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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

  • #721
  • Jan 6, 2013 7:46pm Jan 6, 2013 7:46pm
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.
This is what I have and the possibilites, BC are the critical high and low that will determine what happens.
Attached Image (click to enlarge)
Click to Enlarge Name: $NZDUSD (240 Min) 1_6_2013.jpg Size: 109 KB
If you fail to plan, you plan to fail.
  • #722
  • Jan 6, 2013 7:47pm Jan 6, 2013 7:47pm
Greetings Mr Pip

I would just like to know what your thoughts are on this trade that was recommended on another forum? Is the XA leg (Main swing) valid according to you?
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled.png Size: 43 KB
  • #723
  • Jan 6, 2013 7:52pm Jan 6, 2013 7:52pm
Quoting Mr. Pip
Well traders I have caught up with all the posts and look forward to sharing more with you all. I am surprised that I only had a couple of questions about the PRZ and entries. Do you feel good about price action in the PRZ or would like to see some more examples? Also how are we doing with drawing our fibs?

This is important folks so ask away. The first pattern we will be discusssing tomorrow afternoon is the ABCD pattern. This the most common and one of my favorites particularly on the lower timeframes. I'll hang out for a few more minutes...
Excuse me MR Pip im a little bit behind trying to catch up as quickly as possible, with the PRZ do we always try to take in other areas of support or resistance e.g. if I'm trading a 15min chart would i look back as far a 1 week or only concentrate on previous day high and lows: I feel i do understand where these PRZ areas are just need another confirmation cheers mate
  • #724
  • Jan 6, 2013 7:56pm Jan 6, 2013 7:56pm
Quoting Mic_FX
Nice ABCD pattern.
Good for short at C, but bad for long at D!
Probably this is not good setup because HH before pattern.
Price behaved exactly as it should had. As you see in your posted chart price had an immediate reaction to the PRZ. Look at the strength going into the PRZ and then look at what happens price stalls and starts to consolidate and move sideways. This is the exhaustion of an oversold market. Price keep moving sideways because the bulls do not take advantage of the bears. So whats happens next? The bears build up strength and continue to push price down. I've mentioned in earlier posts that Price does notlike the PRZ and if price hangs out there for an extended period of time is is a strong indication of a PRZ failure.
If you fail to plan, you plan to fail.
  • #725
  • Jan 6, 2013 8:06pm Jan 6, 2013 8:06pm
Quoting Mr. Pip
Well it's good to have you here and I hope improve your trading soon. That is funny this is my set up in my office. My setup at home is almost the same but my wife and little one keeps me from sitting there to trade so I use it to teach LOL.
AL Pacino painting perhaps?
  • #726
  • Jan 6, 2013 8:24pm Jan 6, 2013 8:24pm
Quoting bond2a
Hey Guys ,

What is your opinion about this setup ??

TP :1.6050
SL : 1.5795
I'm sorry and no disrespect but I don't know what I'm looking at? You have a lot of things identified and a pattern I do not know or trade. The chart I am providing you shows you per my rules and harmonics valid patterns and amazing trading opportunites. I'm affraid price has already left the PRZ and taking a trade here does not fit my trading profile.
Attached Image (click to enlarge)
Click to Enlarge Name: $GBPCAD (240 Min) 1_7_2013.jpg Size: 126 KB
If you fail to plan, you plan to fail.
  • #727
  • Jan 6, 2013 8:54pm Jan 6, 2013 8:54pm
Quoting liemo
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...
Great questions and thank you for subscribing I hope what I put out here benefits you greatly.

You asked:

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?

The blue line is the first swing high that corrected to the 38% identifying it as the main swing and the one I used to project some harmonic expectations of an AB=CD. The following swings was part of a consolidation procees further confirming a very bullish sentiment as they all founf support at the same 38%

When you trade the ABCD pattern, do you have a rule on the minimum number of pips leg AB, BC or CD should be?

Yes I do and the rules I posted reflect this. There is only a requirement on the AB leg as this is the foundation of the pattern. The rules I posted are for the 1H timeframe and if you are looking to trading this pattern on a smaller timeframe you would have to make the proper correction to this rule. Ask yourself the following: If I am trading the 5M timeframe what is the average value of the swings. This value will change depending on the timeframe you are trading on. If the average value per swing is 15 pips then AB has to be at least 15 pip before I will consider an ABCD. This will maintain proper R/W everytime.

Do you have a minimum R:R per trade?

