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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

  • #3,841
  • Apr 17, 2013 3:06am Apr 17, 2013 3:06am
Quoting Starry
Definitely! This is what I have also noticed (i dont take the darn tradess), but i have interpreted it a little differently. Anyways, as long as you don't ignore improving the separate skills also. Ive divided my reasons for entry into a couple of skill sets structure (supply/demand and harmonics) price action (pin bars, mini structure approaching trading zone ) order flow (im coming up with my own ideals based on what i observe) take profit I had the structure down, but PA has been emphasized alot and i just didnt see it. Ive actually relaxed my...

Starry, what are the real reasons that you are NOT taking those darn trades?

You saw what happened to E/U overnight if you have taken the original Long mentioned.

Bronco has given some nice replies to you that you may consider taking some action on them.

If you are not entering those trades, then just take it on Demo to see what happens as you will not lose any real money.
Or just take entry on a nano or micro lot and learn to Lose small amount of money, as losing is the usual phobia.

Perhaps just take Much More Demo trades when it meets the entry process, and just don't concern about the results.
This mean if you normally do 1 demo trade per day, you may want to do 3-5 demo trades per day just to get your action into experience.
And then close the computer and look at result only the next day.

Price Action and Order Flow has too many interpretations.
I still don't know what is definition of real Order Flow or how to measure it.

However, if the concept you can focus on is where are the real Demand Zone and Supply Zone, this is the real Goldmine.
This is the most simple concept in idea, but probably the hardest to guage and to implement.

Once you know a Demand/Supply Zone, that is your every Entry and Exit points.
Everything else like Price Action, Order Flow, Fib, Harmonic Patterns are of lesser use and are only a supporting role once the Zones are known, and once price plays into those zones and react as expected is what we all would look for is more than adequate to enter.
  • #3,842
  • Apr 17, 2013 3:18am Apr 17, 2013 3:18am
Quoting gaf
This is actually quite brilliant Bronco! I try to write what I'm thinking on the chart before it happens. It helps me assess where my weaknesses are. I find I'm not trading at all. I can read price like a book but I seem to have trouble convincing myself to trade. I seem to be missing one important component on each great trade which is frustrating. I think I'll start using my voice recorder so that I can see what I'm thinking when I miss these great moves. I am strong at anticipating short/medium term price but have big problems anticipating trades....

gaf, your post sounds similar to starry.

Again, what are your real reasons for not taking those trades ??

If your phobia is losing, just do more trades on Demo, or on live nano/micro lots and learn to lose small.

As traders, if you don't learn to lose small, you just will not win much.

An Analyst can read prices to anticipate prices, but cannot Trade.
A Trader will trade and will react to prices more than anticipate prices.
We may have 2 hats, an Analyst hat and Trader hat.

When analysing, put on only your Analyst hat.
When trading, put on only your Trader hat.

I used to wear my Analyst hat for too long when I am Trading.
Now I have to wear my Trader hat.

Basically, be an Analyst fonly when analysing/testing the markets when markets is not moving like weekends or quiet Asian session.
And be a Trader only when trading the live markets once markets really move.
  • #3,843
  • Apr 17, 2013 6:10am Apr 17, 2013 6:10am
Quoting Mr. Pip
Order flow and structure gave you good case for entry. you can see the breakdown in short orders and buyers entering the market. I wouls not have used that 61.8 as this is not the clear retracment of the distance measured but you had an ABCD completion with structure and a demmand zone. I don't look at pin bars as pin bars or any other formation. I look at price action from the perspective of strength and weakness. Price action also gave you a very nice entry which only moved against you about 3 pips. Price acceleration after that should have kept...
Hi Mr Pip,

What made you draw the PRZ that size? I see that the ABCD completion and the 127% EXT were the main target for entry, but I don't understand what made you draw the prz x number of pips above or below that 127%EXT target.

Thanks
Nick
  • #3,844
  • Apr 17, 2013 6:50am Apr 17, 2013 6:50am
Quoting foxybunny
Starry, what are the real reasons that you are NOT taking those darn trades? You saw what happened to E/U overnight if you have taken the original Long mentioned. Bronco has given some nice replies to you that you may consider taking some action on them. If you are not entering those trades, then just take it on Demo to see what happens as you will not lose any real money. Or just take entry on a nano or micro lot and learn to Lose small amount of money, as losing is the usual phobia. Perhaps just take Much More Demo trades when it meets the entry...
As I said, it was the triangle.
  • #3,845
  • Apr 17, 2013 7:35am Apr 17, 2013 7:35am
Attached Image (click to enlarge)
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nice pattern this morning happy trading guys!!


