Ratios & Harmonics: a Different Way to Trade | Page 134 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

Learning to trade with harmonics 11 replies

Time for Change - Pivots & Harmonics to freedom 67 replies

180 reasons to trade Harmonics and Patterns 13 replies

Group Trading based on Elliott wave and Harmonics 0 replies

Attachments: Ratios & Harmonics: a Different Way to Trade
Exit Attachments

Ratios & Harmonics: a Different Way to Trade

  • #2,661
  • Feb 6, 2013 6:52pm Feb 6, 2013 6:52pm
Quoting Starry
I dont know, from some przs price seems to reverse within 3 bars, and then you're too late.. not much time for PA.. others give a push up, then a second touch, and then go up from there.
my guess in thise case is that price was rejecting the upward movement while still going up. there was little resistance below, so you wouldnt wait for a second 'bump', if it did happen it would actually be less probable, because it was a strong movement up, if it reverses at the prz, you should expect quick and decisive. see, im learning, but you can see that you need some experience first, and its not possible to write it all down...... sort of subjective in the sense that the rules to cover all situations arent written down, not black and white
  • #2,662
  • Feb 6, 2013 6:55pm Feb 6, 2013 6:55pm
Quoting Starry
i guess i meant determining which prz to trade is subjective. each prz is defined by confluence, and how do you determine which confluence is most important ( i mean its only a potential reversal)?i know you said price action, and by utilizing large local swings and by using orderflow, but i havent yet developed that skill yet so it seems rather subjective to me. if theres a prz 10 pips above the current one, and your sl is 10 pips, then do you enter that trade, is the prz above more important? maybe put the sl beyond that prz? are there really...
Great then develop the skill don't add different process making the whole thin more complicated then it needs to be. As for which PRZ to trade when you have two in close proximity. Market structure and price action will guide you. Develop that skill as well I made a price action video and said to take 30 min of the day to run through the same exercise as I did in that video. I bet you that hardly anyone here has taken the time to work on this very critical skill. This skill alone will filter out the weaker PRZ. Everyone was asking about price action and yet no one is using this extremely important skill set.

How important do you feel it is to have a solid understanding as to where price is going? Do you think this will help you in determining is a PRZ is weak or strong? Let me answer that question for all, absolutely.

Take the time to learn the skill run the drill. Do them over and over and over they will soon be automatic. There are no shortcuts. We have to put in the work or we will not progress. Nothing needs to be changed.
If you fail to plan, you plan to fail.
  • #2,663
  • Feb 6, 2013 6:56pm Feb 6, 2013 6:56pm
On that example I can't really comment - I didn't trade it because with my current level of knowledge I don't see much there.

But then I am perhaps too cautious.

For example, I monitor 3 currency pairs, and in the last 2 days I've only entered 8 trades... 5 were winners and 3 were BE. That was about 90 pips, which doesn't rival Mr. Pip who makes that in 1 day on 1 currency pair, or Foxybunny's 100 pip trade she posted.

But I know I need to learn to walk before I can run, and I'm still crawling.

So I guess where I'm going with this is - do you think you're over trading? Looking for too many trading opportunities and consequently taking less than ideal set ups, which is then creating confusion?
  • #2,664
  • Feb 6, 2013 7:00pm Feb 6, 2013 7:00pm
Quoting itinerant
On that example I can't really comment - I didn't trade it because with my current level of knowledge I don't see much there.

But then I am perhaps too cautious.

For example, I monitor 3 currency pairs, and in the last 2 days I've only entered 8 trades... 5 were winners and 3 were BE. That was about 90 pips, which doesn't rival Mr. Pip who makes that in 1 day on 1 currency pair, or Foxybunny's 100 pip trade she posted.

But I know I need to learn to walk before I can run, and I'm still crawling.

So I guess where I'm going with this is - do you...
I dont think so, since i started looking at larger swings ive been trading much less often. i mean, confluence is confluence, i need to learn which situations are less than ideal, i dont think im trading just to trade. i do have a case for every trade i made, i think the confusion is not drilling in the basics because it is definitely a skill set i need to develop. very nice btw!
  • #2,665
  • Feb 6, 2013 7:03pm Feb 6, 2013 7:03pm
Quoting Mr. Pip
Great then develop the skill don't add different process making the whole thin more complicated then it needs to be. As for which PRZ to trade when you have two in close proximity. Market structure and price action will guide you. Develop that skill as well I made a price action video and said to take 30 min of the day to run through the same exercise as I did in that video. I bet you that hardly anyone here has taken the time to work on this very critical skill. This skill alone will filter out the weaker PRZ. Everyone was asking about price action...
thats what i plan to do, starting tomorrow. except im going to make it more complicated elliot and price action drills along with normal trading hours. hey, its interesting, and harmonic elliot isnt very subjective, its based on confluence of major legs. Its sort of like a gartley pattern in that it has multiple points in the structure, but in this case the structure is an impulse wave, 3 sets of abcds, or whatever it is .... drill drill
  • #2,666
  • Feb 6, 2013 7:06pm Feb 6, 2013 7:06pm
Quoting Mr. Pip
Hello Trades just popping in to say hello and that I've been real busy with life business and taxes. I hope to get back in here real soon. It is impossible for me to catch up and also see that some have started to make changes. That is really discouraging you were on a good and healthy path. this takes time to develop the skill set. I guess this is the reason many traders never master this business and so many fail. They never take the time to master the technique. The basic skills I have taken the time to show you will take where you all want to...

