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Ratios & Harmonics: a Different Way to Trade

  • #3,261
  • Mar 1, 2013 11:22am Mar 1, 2013 11:22am
Ouch on that last one. Well guys, I think the trend for the EURUSD has oficially changed direction to bullish when the London session closed, what do you think? 1.3000 seems to had been tested and will possibly go up again.
Best time to plant a tree was 20 years ago, second best is now
  • #3,262
  • Mar 1, 2013 11:43am Mar 1, 2013 11:43am
Quoting Mr. Pip
Still a potential Bat look at the chart.
Hi mrpip about the chart you posted i dont quite get it at point c . You mentioned point c has not reached yet after point b is broken and it will invalidate bat pattern. isnt bat pattern structure can be value from 0.382-0.886 of ab retracement .
  • #3,263
  • Mar 1, 2013 12:25pm Mar 1, 2013 12:25pm
I've been reading this thread for the past few days and have only gotten up to page 76. I have a lot of practice to do with other patterns, but I am loving the ABCD and AB=CD patterns. I think these are the only ones I am going to focus on.
  • #3,264
  • Mar 1, 2013 12:46pm Mar 1, 2013 12:46pm
Well, a Bat pattern starts from X to A in the Main Swing. So the first retracement you are looking at is 382-500 XA, that will give you the B point. Then price will retrace 618-786 AB (the second leg) and that is your point C.

Mr. Pip said very clearly that IF price doesn't move to 618-786 AB (which would establish Point C) and breaks B instead, you would be looking at an AB=CD and not a Bat pattern.

The 886 you are mentioning is in fact 886 XA (considering the main swing is X to A) on the completion of the bat with the CD leg. But before that you need to qualify AB and BC.

Quoting gristar
Hi mrpip about the chart you posted i dont quite get it at point c . You mentioned point c has not reached yet after point b is broken and it will invalidate bat pattern. isnt bat pattern structure can be value from 0.382-0.886 of ab retracement .
Best time to plant a tree was 20 years ago, second best is now
  • #3,265
  • Mar 1, 2013 12:59pm Mar 1, 2013 12:59pm
And that's the best you can do. ABCD and moving AB swings along the way to form AB=CDs is the cream and butter of harmonics. Take a look at Mr. Pip's videos on Youtube (DCASTFX), specially the trading session he made on Jan 14, you'll see that though he measures some ratios to qualify patterns, what he does most is AB=CDs and ABCDs.

A Gartley for example is nothing more than a pattern cotaining a perfect ABCD, and is one that we use the most because it has perfect 618-786 retracements.

The other pattern I've noticed people like, including me, is the Bat. If you take a quick look it might seem like if is a 778-886 correction of the main swing, but inside, there are other corrections that have qualify the pattern as a bat.

In my opinion the Gartley and Bat pattern are great to have in mind since they occur inside the structure (high and low of main swing).

Quoting shadodwel
I've been reading this thread for the past few days and have only gotten up to page 76. I have a lot of practice to do with other patterns, but I am loving the ABCD and AB=CD patterns. I think these are the only ones I am going to focus on.
Best time to plant a tree was 20 years ago, second best is now
  • #3,266
  • Mar 1, 2013 1:00pm Mar 1, 2013 1:00pm
Rough day today. 2 small losses due to moronic choices and frustration over missing the main orderflow moves. Should have closed my platform instead of trading distracted. Hope you all fared better. Have a great weekend!
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (5 Min) 01_03_2013J.jpg Size: 66 KB
Finally out of the shadows.
  • #3,267
  • Mar 1, 2013 1:05pm Mar 1, 2013 1:05pm
Mixed results for me, 2 wins 2 losses (same reason as you). BTW I traded the exact TF on EU, and ended up proyectin the swings as you did. It's great to see that someone else shared my thoughts!

