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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

  • #2,921
  • Feb 15, 2013 8:35am Feb 15, 2013 8:35am
Quoting Mr. Pip
You may be wondering what stop was move early? Previous supply zone is acting as demand now. The Bears are unable to push price lower at the moment.
I was hoping that price would pay as much attention to it as it did on the 2 previous occasions, cutting through it like it wasn't even there.
Let's see what happens.
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  • #2,922
  • Feb 15, 2013 8:36am Feb 15, 2013 8:36am
Todays trades ....

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  • #2,923
  • Feb 15, 2013 8:41am Feb 15, 2013 8:41am
Have a good weekend everyone
  • #2,924
  • Feb 15, 2013 8:52am Feb 15, 2013 8:52am
im trying to use price action to filter out trades, and get out of trades, and to get into non-rule trades (based on harmonics of course) , which lets me miss alot of by rule trades, but thats ok im definitely getting better im closing the gap for price action actually being useful to me
  • #2,925
  • Feb 15, 2013 8:57am Feb 15, 2013 8:57am
Well I'm done for the day overall ended up with 34 pips decent day
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If you fail to plan, you plan to fail.
  • #2,926
  • Feb 15, 2013 9:24am Feb 15, 2013 9:24am
This is the sort of thing im trying out. While i didnt catch all this, except for the 2 green zones, this is what im looking for and gradually training my mind to pick out...
and i also missed plenty of these types of things later on, but this is new...

price action as the reaction of price to important zones, along with the fact/no fact if there is nearby harmonic pressure to go up/down (this gives me the pressure, is price reacting like it should according to the pressure that has been created by the harmonic pattern completion?)
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  • #2,927
  • Feb 15, 2013 9:39am Feb 15, 2013 9:39am
@mr. pip

what do recommend doing in a situation like this.
where the completion of an AB=CD makes another AB=CD converging with the 38% of the first one.
do you take profit and reverse the position or do you just go with the initial pattern?
http://s11.postimage.org/uyfhv24f3/image.jpg (http://postimage.org/image/uyfhv24f3/)
  • #2,928
  • Feb 15, 2013 9:53am Feb 15, 2013 9:53am
Quoting ChipsnPips
By the looks of it the
First trade was an ABCD with TP at 1:1 ratio
Second was D leg retracement TP was 61.8% retracement of AD leg
Third was what looks like an entry of the AD leg retracement level after it found support and traded back up to resistance maybe?
Fourth looks like it was an AB=CD. Trading the D retracement leg using 1:1 ratio and main swin pivot as entry and TP at support.


Im no pro but thats what it looks like to me.

By the way Mr pip. Your trading method is great. Keep it up. Easy pips!! Thanks.
yeah thanks!, must master price action
  • #2,929
  • Feb 15, 2013 11:10am Feb 15, 2013 11:10am
Quoting Mr. Pip
Rules are just rules price action will guide you to stay in the trade or take profit early. Learn to listen and watch the visual clues of price action.
This is pure gold. I wasn't able to get any pips out of the 14th as I was expecting a move up to the 61% retrace of the larger leg. The only trade that was obvious to me was the double bottom around 9:30 but I was unable to pull the trigger after the 2 small bear spikes down. I guess your motto of trading what you see not what you expect would have saved me there.

Mr. Pip, I don't really need any more patterns (ABCD and the simple harmonic moves are good enough for me) but if you could do another video of some more price action nuances in the zones or at S and R in general I would be most grateful as this is where I'm weak and I think it would help me garner more confidence in my reads real time. I think I could have traded that chop on Thursday with more confidence.

I know I am asking a lot as you have a life outside this forum but the last price action video was awesome and I have been doing the exercises every second day (I have a daughter that keeps me completely busy. Thank you so much once again. Cheers.
Finally out of the shadows.
  • #2,930
  • Feb 15, 2013 11:30am Feb 15, 2013 11:30am
Here's what caught my eye today. I only placed one trade at the top of the second bull spike on confluence of 61-76 zone of major down swing, 127-161 zone of AB and having just cleared a 1-1 AB leg. The bulls were still very strong as evidenced in that last spike up so I was paranoid of a reversal and got out on a wedge bottom on the 1 min chart. So only a whopping 4 pips for me but I'm going to study hard over the weekend and eventually become as good at spotting and reading as the pros on this forum. Biggest thing holding me back from trading what I see is the psyc stuff (big surprise). I seem to be trigger shy. Cheers.
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Finally out of the shadows.
  • #2,931
  • Feb 15, 2013 11:32am Feb 15, 2013 11:32am
Quoting gaf
Here's what caught my eye today. I only placed one trade at the top of the second bull spike on confluence of 61-76 zone of major down swing, 127-161 zone of AB and having just cleared a 1-1 AB leg. The bulls were still very strong as evidenced in that last spike up so I was paranoid of a reversal and got out on a wedge bottom on the 1 min chart. So only a whopping 4 pips for me but I'm going to study hard over the weekend and eventually become as good at spotting and reading as the pros on this forum. Biggest thing holding me back from trading...
psyc for me is a problem too, but i think as i learn more about price action i wont be as afraid to pull the trigger. its like im learning a new language, and by learning more of it i am not as scared to pull the trigger.
  • #2,932
  • Feb 15, 2013 1:17pm Feb 15, 2013 1:17pm
Quoting Mr. Pip
Well I'm done for the day overall ended up with 34 pips decent day
So, after looking over your chart I am seeing this..
1st: An aggressive C Long Entry that almost got stopped out. Your exit looks to have lined up with a previously determined area of Supply and an AB=CD line that gave you some confluence.