Yes I do, if a trade does not offer at leasta 1:1 I will not take the 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 the trade management rules target 1 is not an area to take profit although you can chose to move stop to breakeven and close half of your position if you want to. You can make these rules your own but taking profit of any kind at the 38 will hardly ever provide an acceptable R/W ratio and is mainly a means to protect your capital and remove risk.

I hope I was able to answer your questions. Let me know if I failed you answer your question. I want to make sure everyone understands clearly.
If you fail to plan, you plan to fail.
  • #728
  • Jan 6, 2013 9:11pm Jan 6, 2013 9:11pm
Quoting Starry
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.
I failed to mention that the ROE I attached are set for the 1H timeframe you have to look at your chosen timeframe and look at what the tendencies are refer to my previous post which talks about this. The chart you asked about was a 1M chart surely 10 pips below the 161 is extreme. You may want to look at 2 pips below the 161 to start and see if this works well. Less than 1:1 do not take the trade.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (1 Min) 1_3_2013.jpg Size: 75 KB
If you fail to plan, you plan to fail.
  • #729
  • Jan 6, 2013 9:35pm Jan 6, 2013 9:35pm
Hmm am i getting a slight grip of this or am I way out??

[ATTACH][ATTACH]
[/ATTACH][/ATTACH]
Attached Image(s) (click to enlarge)
Click to Enlarge Name: JY (-).png Size: 30 KB
Click to Enlarge Name: PY (-).png Size: 32 KB
  • #730
  • Jan 6, 2013 9:41pm Jan 6, 2013 9:41pm
Quoting just trading
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...

WOW!!!! Great questions. I think I answered these bestin the chart below if I did not let me know and I'll try again.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (233 Tick) 1_4_2013.jpg Size: 134 KB
If you fail to plan, you plan to fail.
  • #731
  • Jan 6, 2013 9:44pm Jan 6, 2013 9:44pm
Quoting zola320
Mr. Pip is the pattern valid ?

Thank you!

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

Only a poss ABCD
If you fail to plan, you plan to fail.
  • #732
  • Jan 6, 2013 9:47pm Jan 6, 2013 9:47pm
Quoting Rexz
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
Yes this could very well happen and does more often then you think but the agrgressive C rules for trade management has you covered. I have taken this into account and that is why we move our stop to breakeven at the 38 of BC just for this reason.
If you fail to plan, you plan to fail.
  • #733
  • Jan 6, 2013 9:51pm Jan 6, 2013 9:51pm
Quoting ozziedave
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.
I do not believe to be in an uptrend at the moment what you identified as B was what killed the uptrend argument.
If you fail to plan, you plan to fail.
  • #734
  • Jan 6, 2013 9:52pm Jan 6, 2013 9:52pm
Quoting well0143
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
I'm making a video tomorrow that will help out with this.
If you fail to plan, you plan to fail.
  • #735
  • Jan 6, 2013 9:54pm Jan 6, 2013 9:54pm
Quoting Mr. Pip
I'm making a video tomorrow that will help out with this.
LIKE!!!!!!!
  • #736
  • Jan 6, 2013 9:57pm Jan 6, 2013 9:57pm
Quoting well0143
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?
Attachment
AB=CD
Attached Image (click to enlarge)
Click to Enlarge Name: $GBPJPY (15 Min) 1_6_2013.jpg Size: 89 KB
If you fail to plan, you plan to fail.
  • #737
  • Jan 6, 2013 10:00pm Jan 6, 2013 10:00pm
Quoting kin89
a gartly pattern on gbp/jpy 1h time aggressive c sell http://i.imgur.com/9xNOq.png
Not a Gartley per my rules.
If you fail to plan, you plan to fail.
  • #738
  • Jan 6, 2013 10:01pm Jan 6, 2013 10:01pm
hi Mr. Pip

how many trade u got per week using your rule(s) ?

tq
not euphoria follower
  • #739
  • Jan 6, 2013 10:02pm Jan 6, 2013 10:02pm
still waiting.. even she is dancing right on daily pivot
Quoting iqyu5an
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
not euphoria follower
  • #740
  • Jan 6, 2013 10:09pm Jan 6, 2013 10:09pm
Quoting CockyAmoeba
Greetings Mr Pip

I would just like to know what your thoughts are on this trade that was recommended on another forum? Is the XA leg (Main swing) valid according to you?
XA is in the wrong place.I see a possible long
Attached Image (click to enlarge)
Click to Enlarge Name: QO 02-13 (Daily) 1_9_2012 - 1_4_2013.jpg Size: 76 KB
If you fail to plan, you plan to fail.
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