Ratios & Harmonics: a Different Way to Trade | Page 42 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

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

Learning to trade with harmonics 11 replies

Time for Change - Pivots & Harmonics to freedom 67 replies

180 reasons to trade Harmonics and Patterns 13 replies

Group Trading based on Elliott wave and Harmonics 0 replies

Attachments: Ratios & Harmonics: a Different Way to Trade
Exit Attachments

Ratios & Harmonics: a Different Way to Trade

  • #821
  • Jan 8, 2013 7:35am Jan 8, 2013 7:35am
Quoting Mr. Pip
Hello Trader,

My deepest apologies, I ate something for lunch that tried to kill me. I was not able to make the video I promised you. I will make sure it gets done tomorrow. Post your questions and I will answer them tomorrow. Till then good trading!!
I hope you didn't get what I got a couple of days ago! It is brutal. I feel better now, but I can still feel the effects of it. What a bad cold and flu season this is turning into! Hope yours is just some bad food and you'll be back to yourself in a day or so. Take your time, and don't worry about us... Just get to feeling well. We'll manage around here until your good as new.
  • #822
  • Jan 8, 2013 8:00am Jan 8, 2013 8:00am
Hello Traders Feeling much better lunch yesterday was a killer. I will be getting to your questions and video today. I will also discuss our failed trade. I always look back at the trades that turn out to be losers to see if there was something I missed and there sure was. This was even pointed out by one or you and I will respond to this through his/her post.

We will be busy this morning lots to discuss.
If you fail to plan, you plan to fail.
  • #823
  • Jan 8, 2013 8:16am Jan 8, 2013 8:16am
  • #824
  • Jan 8, 2013 8:24am Jan 8, 2013 8:24am
Quoting CockyAmoeba
Greetings Mr. Pip

I never thanked you for replying to my earlier query. I greatly appreciate your endeavour to distil your knowledge and pass it on!! THank you for your time, patience and guidance! Very much appreciated.

I would like to ask that you look at the attached image of a gartley. my brain has been moulded by people and to look at arbitrary positioning for the patterns and I am struggling a bit with the XA leg. If what i understand from how you define teh main swing or XA leg the xa leg in my image is wrong? or is this a valid pattern?...
You are absolutely correct. I always say take a step back and make sure you did not miss something and in examining the trade from yesterday I did failed to do just that. This caused us to trade the wrong pattern but adds value to the statement "Always take a step back". The correct pattern was a Bat which was beautiful. Unfortunately I was not up to take advantage of this trade setup. This trade would be at BE with at lease 60 green pips. Oh well this will happen and on to the next.

This is a critical point in a traders career. How do you handle losses? 1 loss, 2 losses, 3 losses? This is where the demons come to destroy you and where traders become self destructive. How do I handle losses? I don't care as long as I followed my rules. I have tested my rules and in the long run have proven to be profitable. You have to learn to accept losses, its a part of the business. You will even string a few this is fine too. This is where a proper money management plan comes in and helps you absorb the drawdown to help you fight another day.

I will introduce two money management systems for you to look at. I use the smooth ration system. This is a critical tool to any trader and if you don't have a money management plan you are a few trades aways from blowing up an account. Please, please, please develop one or use one of these.

You will find them insightful! take the time to read them the information is priceless!
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 1_8_2013.jpg Size: 95 KB
Attached File(s)
File Type: pdf DCASTFX_fixed_ratio_money_management.pdf   49 KB | 3,823 downloads
File Type: pdf DCASTFX_smoothed_ratio_money_management.pdf   664 KB | 2,750 downloads
If you fail to plan, you plan to fail.
  • #825
  • Jan 8, 2013 8:34am Jan 8, 2013 8:34am
Quoting Ed777
Hi Mr. Pip

How do you manage the situation if on a 5 minute chart, the pattern is invalid because of close beyond 78.6....... but on 15 minute chart.... the pattern is valid because it was only wick that went beyond 78.6 but candle actually closed closed much lower?

