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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

  • #681
  • Jan 5, 2013 10:59pm Jan 5, 2013 10:59pm
Quoting max pain
The swing candle can reach 78.6 too but the candle close has to be below it, within the 61.8%-78.6 zone. The candle cannot close beyond 78.6 for ABCD setup.

Mr.Pip do correct me if I am wrong

ABCD Validation Rules:
1) Candle close/touch/pierce 61.8% zone
2) Candle touches 78.6% but closes in the 61.8% zone

AB=CD Validation Rules:
1) Candle closes below or above 61.8% zone.
The video will clear this up I'll put it out Monday afternoon after my session.
If you fail to plan, you plan to fail.
  • #682
  • Jan 5, 2013 11:03pm Jan 5, 2013 11:03pm
Okay Traders I am caught up and I see we are making progress. I see there are still some areas of confusion which I will clear up in a video. I think this will be a much more efficient way to handle this. Good night and I'll speak to you all tomorrow evening.
If you fail to plan, you plan to fail.
  • #683
  • Jan 6, 2013 12:47am Jan 6, 2013 12:47am
Quoting Mr. Pip
It has been mentioned and eluted to that how often do these patterns occur and if it is missed one could look to a different time frame. As I mentioned in the beginning, harmonics have no boundaries they apply to any timeframe or instrument. The question is really what are you comfortable with? How busy do you want to be and how much chart time do you have as a trader?


[font=Calibri][size=3]You have to address this early in your career. What are your hours of operation? Then you can identify a timeframe...
Out of curiosity Mr Pip if you had only two hours a day what time frame would you trade, I'm a uni student and Im on holidays at the moment so i have plenty of time on my hands i spend most of the day watching the 1 hour and looking for entries on the 5 min
  • #684
  • Jan 6, 2013 1:34am Jan 6, 2013 1:34am
Quoting iqyu5an
ratio is just a ratio ...
history is just a history
timing is just a time

let's combine them and having fun on it

Since you put up the EUR/USD-D1 chart, this is how I see the structures for D1 for now.
Some combinations for fun.


Chart 1 - Bear Butterfly

Chart 2 - Bear Rectangle ABCDE

Chart 3 - Possible Bearish-ABC Short. If C? does goes well above A, then need to re-look at structure.

Attached Image (click to enlarge)
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Attached Image (click to enlarge)
Click to Enlarge Name: 2013-01-04_EURUSD_D1_Chart2_BearRectangleABCDE.png Size: 32 KB


Attached Image (click to enlarge)
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  • #685
  • Jan 6, 2013 3:00am Jan 6, 2013 3:00am
Quoting Mr. Pip
Here you go hope it helps.

http://www.youtube.com/watch?v=fP8jQw6ZGjI&feature=player_detailpage
MR PIP these you tube videos you do are amazing, hopefully one day through learning from you i can repay you in some way the amount i learnt in just these two 8min you tube videos is extradonary
  • #686
  • Jan 6, 2013 3:01am Jan 6, 2013 3:01am
Quoting Mr. Pip
Get in the habit of taking a step back to see if you missed something. Could be a Gartley or an AB=CD time will tell but failing to take a step back could have you tading the wrong setup.

Well said Mr. Pip. As far as PA till now & my experience with charts its more likely to become Gartley than AB=CD, but you never know when I can be absolutely wrong.
  • #687
  • Jan 6, 2013 3:47am Jan 6, 2013 3:47am
Thank you Mr. Pip.
Now I study!
See if I can keep up!


Quoting Mr. Pip
Get in the habit of taking a step back to see if you missed something. Could be a Gartley or an AB=CD time will tell but failing to take a step back could have you tading the wrong setup.
  • #688
  • Edited 4:00am Jan 6, 2013 3:49am | Edited 4:00am
Hi, I have a chart here where I am looking at a couple of options, ab=cd, and gartley (I think), comments and thoughts are appreciated. NZL/USD.

Look forward to the next video from Mr Pip to clear up a few things.
Attached Image (click to enlarge)
Click to Enlarge Name: nu.gif Size: 20 KB
What you do is a reflection of you....what I do is a reflection of me.
  • #689
  • Edited 4:44am Jan 6, 2013 3:55am | Edited 4:44am
http://www.trade-forex-harmonic-patt...ley-pic500.gif

C = 0.382-0.886 of AB

http://www.harmonictrader.com/abcdbullre.jpg
http://www.harmonictrader.com/abcdbearre.jpg

C = 0.61 - 0.786 of AB

so .. the point is C ratio. they have same main rule "to get D point.... don't break A point" my imho. OR in elliot wave... we could say wave 2 must not break low of wave 1 to get wave 3

Quoting alex4xes
Well said Mr. Pip. As far as PA till now & my experience with charts its more likely to become Gartley than AB=CD, but you never know when I can be absolutely wrong.
not euphoria follower
  • #690
  • Jan 6, 2013 4:01am Jan 6, 2013 4:01am
how did your daily or weekly say in kiwi ?


