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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

  • #1,521
  • Jan 16, 2013 11:28am Jan 16, 2013 11:28am
Quoting sho
EU 5 minute chart

How does this aggressive C sell look?

Price has repeatedly failed to close above the 78.6% retracement of the AB leg.
Sho,
I am in that ABCD with entries at both 61.8% and 78.6%. It has a long way to go, but so far, so good. Nice spotting of the setup!
  • #1,522
  • Jan 16, 2013 11:28am Jan 16, 2013 11:28am
Quoting BroncoCap
Sho,
I am in that ABCD with entries at both 61.8% and 78.6%. It has a long way to go, but so far, so good. Nice spotting of the setup!
Good luck!
  • #1,523
  • Jan 16, 2013 11:32am Jan 16, 2013 11:32am
mr pip,
If you already have a buy order , for example an aggressive C buy order, would you ever enter another buy order on the same currency if a smaller abcd pattern formed?
  • #1,524
  • Jan 16, 2013 11:53am Jan 16, 2013 11:53am
I wonder if this is a property of the market when it is about to turn around. Steeper impulse waves, with a smaller slope impulse wave. A smaller slope impulse wave that breaks through prz. A breakthrough of a PRZ zone followed by entry back into the prz and then a stall. Maybe its a property of gbp pairs. I believe i saw it yesterday with gbpjpy.

Attached Image (click to enlarge)
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  • #1,525
  • Jan 16, 2013 12:08pm Jan 16, 2013 12:08pm
Quoting sho
Good luck!
I believe it just hit 61.8% if you have that target. If so, awesome, I am still in until level A is reached. Remarkable move so far. Looking for retracement at some point.

And I should have had that long order entered.

Starry--This is what you were asking about, kinda. So, rather than having a retracement leading to a long, say, then a second smaller retracement leading to a second long, I find it better to get a position in the opposite direction.

For example--I was short the EURUSD on the major swing today (chart later) and it just moved 61.8% leading to a secondary, smaller ABCD, to the long side. Had I been on my game, I would have had a limit order there, waiting. As such. If the long goes to target, my short would be stopped out. If my short goes to target, my long would be stopped out--BUT--My target leads to 2.3% return vs a -1% return on my loss. Either way, I net out +1.3%. This is a key pattern I am looking for, I like win-win.

Hope that helps. I will be posting my chart later today.
  • #1,526
  • Jan 16, 2013 12:29pm Jan 16, 2013 12:29pm
Quoting kyurem
Hello everybody,

beautiful Gartely on eurjpy 5min
trget zone reached trade closed
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  • #1,527
  • Jan 16, 2013 12:50pm Jan 16, 2013 12:50pm
334.7pips in two days.....i think i am doing good.Thanks too everybody again.i will keep practicing
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  • #1,528
  • Jan 16, 2013 12:58pm Jan 16, 2013 12:58pm
Quoting BroncoCap
I believe it just hit 61.8% if you have that target. If so, awesome, I am still in until level A is reached. Remarkable move so far. Looking for retracement at some point.

And I should have had that long order entered.

Starry--This is what you were asking about, kinda. So, rather than having a retracement leading to a long, say, then a second smaller retracement leading to a second long, I find it better to get a position in the opposite direction.

For example--I was short the EURUSD on the major swing today (chart later) and it just moved...
I'm out for a small gain at the 38.2%.

Could there be a possible bearish butterfly forming?

EU 5 min:
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  • #1,529
  • Jan 16, 2013 1:03pm Jan 16, 2013 1:03pm
mr pip i am still stuck on understanding order flow...... not getting it...... pls help

Quoting Mr. Pip
I believe your question got answered are we good or you are still stuck? Thanks to those that helped our friend.
  • #1,530
  • Edited 1:35pm Jan 16, 2013 1:24pm | Edited 1:35pm
@MR. PIP
could i have handled this situation better?
http://s8.postimage.org/kpd3yra1d/eurjpy15.jpg (http://postimage.org/image/kpd3yra1d/)
usually i take half the position of at 38% but as i have read in this thread, you only move stops to BE at 38% and take profit at 61%.
i ended up at BE which at this trade could or should i have done something different?
  • #1,531
  • Jan 16, 2013 1:30pm Jan 16, 2013 1:30pm
Quoting jb19
@MR. PIP
could i have handled this situation better?
http://imgur.com/RBomI
usually i take half the position of at 38% but as i have read in this thread, you only move stops to BE at 38% and take profit at 61%.
i ended up at BE which at this trade could or should i have done something different?
JB,
Your image is not showing, this is the correct link (http://i.imgur.com/RBomI.gif).

Remember, some trades just do not work out. BE is a win in Mr. Pip's book, if I remember correctly. If you start choking down trades for smaller wins, your R:R gets skewed to the risk side too heavily. As long as you get to BE, you win, leave room for the market to move. There will always be another trade, do not worry about pips left on the table (in either direction--exiting at BE when you had more, or exiting at 61.8% and it runs further).

