Ratios & Harmonics: a Different Way to Trade | Page 173 | 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

  • #3,441
  • Mar 12, 2013 4:35pm Mar 12, 2013 4:35pm
Quoting shadodwel
Might you be referring to the fib retracement levels, such as, 61.8% or 78.6%??
Hey usmanp,

This is what I understand it to be.

Mr. Pip has different rules for his ratios which have been posted though this thread so I wouldn't spend too much time reading those books as Mr. Pip has adapted the patterns and made them his own. After you have read and understood the thread you can scan through them but I personally didn't find them much help.

I would spend all the time you have on pattern identification and price action reading as those will be the key to your profitability. Great to have you here. Cheers.
Finally out of the shadows.
  • #3,442
  • Mar 12, 2013 10:00pm Mar 12, 2013 10:00pm
Even though I usually don't trade GBP during the asian session, it did complete a nice ABCD pattern on the 15 mins. I got in at the PRZ right now. My TP is set at the 61.8 fib level. Right now, I'm down a pip. My stop loss is set for -30. Risk:Reward is 1:2
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf.gif Size: 43 KB
  • #3,443
  • Mar 12, 2013 10:06pm Mar 12, 2013 10:06pm
Quoting usmanp
well it means like a swing a length from high to low point and from low to high point in simple words??
Hello my friend,

Although markets tend to have unique harmonic numbers, e.g. EUR tends to move in 70 pip swings, it is not that important.

What is important is that all markets tend to move harmonically, that is price swings that are similar in length and repeat.

As Mr. Pip stated at the beginning of his thread:

What is market harmonics? Is it possible that the marketsare not random? The answer is yes there is nothing random about this or any other market or instrument you wish to trade.

Harmonics is the process of identifying the market’s rhythm or its pulse if you will and exploiting any and all opportunities. There are visual occurrences that have tendencies to repeat themselves over and over again. It is our job as chart technicians to identify them and trade them. The principles of harmonics and ratios have no boundaries. They can be applied to any instrument or timeframe. We will peel away the myth of the term “noise” and learn to focus on the only thing that matters on a chart, PRICE.

Regard,

Mr. Pip

Hope that helps,
Scott
The world you desire can be won. It exists.. it is real.. it is possible..
  • #3,444
  • Mar 12, 2013 11:23pm Mar 12, 2013 11:23pm
Yeah got it now main swing it will be
  • #3,445
  • Mar 13, 2013 5:25am Mar 13, 2013 5:25am
I got stopped out. I guess it was a bad pattern, perhaps a little stretched out? I don't know. Maybe Mr. Pip can comment on this?

Quoting shadodwel
Even though I usually don't trade GBP during the asian session, it did complete a nice ABCD pattern on the 15 mins. I got in at the PRZ right now. My TP is set at the 61.8 fib level. Right now, I'm down a pip. My stop loss is set for -30. Risk:Reward is 1:2
  • #3,446
  • Edited 7:09am Mar 13, 2013 5:41am | Edited 7:09am
EURUSD M15 Here we have a possible ABCD with C being retested (Brown fib and text) or a Gartley. My first "C" trade was stopped out at BE. I bought the retest of "C". The Gartley would be OK if price reverses at the PRZ.

Attached Image (click to enlarge)
Click to Enlarge Name: eu5.jpg Size: 128 KB


*EDIT* Price has reached the PRZ of the Gartley...

On the 5 minute chart some decent PA in the PRZ of the Gartley

Attached Image (click to enlarge)
Click to Enlarge Name: eu6.jpg Size: 88 KB
  • #3,447
  • Mar 13, 2013 9:45am Mar 13, 2013 9:45am
I see the GBPUSD turned around in my favor. Oh well, I'm not emotional about it but it gets annoying when stuff like that happens. Switching the the 1 hour charts, I noticed that the ABCD pattern formed the opposite way than I chose on the 15 minute. Sloppy, sloppy, sloppy, on my part. I guess if I would have risked 3% of my account on that 1 trade, i'd be 1% up... at the moment. I'm trying not to risk more than 2% each trade. So, 60 pips for me is 2% of my account balance. Even if I would have risked 2%, I'd still be stopped out.

What are other people using as their risk per trade? 25 pips per 1%? 50 pips per 1%??
  • #3,448
  • Mar 13, 2013 10:08am Mar 13, 2013 10:08am
Quoting shadodwel
I see the GBPUSD turned around in my favor. Oh well, I'm not emotional about it but it gets annoying when stuff like that happens. Switching the the 1 hour charts, I noticed that the ABCD pattern formed the opposite way than I chose on the 15 minute. Sloppy, sloppy, sloppy, on my part. I guess if I would have risked 3% of my account on that 1 trade, i'd be 1% up... at the moment. I'm trying not to risk more than 2% each trade. So, 60 pips for me is 2% of my account balance. Even if I would have risked 2%, I'd still be stopped out.