Thanks

Ed
The higher timeframe trumps the smaller one. The way to avoid this is by deciding what is your trading timeframe. Bouncing back and forth will make you go crazy. Once you have decided to let's say trade the 15M then you should only drop down to pin point entry. If you identified your swings properly you will be able to see larger patterns that might be forming. Price will guide you but your particular situation should not happen often or if the timeframes you were looking at were too close together. Post a charge and we will discuss.
If you fail to plan, you plan to fail.
  • #826
  • Jan 8, 2013 8:39am Jan 8, 2013 8:39am
planning
http://www.forexfactory.com/attachme...1&d=1357630817

now ? time to make decision ...execute the plan or not ....

current chart : not attached.
not euphoria follower
  • #827
  • Jan 8, 2013 8:44am Jan 8, 2013 8:44am
Quoting HelloOz
Hi Mr Pip,

my first post here,
what did you have for lunch???
get well soon..
I was getting the oil changed in my wife's car and decided to have a couple of hot dogs, boy was that the wrong thing to do. Never made it back to the office.
If you fail to plan, you plan to fail.
  • #828
  • Jan 8, 2013 8:46am Jan 8, 2013 8:46am
Quoting skykiller89
hi guys ,....i new members here.......nice to meet you all..

...my first post here,

Mr. Pip please get well soon......
Welcome hope my thread helps you and thanks!
If you fail to plan, you plan to fail.
  • #829
  • Jan 8, 2013 8:55am Jan 8, 2013 8:55am
Quoting LuisPrinc
Hey! What about your trade Mr. Pip on EurUsd that you made last night already taken out by -20 pips. Unfortunately I was in the same trade.
Sorry to here that. It's a loss no big deal. This happens incase you didn't know but don't worry we will have winners too. Lets look at this from this point of view and perhaps will make you not care so much about some losses.

If your typically risking say around 20 pips to make 40 just to keep the math simple and you have 3 losses in a row you are at -60. Now you win the next 2 and you are up +20.

So to recap we made 5 trades all together lost 3 won 2 and we made 20 pips. Don't dwell on them they will happen.
If you fail to plan, you plan to fail.
  • #830
  • Jan 8, 2013 9:00am Jan 8, 2013 9:00am
Quoting Damien1881
Don't look at individual trades, No one wins them all , treat this like a business and expect to have losses.

If you fail to plan, you plan to fail.
  • #831
  • Jan 8, 2013 9:04am Jan 8, 2013 9:04am
Quoting well0143
Can't post my chart cause I'm out but I think if we re-look at that chart on the 1 hour we have seen a D position on a bearish pattern and that D position was a big consolidation position PRZ can't see it's significance on my phone can any one shed some light on this PRZ position and why this spot is significant

There has also been a breakout within the past 5 mins going short interesting I think this is what mr pip was interested in
Not identifying the proper XA leg had us looking at the wrong pattern. I didn't take that step back to see if I missed anything. Even experienced traders screw up. It's humbling.
If you fail to plan, you plan to fail.
  • #832
  • Jan 8, 2013 9:05am Jan 8, 2013 9:05am
Mr PIP
Am I am looking for aggressive ABCD
aggressive meaning retrace was 38.2 which makes it most probably TP 1.618 at 3040
According what I have been reading by Larry P 38.2 retrace generally creates more aggressive extention

5min Euro
Attached Image (click to enlarge)
Click to Enlarge Name: eu.gif Size: 35 KB
In trading, you have to be defensive and aggressive at the same time
  • #833
  • Jan 8, 2013 9:06am Jan 8, 2013 9:06am
The correct pattern was a Bat which was beautiful. Unfortunately I was not up to take advantage of this trade setup. This trade would be at BE with at lease 60 green pips. Oh well this will happen and on to the next.




Ha Ha, I took it.

