Ratios & Harmonics: a Different Way to Trade

oky my bAd but how do you draw a line like that on MT4? where do you go to insert a stick like that?
happy piping

Draw a trendline, open up the properties dialogue and make sure that "ray" isn't ticked under parameters

Looks like ABCD pattern inside a Gartley


EDUCATIONAL PURPOSE ONLY

Forexbuster,

If you save your MT4 charts using the right click "Save as picture" you will not have to obscure your account details. Just FYI.

Also, by definition, there is always an ABCD within a Gartley if you use Mr. Pip's rules of engagement. He uses 61.8 and prefers no touch of 78.6 as primary fibs for defining the B point and between 61.8 and no deeper than 88.6 for the C. So while he allows a bit more room for C, it still is very close to aggressive C ABCD pattern.

Good charts, I enjoy looking them over. Keep it up.

Bronco

Does anyone in this thread trade the anti- patterns? I.E., anti-bat, ant-shark?

Hey There.. AUDJPY another Gartley (this time a bullish one), plus an AB=CD????

2 patterns in one time frame




abcd pattern in progress? lets see.....


EDUCATIONAL PURPOSE ONLY

Dear Mr. Pip and to all,

Thank you for your time, teaching, and experiences and your willingness to share them. I have a question about time frames. I have been engrossed into study and fascinated about the basics of trading forex since the begining of January. I took me a while but I made it through all the posts on this thread. I have a much better understanding about ratios and harmonics and their applications to trading. In all my study I have never heard any explaination about time frames. I understand what time frames are and what they are composed of. I read about long term trends, position trades that last weeks, and those that trade with much shorter TF. Both seem logical and probably right for those who choose to trade on what ever time frame.

Am I being to simplictic thinking about time frames being like pictures of surges of buy or sell orders that look like small waves (ie short time frames) in the ocean that eventually build into a large wave (or trend on a longer time frame) that eventually have to end somewhere sometime once the energy in the wave is exhausted or crashes against a larger wave going in an opposite direction?

Is there someone out there that has a chapter or two about this subject?

PCDC,
You will probably get a variety of answers to your query, hopefully all have nuggets of wisdom within. Here is my take...

I use timeframes in two different ways. Most importantly I use time frame to look for the best waves I can find. Chop on the 5min chart may be smooth action on the hourly whereas a huge up bar on the hourly may be a nice multi-bar rise on the 5min. Being a stereotypical man, I am looking for the hottest chick in the room. Ugliness can apply elsewhere. Time frame lets me be choosy. Second, I use timeframe to set my expectations. While volatility can ebb and flow from day to day, week to week, you generally can expect smaller wins/losses using shorter timeframes and larger wins/losses using longer timeframes. With limited capital, there have been many instances where I see a beautiful set-up, but cannot trade because it is on a longer timeframe and the required stop loss is greater than my money management allows. Alternatively, I also look at the bid-ask spread in relation to shorter timeframe waves. If I am trying to catch a small wave reversal but my stop is only 3-4 pips away with a bid-ask spread of 2, it highly likely I could get stopped out by very small market action even if the reversal occurs. So I set my expectations, money management based on time frames.

Besides those two factors, I usually do not consider time frames. People will argue incessantly that longer is better than short, short is better than long, daily is the best, etc. It can get silly even mean, with nobody listening and everyone arguing. Instead, judge for yourself, only you can decide what works best for your style, time, and abilities.

Actually, to continue, it is funny you asked this as just today I set up my trading platform a little different. I have two primary workspaces. The first uses a single contract and shows 1min, 5min, 60min, 240min, and daily charts. I click a different pair on my forex board and all the charts update simultaneously to the new pair. So this is my pair-centric workspace. My second workspace is my timeframe-centric workspace where I have charts for all my desired pairs all open to the same interval. Then I can change interval, 1min to 5min, and all the pairs update simultaneously. Between the two, I can scan for good setups, then dial in the correct interval to find the prettiest waves. That is how I use timeframes because, again, at any given time, there are absolutely ugly charts and some sweet beautiful ones.

Keep working hard, it will pay off!

Hey guys ive been monitoring this thread from the start. Also trading silently amongst you guys. Didn't want to post anything until i had some sort of success in trading these patterns. So far its about a month ive been trading this and the more i trade using harmonics the more it's opening my eyes to the greatness of it. I've been trading on the Daily, 4h and 1h time frames. Right now These are some of my open trades. 2 of which are risk free at the moment.

- EUR/AUD Sell after an AB=CD completion
- GBP/USD Buy after gartley and AB=CD completion
- EUR/CAD Aggressive C sell

Also looking to get in on USD/CAD Aggressive C Sell around .707 retracement if price tests it again

Thank you BroncoCap. You answered part of my question by discussing your money management based on that particular time frame. That just confirmed what I was thinking. I read some where that "we only can profit from what we can anticipate." I guess depending on what time frame, what we can profit from is what we can realistically anticipate (pips) with a certain degree a probability based on our trading skills and methods. Reading Mr. Pips posts with his charts are such a big help. It's almost like on the job training.

See what I meant. I encountered this many times. After you shifted SL to BE, if you see pin bar, it normally will reverse back to touch the BE/SL.

Wow, that was a really nice setup!!

Butterfly? pattern not so perfect as the 1st retracement AB retraced 88.6% of XA and BC retraced beyond 50% of AB.
as per Mr Pips rules, butterfly's AB should go retraced beyond 78.6% and not go too near 88.6% and BC retracement should be 38.2-50%

GM Traders here is a look at Gbp/Jpy 1hr chart and a trade I'm currently involved with. Enjoy, good luck and good trading today. May everyone make bank!!

Hey CNTrader,
Where did you put your stop loss on that trade? Above the X point?

Hello again Traders, here is a look at a Gartley and Butterfly potential setup. Currently I'm long for different reasons but these are patterns that could potentially present in the future that will have my attention when and IF they do. Enjoy and Make a great day!!

Stop? what's that?

is this gartley?
Compare AUD/JPY and GBP/JPY.
AUDJPY is at end of butterfly when GBPJPY is at end of Gartley. both potential in going down.
http://www.forexticket.co.uk/en/tools/01-01-correlation
See the correlation table. both pair is highly correlated