FOR EDUCATIONAL PURPOSE ONLY
  • #3,846
  • Apr 17, 2013 7:43am Apr 17, 2013 7:43am
Quoting Starry
As I said, it was the triangle.
Starry,
This is good, so the triangle gave you pause. Now, do you have any personal reason for avoiding triangles or their assumed bearish implications? The reason I ask, is many times I read something only to find out it is wrong in my opinion. I do not think triangles are ultimately bearish. To me, they are volatility contraction and when they finally pinch, I know the markets will move. But I do not assume they will go south, they may go north as well. So why your reason for inaction is probably correct (wait for markets to show you way), assuming a bearish bias may not.

Just something to think about. Goes back to making the markets your own. Just like how Mr. Pip has his own rules for 'traditional' patterns.

Good luck.

No trading for me to day, snowing like crazy and got to get to work.
  • #3,847
  • Apr 17, 2013 9:07am Apr 17, 2013 9:07am
I was just going over some trades from yesterday. I believe the best idea, for me at least, is to not enter as soon as price enters a PRZ; rather, I have been waiting to see how price responds in that zone. It is nice to see nice terminal bars as price entered into these zones.
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  • #3,848
  • Apr 17, 2013 9:17am Apr 17, 2013 9:17am
Quoting foxybunny
gaf, your post sounds similar to starry. Again, what are your real reasons for not taking those trades ?? If your phobia is losing, just do more trades on Demo, or on live nano/micro lots and learn to lose small. As traders, if you don't learn to lose small, you just will not win much. An Analyst can read prices to anticipate prices, but cannot Trade. A Trader will trade and will react to prices more than anticipate prices. We may have 2 hats, an Analyst hat and Trader hat. When analysing, put on only your Analyst hat. When trading, put on only...
Hey Foxy!

Thanks for the honest responce. It really got me thinking. I never really thought about there being a difference between analyzing and trading. The skill sets are markedly different. In analysis we are non emotional, building a case to support what we see. In trading we have to keep the unbiased analysis side active while dealing with emotion. My Achilles seems to be fear. Fear of being wrong and fear of losing. I have been relaxing my abcd trades into more general ab=cds and after today I see that I have been expecting both to act the same even though they are vastly different animals.

Anything less than a 61% pull back shows strength with the side you want to be trading against at the D point. I have been trying to catch a falling knife on some of my losers (with good confluence) rather than joining in the direction of strength. Many of you will say well "duh" but it was a subtle point I didn't catch until I started to analyze my losers.

Here is how an abcd should act if you've got the proper confluence, and PA. I got out early with 14 points (fear) but my ego was happy with a win after so many missed trades. Hope to progress further in the coming weeks. Thanks for the great recent discussions. Especially thanks to Mr. Pip for post #3818. Cheers.
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Finally out of the shadows.
  • #3,849
  • Apr 17, 2013 9:23am Apr 17, 2013 9:23am
Another nice pattern formed. This shark was good for about 40 pips.. I decided to wait and see how price reacted, and the bat was at BE + 2. The bat formed a double bottom. Looks like another shark might be forming now.
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  • #3,850
  • Apr 17, 2013 9:42am Apr 17, 2013 9:42am
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another gartley this morning in audusd if it holds to 61%




for educational purpose only
  • #3,851
  • Apr 17, 2013 10:13am Apr 17, 2013 10:13am
I took the bat trade as earlier stated, however, I waited to see how the price was going to react in the PRZ for the potential butterfly. Totally violated!! I am glad I didn't take the trade, there was no support at that level. Next support should be the red line if we continue in a down trend. Let's see if this breaks structure or holds.
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  • #3,852
  • Apr 17, 2013 10:48am Apr 17, 2013 10:48am
Quoting Forexbuster
{image} another gartley this morning in audusd if it holds to 61% for educational purpose only
Here is what I saw on the 15m chart. Good luck, Good trading, and may we all make bank
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Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,853
  • Apr 17, 2013 10:48am Apr 17, 2013 10:48am
Attached Image (click to enlarge)
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THE gARTLEY IN 4HR IN AUDUSD DID NOT WORKOUT I LOOK DEEPER ON 15 MIN FOUND A BAT INSTEAD!!