Mr Pip, please dont feel discouraged, there are still many I believe that are continuing to practice what you are teaching, I for one, am only practicing ABCD, AB=CD and gartley patterns, as you have taught so far, and I think I am starting to get better at trading these.

The interest for you are teaching, as you have started from the basics is still here.

Many thanks
Ezzy
What you do is a reflection of you....what I do is a reflection of me.
  • #2,667
  • Feb 6, 2013 7:08pm Feb 6, 2013 7:08pm
Quoting Starry
for example this zone highlighted that mr pip traded, price went down quite quickly. what do i do , use 3 candles for price action? i do see alot of rejection before it reached the prz, maybe that counts. or maybe i should wait for a second bump like what happened later on in his second trade?

or do i rate przs and ignore price action for ones that are 'really good' (whatever that means, maybe lots of confluence from different types - structure, fibonacci retracement, fibonacci projection)

but i think everything is becoming clearer to me,...
Hi Starry, I looked at the area you marked and if I refer back to Mr Pips video on price action, he says that most people look at the wicks of the candle - as you have stated there was a lot of rejection leading into the box, His advise was to look more at the body of the candle when it closes to see if the bulls or bears have control, in taking this approach , the first bear candle takes all the power away from the previous candles push up, the following candle although small still closes lower also. If I had of been watching this PRZ and price action I would have entered at the close of either of the first two bear candles. Hope this helps and I've grasped and explained his method correctly?
  • #2,668
  • Feb 6, 2013 7:09pm Feb 6, 2013 7:09pm
Quoting Starry
thats what i plan to do, starting tomorrow. except im going to make it more complicated elliot and price action drills along with normal trading hours. hey, its interesting, and harmonic elliot isnt very subjective, its based on confluence of major legs. Its sort of like a gartley pattern in that it has multiple points in the structure, but in this case the structure is an impulse wave, 3 sets of abcds, or whatever it is .... drill drill
Good luck to you then. Hope it works for you!
If you fail to plan, you plan to fail.
  • #2,669
  • Feb 6, 2013 7:25pm Feb 6, 2013 7:25pm
Quoting Damien1881
Hi Starry, I looked at the area you marked and if I refer back to Mr Pips video on price action, he says that most people look at the wicks of the candle - as you have stated there was a lot of rejection leading into the box, His advise was to look more at the body of the candle when it closes to see if the bulls or bears have control, in taking this approach , the first bear candle takes all the power away from the previous candles push up, the following candle although small still closes lower also. If I had of been watching this PRZ and price...
makes sense, he also in his chart entered after the first bear candle closed more than halfway down.
  • #2,670
  • Feb 6, 2013 7:25pm Feb 6, 2013 7:25pm

Quoting Mr. Pip
Good luck to you then. Hope it works for you!

thanks! i really think they mesh. Ill just write down my case for each trade, in terms of price action, confluence, harmonic elliot waves, and structure (or could just be one of the 4), and see how it goes. That way i can master eventually 4 basic skills, and have reasons in terms of each one. then drill the four skills, ill see. i know youve succeeded so your method works very well
  • #2,671
  • Feb 6, 2013 7:25pm Feb 6, 2013 7:25pm
Quoting itinerant
On that example I can't really comment - I didn't trade it because with my current level of knowledge I don't see much there.

But then I am perhaps too cautious.

For example, I monitor 3 currency pairs, and in the last 2 days I've only entered 8 trades... 5 were winners and 3 were BE. That was about 90 pips, which doesn't rival Mr. Pip who makes that in 1 day on 1 currency pair, or Foxybunny's 100 pip trade she posted.

But I know I need to learn to walk before I can run, and I'm still crawling.

So I guess where I'm going with this is...
Very good!
If you fail to plan, you plan to fail.
  • #2,672
  • Feb 6, 2013 7:27pm Feb 6, 2013 7:27pm
Quoting itinerant
From my limited understanding:
While certain harmonic numbers traditionally carry more weight than others (for example, the primary ratios of 0.618 and 1.618), and there is a cumulative effect of 'confluence', ultimately all the PRZ represents is an area where the price may reverse if the PA suggests so.

