Ratios & Harmonics: a Different Way to Trade

got you time frame, same pattern is on them swell

time frame

First of all, many thanks Mr Pip, I just watched the video and must say that it answers a lot of questions I had all in one video.
Now, time to practice!!!

The attached chart is GBPCHF daily. I have marked ABCD and when price is at C, the overall trend or the trend of the time frame I trade is still up. We don't know yet if price will break point B downward. After the break, we can confirm that the trend has changed due to LH-LL sequence. Based on Mr. Pip's rules, we can identify PRZ at point D (the blue rectangle on the chart) pretty accurately by using confluences and then start trading ABCD pattern.

This is how I do it. Take long at D, target 61.8 and exit all. Because the trend is down, now we can start taking aggressive C trades comfortably. On second chart, you can take aggressive C trade and hold it all the way till D. Trend is still down, therefore, I am exiting half of the position at D and holding the other half and take long at D again (of course, your broker should allow both long and short positions at the same time or you can use two different accounts). After exiting the whole long position at 61.8 target (or C), take another aggressive C short trade at C and so on (third chart). By doing this, while you are trading fairly accurate ABCD pattern as explained by Mr Pip, you are also accumulating positions in trend direction by taking aggressive C trades and exiting half of them.

Catching a couple of such major moves per currency will give you more than enough pips.

Hope this helps,

ps. sorry Mr Pip if this is a distraction from your teachings.

Regards,
Blackeagle

Is this correct???

I dont think it is correct
Your point d must not equal to b

Btw did you take my advice and tp at 514ish?

I am really good at picking out invalid patterns ...

Is there any valid pattern you can find in the first post? Up to now I have just skimmed over the pattern guide to have more time to looked into main and dominant swings and money management. Point C retraced to far to invalidate any pattern?
I would have taken an aggressive C(B) sell as soon as the 61.8 % and the structure was taken out. BE trade.

2nd chart. Aggressive sell would have been a winner but and after the price spiked through the prz it lost momentum. Would you have taken a long there or do we have to be cautious when such a spike appears?

Mr. Pip where would be good tp for this abcd trade ?

[quote=iqyu5an;6348797]Mr. Pip,

1) what the biggest TF that u ever used ?
2) if u could predict where the point D, do u make pending order ? or execute the order manually ?
quote]

Hello,


1) what the biggest TF that u ever used ?

I use to trade the 1H using the 5M to pin point entries. The highest timeframe ever used was the 4H .


2) if u could predict where the point D, do u make pending order ? or execute the order manually ?

I will set pending orders only if I'm not going to be at my PC. These orders have to have to show greater confluence than just a pattern completion. I have a scoring system which I will introduce with the next pattern we will discuss. I did not introduce this with the first pattern because that's where I wanted the focus. I seldom use pending orders anymore because I trade the lower timeframes and only take signals during my hours of operation.


3) once u're in prz ... did u ever see the PA tend to re test prev R/S before going to your target ?

Price action is the most important aspect of the PRZ. Mainly rejection and harmonics of the lower timeframe. The smaller swings will provide confluence as well. Confluence of ratios and structure is in my opinion the most powerful and empowering ways to trade.

How did you come up with that PRZ?
There's no pattern that qualifies IMHO, but could of been AB=CD which would put PRZ lower than what you had.

Label your ABCD's because I don't see an ABCD there at all. Also your fibs are draw backwards on that swing.

No not too many hot dogs good job. Order flow supports this also in tune with a larger pattern working on completing a Gartley you can see it better on the 1H.

Forgot pic.
If you trade that as AB=CD then your TP is At fib 38 of AD leg you move to BE with TP at 61.8 of AD

Thanks Bary. That is the trade.

Good thinking but lets manage the trade. The ABCD has a high probability. We already know price should finds obstacles on the way up. So when the chart tightens up, manage you stop aggressively and give your trade a chance to play itself out. Give the market enough breathing room. Lock in some profit after all you should have a risk free trade.

Can you see how accurately harmonics can identify tops?

Congrats the 61 was hit I hope you took profit that trade gave a possible 87 pips from where you entered let us know how you did.

If price gets to the PRZ. I probably would. I would first re examine the facts prior to entry. Also the lines you project are not so important what is is the distance covered. Later on perhaps we can get into some price action analysis where we can look at peak and valley and pitch and thrust analysis which will give you an insight on who is gaining and losing power. This is very powerful stuff but one step at a time. Can't throw everything at you at once your head will explode.