Ratios & Harmonics: a Different Way to Trade

Thanks! Im learning alot on this thread You are a wonderful teacher!

Hi Mr Pip,

I've been following this thread with great interest from the start and would like to add my thanks to the growing list for the sharing of your knowledge and the patience you have for doing so.
I appreciate the rules based nature of what you are showing and how, properly applied, they can provide trade setups with a higher probability of success. Like any method of trading I realise that this will take and effort to learn and with experience it may yield results, clearly for yourself it does. I have also been thinking about what iqyu5uan said in an earlier post about one pattern leading into another. Whilst obviously that kind of analysis is at the advanced stage of harmonics I would like to hope that iqyu5uan may talk more about that in future.

I have some questions around the AB=CD from post #616.

However I've just read post #667 where you say you don't consider the AB=CD to be a pattern but 'We can develope some rules as a trade setup if you all would like at a later time.' Firstly this thread is moving quickly!! However I still feel your opinion on the following would be valuable in terms of defining the AB=CD as trend continuation setup.

A close reading of that chart shows, to me at least, some interesting aspects around price action and s/r levels, particulary around the completion of the AB and BC legs. Though specifically I am interested in your thoughts surrounding the retracement to point 1, the advance to point 2 and then the retracement to point 3. My undertanding is that the AB=CD would also be valid if price had moved from the completion of the AB leg to point 3, i.e along the purple line without the extremes of how it did actually move.

Does the fact that price showed a clear rejection at points 1 and 3, i.e hitting the 38.2 level twice, make this setup 'more' valid so-to-speak?

Also clearly at point 3 we could not know price would advance as it did, however does the confluence of the 38.2% retracement, points 1 and 3 and the s/r further to the left at the 38.2 level provide more confidence in the trade?

Or is it simply the case that a valid AB=CD, that didn't have the makings of an ABCD and should be treated as such and traded?

Mr Pip already mentioned that no indicator for this thread specially harmonic painting ones.We are trying to learn it ourselves not blindly assume indi's version which could be erronous and often they are.
This is rather challenging way to trade but I am confident once we "get" it everything will become second nature after many hundred practices.
I have real faith in harmonics.
Regards

concur

Mr. Pip is the pattern valid ?

Thank you!

http://img855.imageshack.us/img855/9080/64344713.png

I don't know if this has been asked but say we are watching price and we decide for an aggressive C Buy/Sell in what we think is just an ABCD pattern. Then the pattern turns out to be a Gartley. Is this possible? I guess we should be watching price on the agressive sell/buy for areas of respect which would indicate another pattern? Let me know what you think Mr. Pip

http://content.screencast.com/users/...01-06_2238.png


Just looking back a little...

I'm thinking we may have a potential Bullish Gartley pattern setting up on EU. We have an AB pull back between 61.8 and has stopped short of 78.6 fib. Looks like we're starting the BC leg. If it gets to the 61.8 fib of AB leg and turns south we may be looking at the CD leg. I know, there are alot of "what ifs" and I may be completely wrong. I'm just thinking we're in a decent up trend so I thought I'd look for possible continuation moves to the up side rather than reversal set ups. All feedback appreciated.

IMHO, if break 78% (AB), than ABCD.

interesting how vector calculus comes into play here there is a lot of mathematics in this type of analysis in regards to trading

Mr PIP i have been reading you posts from the beginning I'm still a little confused with the different patterns to look for and which ones trigger which, in this post if the bear swing did not break the previous low and had retracement to go swing long what would you consider doing. I think i better post the chart with comments

COULD someone please help me here quickly I'm not sure what this pattern might be called "if it is one at all" but this is what I'm seeing could this be correct?

In my eyes i do not know exactly where C is going to finish at the moment i am just watching which fibonacci ratios it behaves with if see bearish sell of i will use that as my entry like the one 2 bars ago

a gartly pattern on gbp/jpy 1h time aggressive c sell http://i.imgur.com/9xNOq.png

For me it's not a Gartley as the X to A retracement at B falls short of the 61.8 , just my rules.

I would look to trade a timeframe that provides me with the most signals per the system I like to trade. You could also test within the two hours you are available to trade how many signals you get on the H1 and how many you miss. Out of the ones that do occur during your two hour window what are the results or quality of signals.

This is the first step in any strategy development. You must first identify your hours of operaton and then start identifing visual occurances that have a tendency to repeat themselves. then identify on what timeframe this occurs most. Next you need to find a way to capture those occurances.

Thanks it's a pleasure!

waiting for long setup. start seeing bullish crab/butterfy ( in m15/30 ) around fridays's low or a bit above. at the moment just bullish bat

only jump after double bottom confirmed


( current chart not attached )

http://www.forexfactory.com/attachme...3&d=1357356602