FOR EDUCATIONAL PURPOSED ONLY
  • #3,854
  • Apr 17, 2013 10:51am Apr 17, 2013 10:51am
Quoting shadodwel
I believe the best idea, for me at least, is to not enter as soon as price enters a PRZ; rather, I have been waiting to see how price responds in that zone. {image}
Wise decision
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,855
  • Apr 17, 2013 11:20am Apr 17, 2013 11:20am
Quoting BroncoCap
Starry, This is good, so the triangle gave you pause. Now, do you have any personal reason for avoiding triangles or their assumed bearish implications? The reason I ask, is many times I read something only to find out it is wrong in my opinion. I do not think triangles are ultimately bearish. To me, they are volatility contraction and when they finally pinch, I know the markets will move. But I do not assume they will go south, they may go north as well. So why your reason for inaction is probably correct (wait for markets to show you way), assuming...
Thats the problem I find with price action ... too much experience required for specific price action. triangles aren't ultimate bearish, i just saw it as sort of neutral with the slowing down of momentum. Im definitely in the process of rethinking and taking action on my trading difficulties.... I think i have trader paralysis lol
  • #3,856
  • Apr 17, 2013 11:22am Apr 17, 2013 11:22am
Hey traders, here is a look at the potential Big Picture lol. Just having some fun on the weekly chart. Have I mentioned I love this stuff?!! Enjoy!! Don't worry they already told me I was crazy when I said Usd/Jpy was going to 95's and above when it was down in the 70's. You can check my post history for that one haha. Anyway I dont have a clue whats going on lol and I dont care where it goes as long as I make bank in either direction. Make a fantastic day and may we all make bank Yeeeaaaah booooiiiii!!!
Attached Image (click to enlarge)
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Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,857
  • Apr 17, 2013 12:28pm Apr 17, 2013 12:28pm
Quoting CNTrader
Hey traders, here is a look at the potential Big Picture lol. Just having some fun on the weekly chart. Have I mentioned I love this stuff?!! Enjoy!! Don't worry they already told me I was crazy when I said Usd/Jpy was going to 95's and above when it was down in the 70's. You can check my post history for that one haha. Anyway I dont have a clue whats going on lol and I dont care where it goes as long as I make bank in either direction. Make a fantastic day and may we all make bank Yeeeaaaah booooiiiii!!! {image}
so pretty lol! all those colors
  • #3,858
  • Apr 17, 2013 2:07pm Apr 17, 2013 2:07pm
There was another bat (a little too short for me) that formed this morning, ending about 3:15 am EST. I get nervous if point D doesn't retrace to 88.6, that's my rule. It sure reversed though.

Quoting CNTrader
Here is what I saw on the 15m chart. Good luck, Good trading, and may we all make bank {image}
  • #3,859
  • Apr 17, 2013 2:36pm Apr 17, 2013 2:36pm
Quoting nick Ben
Hi Mr Pip, What made you draw the PRZ that size? I see that the ABCD completion and the 127% EXT were the main target for entry, but I don't understand what made you draw the prz x number of pips above or below that 127%EXT target. Thanks Nick
That was an area of demand and not the actual PRZ it was pointed out by someone else I was just showing the price action and pattern completion.
If you fail to plan, you plan to fail.
  • #3,860
  • Apr 17, 2013 2:42pm Apr 17, 2013 2:42pm
Quoting BroncoCap
Starry, This is good, so the triangle gave you pause. Now, do you have any personal reason for avoiding triangles or their assumed bearish implications? The reason I ask, is many times I read something only to find out it is wrong in my opinion. I do not think triangles are ultimately bearish. To me, they are volatility contraction and when they finally pinch, I know the markets will move. But I do not assume they will go south, they may go north as well. So why your reason for inaction is probably correct (wait for markets to show you way), assuming...
Excellent post! You have to build that belief system. Hesitation in trade execution comes from fear and a not having confidence in your setup or analysis. This is why testing and sim trading is so valuable. Take the trades, study the outcome both the good and the bad. Believe in your skill set apply rules which will help control the emotional state and keep you more consistent.
If you fail to plan, you plan to fail.
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