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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

  • #3,901
  • Apr 19, 2013 8:47am Apr 19, 2013 8:47am
Quoting gristar
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
Yes it is a Bearish Gartley Pattern
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,902
  • Apr 19, 2013 9:57am Apr 19, 2013 9:57am
Quoting Starry
Hey CNTrader, Where did you put your stop loss on that trade? Above the X point?
Hey Starry hope you know i was just kidding around and messing with you. Noticed you left thread before I had a chance to address your Stop question. When it comes to Gartley's yes the stop most often should go above X as a break above would invalidate the pattern and potentially set up a potential Butterfly. I did not post the chart for anyone to follow what I am doing only for educational purposes. I think its important that if people are going to take these trades or trade patterns that they decide for themselves where their stops and TP should go. Im just sharing my analysis and trade zones to help people see how and when these pattern formations occur. However I will just say this about the matter. Often times I look to price behavior as well because there are often times when the Market Makers will go up hit the stop if the volume and money is there for the taking if it is at or near the X and then rip in the original direction that you were trading. So again just like entering the trade on a confluence of factors I will often exit the trade the same way. I dont want to get into specific details on how I make those decisions but if you are trading Harmonic patterns then often time on the Gartley the stop goes above X. Its important to go back in history and try to identify these patterns on the particular pair you are trading and the particular TF you may be trading as each pair has their own personalities and dynamics. As you Identify these patterns look to see how Price action responds when the trade violates the X and how it responds when the trade enters your PRZ. What does PA do? How many pips are often times bankable? where does Price tend to go ? Do the ones that invalidate proceed to go in your direction after stops have been cleared? what type of behavior in the candle or candles do you notice when this happens? when they get stopped and invalidated and then continue higher what does price behavior show you to indicate this is the probable direction and your trade is wrong? Anyway I can go on and on but would rather not at this time as I am having a absolute wonderful time trading today haha. Hope this helps and if you already know all of this or have done the research then just ignore me lol That's it for now
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,903
  • Apr 19, 2013 10:21am Apr 19, 2013 10:21am
Quoting CNTrader
Hey Starry hope you know i was just kidding around and messing with you. Noticed you left thread before I had a chance to address your Stop question. When it comes to Gartley's yes the stop most often should go above X as a break above would invalidate the pattern and potentially set up a potential Butterfly. I did not post the chart for anyone to follow what I am doing only for educational purposes. I think its important that if people are going to take these trades or trade patterns that they decide for themselves where their stops and TP should...
thanks lol! banking it today ? sounds fun and profitable!
I was just wondering because I really enjoy your charts and your attitude towards trading. just chilling all the time you know? Im just starting to back test so ill have to start doing that ....
  • #3,904
  • Apr 19, 2013 11:47am Apr 19, 2013 11:47am
Quoting gristar
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% {image}
Closed this with +60 pips profit. Do not want to drag it over the weekend and let's call it a day. happy weekend everyone. good night~~
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  • #3,905
  • Apr 19, 2013 12:14pm Apr 19, 2013 12:14pm
What the hell. Its at a low price right? Why not, buy low sell high, bought yesterday. Wouldnt do this if this was forex. Anyways, now i know why my previous prz looked funny, atleast without a retest at that level....

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  • #3,906
  • Apr 20, 2013 2:32pm Apr 20, 2013 2:32pm
Quoting gristar
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. {image}
Hey Gristar!
Great looking trade. You may expect a retest if you entered on the pin in your zone. You have had 9 bull bars with the last 3 being aggressive and the pin showed some sellers but compared to all that buying pressure the bulls may want to test again to see if the sellers were committed. You've also got a really deep pullback on the previous main swing. This may tell you that bears are no longer in control. Mr. Pip mentioned that if price closes above our 61%-78% we are out of an aggressive C trade. So if we are selling high up we have to be on our guard to manage the trade in case longer term orderflow is switching. Those bulls were pretty angry and there was not much lethargy on those 3 legs although the last one was a wee bit less aggressive.

You were in good shape until the double bottom. This would have sent warning bells to me that the bears were done for now. You then got a higher low with a distinct 2 push structure correction (small abcd) and agro C up. The party's over you should be long at this point expecting a small abcd up or maybe even the second leg of a larger abcd up with the 3 legs being the first of a larger leg for those angry bulls up.

I'm practicing working on this in simulation and real time as that's what gives us our huge edge. Managing the trades by reading PA properly and anticipating whats going to happen before it happens lets us stop missing these awesome moves the other way .

Just my 2 cents as I've been wondering why I was getting stopped out before my targets are acquired. At least you lost nothing if you were at BE.
Finally out of the shadows.
  • #3,907
  • Apr 21, 2013 10:56pm Apr 21, 2013 10:56pm
Quoting Mr. Pip
{quote} 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.

