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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

  • #841
  • Jan 8, 2013 9:52am Jan 8, 2013 9:52am
Quoting kedridder
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?

Bat B is the correct. Your interpretation of Bat A does not exist.
If you fail to plan, you plan to fail.
  • #842
  • Jan 8, 2013 10:01am Jan 8, 2013 10:01am
Quoting Mr. Pip
Bat B is the correct. Your interpretation of Bat A does not exist.
Thank you Mr Pip, but why do you say so? Can you advise me, so I know where my mistake is?
  • #843
  • Jan 8, 2013 10:04am Jan 8, 2013 10:04am
Hey, I'm finally able to see! I think?
AUD/USD 1M

Attached Image (click to enlarge)
Click to Enlarge Name: AUD.jpg Size: 84 KB
  • #844
  • Jan 8, 2013 10:12am Jan 8, 2013 10:12am
Quoting kedridder
Thank you Mr Pip, but why do you say so? Can you advise me, so I know where my mistake is?
Leg B has to retrace to the 50%. In bat A it did not so no bat pattern there.
Post 582 has attachment that will define the patterns
Barry
  • #845
  • Jan 8, 2013 10:28am Jan 8, 2013 10:28am
Quoting Bary
Leg B has to retrace to the 50%. In bat A it did not so no bat pattern there.
Post 582 has attachment that will define the patterns
Thank you very much Bary! Appreciate your help.
  • #846
  • Jan 8, 2013 10:38am Jan 8, 2013 10:38am
Quoting Davit
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.
Kind of, this would be a very agressive trade only because you would be trading into an already identified area of support comfirmed by a double bottom this increases your risk and lowers the probability of the trade in question.

I'm not saying it's a bad trade but when I say becarefull this means manage it aggressively. If I would have taken this trade this is how I would have managed my stop.

Supported by orderflow and a strong bearish bias confirmed by the 38% Fib holding after a few attacks entry would be here. Initial stop is not favorable but acceptable above the 61.8. Stop management would have to be aggressive as price action has already establish a retested area of support.

This is how I view the chart. I trade and analyze what I see. What I think is irrelevant has no place in the decision making process. This means you act on undisputable facts, no subjectivity or gut feelings.

Now back to the trade, You are looking to capitalize from an AB=CD this offers the same profit probability whether the correction went to the 50, 61.8 or the 78.6 because the expectation is a harmonic reproduction of the already established AB swing. The video I posted in the first page of the thread explains this for the new folks reading this. We are not trading the traditional ABCD pattern is price did not achieve a minimum 61.8.

I would draw a Fib from the low to the high of the corrective swing. Then I will use a conditional thought process as I usually do. These could be the rules used to trade such a set up but would have to be tested first of course.

If price reaches the 61.8 Fib of the the corrective swing then I will move stop to breakeven. This will protect you incase support holds and it's a market reversal this is considered target 1 which we achieve quickly in this case.

Now with risk removed we can enjoy a stress free trade as we have nothing to lose.

Initial RR = Risk 20 Reward 47 nice RR
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (5 Min) 1_8_2013.jpg Size: 99 KB
If you fail to plan, you plan to fail.
  • #847
  • Jan 8, 2013 10:45am Jan 8, 2013 10:45am
Quoting kedridder
Thank you Mr Pip, but why do you say so? Can you advise me, so I know where my mistake is?
This should help you can also download the pattern reference guide in the attachments section you will find it.


http://www.forexfactory.com/attachment.php?attachmentid=1106639&d=Dec 27, 2012 8:33pm
If you fail to plan, you plan to fail.
  • #848
  • Jan 8, 2013 10:50am Jan 8, 2013 10:50am
Quoting Mr. Pip
This should help you can also download the pattern reference guide in the attachments section you will find it.


http://www.forexfactory.com/attachment.php?attachmentid=1106639&d=Dec 27, 2012 8:33pm

Thank you very much, Mr Pip. I'll begin with the Bat/Gartley pattern first.
ABCD is much more difficult. Appreciate your help once again, cheers!
  • #849
  • Jan 8, 2013 11:28am Jan 8, 2013 11:28am
I don't know if this as been mentioned on this thread, but anyways, this is a little contribution for the MT4 users, though I guess it could be used on any platform.

Ever wanted to get both Fibonacci retracements and extensions at the same time? And to see prices and percentages you add "- %$" in the description field of each row.

