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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

  • #441
  • Jan 2, 2013 7:41am Jan 2, 2013 7:41am
Quoting Korndawg
Mr Pip, I do have a Q and no hurry to answer, but I was wondering just where you start your first X to A...there was a post #277 by Ezzy that involves the USDCAD where he starts his X way at the top and then you posted a chart in post #349 where you started your XA at the bottom.....Im thinking, which is dangerous, that maybe you just go back to see the most significant high or low and start from there....I imagine it may also has to do with what time frame you are viewing .......I just want to get this right and want to get on this boat before...

Price action is king of the land. I mention a while back that we have to qualify our patterns. I also mentioned that it is not uncommon to see patterns within patterns and there are two potential bat patterns here. Price action and order flow favors the smaller of the two. Both patterns would have a correction point in close proximity which is nice.

I don’t just go back to the most recent high or low but it is there that you will be looking for your patterns and harmonics. I also said that in the process of identifying the main and dominant swing to look back and make sure you did not miss anything. Once you are in tune with price action the swing identification process becomes really easy. There is nothing dangerous or reckless to my approach but your analysis must begin somewhere and that somewhere should be close to current price as that is what we trade.
Attached Image (click to enlarge)
Click to Enlarge Name: $USDCAD (Daily) 7_2_2012 - 1_2_2013.jpg Size: 89 KB
If you fail to plan, you plan to fail.
  • #442
  • Jan 2, 2013 7:49am Jan 2, 2013 7:49am
Quoting Ezzy
Hey Korn, I also feel that I need to get this right, I thought that the main swing would be a HH or LL. I might re-read some of Mr Pip's earlier posts, but like with everything, practice makes perfect so for the time being, I'll be posting charts etc as a way of practicing, and requesting feedback, in order to learn things properly.
Yes you are correct but we want this as close to price action as possible. You were not incorrect in your analysis but your pattern was part of a bigger picture and the pattern is still in play but there is a smaller more relevant pattern that will complete first. Does this make sense?
If you fail to plan, you plan to fail.
  • #443
  • Jan 2, 2013 7:58am Jan 2, 2013 7:58am
Mr. Pip what do you reckon on this?

http://content.screencast.com/users/...01-02_1357.png
  • #444
  • Jan 2, 2013 7:58am Jan 2, 2013 7:58am
Quoting Damien1881
This is the Bat I was referring to from pg 1 of this thread that's slightly different from yours with X at 1.3294 Attachment
Can you please ask your question again I'm not following. Sorry.
If you fail to plan, you plan to fail.
  • #445
  • Jan 2, 2013 8:03am Jan 2, 2013 8:03am
Quoting jgadefelth
About books I know you recomend volume 1 but do you also recomend volume 2 and how about larry pesaventos book ?

Best regards
Volume 2 I also have and read. He goes into a couple of other patterns and introduces the BAMM method with RSI. The core system is good enough and if the wheel is not broken then don't fix it. I have not heard of the other book you mentioned I will look into it thanks.
If you fail to plan, you plan to fail.
  • #446
  • Jan 2, 2013 8:09am Jan 2, 2013 8:09am
Quoting iqyu5an
market never stops even on saturday/sunday or even big holidays. on prev chart i use xemarkets. but we could check it on xe.com also.
So true!

Hey iqyu,

I see you post lots of patterns are you also a harmonic trader?
If you fail to plan, you plan to fail.
  • #447
  • Jan 2, 2013 8:18am Jan 2, 2013 8:18am
that's harmonic pattern

as i wrote .. ratio and harmonic is talking about price level ( where to entry ). but for when... we need other tools. i don't want to post the indi here ( as mr. pips wants this thread clean, i respect it alot ). but u can get my idea in my prev post. u can get the explanation from chart

if u read and watch the link..it's clear how ...

Quoting iqyu5an
hope this link (http://www.forexfactory.com/attachment.php?attachmentid=1108358&stc=1&d=1357107612) will explain what i think ... about when for BAMM and how i draw fib from A to B . Detail ratio that i use : here (http://www.forexfactory.com/showthread.php?p=6331014#post6331014)

and about BAMM.. that's not my own term.. u can get more about BAMM (here (http://www.trade-forex-harmonic-patterns.com/harmonic-trading-tips-bat-pattern.html)) .

Quoting Bary
Shark? 5.0 pattern? None of these have been covered in this thread yet.
Waiting...? no explanations.
Sorry but this has to be confusing to the newbees.
not euphoria follower
  • #448
  • Jan 2, 2013 8:19am Jan 2, 2013 8:19am
yea my friend.........


Quoting Mr. Pip
So true!

