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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

  • #1,681
  • Edited 8:54am Jan 18, 2013 8:41am | Edited 8:54am
Quoting Damien1881
So do you keep the original A point or start again even though the retracement doesn't come back to the 38.2 as the structure to the left helped create this?Attachment
Honestly i dont know It was just an observation, many times it pauses along the way but still completes the impulse wave. Ill have to experiment.

edit: i've noticed mr pip sometimes displaces swing lines once it hits resistance, for example here (the third green line) . so maybe he wouldve done the same thing on that eurusd chart, idk how he determines if he should displace it or not .

Attached Image (click to enlarge)
Click to Enlarge Name: gbpjpy.jpg Size: 129 KB
  • #1,682
  • Jan 18, 2013 8:43am Jan 18, 2013 8:43am
Hello Traders her is a video on the Gartley Pattern. Please post your questions and comments.

http://www.youtube.com/watch?v=cbJhZE90X1A&feature=player_detailpage
If you fail to plan, you plan to fail.
  • #1,683
  • Jan 18, 2013 9:01am Jan 18, 2013 9:01am
Quoting Starry
Honestly i dont know It was just an observation, many times it pauses along the way but still completes the impulse wave. Ill have to experiment.

edit: i've noticed mr pip sometimes displaces swing lines once it hits resistance, for example here (the third green line) . so maybe he wouldve done the same thing on that eurusd chart, idk how he determines if he should displace it or not .

Attachment
I do this to find confluence at the PRZ. This helps me target a specific area inside the PRZ.
If you fail to plan, you plan to fail.
  • #1,684
  • Jan 18, 2013 9:10am Jan 18, 2013 9:10am
Mr. PiP

Do you consider Gartley pattern valid as long as point D doesn't take point X? or Gartley pattern ( by your rules) should be contain by 88.6% retracement of XA?
Always trade your own plan...I don't provide trading signals.
  • #1,685
  • Jan 18, 2013 9:25am Jan 18, 2013 9:25am
Quoting Coreg2004
Mr. PiP

Do you consider Gartley pattern valid as long as point D doesn't take point X? or Gartley pattern ( by your rules) should be contain by 88.6% retracement of XA?
Yes a close above or below X definitely invalidates it. I guess if you are get to the chart late and price is there is is fine it may be a better fill smaller risk better reward. But prior to I would take the trade In the PRZ
If you fail to plan, you plan to fail.
  • #1,686
  • Jan 18, 2013 9:40am Jan 18, 2013 9:40am
Mr pip,
I have a question regarding confluence of fibonacci extensions. I get the abcd 61.8 , but what numbers do you use to find confluence from fib extensions?

For example, in the gbpjpy you used the 161.8 and 200% extension to find confluence (at the right hand side of the chart), not specifically in this chart because it wasnt during trading hours. Also you used the 161.8 and 138.2% extension for the second trade in the gbpjpy chart.

And in the eurusd example today, you used the 132.2 and 161.8 extension to find confluence, though perhaps you could also have used the 127.2 and 138.2 line since thats where the leg ended (well actually slightly below the 138.2 line).

Do you use price action around these extensions to verify the fib extension PRZ? Also, why do you draw the fib extension from the AB leg instead of the BC leg, for example in projecting the endpoing of the ABCD you use an extension from the BC leg.
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.jpg Size: 118 KB

Attached Image (click to enlarge)
Click to Enlarge Name: chart2.jpg Size: 129 KB
  • #1,687
  • Jan 18, 2013 10:17am Jan 18, 2013 10:17am
im in this trade right now.

was this a valid entry? i entered in the top of the PRZ around 88,6% there were also past structure

http://s2.postimage.org/ubmln54fp/audcad1h.jpg (http://postimage.org/image/ubmln54fp/)
  • #1,688
  • Jan 18, 2013 10:22am Jan 18, 2013 10:22am
Quoting rumba68
Here is why I shorted. A Gartley setup.
Attachment
yeah that is an awesome trade mate!!!!
  • #1,689
  • Jan 18, 2013 10:27am Jan 18, 2013 10:27am
Quoting Mr. Pip
Hello Traders her is a video on the Gartley Pattern. Please post your questions and comments.

http://www.youtube.com/watch?v=cbJhZE90X1A&feature=player_detailpage
I think what's important as the video points out, are the boundaries for pattern formation and how they affect the PRZ zone.

Thanks for the video.
"I don't always trade markets, but when I do, I prefer harmonics."
  • #1,690
  • Jan 18, 2013 10:28am Jan 18, 2013 10:28am
Quoting fiovit
this is the kamikaze ...

Attachment
:-) Matching name (kamikaze.press).

1. Again. Failed pattern means break of support/resistance, so basically it translates to "new" signal or confirms continuation
2. This way you can recover from a loss you had on failed pattern. GBPUSD today is perfect example. After pattern failed, it gave another 40 pips. Or in fibbo language, made 161.8 extension of previous swing. Coincidence? I'm not saying, it'll always give 161.8%, but will give some known fibbo extension level.

Mr. Pip: I apologize for barging into your thread. If above explanation seems redundant to you, please feel free to delete it. I don't want to confuse anybody.

BR
  • #1,691
  • Jan 18, 2013 10:44am Jan 18, 2013 10:44am
Quoting tp0440
:-) Matching name (kamikaze.press).

1. Again. Failed pattern means break of support/resistance, so basically it translates to "new" signal or confirms continuation
2. This way you can recover from a loss you had on failed pattern. GBPUSD today is perfect example. After pattern failed, it gave another 40 pips. Or in fibbo language, made 161.8 extension of previous swing. Coincidence? I'm not saying, it'll always give 161.8%, but will give some known fibbo extension level.

