lots of confluence at the 1.3250 area today. Best trade of the day.
Very impressive how harmonics/ratios can project where PA has a high probability of reversing.
I 've been following ratios and harmonics for a couple of weeks and this happens everyday!
I look forward to following your thread . I'll contribute to the thread as best as I can.
Great to hear that Bary, I look forward to your contribution. Confluence is as close to a crystal ball as you can get. It suprises me to this day and it's the only way I trade.
If you fail to plan, you plan to fail.
  • #13
  • Dec 26, 2012 10:09pm Dec 26, 2012 10:09pm
Joining your thread
Dangdut is a music of my country
  • #14
  • Dec 26, 2012 10:22pm Dec 26, 2012 10:22pm
Quoting Mr. Pip
I don’t expect you to understand this yet but I like to show chart examples. I just want you to see the confluence. When and if price gets to the PRZ the market will be overbought and there are simply too many obstacles for price to overcome.

[font=Calibri][size=3]I will not confuse you with fancy supply and demand terminology and will keep things simple for the newer folks here. The expectation is for weakness to give way to strength. The bears will be waiting here for an opportunity to take price lower. The...
I didn't see that bat pattern. Don't know them very well yet.
Here's what I had before you posted your chart w/bat pattern.
Attached Image (click to enlarge)
Click to Enlarge Name: eu20.gif Size: 26 KB
Barry
  • #15
  • Dec 26, 2012 10:32pm Dec 26, 2012 10:32pm
Quoting Bary
I didn't see that bat pattern. Don't know them very well yet.
Here's what I had before you posted your chart w/bat pattern.
The patterns will come with time. If your point C holds then yes a continuation to the down side is likely. There is definitely some structure for price to contend with at that level but at present we are in a bullish order flow environment.
If you fail to plan, you plan to fail.
  • #16
  • Dec 26, 2012 10:44pm Dec 26, 2012 10:44pm
Subscribed!
Great thread!Lovely.
In trading, you have to be defensive and aggressive at the same time
  • #17
  • Dec 26, 2012 10:45pm Dec 26, 2012 10:45pm
Great video sir. I especially like the logical way you presented how and why your prz was formed using the different retracement levels. Looking forward to the rest of your thread.
  • #18
  • Dec 26, 2012 11:35pm Dec 26, 2012 11:35pm
Subscribed. Thanks Mr Pip looking forward to the journey.
Merry Christmas and have a great New Year a nice gift from you to start 2013.
  • #19
  • Dec 27, 2012 2:35am Dec 27, 2012 2:35am
Do you short in this zone?
Attached Image (click to enlarge)
Click to Enlarge Name: H1.JPG Size: 107 KB
Dangdut is a music of my country
  • #20
  • Dec 27, 2012 2:46am Dec 27, 2012 2:46am
Quoting NuNix
Do you short in this zone?
Ah I'm not confident, just closed it for +1
Dangdut is a music of my country
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