Quoting Ezzy
Hi, I have a chart here where I am looking at a couple of options, ab=cd, and gartley (I think), comments and thoughts are appreciated. NZL/USD.

Look forward to the next video from Mr Pip to clear up a few things.
not euphoria follower
  • #691
  • Jan 6, 2013 4:13am Jan 6, 2013 4:13am
Quoting iqyu5an
how did your daily or weekly say in kiwi ?
We look to be at point of resistance. Cant see either a bearish or bullish movement.
What you do is a reflection of you....what I do is a reflection of me.
  • #692
  • Edited 4:33am Jan 6, 2013 4:20am | Edited 4:33am
imho : she is trying to re test prev R.
1) the daily closed far away above 50 of fridays's hi low and the weekly closed above 50 of last week hi low too
2) overall...weekly pivot is providing good support to make kiwi stay above daily/montly pivot.

may be she is trying to make double top ( if there is any rejection later )

just imho



Quoting Ezzy
We look to be at point of resistance. Cant see either a bearish or bullish movement.
Attached Image (click to enlarge)
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not euphoria follower
  • #693
  • Jan 6, 2013 5:45am Jan 6, 2013 5:45am
Quoting Ezzy
Hi, I have a chart here where I am looking at a couple of options, ab=cd, and gartley (I think), comments and thoughts are appreciated. NZL/USD.

Look forward to the next video from Mr Pip to clear up a few things.
I had the same pattern on my chart until the start of the last retracement around 0.8213 which could potentially be the C to D leg of both an ABCD and Gartley. Refer back to post 629
  • #694
  • Jan 6, 2013 7:21am Jan 6, 2013 7:21am
Nice ABCD pattern.
Good for short at C, but bad for long at D!
Probably this is not good setup because HH before pattern.
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  • #695
  • Jan 6, 2013 7:37am Jan 6, 2013 7:37am
This is better.
No HH before.
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  • #696
  • Jan 6, 2013 8:50am Jan 6, 2013 8:50am
Hey Guys ,

What is your opinion about this setup ??

TP :1.6050
SL : 1.5795
Attached Image (click to enlarge)
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  • #697
  • Jan 6, 2013 9:41am Jan 6, 2013 9:41am
Quoting Mr. Pip
I think my chart is self explanatory if you need let me know and I'll provide more detail. Harmonics gave us the top of this market with in 3 pips!
Hi Mr Pip, I have spent the last 4hrs reading through your thread- Great work !!!!...I like the way that you have presented your method on this thread and vidz they are very easy to understand and follow. Looking to learn more from you. I am now a subscriber.

I have a question from post # 616 you have drawn in the harmonic as per the blue lines, shouldn't the lines be drawn as per the orange lines which is from swing low to swing high?

When you trade the ABCD pattern, do you have a rule on the minimum number of pips leg AB, BC or CD should be?
Do you have a minimum R:R per trade? The reason for the question is because towards the middle of the chart there is an ABCD which did not quiet complete, but if it did, correct me if i'm wrong the trade plan would be as follows:

SL : 1.2976
Entry : 1.2995
Risk : 19 pips
Target 1 : 1.3007 (12 pips)
Target 2 : 1.3015 (20 pips)

In terms of pips you R:R would be roughly 1:1, however in terms of $$$ it will be under 1:1 because you are taking the first target at 382 fib retracement. Logically it wouldnt be idea to enter trades with risk > reward. Would appreciate if you are able to provide insight on this.
  • #698
  • Jan 6, 2013 9:42am Jan 6, 2013 9:42am
Whoops. Chart attached.
Attached Image (click to enlarge)
Click to Enlarge Name: EU.PNG Size: 105 KB
  • #699
  • Jan 6, 2013 9:52am Jan 6, 2013 9:52am
Quoting Mr. Pip
Okay found it yes the look at my chart the ABCD you identified was correct but I do not understand what you maean by the 161. There were three equal harmonic move with the first drive failing to hit the 61% making it an AB=CD and the second drive achieving the 61% and making it an ABCD.
Thanks! By the 161.8 line, i meant the placement of the stop. The 161.8 extension of AB was at 1.30164. 10 pips below this would be 1.30064.

The take profit is at the 61.8% of AD. This is at 1.3027. The entry is at the 127.2 extension of AB, which is 1.30195.

Entry Price: 1.30195
SL: 1.30064
TP: 1.3027.

So, we are risking 13 pips for a profit of 7.5 pips, for a rather bad RR ratio.
  • #700
  • Jan 6, 2013 9:52am Jan 6, 2013 9:52am
Quoting bond2a
Hey Guys ,

What is your opinion about this setup ??

TP :1.6050
SL : 1.5795
Please take a look at what the POST 1 front page
Quoting Mr. Pip
Hello Traders,


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.


Mr. Pip
Please NO indicators. If you put indicators, you might not be able to understand the ACTUAL PA within Ratios & Harmonic Confluence.


Twinsummit
Trade what you SEE, don't trade what you FEEL. Be Smart! - (Webadoi)
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