Quoting gaf
Rough day today. 2 small losses due to moronic choices and frustration over missing the main orderflow moves. Should have closed my platform instead of trading distracted. Hope you all fared better. Have a great weekend!
Best time to plant a tree was 20 years ago, second best is now
  • #3,268
  • Mar 1, 2013 1:16pm Mar 1, 2013 1:16pm
-5 pips for the day, 1 winner some losses.... have a good weekend!
  • #3,269
  • Mar 1, 2013 1:44pm Mar 1, 2013 1:44pm
Quoting liemo
Mr Pip. I've entered a trade EJ @ 1.272 extension of AB, price has kept going to 1.618 (almost taking out the SL) then reversed. If we pull a fib from A to D (1.618 extension of AB) the entry point comes quite close to the 38.2 AD, your rules states that once it hits the 38.2 fib move SL to BE. If move the SL up in this situation it will be too close to PA and one slight slip of PA will take out are SL. Just wondering how you would approach this normally, would it be better to wait for a high low to create then move the SL up accordingly?
Price action considerations would have kept you from early entry as there was stregth going into your PRZ. if your BE point is to close to your entry you can to one of two things:

1. Trail stop on structure swing lows till break even is achieved.
2. Use the 50% Fib as your BE.
If you fail to plan, you plan to fail.
  • #3,270
  • Mar 1, 2013 1:49pm Mar 1, 2013 1:49pm
Quoting ewgcorp
Dear Mr. Pip,

this chart of EU is so confusing. the pattern seems to have near perfect harmonics the pattern also seems to have structure however the anchor swing, main swing and dominant swing seem to be singing a different song. the price action is confusing the price seems to be confused about whats going to happen next "indecision".

my question is keeping to KISS principles (Keep It Simple Simon). are there rules for this pattern or are my eyes deceiving me?

thanking you for your kind comments.
Not sure what pattern you are refering to and your chart is way to small to look at the PA but the structure of order flow is quite clear. The market is speaking to you and telling you it wants to keep moving down.
If you fail to plan, you plan to fail.
  • #3,271
  • Mar 1, 2013 1:53pm Mar 1, 2013 1:53pm
Quoting ewgcorp
Hi Mr. Pip and Mr. Scott,

i was looking at the 1 min chart re EU. these are the structures i was considering: AB=CD

as you can see the C run was a great outcome. however, on the up swing D. i have 2 potential PRZ.

I would be delighted to have your kind comments and thoughts.

kind Regards,
Chad
If you are against order flow it would be unrealistic to expect price to reach the higher PRZ you would have to look towards structure to see if order flow is changing to support your target.
If you fail to plan, you plan to fail.
  • #3,272
  • Mar 1, 2013 1:54pm Mar 1, 2013 1:54pm
Quoting gaf
Switching to the 5min as that seems to be a bit less hectic and allows me more time to read and anticipate in fast markets. Nice abcd in orange with the turnaround on a bigger abcd in green. If you did nothing but follow price you were rewarded greatly today. So many interactions with structure.

I would advise everyone to start concentrating on doing Mr. Pip's Price Action exercise everyday as it is the only thing that really matters. All your decisions are based on what price is doing so it will pay you to become intimate with what it can...
If you fail to plan, you plan to fail.
  • #3,273
  • Mar 1, 2013 2:01pm Mar 1, 2013 2:01pm
Quoting lucariga
This is my first trade with Mr pip's method.
LONG on EUR/USD 15 min on a completed ABCD pattern. What you think guys?
Is it correct for you Mr pip? For the moment price went south unfortunately.....
Many thanks all

