Ratios & Harmonics: a Different Way to Trade

wow nice setup good wrk

Hey Traders good morning or whatever it is where you are. Here is a look at the Usd/Cad 4hr and 1hr trade setups I'm both involved with and watching. Enjoy, make a great day and may we all make bank!!

Anyone succeed with the EURUSD tick chart today?

Hey Traders here is another pattern I'm watching on the 1hr chart for Eur/Usd. Enjoy!! May we all make Bank!!

There were 3 I should have taken and I passed on the last agro C up. I skipped the first D trade due to strength, missed the second trade due to shower, made an error on the 3rd by walking away. Didn't take the next C up due to error, didn't take the last C up as I want an agro C down now. Its getting late in the day and I'm anticipating one more opportunity but I think I'll be done as everyone is sick down here with the flu. Hope you got that first agro C it was a beaut and would have been enough for the day. Cheers.

Hi everybody
Long time no see

I´m going to be very blunt.
Ratios and harmonics, is an excelent system
BUT unless you do day Charts or Week Charts, stop hunting will ruin your edge, over and over again.
Just take a look at EURUSD 5 min today....

My conclusion: you Need to , besides mastering Patterns and fibos, find a way around stop hunting...which is hard, cause you get attacked at the heart of your defence.

One Suggestion: establish the PRZ, and don´t take the trade, but wait till it develops, and comes back (if it does) to hit the stop in the obvious swing bottom.And put your order right down there.
Advantages: you get filled at the best (wholesale Price, with a stop some pips below, at least 5),and away you go.
Disadvantages: a lot of work, many lost opportunities,and by far the worst disadvantage
... sometimes the Broker will not honour your order, swing through it and leave without you.... their excuse: "slippage"
Broker and big Boys don´t like you and me trading besides them...

Ever wondered why this game is almost imposible?
Remeber my words next time you get stopped hunt.

I didnt trade today and I am not going to trade this week as I am rather tired.

However, I did take a look at the charts and I saw no stop hunting. You need to think of trading in terms of order flow ,structure, and price action. Eliminate the ideal of stop hunting, or you will blame your frustrations on stop hunting. Instead, it is more useful to increase your skill in applying order flow, structure, and price actions. There is no such thing as stop hunting mwahahaha

Heres my chart and explanation of what happened. KK, right now i probably know i wouldnt trade these, but this is meaningless because I am simply practicing my skills at describing why i might take a trade in terms of order flow, structure, and price action. Actual trading is different, Im working to close that gap. And shes getting smaller and smaller!



Trade 1: Using the three swing guideline, I simply traded the third swing. Alternatively, after the ab = cd, the bears started fighting back ,as indicated by the stalling combined with the sharp transition from the small bearish correction to the third bullish swing. This bullish swing accelerated and then retests; go short on the retest.

This small retest is enough, because the end of the 2nd swing contains stalling and a sharp transition, and the final smaller swing within the 3rd swing is shorter, backing up the 2nd swing observation that the bears are gaining strength.

Take profit at the 61.8 level.

Trade 2: Using the lack of 3 swings in the bearish downtrend, and the triangle, I simply short on the third retest of the light structure, confirmed by the small local PA retest (making it 4 retests!!!). Take profit at next light structure, which happens to be the 78.6 line.

Hitting the Stops is part of the game and that is why it's been said to place it 10 pips beyond (beyond the 161.8, S/R, etc). I would also consider the spread. You see, it is not the same saying 10 pips than 10 pips plus spread, that could lead you to 13 pips. And if we are talking about brokers as the bad guys here, we should first understand they have two prices, bid and ask, and not only the one we take measurments from (bid).

Order Flow

At the end of the day is all about it. Seriously, nothing else matters more than order flow when trading harmonics. You could have done a hell of a great job drawing lines here and there, and taking measurements of your fibos but, are you sure you know exactly how the market is trending, if it is?

In addition, support and resistance levels, or supply and demand zones, are there for reference only, because let me ask you something: how many times have you seen the S/R been broken? I've seen it plenty of times.

If I decided to dance that song when entered the trade I should make a very good use of my Money Management to be confortable placing my stop far beyond my entry.

We always have to remember something: Price - and only price - is the primary indicator of all.

BROKER AND BIG BOYS WILL LOVE YOU BRO...best of luck though...

Well, Mr. Pip, what do you think of the last few comments?

Haha, how can i be in for a surprise when there are no such thing as borkers and big boys lol

Hey Cuchuflito,

I understand your points but you disempower yourself by worrying about stop hunting. Most of these whipsaws are retests or smaller harmonic movements. When you enter a trade you have to know whats going to happen before you enter. If price doesn't react the way you think it should you should no longer be in this trade. You don't have to take a full 20, 10, 5 pip stop. You don't have to take a 10, 20, 5 pip TP. Each trade has to be managed real time. When a harmonic zone is tested price should shoot out of it immediately or soon after. If it doesn't then you have to reassess your reasons for being in the trade.

If you have no clue how price should act, where its going to go, what the new highs and lows should look like, what angle they should be at, whether price will break though S/R before it gets there you are gambling. PA on higher timeframes is the same on lower timeframes just slower, this has been established by Al Brooks and many other PA experts including Mr. Pip. I have traded dailies for years with average sucess. Its great to wait 2 weeks for 700 pips but thats not my style. 5 simple 2:1s a day is more than enough to float my boat even if I'm trading 50% losses. But it doesn't come easy. Every free moment I have I'm practicing on the charts.