Hey iqyu,

I see you post lots of patterns are you also a harmonic trader?
not euphoria follower
  • #449
  • Jan 2, 2013 8:20am Jan 2, 2013 8:20am
first i want to thank you for this great thread

and you to share some trade here

cad/jpy on the weekly

what you think ?
Attached Image (click to enlarge)
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  • #450
  • Jan 2, 2013 8:27am Jan 2, 2013 8:27am
Quoting Davit
Mr Pip
Please excuse me as my chart may be erroneous.I am still learning.I took consideration your comment about drawing fibs from key swing.
My chart on AU is on daily.
All the numbers fit into Gartley pattern XAB=CD BC is .618 exact retrace and my D is 1.618
As you can tell I am very excited about learning harmonics and looking forward to your teachings.
Hey Davit your pattern and ratios are off look at my chart. We will get into the ABCD pattern later.
Attached Image (click to enlarge)
Click to Enlarge Name: $AUDUSD (Daily) 8_7_2012 - 1_2_2013.jpg Size: 117 KB
If you fail to plan, you plan to fail.
  • #451
  • Jan 2, 2013 8:31am Jan 2, 2013 8:31am
Quoting FusionF
As far I as understand PRZ is always at the D point not C.
PRZ (Price Reversal Zone) is an area where price has a high probability of reversing. This can occur anywhere there is confluence of structure and ratios. There is a higher degree of probability in the PRZ at point D of the patterns but there are also some more agressive entries which we will discuss as we get into the patterns.
If you fail to plan, you plan to fail.
  • #452
  • Jan 2, 2013 8:34am Jan 2, 2013 8:34am
Quoting iqyu5an
totally agree but we could trade from C to D or at least B to D and then D to B.

trade from C or B to D, shortly called as BAMM ( BAT Action Magnet Move , documented by Scott Carney, in his book "Harmonic Trading of the Financial Markets: Volume Two".).

just imho
Hello again, Lets not get into BAMM just yet maybe you can help me introduce this later on in the thread. I want to focus on the basics first thanks for your contribution.
If you fail to plan, you plan to fail.
  • #453
  • Jan 2, 2013 8:45am Jan 2, 2013 8:45am
Quoting Bary
Shark? 5.0 pattern? None of these have been covered in this thread yet.
Waiting...? no explanations.
Sorry but this has to be confusing to the newbees.
I only trade the ABCD, Gartley, Bat, Crab, Butterfly, Cypher patterns. I'm not saying the other patterns are less valuable. But in my hands these are my bread and butter. No need to complicate your tool box with a bunch of patterns these I trade are the most common to see and profitable.
,
If you fail to plan, you plan to fail.
  • #454
  • Jan 2, 2013 8:47am Jan 2, 2013 8:47am
Quoting Rexz
I have another

http://content.screencast.com/users/...01-02_0856.png
Hey Rex,

What am I looking at?
If you fail to plan, you plan to fail.
  • #455
  • Jan 2, 2013 8:48am Jan 2, 2013 8:48am
Quoting Ezzy
Hey Bary, are all patterns that Mr pip will be teaching us have to retrace to 61.8 at B in order to be valid?

Thanks
No they all do not we will get to them if you want to know now then review the earlier post where I show you the process.
If you fail to plan, you plan to fail.
  • #456
  • Jan 2, 2013 8:49am Jan 2, 2013 8:49am
Quoting Bary
No. If you look at pgs 11-12 he gives a brief idea of some of the pattern rules.
If you fail to plan, you plan to fail.
  • #457
  • Jan 2, 2013 8:49am Jan 2, 2013 8:49am
Thank you Mr. Pip to the replies on post 443 and 442 for myself and the comment from Ezzy. That does make sense to start where we are currently and then scale back to the previous levels.
  • #458
  • Jan 2, 2013 8:58am Jan 2, 2013 8:58am
Quoting Rexz
http://content.screencast.com/users/...01-02_0924.png

Just posting this to clear up my previous image. Yes Mr. Pip does have his own rules which differ from Scott M. Carney, but the book has a tonne of priceless information in it, and I recommend it to anyone.

In fact this is a question to Mr. Pip. Do you use the reciprocal ratios when finding your AB=CD BC projection?
Yes I do infact the fib video I posted in the begining shares this thought. I will also mention that the traditional ABCD pattern has specific rules and outside of those rules you are not trading an ABCD but a Harmonic AB=CD or 1:1 move.
If you fail to plan, you plan to fail.
  • #459
  • Jan 2, 2013 9:00am Jan 2, 2013 9:00am
Very good thread Mr. Pip! Thank you.
Everything is clear for now.
Let's go with pattern.

This is my view for EUR/USD m15
Attached Image (click to enlarge)
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  • #460
  • Jan 2, 2013 9:09am Jan 2, 2013 9:09am
Quoting Ezzy
Yep, cant wait for the rules. But the rules will mean little if X to D is not properly defined, I just want to make sure I do these right.

Cheers
It is the most important part and the reason I'm so confused everyone is so into the patterns and I still am seeing ratios in the wrong place. I correct them and then later on still wrong this is fine I now the patterns are cool but please if you are not clear on the swings please ask or let me know or you will pay the altimate price.
If you fail to plan, you plan to fail.
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