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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

  • #2,941
  • Feb 16, 2013 4:24am Feb 16, 2013 4:24am
I have FINALLY got through reading this epic thread. I have to admit - I skimmed for Mr Pips posts from about half way through... but I'm happy I took the time to go through it all.

Also I've also downloaded and will be reading Harmonic Trading by Scott Carney shortly.

Thanks for taking the time to share all this Mr Pips! From what I've seen your great at teaching and extremely patient too, plus it sound like you have a plan for progression with this thread. Looking forward to more

I'll be posting lots of ABCD and Gartley patterns soon, hopefully you can help guide me in the right direction too!
  • #2,942
  • Feb 16, 2013 4:38am Feb 16, 2013 4:38am
Also you said in an earlier post that your broker is FXCM, I was wondering if you use their dealer desk or non-dealer desk version? Since they now offer both.
  • #2,943
  • Feb 16, 2013 6:46am Feb 16, 2013 6:46am
Quoting n00b4ever
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?
I use ninjatradedr to analyze and oanda to fill orders, i havent really found a problem. Im not sure if ninjatrader allows you to use data from another provider and then trade live on ninjatrader with another company, if thats what you're asking.

In the long haul, i think a minimum of 10 pips is aimed for, usually 14 +, so that pip spread shouldnt make much a difference, unless i suppose price pulls back to near your entrance before going in your favor, and the extra 0.5 pip stops you out, but I don't think thats a big deal, that sort of event should be planned for... also its probably very unlikely that the extra pip spread would make a difference in stopping you out, because i personally am trying to enter on the pullback, with a high probability that the pullback will pierce an area of supply/demand, and this zone will protect me when i move to break even, so that makes it even less likely.
  • #2,944
  • Edited 7:30am Feb 16, 2013 6:54am | Edited 7:30am
Quoting n00b4ever
Very useful, Starry!
you're welcome! im trying to get the replay to work so i can simulate trading tick charts, but no success so far.

oh yeah: and the python script converts the csv file to the format required by ninja
  • #2,945
  • Feb 16, 2013 8:50am Feb 16, 2013 8:50am
mr pip,
can you please post your chart settings, the ones with the color for the candles, candle wicks, and for the background
  • #2,946
  • Feb 16, 2013 9:22am Feb 16, 2013 9:22am
Quoting Starry
mr pip,
can you please post your chart settings, the ones with the color for the candles, candle wicks, and for the background
This might get you started, until Mr. Pip turns up

Chart Properties
Color for axis = Medium Purple
Plot horizontal grid lines = false
Plot vertical grid lines = false
Color for background = Black

Data Series
Bar width = 2
Candle Outline Color = White
Color for down bars = White
Color for up bars = Black
Wick Color = White
Price Marker Color = Cyan
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (233 Tick) 15_02_2013.jpg Size: 52 KB
  • #2,947
  • Feb 16, 2013 10:04am Feb 16, 2013 10:04am
Quoting Starry
for anyone who wants historical tick data from 2007 + , heres a link...
http://www.strategyquant.com/tickdatadownloader/
Thanks Starry!
Finally out of the shadows.
  • #2,948
  • Feb 16, 2013 10:14am Feb 16, 2013 10:14am
Quoting itinerant
This might get you started, until Mr. Pip turns up

Chart Properties
Color for axis = Medium Purple
Plot horizontal grid lines = false
Plot vertical grid lines = false
Color for background = Black

Data Series
Bar width = 2
Candle Outline Color = White
Color for down bars = White
Color for up bars = Black
Wick Color = White
Price Marker Color = Cyan
thanks! are you sure the bar width is 2, setting it to 2 gives some weird results. setting it to 1 looks ok, but it looks really compressed. is your pixel width set to 1 for the candle outline and wicks?

Chart width 2
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chart width 2 properties
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chart width 1
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  • #2,949
  • Feb 16, 2013 10:14am Feb 16, 2013 10:14am
Quoting gaf
Thanks Starry!
you're welcome!
  • #2,950
  • Feb 16, 2013 10:34am Feb 16, 2013 10:34am
Quoting Starry
thanks! are you sure the bar width is 2, setting it to 2 gives some weird results. setting it to 1 looks ok, but it looks really compressed. is your pixel width set to 1 for the candle outline and wicks?

Chart width 2
Attachment
chart width 2 properties
Attachment
chart width 1
Attachment
hey, never mind, its perfect now! the bar widths change as you zoom in/out, cool
  • #2,951
  • Feb 16, 2013 10:46am Feb 16, 2013 10:46am
Quoting Starry
hey, never mind, its perfect now! the bar widths change as you zoom in/out, cool
Glad to help
  • #2,952
  • Feb 16, 2013 11:01am Feb 16, 2013 11:01am
Hi Everyone,

Just a couple harmonic patterns I am looking at it, I thought some of you might be interested.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurdailybutterfly.jpg Size: 95 KB
Click to Enlarge Name: eur4h-1.jpg Size: 96 KB
Click to Enlarge Name: xaudaily.jpg Size: 107 KB
The world you desire can be won. It exists.. it is real.. it is possible..
  • #2,953
  • Feb 16, 2013 11:40am Feb 16, 2013 11:40am
Quoting Mr. Scott
Hi Everyone,

Just a couple harmonic patterns I am looking at it, I thought some of you might be interested.
thanks! i drew the eurusd h4 pattern using just general confluence, heres what i got.

there were three impulses, second one at 127-138 extension range, and the third one at the 161 extension of the first and 127 extension of the second. Its now above a swap line (middle blue line), and could dip back to the 50-61 zone, before going up to the next zone via an abcd. since it would have just pierced a strong zone, it will probably bounce and keep going up what a forecast! such forecasts are not useful until it gets very close to prz zone, to see how price has acted up to that point, but oh well...


Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD_H4.png Size: 146 KB
  • #2,954
  • Feb 16, 2013 11:45am Feb 16, 2013 11:45am
Quoting Starry
thanks! i drew the eurusd h4 pattern using just general confluence, heres what i got.

there were three impulses, second one at 127-138 extension range, and the third one at the 161 extension of the first and 127 extension of the second. Its now above a swap line (middle blue line), and could dip back to the 50-61 zone, before going up to the next zone via an abcd. since it would have just pierced a strong zone, it will probably bounce and keep going up what a forecast! such forecasts are not useful until it gets very close to prz zone, to see...
Nice work Starry. Since you are interested, here is one more.

Scott
Attached Image (click to enlarge)
Click to Enlarge Name: eur4h-3.jpg Size: 88 KB
The world you desire can be won. It exists.. it is real.. it is possible..
  • #2,955
  • Feb 16, 2013 11:47am Feb 16, 2013 11:47am
In analyzing the patterns, i think the difference between the crab and butterfly is interesting. In the crab, the fib extension of the XA leg is taken in order to find D, while in the butterfly, the fib extension of the AB leg gis taken to find the D completion point. Whats the difference between the patterns? The butterfly C point goes to the 38-50 retracement range (and the B to the 78.6-88.6), while in the crab C goes to the 50 - 61.8 range (and B to 61.8-78.6 zone).

So in the butterfly pattern, the AB leg is what we use to represent bearish pressure (in a bullish butterfly) , while in the crab we use the XA leg to represent bearish pressure (in a bullish crab). In each case, the leg that represents the pressure needs to be exhausted (161 extension)...
  • #2,956
  • Feb 16, 2013 11:48am Feb 16, 2013 11:48am
Quoting Mr. Scott
Nice work Starry. Since you are interested, here is one more.

Scott
good job with the charts i love harmonics
  • #2,957
  • Feb 16, 2013 11:51am Feb 16, 2013 11:51am
forgot the wick on the first impulse...
so i guess its now between 138-161 of first leg. who k nows, might go all the way to 161... must include wick, even though it looks more convenient otherwise

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_h4_new.png Size: 154 KB
  • #2,958
  • Edited 12:24pm Feb 16, 2013 12:02pm | Edited 12:24pm
eh, sticking to my original.
edit: im still quite new to this, so i keep redoing it .... i guess the only thing i can say is it is stuck between some zones...

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD_H4.png Size: 175 KB
  • #2,959
  • Feb 16, 2013 1:43pm Feb 16, 2013 1:43pm
heres my best forecast attempt. keep practicing till it becomes second nature and everything that isnt high probability is eliminated. its already rejecting off the demand zone, so i dont know...


Attached Image (click to enlarge)
Click to Enlarge Name: puzzle.png Size: 169 KB


Harmonics is like a puzzle where you have to fit together all the pieces, and some pieces that you think might be involved might never be involved!





Entity 1: This part of the puzzle has already been involved, price is in the 127-138 extension of this entity
Entity 2: Entity 3 is the 138 extension of this leg, and Entity 5 has not yet reached the 161 line, though it has reached the 138-161 zone.
Entity 3: Entity 5 is not yet related to Entity 3, it has not yet reached the 127 extension of entity 3.
Entity 4: This entity is not yet in play, the 127 extension of this leg has not been met.
Entity 5: The possible endpoint of this has not yet been met.
Entity 6: These large wicks have not yet been reached.

Now, look at the bottom PRZ to the right. If it goes here, the puzzle will fit together very nicely.
Entity 1: Price will then have entered the exhaustion zone, 138-161
Entity 2: Entity 5 will have reached the 161 line
Entity 3: Entity 5 will now be related to entity 3
Entity 4: Price will now close in the 127 zone, or at least spike
Entity 5: The endpoint lands right in the bottom prz
Entity 6: Price will then have reached a large demand zone

While there's no real reason that all these entities have to be involved, price has already interacted with entity 1-4, so it should somehow be involved. And it produces nice confluence…..
  • #2,960
  • Feb 16, 2013 2:07pm Feb 16, 2013 2:07pm
lol, for entertainment purposes only , i have plotted out a course that price must (haha ) obey if it goes down to the zone that i predicted, this is on tick chart!

larger picture
Attached Image (click to enlarge)
Click to Enlarge Name: tick_forecast_zoom_out.png Size: 165 KB


smaller price path
Attached Image (click to enlarge)
Click to Enlarge Name: tick_forecast.png Size: 157 KB
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