Hi Mr. PIPS first of all thnx for your reply on the first post i made before , I just wana ask you about this pattern down below
the first pattern is ABCD it has a strong support and resistance to back up my entry at 138.20 but theres another pattern which is a Bat also forming same time frame which I check has also strong support and resistance I dont know which I will choose between the 2 can you Pls help me , what I have to look for to decide that this pattern is more significance to the other one? thnx in advance

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abcd pattern

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BAT

for educational purpose only
  • #3,908
  • Apr 21, 2013 11:00pm Apr 21, 2013 11:00pm
Hi Mr. Pips, My first post to FF, I have read and searched every thread here at FF for 5 years. While there are many good systems, yours, for my money, appears to be a clear winner. I have read Vol. 1 of Carneys book and scanned all 261 pages of this thread. I also have watched the videos you created and studied the charts you have posted. All in the past week. ( I have a job)

I find your charity noble and gracious, I thank you for sharing your time and knowledge. I don't want to change anything or add anything to your work and because I patiently read and studied all that you have offered I don't have a single question. Except, are the butterfly, bat and crab ROE's in this threads future? If not, I can understand your frustrations, If yes

Sincerely
  • #3,909
  • Apr 22, 2013 10:00am Apr 22, 2013 10:00am
Quoting Sossos
Hi Mr. Pips, My first post to FF, I have read and searched every thread here at FF for 5 years. While there are many good systems, yours, for my money, appears to be a clear winner. I have read Vol. 1 of Carneys book and scanned all 261 pages of this thread. I also have watched the videos you created and studied the charts you have posted. All in the past week. ( I have a job) I find your charity noble and gracious, I thank you for sharing your time and knowledge. I don't want to change anything or add anything to your work and because I patiently...
Mr Pip has only introduced the abcds and gartley because he wants us to master these first.

In addition, he has also said that most of histrades are abcds, and ive noticed that there are alot of such opportunities.
  • #3,910
  • Apr 22, 2013 10:40am Apr 22, 2013 10:40am
Hey traders hope you all had a fantastic weekend. Here is a look at a trade i'm currently involved with on Eur/Aud. I think the charts speak for themselves so I'll leave it at that. Make your own decisions, do your due diligence and trade your plan!! Ok all make a great day and may we all make bank!! Cheers!!
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Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,911
  • Apr 22, 2013 11:00am Apr 22, 2013 11:00am
I love all the different currencies shown. So exotic lol. keep it up every1!
  • #3,912
  • Apr 23, 2013 1:04am Apr 23, 2013 1:04am
Hey Traders just having a little analysis fun on the Euro/dallah pair lol. Its late where I'm from can you tell? lol anyway I see patterns everywhere. Gonna get some shut eye now and probably dream of butterflies, sharks, and bats lined up at my bank with bags full of pips!! hahaha. Hey I can dream cant I? lol Have fun trading all. Make a great day and may the creatures of the skies and sea bring you all green pips








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Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,913
  • Apr 23, 2013 2:51am Apr 23, 2013 2:51am
Quoting CNTrader
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!! {image}
With some patience and understanding T2 attained!!
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Don't follow me! You can and most likely will LOSE all your money!!!!
  • #3,914
  • Apr 23, 2013 5:27am Apr 23, 2013 5:27am
One of the rare occasions I've seen a "Mr. Pip butterfly" (as best as I can determine the ROE) on USD/CHF H1
(also happens to be an "aggressive C" of a bigger swing)
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  • #3,915
  • Apr 23, 2013 7:42am Apr 23, 2013 7:42am
I love bat patterns. Have you ever used the BAMM method on a bat pattern?

Quoting CNTrader
Hey traders hope you all had a fantastic weekend. Here is a look at a trade i'm currently involved with on Eur/Aud. I think the charts speak for themselves so I'll leave it at that. Make your own decisions, do your due diligence and trade your plan!! Ok all make a great day and may we all make bank!! Cheers!! {image}
  • #3,916
  • Apr 23, 2013 3:39pm Apr 23, 2013 3:39pm
Hi Mr. Pip, I was wondering what you do on a day like today. Huge move down right at the open, that huge move prevented any 61.8 retraces, although some of the smaller moves came close. Does a day like this equate to no trades, different time or trades size or a different pair?

Thanks
  • #3,917
  • Apr 23, 2013 4:09pm Apr 23, 2013 4:09pm
Quoting Sossos
Hi Mr. Pip, I was wondering what you do on a day like today. Huge move down right at the open, that huge move prevented any 61.8 retraces, although some of the smaller moves came close. Does a day like this equate to no trades, different time or trades size or a different pair? Thanks
zoom in. Then it will looks like normal move

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  • #3,918
  • Apr 23, 2013 8:40pm Apr 23, 2013 8:40pm
Quoting Sossos
Hi Mr. Pip, I was wondering what you do on a day like today. Huge move down right at the open, that huge move prevented any 61.8 retraces, although some of the smaller moves came close. Does a day like this equate to no trades, different time or trades size or a different pair? Thanks
Hey Sossos,

Days like this can be frustrating for your timeframe if you don't have experience reading the PA. As you get more practice and simulate trades these days will become "old" hat. I trade off the 89 tick as I can't afford a data provider yet. There were 4 decent oportunities today and I only got the early one down with a small loss. I fight many distractions during my trading time so I often return to a trade trigger, hesitate and miss my entry. We get 5 novice entries a day roughly and as your skills grow you can capitalize on more advanced entries if you know what to expect. Realistically I would have taken entries 1 and 4. I forced myself to take entry 2 as I tend to be trigger shy. There were 2 more advanced trades you could have taken but I only noted them on my chart (not this one) as I am not experienced enough to trade them yet. Just keep doing the PA exercise and practice seeing what price does in relation to structure and momentum. Your skills will improve but it takes time and
Finally out of the shadows.
  • #3,919
  • Apr 23, 2013 8:43pm Apr 23, 2013 8:43pm
patience. We'll all get there soon!
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Finally out of the shadows.
  • #3,920
  • Apr 24, 2013 1:20am Apr 24, 2013 1:20am
Hey guys,

This is how I viewed the market yesterday morning. Opened up the computer at the vertical line and only got into the last trade.
Great display of harmonics at work though.. the 61.8 seems to command a lot of respect so sometimes Price will reverse as it approaches so if your PA signal says reverse close by don't overthink it. Like Mr. Pip said make them your own
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