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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

  • #1,021
  • Jan 10, 2013 3:54am Jan 10, 2013 3:54am
Quoting ozziedave
Good on ya...Well...Not sure if Mr Pip will approve. I believe we're supposed to wait until the pattern completes at "D" before attempting to trade. Couldn't resist taking a long position.
Yah lets see what the seasoned guys say, but also noted we're in the dip of a bullish rebound so I think we have done a good job on our anaylsis
  • #1,022
  • Jan 10, 2013 3:56am Jan 10, 2013 3:56am
PRZ

anything could happened there... that's why harmonic trader should control their lot if taking a trade within the PRZ

how to controll ? here it is ..

http://www.forexfactory.com/attachme...8&d=1357457251
not euphoria follower
  • #1,023
  • Jan 10, 2013 4:00am Jan 10, 2013 4:00am
Quoting HelloOz
i thought D would be 88.6 of X-A ?

Ideally for Gartley, D-point would be around that zone of 78.6% to 88.6% of X-A.

And from H4 price action there was NO clear Supply Zone around that 88.6% XA.

However, the other thing to measure is the harmonic of the AB-leg.
And in this case the 127% of AB seem better and also would be way above 88.6% XA-leg.
So you have to make a choice as the difference between these 2 points are too much, and the 127% is preferred as it is higher and closer to the Supply Zone of point-X.

And today AUD and CNY Red news made AUD jumped higher that happened to be way above 88.6% XA-leg.

If looking for a reversal, better chance to look at like a Butterfly pattern for a reversal near point-X(eg. 100% XA-leg 1.0575) or even above point-X(eg. 127% XA-leg 1.0650).
If A/U goes well above 1.0575, then be looking around 1.0650 zone.

Hope this explains.
  • #1,024
  • Edited 4:26am Jan 10, 2013 4:02am | Edited 4:26am
0.786 is max for gartley
0.886 is max for bat


Gartley
http://www.trade-forex-harmonic-patt...ley-pic500.gif


BAT
http://www.trade-forex-harmonic-patt...bat-pic500.jpg

Quoting foxybunny
Ideally for Gartley, D-point would be around that zone of 78.6% to 88.6% of X-A.

And from H4 price action there was NO clear Supply Zone around that 88.6% XA.

However, the other thing to measure is the harmonic of the AB-leg.
And in this case the 127% of AB seem better and also would be way above 88.6% XA-leg.
So you have to make a choice as the difference between these 2 points are too much, and the 127% is preferred as it is higher and closer to the Supply Zone of point-X.

And today AUD and CNY Red news made AUD jumped higher...
not euphoria follower
  • #1,025
  • Jan 10, 2013 4:26am Jan 10, 2013 4:26am
Quoting foxybunny
Blackeagle, agree in general with your three points.

For point 2- trade what you see, not what you think it'll be.
This is much harder, you think you see it, but sometimes it is not what you see, it is the opposite instead.
Everyone see the same chart/price but view it differently, that makes a market of buyers and sellers.
This applies to Ratios & Harmonics as well.
It is much harder, agree, but important thing is to see without a bias. If you have a bias or put your emotions into the equation
just before taking the trade, that's where trouble starts. Thanks for the comment.

Regards,
Blackeagle
  • #1,026
  • Jan 10, 2013 4:30am Jan 10, 2013 4:30am
Quoting iqyu5an
0.786 is max for gartley
0.886 is maz for bat


Gartley
http://www.trade-forex-harmonic-patt...ley-pic500.gif


BAT
http://www.trade-forex-harmonic-patt...bat-pic500.jpg

iqyu5an, yes those pictures are the rules based on the those patterns by some persons.

I prefer my own observations and also from Larry Pesavento's guidelines that is a bit different to the rules above.
And 100% XA-leg retracement to a Double-Top can still be valid and a possible good reversal sign.

By the way, I just did a FF search on the Hurst Exponent you mentioned as looking for the actual MT4 source code but did not find it.
Prefer source code than execution file.
Would you have that source code and post it?
  • #1,027
  • Jan 10, 2013 5:00am Jan 10, 2013 5:00am
an ABCD may form with some help of the ECB today. But it is also a place for agresive C sell at the moment, witch I skip this time
Attached Image (click to enlarge)
Click to Enlarge Name: 2.gif Size: 21 KB
  • #1,028
  • Jan 10, 2013 5:09am Jan 10, 2013 5:09am
Ok , this is my practice time. Again, comments and positive feedback are welcome

This looks to me like bearish Gartley (If price turns at approx this point).
Attached Image (click to enlarge)
Click to Enlarge Name: gu.gif Size: 17 KB
What you do is a reflection of you....what I do is a reflection of me.
  • #1,029
  • Jan 10, 2013 5:18am Jan 10, 2013 5:18am
Please excuse my naivety.