All you need to do is to write these values (or the ones you feel confortable working with):

Level / Description
0 / 0.0 - %$
0.382 / 38.2 - %$
0.5 / 50.0 - %$
0.618 / 61.8 - %$
0.786 / 78.6 - %$
0.86 / 86.0 - %$
1 / 100.0 - %$
-0.18 / 118.0 - %$
-0.27 / 127.0 - %$
-0.382 / 138.2 - %$
-0.618 / 161.8 - %$
-1.618 / 261.8 - %$
-3.236 / 423.6 - %$

Now, every time you draw a fibonacci retracement you will get the extensions too.
Best time to plant a tree was 20 years ago, second best is now
  • #850
  • Jan 8, 2013 11:39am Jan 8, 2013 11:39am
this one ??

http://www.forexfactory.com/attachme...9&d=1357026807

and
http://www.forexfactory.com/attachme...1&d=1357630817

that's the result when we use %$
Quoting horuxito
I don't know if this as been mentioned on this thread, but anyways, this is a little contribution for the MT4 users, though I guess it could be used on any platform.

Ever wanted to get both Fibonacci retracements and extensions at the same time? And to see prices and percentages you add "- %$" in the description field of each row.

All you need to do is to write these values (or the ones you feel confortable working with):

Level / Description
0 / 0.0 - %$
0.382 / 38.2 - %$
0.5 / 50.0...
not euphoria follower
  • #851
  • Jan 8, 2013 11:41am Jan 8, 2013 11:41am
Hi Mr Pip

Many thanks for opening up a new world to many fellow traders. Very generous of you to take time for the benefit of others

Can't wait to trade when I have studied these patterns some more.

Hope you'll feel better soon.

Best wishes
  • #852
  • Jan 8, 2013 11:44am Jan 8, 2013 11:44am
Quoting iqyu5an
this one ??


that's the result when we use %$
Thank you iqyu5an. I'll take note to add those descriptions too, they are really useful.
Best time to plant a tree was 20 years ago, second best is now
  • #853
  • Jan 8, 2013 11:46am Jan 8, 2013 11:46am
make easier to see the level ...


Quoting horuxito
Thank you iqyu5an. I'll take note to add those descriptions too, they are really useful.
not euphoria follower
  • #854
  • Jan 8, 2013 11:54am Jan 8, 2013 11:54am
Quoting Floyd1
Hi Mr Pip

Many thanks for opening up a new world to many fellow traders. Very generous of you to take time for the benefit of others

Can't wait to trade when I have studied these patterns some more.

Hope you'll feel better soon.

Best wishes
Thanks
If you fail to plan, you plan to fail.
  • #855
  • Jan 8, 2013 11:57am Jan 8, 2013 11:57am
Quoting kedridder
Thank you very much, Mr Pip. I'll begin with the Bat/Gartley pattern first.
ABCD is much more difficult. Appreciate your help once again, cheers!

ABCD is the easiest and most occuring. I just made a video and is in the process of uploading. It will help I hope.
If you fail to plan, you plan to fail.
  • #856
  • Jan 8, 2013 12:00pm Jan 8, 2013 12:00pm
http://content.screencast.com/users/...01-08_1757.png

Was having a look around and found this. It seems I am able to find trades easier on the higher time frame than on the lower, however I do have enough time to trade the lower time frames so that is something I will have to look into. This seems a nice trade to me with a lot of harmonics and ratio confluence, of course in hindsight
  • #857
  • Jan 8, 2013 12:06pm Jan 8, 2013 12:06pm
Here is the video of the ABCD vs AB=CD.

Post questions and comments thanks.

http://www.youtube.com/watch?v=GrCdDmkJMuY&feature=player_detailpage
If you fail to plan, you plan to fail.
  • #858
  • Jan 8, 2013 12:07pm Jan 8, 2013 12:07pm
Quoting Rexz
http://content.screencast.com/users/...01-08_1757.png

Was having a look around and found this. It seems I am able to find trades easier on the higher time frame than on the lower, however I do have enough time to trade the lower time frames so that is something I will have to look into. This seems a nice trade to me with a lot of harmonics and ratio confluence, of course in hindsight
Keep looking you are training your eyes.
If you fail to plan, you plan to fail.
  • #859
  • Jan 8, 2013 12:32pm Jan 8, 2013 12:32pm
Great video Mr. Pip!
  • #860
  • Jan 8, 2013 2:18pm Jan 8, 2013 2:18pm
Thank you Mr. Pip for the nice video explanation
very instructive, Nice work



Quoting Mr. Pip
Here is the video of the ABCD vs AB=CD.

Post questions and comments thanks.

http://www.youtube.com/watch?v=GrCdDmkJMuY&feature=player_detailpage
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