One trade I never would have taken before. thank you very much Mr. Pip.
Attached Image (click to enlarge)
Click to Enlarge Name: bat 60 min.jpg Size: 120 KB
  • #834
  • Jan 8, 2013 9:11am Jan 8, 2013 9:11am
Quoting Mr. Pip
Not identifying the proper XA leg had us looking at the wrong pattern. I didn't take that step back to see if I missed anything. Even experienced traders screw up. It's humbling.
Good morning Mr. Pip,

About the trade yesterday and where you place the XA this morning. I'm wondering how you determined that spot? I thought that you were said to look for a clear leg where there is no higher high or lower low. Where you placed the start of the leg, there is clearly more to the upside. My simple mind would say to look at the top for the X start point. What am I missing here? Thanks...
Attached Image (click to enlarge)
Click to Enlarge Name: chart.JPG Size: 163 KB
  • #835
  • Jan 8, 2013 9:13am Jan 8, 2013 9:13am
Can someone give me guidance here please? I'm a beginner to Harmonics and appreciate all brothers and sisters help here.
Should I be seeing Bat_A or Bat_B? Or is it the same or different?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Bat_A.jpg Size: 238 KB
Click to Enlarge Name: Bat_B.jpg Size: 228 KB
  • #836
  • Jan 8, 2013 9:14am Jan 8, 2013 9:14am
Quoting Davit
Mr PIP
Am I am looking for aggressive ABCD
aggressive meaning retrace was 38.2 which makes it most probably TP 1.618 at 3040
According what I have been reading by Larry P 38.2 retrace generally creates more aggressive extention

5min Euro
Becareful price has put in a double bottom. Yes the expectation is greater supported by a shallow correction indicating strong bearish orderflow.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (5 Min) 1_8_2013.jpg Size: 84 KB
If you fail to plan, you plan to fail.
  • #837
  • Jan 8, 2013 9:16am Jan 8, 2013 9:16am
Quoting Borgvall
The correct pattern was a Bat which was beautiful. Unfortunately I was not up to take advantage of this trade setup. This trade would be at BE with at lease 60 green pips. Oh well this will happen and on to the next.




Ha Ha, I took it.

One trade I never would have taken before. thank you very much Mr. Pip.
You are very welcome I'm glad it worked out for one of us LOL!
If you fail to plan, you plan to fail.
  • #838
  • Jan 8, 2013 9:16am Jan 8, 2013 9:16am
Quoting Borgvall
The correct pattern was a Bat which was beautiful. Unfortunately I was not up to take advantage of this trade setup. This trade would be at BE with at lease 60 green pips. Oh well this will happen and on to the next.




Ha Ha, I took it.

One trade I never would have taken before. thank you very much Mr. Pip.
assuming the pattern is correct and it completed.What made you take a short? What does bat completion have anything to do with your short.Price could of continued up.
I just want to "hear" your thought process.
In trading, you have to be defensive and aggressive at the same time
  • #839
  • Jan 8, 2013 9:20am Jan 8, 2013 9:20am
Quoting Mr. Pip
Becareful price has put in a double bottom. Yes the expectation is greater supported by a shallow correction indicating strong bearish orderflow.
what you mean is wait and confirm if price bounces right back or continues down.
I am not trading just trying to learn your style of trading and thinking process.I won today +25pips on UCAD so my daily TP is hit.
In trading, you have to be defensive and aggressive at the same time
  • #840
  • Jan 8, 2013 9:50am Jan 8, 2013 9:50am
Quoting Nate04
Good morning Mr. Pip,

About the trade yesterday and where you place the XA this morning. I'm wondering how you determined that spot? I thought that you were said to look for a clear leg where there is no higher high or lower low. Where you placed the start of the leg, there is clearly more to the upside. My simple mind would say to look at the top for the X start point. What am I missing here? Thanks...
There is no doubt this type of price action make things a bit more challenging. There doesn't have to be an all time high and an all time low as you can keep looking back to find more. I have mentioned the most relevant to price. Ideally this swing would jump out at you and tell you here I am and sometimes it does that and sometime we have to identify it. We achieve this with confluence and pattern validation. Look at the chart and let me know if you understand or need further explanation. Good question.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (60 Min) 1_8_2013.jpg Size: 112 KB
If you fail to plan, you plan to fail.
11 traders viewing now