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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

  • #3,741
  • Apr 9, 2013 8:17am Apr 9, 2013 8:17am
Quoting shadodwel
I don't have a chart of USDCAD up. That was an almost perfect Gartley setup. Did price reach PRZ? How did it react to it?
It did touch top of PRZ and shot up. I'll post the chart later, as i can't at the mean time.
  • #3,742
  • Apr 9, 2013 8:29am Apr 9, 2013 8:29am
Quoting shadodwel
I was stopped out. I didn't put my stop large enough. It only went beyond my stop by 2.3 pips.. I only risked 1% thought, and it did reach the target; I knew it would. I just thought risking more than 1% for a 1% gain is not smart money management.
Still have my Long trade on from the bounce off structure and .382 retrace. Looking for areas above but will also continue rolling stops to protect profit. Again focusing on the higher TF charts that I posted and see 5420 ish area to be a good place to be watchful of PA behavior. Also remember FOMC tomorrow so anything goes lol. Good Luck and may we all continue to make bank!!
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,743
  • Edited 10:55am Apr 9, 2013 8:57am | Edited 10:55am
Hi all..i'm seeing an impending bear for EUR/USD using AB=CD

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The confluence area is also a 38.2 fib retracement for weekly chart

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Hmmm is there enough confluence?
  • #3,744
  • Apr 9, 2013 11:31am Apr 9, 2013 11:31am
Hey Traders this is a trade opportunity Im currently involved with. Bearish Shark and Butterfly completion. Enjoy and may we all make Bank!!
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Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,745
  • Apr 10, 2013 5:26am Apr 10, 2013 5:26am
There is a nice bearish butterfly forming on the EURJPY. Now, the question is, can I afford the stop loss on this mighty pair??

Anyone thinking about shorting this?
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  • #3,746
  • Apr 10, 2013 5:45am Apr 10, 2013 5:45am
I took this bat trade on the eurusd. Let's see what happens.
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  • #3,747
  • Apr 10, 2013 6:31am Apr 10, 2013 6:31am
This turned out to be more of a butterfly (almost) than a bat. Got stopped out for BE+2. Next trade.

Quoting shadodwel
I took this bat trade on the eurusd. Let's see what happens. {image}
  • #3,748
  • Apr 10, 2013 7:53am Apr 10, 2013 7:53am
$$
A +13 pips transaction today. Thank you market
reason for trade: aggressive abcd and nearby structure. Probably should have waited for second retrace because it wicked off of structure, instead of closing at or into structure.

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  • #3,749
  • Apr 10, 2013 9:24am Apr 10, 2013 9:24am
Quoting Starry
thx! It seems that when I try to do the price action exercise, 30 minutes a day, it never seems to translate to actual trading. Im like, how long till I actually see this making some differnte in my trading? My mind seems to be remembering various cases of price action and just trying to cut/paste into live trading, and its definitely not working out. Break even at best. Any suggestions how to efficiently practice the price action 30 minutes a day? Do you guys try to think about how price correlates to structure during the exercise (I dont usually...
Hey Starry,

Structure is key to doing this exercise otherwise its just a bunch of frustration when the bars race into supply/demand and price tells you that it aggressively closed @S and the next bar becomes strongly bullish. You are going to be right more times than you are wrong but remember that you are not trading every bar. You are only trading @ areas of confluence. I used to find this really frustrating but when you accept that price will fool you now and then when you are only following price i.e. not using structure, fibs etc you can relax a bit and it becomes fun.

The bar exercise is what helps you after you are in a trade and price starts going against you. You then ask yourself: What does this mean? If you expect price to make a LH and it instead it races up against you and closes aggressively you now have new info. If price instead closes strongly but then starts to show wicking and rejection of higher prices you know your trade is safe and you can give it breathing room. Cheers.
Finally out of the shadows.
  • #3,750
  • Apr 10, 2013 9:39am Apr 10, 2013 9:39am
Quoting Starry
$$ A +13 pips transaction today. Thank you market reason for trade: aggressive abcd and nearby structure. Probably should have waited for second retrace because it wicked off of structure, instead of closing at or into structure. {image}
Nice one I took the same aggressive c trade. Why did you close your trade for 13 pips? you could have made roughly 40 pips on this trade!
"The only thing I’m addicted to right now is winning."
  • #3,751
  • Apr 10, 2013 1:55pm Apr 10, 2013 1:55pm
Quoting Starry
Mr pip, Could you post what trades you made today? Heres my one trade that failed. 10 pip stoploss, ab = cd trade, take profit at 38.2 retracement. {image}
Don't worry about my trades posts your charts and I'll help you see what was missed.
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If you fail to plan, you plan to fail.
  • #3,752
  • Apr 11, 2013 6:56am Apr 11, 2013 6:56am
Quoting Mr. Pip
Don't worry about my trades posts your charts and I'll help you see what was missed. {image}
Thanks! I find it helpful to see what I missed and then compare it to your charts.

How do you use structure by the way? If price wicks into structure, does it "count" as having interacted with structure and thus make the trade more high probability, or does price have to close into structure.
  • #3,753
  • Apr 11, 2013 6:58am Apr 11, 2013 6:58am
Quoting gaf
Hey Starry, Structure is key to doing this exercise otherwise its just a bunch of frustration when the bars race into supply/demand and price tells you that it aggressively closed @S and the next bar becomes strongly bullish. You are going to be right more times than you are wrong but remember that you are not trading every bar. You are only trading @ areas of confluence. I used to find this really frustrating but when you accept that price will fool you now and then when you are only following price i.e. not using structure, fibs etc you can relax...
Hey!