What are...
Shadow,
March is proving challenging for me as well. That is the way it goes, key is to press on. I only use 1% of my acct per trade in demo, probably only 0.5% live before getting comfortable enough to up it. Caution will kept us in the game while we perfect our craft. As they say, take care of the losers and the winners will take care of themselves.

Good luck!
  • #3,449
  • Mar 13, 2013 1:33pm Mar 13, 2013 1:33pm
Finally manage to go through from page 1 to here in 2week tim. i will start to practice abcd and gartley tomorrow. it is midnight 2.32am got to sleep now. Thank mr pip for the wonderful sharing and patience
  • #3,450
  • Mar 13, 2013 4:55pm Mar 13, 2013 4:55pm
Very nice pattern here, exceptional confluence with the .886 of XA and the 2.0 ext of AB. Took about 75 ticks of profit with only 37 risked.
Attached Image (click to enlarge)
Click to Enlarge Name: Bat.png Size: 53 KB
  • #3,451
  • Mar 13, 2013 6:23pm Mar 13, 2013 6:23pm
Quoting shadodwel
I see the GBPUSD turned around in my favor. Oh well, I'm not emotional about it but it gets annoying when stuff like that happens. Switching the the 1 hour charts, I noticed that the ABCD pattern formed the opposite way than I chose on the 15 minute. Sloppy, sloppy, sloppy, on my part. I guess if I would have risked 3% of my account on that 1 trade, i'd be 1% up... at the moment. I'm trying not to risk more than 2% each trade. So, 60 pips for me is 2% of my account balance. Even if I would have risked 2%, I'd still be stopped out.

What are...
Hey shadodwel,
I usually use a fixed amount and divide it by the stop needed. For instance if I'm using money management techniques similar to what Mr. Pip posted I'd trade a dollar divided by stop distance (below structure by a few pips for the 233 chart). This way you can manage your risk better and don't get blown out by one bad trade. I believe I use a variant of the fixed fractional method where you risk alot when you have little equity and risk less as your account grows. 10% of 100 is easy to swallow (this does not include the margin needed to put the trade on) but 10% of 100000 is a kick in the head.

There are many risk models but I like to keep it simple and assume I have only a 50/50 chance of success with gaining a 2:1. This isn't entirely true as we have BEs and early closes but our PA reading skills and expectancy for the patterns will put us ahead. Hope this helps. Cheers.
Finally out of the shadows.
  • #3,452
  • Mar 13, 2013 6:34pm Mar 13, 2013 6:34pm
Hey Traders hope everyone is doing well. Its been a couple weeks since I posted. I was a little preoccupied but at any rate here is a little something, something I'm looking at on the Eur/Usd Daily chart. I have my eyes out for similar pattern completions at lower levels as well but here are some areas that should provide some bankable pips. I drew a couple of Shark patterns with good ratio confluence and structure in the PRZs. Currently I have a short on but these areas could also provide some good potential opportunities. Time will tell. Enjoy and may you all make bank!!!
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd daily.gif Size: 66 KB
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,453
  • Mar 13, 2013 8:55pm Mar 13, 2013 8:55pm
Quoting Mr. Pip
I made this short video a while back for a group I was mentoring. It is a great foundation we can build on. View the video on Fibs and Harmonics.

Regards,

Mr. Pip

http://www.youtube.com/watch?v=6SvcmyIkmtM&feature=player_detailpage
GREAT.... Thread.. thank you Mr Pip
  • #3,454
  • Mar 14, 2013 3:02am Mar 14, 2013 3:02am
Dear All,

I have struggled to find a trade this week. harmonics failed in my opinion in so far as trading EU and GE. my focus has been ABCD or Gartley patterns.

does anyone perhaps have some comments? or a take on the charts?

kind regards,
choose a job you love and you will never have to work a day in your life
  • #3,455
  • Mar 14, 2013 3:22am Mar 14, 2013 3:22am
Quoting ewgcorp
Dear All,

I have struggled to find a trade this week. harmonics failed in my opinion in so far as trading EU and GE. my focus has been ABCD or Gartley patterns.

does anyone perhaps have some comments? or a take on the charts?

kind regards,
Be patient.. Look hard a Adud..Just my opnion of course
  • #3,456
  • Edited 8:34am Mar 14, 2013 7:58am | Edited 8:34am
What time frame are you looking at? I've noticed several ABCD patterns. There is one on the AUDUSD 4hr right now. I'm in the trade at the reversal zone. Not sure if it will work out because the US news that was released 30 mins ago. But, I'm in it. Let's see what happens.