Is it just me, or do legs AB = CD on a Gartley pattern?
What you do is a reflection of you....what I do is a reflection of me.
  • #1,030
  • Jan 10, 2013 5:29am Jan 10, 2013 5:29am
It maybe an invalid Gartley or Bat, I've been trading Bats that after entry have formed double tops entering at 88.6 with a stop above X and been doing ok. This one I decided to wait for the ABCD completion at 127 ext which gives me 20 pip stop for a 140 potential profit back to the 61.8, So , as far as the news goes in China or anywhere else , I'm taking these trades.
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-01-10_2216.jpg Size: 101 KB
  • #1,031
  • Jan 10, 2013 5:39am Jan 10, 2013 5:39am
Quoting Ezzy
Please excuse my naivety.

Is it just me, or do legs AB = CD on a Gartley pattern?
Yes the perfect pattern does with a 61.8 retracement making it an ABCD
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-01-10_2235.png Size: 29 KB
  • #1,032
  • Jan 10, 2013 5:51am Jan 10, 2013 5:51am
Sorry , here it is with the X leg - as measured as well as I can the D completion actually exceeds 78.6 a little bit if each leg were to turn on a dime at the 61.8 , I guess this is where back testing and fine tuning rules of engagement come into it.
Attached Image
  • #1,033
  • Jan 10, 2013 6:57am Jan 10, 2013 6:57am
Here is my first post with a screen shot. Is this a good setup for the AU ABCD pattern?
Attached Image (click to enlarge)
Click to Enlarge Name: au.jpg Size: 115 KB
  • #1,034
  • Jan 10, 2013 7:37am Jan 10, 2013 7:37am
Here is the 4hr Nzdusd chart. The B leg has come up past the 61.8% but short of the 78.6%. Not sure if this is a valid Gartley or has it possibly turned into a butterfly?
Attached Image (click to enlarge)
Click to Enlarge Name: nz 4hr gartley or bautterfly example 11.1.13.jpg Size: 102 KB
  • #1,035
  • Jan 10, 2013 8:21am Jan 10, 2013 8:21am
Well Before I get to the many posts on the thread I wanted to discuss the Holy Grail.

Trading is much many more components and most traders especially new ones think it does. There are three main components each of which are broken down farther. We are not going to get into these subcomponents but I will mention the three main one because everyone should know this. They are:

1. A trade plan with positive expectancy.

2. A money management plan.

3. Discipline

As important as these are as a whole, this is not the Holy Grail IMHO. These components together are a professional trader’s DNA. What keeps you profitable is what you can call your Holy Grail.

I have found mine and it has to do with what keeps me profitable. I have thought about this long and hard and came up with my interpretation of the elusive Holy Grail which I summarized into a quote.

If you want to find your Holy Grail your search starts from within. None of the components above on their own can make you a trader and all three have the possibility to make you profitable, but to be consistently profitable and maintain profitability is the Holy Grail.
Attached File(s)
File Type: pdf Holy Grail.pdf   433 KB | 2,862 downloads
If you fail to plan, you plan to fail.
  • #1,036
  • Jan 10, 2013 8:28am Jan 10, 2013 8:28am
Does anyone else see this EU on 60 min as a possible Bat trade?
Attached Image (click to enlarge)
Click to Enlarge Name: eu.jpg Size: 141 KB
  • #1,037
  • Jan 10, 2013 8:33am Jan 10, 2013 8:33am
Quoting ozziedave
Would this be a valid bearish butterfly pattern on the EU weekly chart? It appears to meet the criteria so far.
Yes it would be
If you fail to plan, you plan to fail.
  • #1,038
  • Jan 10, 2013 8:34am Jan 10, 2013 8:34am
Quoting Nate04
Gartley pattern about to hit the PRZ on the 4hr AUD/USD... Do I have this right?

Thanks
Yes you do.
If you fail to plan, you plan to fail.
  • #1,039
  • Jan 10, 2013 8:36am Jan 10, 2013 8:36am
Quoting Mr. Pip
Yes you do.
I'm currently waiting on a lower high/lower low on the 15 min chart for entry.
  • #1,040
  • Jan 10, 2013 8:44am Jan 10, 2013 8:44am
Quoting foxybunny
Blackeagle, agree in general with your three points.

For point 2- trade what you see, not what you think it'll be.
This is much harder, you think you see it, but sometimes it is not what you see, it is the opposite instead.
Everyone see the same chart/price but view it differently, that makes a market of buyers and sellers.
This applies to Ratios & Harmonics as well.
Facts are facts, you either see it or you don't. This is in part due to over analyzing a chart. We have to remove thinking from the equation. We cannot control what the market is going to do but we can control our respose to the market.

Price did or did not produce a higher high or low, price did or did not hit that 61.8, price did or did not complete that pattern. Black and white, cut and dry. Free yourselves and I promise you your trading experience will be life changing.
If you fail to plan, you plan to fail.
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