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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #41
  • Dec 27, 2012 8:09am Dec 27, 2012 8:09am
is it possible to use fractals instead of zig-zags to construct a similar indicator? i mean, why not replace zig zag in indicators like ZUP with fractals! though i am a non techie, i think it shud solve the repaint problem!
  • #42
  • Dec 27, 2012 8:15am Dec 27, 2012 8:15am
Mr. Pip

First of all Im sorry for posting pictures of my indicator and I agree with you using indicators to identify harmonic pattern is not the best way.
But it can give you hints on patterns that you would normally not see with your naked eye (my untrained eye ).
Maybe when I get enough experience in spotting patterns I will choose to stop using indicators but until then its a nice way to get some hints.

From now on I will post only pictures of patterns that I draw.
Im currently following a AB=CD pattern on the daily EURUSD.

http://img849.imageshack.us/img849/7717/40310556.png

I have few questions about the PRZ:

1. How do you calculate the PRZ

I found out that there are two important points for the AB=CD pattern PRZ
- one point is the completion point D=C+(B-A)
-and the reciprocal of the C retracement

2. Do you use both of the calculated points ?
  • #43
  • Dec 27, 2012 8:53am Dec 27, 2012 8:53am
I think now is a good time to discuss swings. We will not get into counting waves as these patterns do not call for this type of analysis. I believe wave may add value in adding further confirmation but it is not required to identify the patterns we will be looking at.


We look for price to be within a high and a low of a swing this is what I refer to a dominant swing. We also look for sore thumb high and a low. I refer to this as the main swing and always have the dominant swing within it. We use our Fib tool to measure these swings and start the process of finding confluence and pattern identification. I will show you some chart examples. There is no need to over think this process or identify a bunch of swings in the process. This may need further discussion but I will hold to see what kind of questions come up.


The first chart is one you are already familiar with.


The second shows a main swing and a dominant swing. I wanted you to see the relationship between the swings.



Regards,


Mr. Pip
Attached Image(s) (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 12_27_2012.jpg Size: 110 KB
Click to Enlarge Name: $USDCHF (240 Min) 12_27_2012.jpg Size: 71 KB
If you fail to plan, you plan to fail.
  • #44
  • Dec 27, 2012 9:06am Dec 27, 2012 9:06am
USDCHF Hourly
Potential Bat or Crab
Attached Image (click to enlarge)
Click to Enlarge Name: 2012.12.27.USDCHF.Hourly.BatOrCrab.jpg Size: 72 KB
  • #45
  • Dec 27, 2012 9:07am Dec 27, 2012 9:07am
Quoting Mr. Pip
Yes this was pointed out in the chart I posted last night.It is not uncommon the see patterns within patterns and other harmonic elements. These elements help us in the confirmation and validation process of our analysis. Good eye!

Regards,

Mr. Pip
my main problem is were to put the sl ,end the entry in general .

i used to test the indicators also and they like you seed rapidly changed criating lot of bad signals.

i always whanted to learn how to trade thise way i hope that under your guide i will do it in the neer futher .

i hop its ok to recomend same books

1/larry pasavento

2/stive carrny

(hopfuly the speling is correct , just google it ,for the benefit of the thread members)

thanks for your educator comment looking forword to read your next posts.

Iam just A pips on the rode :nerd:
  • #46
  • Dec 27, 2012 9:11am Dec 27, 2012 9:11am
Quoting zola320
Mr. Pip

First of all Im sorry for posting pictures of my indicator and I agree with you using indicators to identify harmonic pattern is not the best way.
But it can give you hints on patterns that you would normally not see with your naked eye (my untrained eye ).
Maybe when I get enough experience in spotting patterns I will choose to stop using indicators but until then its a nice way to get some hints.

From now on I will post only pictures of patterns that I draw.
Im currently following a AB=CD pattern on the daily EURUSD.

http://img849.imageshack.us/img849/7717/40310556.png...



No apologies needed my friend I just don’t want you to lose what is important PRICE. In time you will train your eyes to spot these from a mile away. It will take you longer to train your eyes if you rely on the indicator because you may not be using the correct thought process the indicator is and the indicator will never be as precise as you.

1. How do you calculate the PRZ

I found out that there are two important points for the AB=CD pattern PRZ
- one point is the completion point D=C+(B-A)
-and the reciprocal of the C retracement


We will get to the PRZ in due time but to answer your question it is calculated using fib extensions and harmonic projections. The video I posted helps you relate to this PRZ concept.

2. Do you use both of the calculated points ?

Yes both points should give you a nice area of confluence.
If you fail to plan, you plan to fail.
  • #47
  • Dec 27, 2012 9:15am Dec 27, 2012 9:15am
Mr. Pip, I read the book you liked in your profile and wow it contains a lot of useful information. I recommend it for anyone!