2nd: You took a Short after a retest of that area of Supply and targeted the 61.8% retrace of that AD move.

After that you took a bit of a break which is smart due to the ease of over trading.

3rd: You took a Short trade but the only thing that I am seeing on your chart is an area of Supply/Line of Resistance. Am I incorrect in what I am seeing or maybe you deleted a retracement?

4th: You took a short in an area of confluence at the 161.8%. Normally, you're supposed to take a short around 127.2/138.2 in an ABCD but since you had your CD Line ending at 161.8, I assume that gave the 161.8 more strength. Of course, you were stopped at B/E because of Supply becoming Demand.

Mr Pip or anyone else that may have comments on this is welcome to contribute. What I have been doing is studying his charts and want to try to see through the same lense so that when I practice on my own I can trust my decisions more.

Have a great weekend everyone!
Chance favors the prepared mind.
  • #2,933
  • Feb 15, 2013 1:27pm Feb 15, 2013 1:27pm
UJ Set up. Also visible on 4Hr.

Keep up the good work here.
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The world you desire can be won. It exists.. it is real.. it is possible..
  • #2,934
  • Feb 15, 2013 3:51pm Feb 15, 2013 3:51pm
I know that multitimeframe analysis isnt needed, and im not going to try it anytime because i need to master processing the info in one timeframe only, the big spike up could have been predicted because price was in a prz of a higher timeframe ..... so there was a potential for lots of demand.

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  • #2,935
  • Feb 15, 2013 5:59pm Feb 15, 2013 5:59pm
Quoting jb19
@mr. pip

what do recommend doing in a situation like this.
where the completion of an AB=CD makes another AB=CD converging with the 38% of the first one.
do you take profit and reverse the position or do you just go with the initial pattern?
http://s11.postimage.org/uyfhv24f3/image.jpg (http://postimage.org/image/uyfhv24f3/)
Structure wins I this case. Old resistance becomes support. What do you think should be do e here? What is the market telling you?
If you fail to plan, you plan to fail.
  • #2,936
  • Edited Feb 16, 2013 9:31am Feb 15, 2013 7:07pm | Edited Feb 16, 2013 9:31am
for anyone who wants historical tick data from 2007 + , heres a link...
http://www.strategyquant.com/tickdatadownloader/

it will create a csv file, which needs to be converted to the ninjatrader format. the python script is as follows. open it and change the user parameters, the input file (the csv file created by tick data downloader), output directory, and output file.

the output file should be of the format: $CURENCYPAIR.Last.txt , for example $EURUSD.Last.txt
execute using python by typing in the command prompt

cd /directory/where/ninja_tick_is/
python ninja_tick.py

(download python from here http://www.python.org/download/, doesnt matter what version) and wait a bit

Import the txt file created by going to tools->historical data manager, the timezone of the data is GMT + 0 , make sure to check the two checkboxes so you will also be able to see minute and daily data. Data type is 'Last.' The data will merge with your current live data...

Attached File(s)
File Type: zip ninja_tick.zip   < 1 KB | 718 downloads


edit: oh yeah: and the python script converts the csv file to the format required by ninja, cant just use csv file
  • #2,937
  • Feb 15, 2013 7:19pm Feb 15, 2013 7:19pm
its encouraging too look into the far past and see harmonics still working. still have those good old abcds that work, price still responds to fib ratios...
  • #2,938
  • Feb 15, 2013 10:07pm Feb 15, 2013 10:07pm
Quoting Starry
i think he uses kinetick, which is paid, which in turn uses fxcm feed. i was never able to get fxcm to work with ninjatrader, if someone has and it looks better, would appreciate to know how!
Hi Starry,

Is it possible if we use 3rd party data provider and use another broker to fill the orders. Will it create troubles in terms of bid-ask issues because sometimes 1 tick counts in case of stoploss. Moreover, as far as I know FXCM is not good at spread (not the best in term of spread). So, do you think that it's significant if there is a difference between 1-pip spread and 1.5-pip spread when day trading in a long haul?
  • #2,939
  • Feb 16, 2013 1:28am Feb 16, 2013 1:28am
Quoting Starry
for anyone who wants historical tick data from 2007 + , heres a link...
http://www.strategyquant.com/tickdatadownloader/

it will create a csv file, which needs to be converted to the ninjatrader format. the python script is as follows. open it and change the user parameters, the input file (the csv file created by tick data downloader), output directory, and output file.

the output file should be of the format: $CURENCYPAIR.Last.txt , for example $EURUSD.Last.txt
execute using python by typing in the command prompt

cd /directory/where/ninja_tick_is/
python...

Very useful, Starry!
  • #2,940
  • Feb 16, 2013 6:20am Feb 16, 2013 6:20am
Quoting Mr. Pip
Well I'm done for the day overall ended up with 34 pips decent day
Thanks Mister, your daily trades are very instructive, so we can compare ours with yours
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