Attachment
Yes it's okay and you walked out with a BE if you followed the rules
If you fail to plan, you plan to fail.
  • #3,274
  • Mar 1, 2013 2:08pm Mar 1, 2013 2:08pm
Quoting Good2Cu
TP reached, did not take the prz because of price action/ strong bearish orderflow/ and about to approach 1.3000
If you fail to plan, you plan to fail.
  • #3,275
  • Mar 1, 2013 2:13pm Mar 1, 2013 2:13pm
Quoting gristar
Hi mrpip about the chart you posted i dont quite get it at point c . You mentioned point c has not reached yet after point b is broken and it will invalidate bat pattern. isnt bat pattern structure can be value from 0.382-0.886 of ab retracement .
No it is not refere to the pattern reference guide I posted early in this thread. I have not directly covered bat patterns yet
If you fail to plan, you plan to fail.
  • #3,276
  • Mar 1, 2013 2:16pm Mar 1, 2013 2:16pm
Quoting shadodwel
I've been reading this thread for the past few days and have only gotten up to page 76. I have a lot of practice to do with other patterns, but I am loving the ABCD and AB=CD patterns. I think these are the only ones I am going to focus on.
Great idea these alone will change your life. Get to know them but get to know price action this is the secrest to successful trading.
If you fail to plan, you plan to fail.
  • #3,277
  • Mar 1, 2013 2:17pm Mar 1, 2013 2:17pm
Quoting horuxito
Well, a Bat pattern starts from X to A in the Main Swing. So the first retracement you are looking at is 382-500 XA, that will give you the B point. Then price will retrace 618-786 AB (the second leg) and that is your point C.

Mr. Pip said very clearly that IF price doesn't move to 618-786 AB (which would establish Point C) and breaks B instead, you would be looking at an AB=CD and not a Bat pattern.

The 886 you are mentioning is in fact 886 XA (considering the main swing is X to A) on the completion of the bat with the CD leg. But before that...

Well done
If you fail to plan, you plan to fail.
  • #3,278
  • Mar 1, 2013 3:51pm Mar 1, 2013 3:51pm
Quoting JayTrader
AUDUSD Trade got stopped out at BE +10 + first TP 35 points total
Here is another trade I took this Morning that finally got some legs. A completed Bullish Bat on H4 EJ. I would not be trading Harmonics without your Instruction Mr. Pip, never could quite understand it the way others presented it in the past, so Thank You and I am glad you are thinking of staying .
Attachment


Didn't take the H4 AUDUSD trade that i mentioned this Morning but it is starting to move up also
First TP hit for 189 points on EJ trade from Earlier this week, and was able to move everything to BE before markets closed on me today
Have a Good weekend everyone.
Always Learning
  • #3,279
  • Mar 1, 2013 3:59pm Mar 1, 2013 3:59pm
Quoting Mr. Pip
Great idea these alone will change your life. Get to know them but get to know price action this is the secrest to successful trading.
They surely are changing lives. I completed my 100 trade ABCD challenge (102 actually) and results are posted here (http://www.forexfactory.com/showthread.php?p=6485642#post6485642).

Biggest take-away: A 61.8% retracement entry with 78.6% stop and 0% target would have made 30%+ return, nominally. Simulated equity curve looks like this:
http://farm9.staticflickr.com/8390/8...9bf41e60_b.jpg

These were non-filtered, basic entries, nothing special. Question is: can you handle a 30% win rate? Or can you improve that to ~50% (which would be epic).

Moral of the story--Mr. Pip gave me a gold mine, my job is to mine it without over-complicating it. I made it my own, put my sign out front, and will start pulling buckets of ore shortly!

Good luck all!
  • #3,280
  • Mar 1, 2013 5:25pm Mar 1, 2013 5:25pm
Quoting BroncoCap
They surely are changing lives. I completed my 100 trade ABCD challenge (102 actually) and results are posted here (http://www.forexfactory.com/showthread.php?p=6485642#post6485642).

Biggest take-away: A 61.8% retracement entry with 78.6% stop and 0% target would have made 30%+ return, nominally. Simulated equity curve looks like this:
http://farm9.staticflickr.com/8390/8...9bf41e60_b.jpg

These were non-filtered, basic entries, nothing special. Question is: can you handle a 30% win rate? Or can you improve...
Great work and way to make it your own. I'm sure you could make to the 50% mark with more practice and a closer read on price action. If you want send me your rules and a chart via PM or here and we will see if we can get epic. It was also my pleasure to forward the keys to the kingdom. I hope you continue to grow and others too!!! All I can do is lead the horse to water. The drinking is not up to me.
If you fail to plan, you plan to fail.
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