There is also a nice one that formed for GBPUSD on the 15 min chart.

Quoting ewgcorp
Dear All,

I have struggled to find a trade this week. harmonics failed in my opinion in so far as trading EU and GE. my focus has been ABCD or Gartley patterns.

does anyone perhaps have some comments? or a take on the charts?

kind regards,
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 28 KB
Click to Enlarge Name: gbpusd2.gif Size: 27 KB
  • #3,457
  • Mar 14, 2013 8:40am Mar 14, 2013 8:40am
Quoting ewgcorp
Dear All,

I have struggled to find a trade this week. harmonics failed in my opinion in so far as trading EU and GE. my focus has been ABCD or Gartley patterns.

does anyone perhaps have some comments? or a take on the charts?

kind regards,
This is why 95% of traders fail. Something works, then does not work, then they bail for the next 'latest and greatest'. Mark my words, this line of thinking will make you a loser. No offense, but it is the truth. It is the way I traded for many years.

Yes, EU is HARD to trade right now. I am getting my (demo) arse handed to me, but I had an overnight winner. If you use proper money management, have a good reward:risk ratio, and perserver, you will win, otherwise, do not even start because you will fail at the end.

I suggest (1) stop trading until PA starts showing decent harmonics, (2) change timeframes, many of my better trades have been longer term shorts, (3) change currency pairs, others have posted well-behaved charts other than EU.

Take a step back, look at old charts, compare situations, and take action (or no action, which is still action). You must battle through the rough spots to get to the best days.

Cheers!

Edit: re-read your post and not as negative as my mind read it to be, but my statements still stand. This is just a rough patch for EU, grind it out.

Edit 2: this is also why Mr. Pip teaches about confluence and choosing patterns carefully. He is a sniper. I currently use a shotgun and take every trade as I learn how the markets move. He knows what works when, when to cut trades short, his edge is his experience coupled with a very simple system/process. Now that I have nearly 150 trades under my belt, I am looking to become a sniper as well.
  • #3,458
  • Mar 14, 2013 8:42am Mar 14, 2013 8:42am
Quoting shadodwel
What time frame are you looking at? I've noticed several ABCD patterns. There is one on the AUDUSD 4hr right now. I'm in the trade at the reversal zone. Not sure if it will work out because the US news that was released 30 mins ago. But, I'm in it. Let's see what happens.

There is also a nice one that formed for GBPUSD on the 15 min chart.
Unless I am mis-reading your charts, those are not proper ABCD's. Yes, they worked, but they do not follow the general rule for ABCD.

The C point must be between 61.8% and 78.6% AB. The market can 'wick' past 78.6% but cannot close beyond that.

As far as I can tell, you are seeing 'measured moves' at best.

Nonetheless, it is working for you, and that is key, just we need to be careful about semantics in order to keep everyone on the same page.

Cheers!
  • #3,459
  • Mar 14, 2013 8:52am Mar 14, 2013 8:52am
Quoting shadodwel
What time frame are you looking at? I've noticed several ABCD patterns. There is one on the AUDUSD 4hr right now. I'm in the trade at the reversal zone. Not sure if it will work out because the US news that was released 30 mins ago. But, I'm in it. Let's see what happens.

There is also a nice one that formed for GBPUSD on the 15 min chart.
i was looking at 1,5,15,30 min and 2hr charts
choose a job you love and you will never have to work a day in your life
  • #3,460
  • Mar 14, 2013 8:58am Mar 14, 2013 8:58am
Quoting ewgcorp
i was looking at 1,5,15,30 min and 2hr charts
Here is my overnight winner--

http://farm9.staticflickr.com/8102/8...ffe6e98b_b.jpg

Now, most people would wonder why the heck I drew that wave. Answer is: I am trying everything. Right now the market is moving like a drunken sailor. We want sexy ballroom dancing, but do not get it. Even still, I know that I only need 1 winner in 4 trades to be nicely profitable. I would like 1 in 3 and am working to that goal. But knowing my stats, I can rest assured I will win in the long run, even if the waves I choose are not ballroom sexy.

Actually, that was a poor example, but here is a longer term chart with a winner. A far more acceptable wave chosen.

http://farm9.staticflickr.com/8226/8...e655bc75_b.jpg

This is a bit sexier!
111 traders viewing now