Essentially, you monitor PRZ's as areas of interest. When the price gets to one you start looking for PA clues that the price will reverse.

Just my take on things
If you fail to plan, you plan to fail.
  • #2,673
  • Feb 6, 2013 7:29pm Feb 6, 2013 7:29pm
Quoting Damien1881
Hi Starry, I looked at the area you marked and if I refer back to Mr Pips video on price action, he says that most people look at the wicks of the candle - as you have stated there was a lot of rejection leading into the box, His advise was to look more at the body of the candle when it closes to see if the bulls or bears have control, in taking this approach , the first bear candle takes all the power away from the previous candles push up, the following candle although small still closes lower also. If I had of been watching this PRZ and price...
Excellent!
If you fail to plan, you plan to fail.
  • #2,674
  • Feb 6, 2013 7:33pm Feb 6, 2013 7:33pm
not euphoria follower
  • #2,675
  • Feb 6, 2013 7:55pm Feb 6, 2013 7:55pm
Quoting iqyu5an
getting late over here too, need to get some sleep and relax. night
  • #2,676
  • Feb 6, 2013 8:16pm Feb 6, 2013 8:16pm
Quoting itinerant
On that example I can't really comment - I didn't trade it because with my current level of knowledge I don't see much there.

But then I am perhaps too cautious.

For example, I monitor 3 currency pairs, and in the last 2 days I've only entered 8 trades... 5 were winners and 3 were BE. That was about 90 pips, which doesn't rival Mr. Pip who makes that in 1 day on 1 currency pair, or Foxybunny's 100 pip trade she posted.

But I know I need to learn to walk before I can run, and I'm still crawling.

So I guess where I'm going with this is...
Well done with those 8 trades for both the winners and BE.

When you are doing 8 trades over 2 days, you also need to ask yourself if you are over trading.
If the direction keeps changing during when you monitored, then can understand why you have many trades for both Long and Short.
But if the direction is mainly one way, then you should look to enter and to add in same direction, and hold just a little bit longer.

When you starting off, it is normal to monitor a few or many currency pairs.
Now I do briefly glanced only a few(2-4) pairs, but actually only give most attention and time to monitor One pair EUR/USD and trade one pair at a time.

It is un-wise to compare pips with other traders.

The main key is how to "consistently" earn the pips range you want, whether that is 10-30 pips, 50-100 pips, 100-200 pips, etc.
"Consistency" is the key in using the same trading process over and over again, and to obtain similar results.

If I could do 3 trades and each trade can nett 30-pips each, and doing those 3 trades (mean 90-pips) in a shorter time, that would be much better than 1 trade of 100-pips.

Currently I am more of a swing trader, and don't feel comfortable catching 10-30 pips profit for a quick scalp.

But I do prefer Mr. Pip's working style when he can capture 3 trades of 20-30 pips within a short time.
I am seeing if I can do this scalping style if I use the Ticks charts.

Remember to get 100-pips in a single trade means I must wait much longer(usually overnight or over a few nights) and also more risk as initial SL normally bigger.


It is good that you keep crawling, as soon you will be walking.
  • #2,677
  • Feb 6, 2013 8:42pm Feb 6, 2013 8:42pm
guys/gals trust me on this, if you want to trade harmonic patterns, everything what you need is to master Mr. Pip's 10 videos
Attached Image (click to enlarge)
Click to Enlarge Name: Euro Futures.jpg Size: 134 KB
Always trade your own plan...I don't provide trading signals.
  • #2,678
  • Feb 6, 2013 9:16pm Feb 6, 2013 9:16pm
Quoting Coreg2004
guys/gals trust me on this, if you want to trade harmonic patterns, everything what you need is to master Mr. Pip's 10 videos
Nice work on your structure!
If you fail to plan, you plan to fail.
  • #2,679
  • Feb 6, 2013 9:51pm Feb 6, 2013 9:51pm
Quoting Mr. Pip
Nice work on your structure!
Thanks Mr.Pip.........it took me some time to master harmonic patterns, but I didn't have your 10 videos..You really have the gift for teaching.
Always trade your own plan...I don't provide trading signals.
  • #2,680
  • Feb 6, 2013 10:53pm Feb 6, 2013 10:53pm
Hello every one,
I recall that Mr. Pip posted an image -according to his rules of engagement - within the thread showing the ratios ranges of A, B, C and D of a all patterns together with different colors and labeling for each pattern. Please can any member remind me which page it was shown or upload it again?

thank you in advance.
15 traders viewing now