Good luck!
  • #1,532
  • Jan 16, 2013 1:47pm Jan 16, 2013 1:47pm
Quoting alij79
mr pip i am still stuck on understanding order flow...... not getting it...... pls help
Order flow is basically another word for trend. So just look at your chart, in what ever time frame you trade and see who's in control, the bulls or the bears. Is there more up candles or down candles. Is the present swing just part of a correction or part of the main swing? That's the way(up or down) the orders are flowing. Hope that helps.
Barry
  • #1,533
  • Jan 16, 2013 1:53pm Jan 16, 2013 1:53pm
Quoting BroncoCap
Ha! Thanks, that makes sense. Wondered how they could be so far off.

As for the trades, ultimately, who knows what I would have taken. Yes, white was a ballsy trade and looking back it would have been a forced, bottom picking trade. Later, we could establish the strength was waning based on depth of pullbacks and inability to keep pushing lower with same velocity. One reason I would consider taking both long and shorts. That 78.6% rule is hard as I see plenty go past that level only to return. Even today, all but 1 trade triggered 78.6% (although...
Hey BroncoCap, I sent PM yesterday
Barry
  • #1,534
  • Edited 2:17pm Jan 16, 2013 2:03pm | Edited 2:17pm
Mid-day Update

(Bary, I will check PMs after this)

EURUSD 1min
http://farm9.staticflickr.com/8467/8...6c00a3ff_h.jpg

So, first of all, I am testing with my current broker. I stopped trading this account awhile ago, but when I do go live again, I will be using their platform, hence the new style of screenshots. It has taken a few trades to get used to their platform and I messed up once today, described later. Most unusual is that they have no rectangle/polygon tool, so no way to trade zones for ABCDs. Hopefully it is still clear.

Here we go--(again, I sat down at my trade desk at vertical blue line).

Blue ABCD--Main swing from (my) overnight session. Completely negated prior move up. Set sell orders and moved to smaller waves. Eventually both 61 and 78 entries triggered. Currently still in play.

Yellow ABCD--Very nice trade but before I reached the desk. It is a bottom pick! Would take balls, but that is part of the game, respect the pattern, know the statistics. Would have been a 61+78 fill and it ultimately ran to 127 extension.

Red (1) ABCD--Nice, with order flow pullback C zone that was just missed. Oh well, it happens, respect the rules.

Pink ABCD--First real trade of the day. 61+78 fills. Straight loser. -1R

Purple ABCD--Kinda hard to see, formed after Blue 61 filled. A with trend trade, only 61 filled and no 127 extension move. +1R. (here was my mistake. I did not cancel the 78 limit order after the 61 fill went to target. Cost me a few pips but an education well paid).

Green ABCD--After the 78 for the blue ABCD filled, market went favorable and formed this ABCD. Went right to the 61.8% of the blue order. Did not have resting limit buys. Again, lesson learned as a fill here would have make blue trade win-win (a scenario I have described before).

Black ABCD--This ABCD represents a 61.8% retrace of the Green ABCD. Currently trading with only a 61 fill.

Red ABCD (2nd, dotted fibs)--Well this was unfilled when I started. Just went to both 61 and 78 fills. This order is a 61.8% move of black, so again, I am in a win-win scenario.

Guess with the markets moving again, I will post final chart later.

Cheers for now
  • #1,535
  • Jan 16, 2013 2:05pm Jan 16, 2013 2:05pm
Quoting omonla
334.7pips in two days.....i think i am doing good.Thanks too everybody again.i will keep practicingAttachment
impressive I see that even though you dont have a stoploss, you still get out of losing trades at a good time. What makes you get out?
  • #1,536
  • Jan 16, 2013 2:42pm Jan 16, 2013 2:42pm
EU-5min How am I doing so far? Long?
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Empower Your Mind
  • #1,537
  • Jan 16, 2013 2:59pm Jan 16, 2013 2:59pm
Maybe this is better. Your PRZ is to low.
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  • #1,538
  • Jan 16, 2013 3:03pm Jan 16, 2013 3:03pm
EJ 1 hour. Last one for the day and feedback is great. Just FYI. my bias is long for the year
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Empower Your Mind
  • #1,539
  • Jan 16, 2013 3:09pm Jan 16, 2013 3:09pm
Quoting vqtrader
EJ 1 hour. Last one for the day and feedback is great. Just FYI. my bias is long for the year
Your swing identification doesn't appear to be correct. If you are trading H1 TF, your yearly bias is irrelevant. Trade what you see within that TF.

I would look for patterns within the Main Swing and then after the dominant swing is developed, pattern within the dominant.
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"I don't always trade markets, but when I do, I prefer harmonics."
  • #1,540
  • Jan 16, 2013 3:31pm Jan 16, 2013 3:31pm
Thanks Mduke. I was waiting on an explaination on how to fix it and trade it. One day at a time. it has already dropped but more to come adios
Empower Your Mind
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