Rexz
  • #48
  • Dec 27, 2012 9:20am Dec 27, 2012 9:20am
Quoting deanoracer
USDCHF Hourly
Potential Bat or Crab
Per my rules its a bat pattern
Attached Image (click to enlarge)
Click to Enlarge Name: $USDCHF (60 Min) 12_27_2012.jpg Size: 92 KB
If you fail to plan, you plan to fail.
  • #49
  • Dec 27, 2012 9:22am Dec 27, 2012 9:22am
Quoting -er-
my main problem is were to put the sl ,end the entry in general .

i used to test the indicators also and they like you seed rapidly changed criating lot of bad signals.

i always whanted to learn how to trade thise way i hope that under your guide i will do it in the neer futher .

i hop its ok to recomend same books

1/larry pasavento

2/stive carrny

(hopfuly the speling is correct , just google it ,for the benefit of the thread members)

thanks for your educator comment looking forword to read your next posts.

This is outlines in the rules don't worry about that yet.
If you fail to plan, you plan to fail.
  • #50
  • Dec 27, 2012 9:24am Dec 27, 2012 9:24am
Quoting Rexz
Mr. Pip, I read the book you liked in your profile and wow it contains a lot of useful information. I recommend it for anyone!

Rexz
Agree

The book is Harmonic Trading by Scott Carney volume 1
If you fail to plan, you plan to fail.
  • #51
  • Dec 27, 2012 9:35am Dec 27, 2012 9:35am
I have to run out for a few hours will be back later to add some more and answer questions. So keep them coming.

Price has an immediate response to the PRZ on EU we can discuss this latertoday but a beautiful trade if anyone got in on it. Profit area is around 1.3205 stops are at break even. So far 60 + posspips. How powerful are PRZ????

I did not take this trade. I'm done for the year but am pointing out to you so you can see the power.

Regards,

Mr. Pip
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 12_27_2012.jpg Size: 107 KB
If you fail to plan, you plan to fail.
  • #52
  • Dec 27, 2012 9:36am Dec 27, 2012 9:36am
Quoting Mr. Pip
I think now is a good time to discuss swings. We will not get into counting waves as these patterns do not call for this type of analysis. I believe wave may add value in adding further confirmation but it is not required to identify the patterns we will be looking at.


[font=Calibri][size=3]We look for price to be within a high and a low of a swing this is what I refer to a dominant swing. We also look for sore thumb high and a low. I refer to this as the main swing and always have the dominant swing within...
so the dominant swing is located between high-low the main swing, and the main swing will failed if the dominant swing through that high/low?
Dangdut is a music of my country
  • #53
  • Dec 27, 2012 9:53am Dec 27, 2012 9:53am
Quoting Mr. Pip
I have to run out for a few hours will be back later to add some more and answer questions. So keep them coming.

Price has an immediate response to the PRZ on EU we can discuss this latertoday but a beautiful trade if anyone got in on it. Profit area is around 1.3205 stops are at break even. So far 60 + posspips. How powerful are PRZ????

I did not take this trade. I'm done for the year but am pointing out to you so you can see the power.

Regards,

Mr. Pip
I got it sir
Attached Image (click to enlarge)
Click to Enlarge Name: H1.JPG Size: 114 KB
Dangdut is a music of my country
  • #54
  • Dec 27, 2012 11:28am Dec 27, 2012 11:28am
samting to look for///if its broke down its fail!
Attached Image (click to enlarge)
Click to Enlarge Name: harmonic eur leet see.jpg Size: 128 KB
Iam just A pips on the rode :nerd:
  • #55
  • Dec 27, 2012 11:29am Dec 27, 2012 11:29am
Quoting -er-
samting to look for///if its broke down its fail!
its fail!!(broken down)
Iam just A pips on the rode :nerd:
  • #56
  • Dec 27, 2012 11:30am Dec 27, 2012 11:30am
This seems to be a very interesting thread. I have used harmonics a little in the past but never really understood how to trade them. I hope to learn more here. May I ask what harmonics indi are you using or would recommend?
  • #57
  • Dec 27, 2012 11:33am Dec 27, 2012 11:33am
same one toke thise one?
Attached Image (click to enlarge)
Click to Enlarge Name: harmonic aud.jpg Size: 95 KB
Iam just A pips on the rode :nerd:
  • #58
  • Dec 27, 2012 11:38am Dec 27, 2012 11:38am
GBP
Attached Image (click to enlarge)
Click to Enlarge Name: harmonic gbp.jpg Size: 82 KB
Iam just A pips on the rode :nerd:
  • #59
  • Dec 27, 2012 11:43am Dec 27, 2012 11:43am
if not the 1h than the 5m////its look like they are every were/
Attached Image (click to enlarge)
Click to Enlarge Name: harmonic gbp 5m.jpg Size: 68 KB
Iam just A pips on the rode :nerd:
  • #60
  • Dec 27, 2012 11:50am Dec 27, 2012 11:50am
Quoting gbryant20
This seems to be a very interesting thread. I have used harmonics a little in the past but never really understood how to trade them. I hope to learn more here. May I ask what harmonics indi are you using or would recommend?
rithe now not using

if you whant indi you heve on the harmonic thread at the interactive forum


take look at this if you miss the entry at the 5m u got it at the 1m , i wonder how common thise patrrens on a daily base /
Attached Image (click to enlarge)
Click to Enlarge Name: harmonic gbp 1m.jpg Size: 100 KB
Iam just A pips on the rode :nerd:
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