Mr. Pip: I apologize for barging into your thread. If above explanation...
I note that the first position was ahead by 19 pips, I wanted to be close but I left it alone to see the reaction at that level, just out of curiosity, I'm only testing, probably I would not risk real.
  • #1,692
  • Jan 18, 2013 11:52am Jan 18, 2013 11:52am
Quoting Mr. Pip
Hello Traders her is a video on the Gartley Pattern. Please post your questions and comments.

http://www.youtube.com/watch?v=cbJhZE90X1A&feature=player_detailpage
awesome video. thanks!
  • #1,693
  • Jan 18, 2013 12:02pm Jan 18, 2013 12:02pm
Hi all,

Is this set up valid for an aggressive C trade?

Attached Image (click to enlarge)
Click to Enlarge Name: Harmonics.jpg Size: 69 KB
  • #1,694
  • Jan 18, 2013 12:05pm Jan 18, 2013 12:05pm
Quoting Starry
Mr pip,
I have a question regarding confluence of fibonacci extensions. I get the abcd 61.8 , but what numbers do you use to find confluence from fib extensions?

For example, in the gbpjpy you used the 161.8 and 200% extension to find confluence (at the right hand side of the chart), not specifically in this chart because it wasnt during trading hours. Also you used the 161.8 and 138.2% extension for the second trade in the gbpjpy chart.

And in the eurusd example today, you used the 132.2 and 161.8 extension to find confluence, though perhaps...
It isn't a number. It's the area where multiple things come together and a harmonic projection (structure, ratios harmonics). Typically this falls between the 138 and the 161 but on occasions as you have seen it expense past the 161.
If you fail to plan, you plan to fail.
  • #1,695
  • Jan 18, 2013 12:14pm Jan 18, 2013 12:14pm
Quoting tp0440
:-) Matching name (kamikaze.press).

1. Again. Failed pattern means break of support/resistance, so basically it translates to "new" signal or confirms continuation
2. This way you can recover from a loss you had on failed pattern. GBPUSD today is perfect example. After pattern failed, it gave another 40 pips. Or in fibbo language, made 161.8 extension of previous swing. Coincidence? I'm not saying, it'll always give 161.8%, but will give some known fibbo extension level.

Mr. Pip: I apologize for barging into your thread. If above explanation...
It's fine. I can't say this enough and to be honest I don't hear anyone talking about the price action in the PRZ. What is price doing in the in the PRZ that caused entry.

I also somewhat disagree that a breakout confirms a continuation, a proper confirmation is a pull back to structure test and continuation. Just because a pattern completes doesn't mean you have to jump in. Validate the patterns check order flow see if the pattern belongs there order flow will guide you.
If you fail to plan, you plan to fail.
  • #1,696
  • Jan 18, 2013 12:19pm Jan 18, 2013 12:19pm
Quoting fiovit
I note that the first position was ahead by 19 pips, I wanted to be close but I left it alone to see the reaction at that level, just out of curiosity, I'm only testing, probably I would not risk real.
Hello my friend you need to treat all trades as if they were real. This helps build confidence and teaches you how to deal with the emotional component to trading. This is why I don't like demo account. Open a real account with a couple of hundred bucks and trade the smallest position size possible. It's different when its for real.
If you fail to plan, you plan to fail.
  • #1,697
  • Jan 18, 2013 12:48pm Jan 18, 2013 12:48pm
Another great video - Big thanks again to Mr Pip !

Day off from work today - so been trading then in sted according to lessons learned. A long very enjoyable session.

Bagged 252 green pips in total - some mistakes was also made dragging this number down somewhat, but still ended the day well in the pluss.
Will be working to now elimenate those mistakes.

Also not all agressive C sells or buys will pay off - SL's will get hit from time to time - but it's so good to see when they do pay off.
Best trade of the day gave 96 pips alone - agressive C sell on GBP/JPY.

Wish you all a nice weekend! See you all Monday, Guys!

Enjoy:

http://www.youtube.com/watch?v=bqg90Qj2ApU&list=AL94UKMTqg-9CyqJ-Uo3qauR6OPHc9c5VG
  • #1,698
  • Jan 18, 2013 12:55pm Jan 18, 2013 12:55pm
Quoting Floyd1
Another great video - Big thanks again to Mr Pip !

Day off from work today - so been trading then in sted according to lessons learned. A long very enjoyable session.

Bagged 252 green pips in total - some mistakes was also made dragging this number down somewhat, but still ended the day well in the pluss.
Will be working to now elimenate those mistakes.

Also not all agressive C sells or buys will pay off - SL's will get hit from time to time - but it's so good to see when they do pay off.
Best trade of the day gave 96 pips alone - agressive...
Awesome great day you should take more days off to trade.

Love the song how appropriate. I hope I have been able to change your outlook on trading and helped others at least turn that corner. Have a fantastic weekend!
If you fail to plan, you plan to fail.
  • #1,699
  • Jan 18, 2013 1:16pm Jan 18, 2013 1:16pm
Glad you liked it, Buddy. And all thanks goes to you.

Those patterns really are some kind of magic, now that I know what to look for - they are in deed natural mystic.
  • #1,700
  • Jan 18, 2013 1:18pm Jan 18, 2013 1:18pm
Quoting Floyd1
Another great video - Big thanks again to Mr Pip !

Day off from work today - so been trading then in sted according to lessons learned. A long very enjoyable session.

Bagged 252 green pips in total - some mistakes was also made dragging this number down somewhat, but still ended the day well in the pluss.
Will be working to now elimenate those mistakes.

Also not all agressive C sells or buys will pay off - SL's will get hit from time to time - but it's so good to see when they do pay off.
Best trade of the day gave 96 pips alone - agressive C...
very encouraging! happy weekend!
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