Thats a good point, I notice that im not trading witih confluence and I wonder if it is useful to train separately, but yeah I have found it fun sometimes. Good insights Ill add this to my repertoire!

How are you doing with harmonics btw?
  • #3,754
  • Apr 11, 2013 7:04am Apr 11, 2013 7:04am
Quoting Mr. Pip
Don't worry about my trades posts your charts and I'll help you see what was missed. {image}
Also, what sort of structure do you consider? For example, if price is going down, would you consider the topmost structure in the bottom most chart, formed by the highs of a range, or would you only consider the lows of a range as valid structure? (i think i drew it wrong but oh well you get the point!)

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  • #3,755
  • Apr 11, 2013 7:27am Apr 11, 2013 7:27am
Quoting Starry
Also, what sort of structure do you consider? For example, if price is going down, would you consider the topmost structure in the bottom most chart, formed by the highs of a range, or would you only consider the lows of a range as valid structure? (i think i drew it wrong but oh well you get the point!) {image}
Resistance become support and vice versa, that is the saying. Therefore, the top of the move was resistance, now it was support. Worked beautifully. There was also a rising diagonal trendline that intersected that support providing additional confluence. I happened to be short from ~1.311 (different methodology) and used that confluence as my target. Netted out 90 pips from that down move to support.

I am using all the tools in my trading toolbox these days. ABCD, Support/Resistance, Trendlines, MAs, stacking/millipedes, dynamic adaptability is key, as I have determined, but most important is participating every day.

Good luck!

PSST! Right now the market is at 61.8% retracement PLUS yesterday's high is right here = CONFLUENCE!
  • #3,756
  • Apr 11, 2013 7:37am Apr 11, 2013 7:37am
Quoting BroncoCap
Resistance become support and vice versa, that is the saying. Therefore, the top of the move was resistance, now it was support. Worked beautifully. There was also a rising diagonal trendline that intersected that support providing additional confluence. I happened to be short from ~1.311 (different methodology) and used that confluence as my target. Netted out 90 pips from that down move to support. I am using all the tools in my trading toolbox these days. ABCD, Support/Resistance, Trendlines, MAs, stacking/millipedes, dynamic adaptability is...
Wow jealous 90 pips! I have 0 lol. mwahaha im getting there just came back from a break from trading.....
  • #3,757
  • Apr 11, 2013 8:07am Apr 11, 2013 8:07am
Quoting Starry
Thanks! I find it helpful to see what I missed and then compare it to your charts. How do you use structure by the way? If price wicks into structure, does it "count" as having interacted with structure and thus make the trade more high probability, or does price have to close into structure.
Structure is about the close of the candle. It can interact with the wick but the close is more important. Hight close is a new structure high, lower close is a new structure close.
If you fail to plan, you plan to fail.
  • #3,758
  • Apr 11, 2013 8:12am Apr 11, 2013 8:12am
I took this trade perhaps a little bit too early. I noticed there was a potential AB=CD pattern forming between the 100 and 127 fib retracement on the yellow line. I figured, I am pretty sure it was going to bounce off the round number and price was going to head up again. I was going to take the aggressive C all the way down for another 30 pips but that round number, I thought, was good resistance. Anyways, my butterfly entry turned into a crab. I trailed my stoploss and was taken out of the trade for +26 pips. Maybe my stoploss was a little too aggressive. I have to learn to be a little more lenient with it. My initial TP was 130.585, and the trade would have closed out for 52 pips. And, if you look at it now, it exceeded my TP quite nicely.
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  • #3,759
  • Apr 11, 2013 11:07am Apr 11, 2013 11:07am
Quoting Starry
Also, what sort of structure do you consider? For example, if price is going down, would you consider the topmost structure in the bottom most chart, formed by the highs of a range, or would you only consider the lows of a range as valid structure? (i think i drew it wrong but oh well you get the point!) {image}
I'm doing much better than I was a few months ago but I'm still having problems with missing trades and getting stuck with the lousy ones . It seems my expectations of where price is going is getting much better but my timing still needs some work. I watch the price on the 89 tick everyday to sharpen my skills. I think I may need to just train trades for a few weeks or so to work on my timing and confidence. All in all I'm way closer to reaching my goal of becoming a trader so I am quite happy.

I was taking trades that were against orderflow and without great confluence before. Now I'm making confluence, particularly S/R an absolute before making a trading decision as I find most of my misreads have been because price was away from good S/R and I entered a bit early not giving my trade much room stopwise.
Finally out of the shadows.
  • #3,760
  • Apr 14, 2013 4:56am Apr 14, 2013 4:56am
Well Traders,

I seems like the thread has dried up. It was indeed a honor to share with you the way I trade and hopefully I was able to point some of you in a good direction. I will continue to monitor the thread for a few weeks and see if you all post or pick a topic to discuss. I would like to see the thread continue as there have been some really valuable content here. Good luck to all and I hope to be able to interact with you soon.

If you fail to plan, you plan to fail.
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