I've seen every guru preach about dalies and they have no clue how to trade simple structure let alone what Mr. Pip has provided us here. I've read all of Al Brooks books and studied his 5 min charts for years. He makes a good living using his more complicated methods of PA.

So the jist of it is it can be done. How hard do you wish to work at it? Not all timeframes suit all people. I like to be done for the day after a trading session. I don't want to wait and monitor 10 currencies for 5 trades a week if I'm lucky. This time frame suits me. Mr. Pip can do it so I'll be able to do it too. Look at how far Starry has come since the beginning of this thread. He gets stronger every day as do we all. Try and focus on all the positives to buoy your spirits. I get frustrated on days like this as well. I was unable to place a trade today as I missread two entries. But tomorrow there will be 5 more so eventually I'll get some. No big deal I have the rest of my life .

What I saw today until 10:00:
There was a chance at 50 or more pips today on at least 3 trades for the chart I posted. I place most of the writing on my chart before the next candles happen so that I can check my reads and know where my weaknesses are. I got trapped out of 2 stellar trades with the double top and double bottom from today's high. I then got spooked by the momentum up for an agro C down blowing a total of 40 or so pips 20 down to the 61% of the larger swing, 10 or so up from the DB at the end of the spike, then another 10 or so down from the agro C. If you were savvy (I wasn't) you would have know that the bull spike after the last C was going to fail due to 2 doji bars after all that strength indicating a LH was coming. My stop would have been 7 points manual (2 points above the high) for a great ride down to next resistance. This happens day in day out for ever so we just have to buckle down, practice and in my case pull the trigger quicker.

Hope you study hard and keep at it. We'll all get there but its going to take time and consistent practice. Cheers.

Cuchie cuchie cooo your so cute and funny when your so blunt lol. This is not just a response to you but in general to the entire thread but since you brought it up I will briefly comment and say my peace on the matter only once . Let me state up front that if you don't like what I have to say then just ignore and move on lol.

There is definitely something to be said about understanding and paying attention to the larger TF charts. There are many different opinions about stop hunting vs no such thing that can be and has been debated for what seems like centuries. I definitely have both my knowledge and opinions of such but will stay neutral here on the matter. However if you are one who believes it exists then that is a belief system that should also exist no matter what strategy of trading you employ and therefore will be the nature of the beast. If you believe stop hunting exists you show me a strategy where its not a factor and i will show you that it is lol (just because you believe it exists) I admire that you have in your own decision making process felt it does exist and have attempted to develop a trade plan that helps you to feel good about creating a winning situation. I wish you luck in your research and development and look forward to seeing your results.

I will add some quick thoughts about Ratios and Harmonics and leave it at that as I do not care to get into a pissing contest again with anyone. As I've stated many times ratios and harmonics provide a great opportunity to identify high probability areas where you can expect to have trading opportunities to engage in with very good risk to reward. On its own it offers a 70% winning opportunity on average depending on how you manage your trades. However through the use of a confluence of factors for both you entries and exits the odds can be greatly increased and often times if you are wrong the opportunity if done correctly can be presented to exit the trade at BE or with minimal loss if you find out you were wrong. The trick is how do you know or when do you know you are wrong. Unfortunately people feel they are wrong and therefore react emotionally to price behavior when it doesn't do what they expect when they expect it. A game in itself all together. Often time things will go or can go wrong when we have a week such as this week with high impact fundamentals. Not because the trade or entry was wrong but most often the emotional response starts to kick in especially when you really haven't done the proper research and development of your trade plan to get the good consistent results needed to go live. With that said I will add one more thing regarding stops. The challenge for almost all traders is that they place an arbitrary stop whether it be a fixed pip amount or whether it be based on S7R or structure. Those types of arbitrary stops, because almost everyone does it and the volume is there for the taking, will usually get hit. Hence the frustration when peoples stops get hit and it almost always goes in the direction you originally thought in the first place. Sound familiar? lol. So why not before giving your money away study price behavior around those areas to identify what the Market is really doing there in the first place. Is it really out to get you? Or is it just sweeping you up along with all the other volume or ordedr flow? Hmmmm. Anyway I can spend way to much time on this which is what I dont want to do. I would rather focus on trading not debating. I'll leave that up to everyone else who enjoys it lol.

On a different note here is an update to the last two patterns I posted. I have yet to be stopped and I am still involved. Today I took a add on trade on the Eur/Usd and banked 30 pips when I saw that price behavior could not sustain a close above my stop. I am out of that trade and still have my remaining entry on the Bat pattern that I posted a couple of days ago. Also in regards to Usd/Cad I have yet to be stopped out of that as well from the shark pattern completion and will add if my entry area is displaying the behavior i look for on the Gartley pattern. Here are the charts for the update. Lastly, I will ad that given the fundamental catalysts in the market this week I think its prudent to trade cautiously with reduced leverage or just do like others have expressed and take the week off. Hey you just might stay in the game long enough to succeed lol. Enjoy and make a great day, stay positive, do you due diligence and may we all make bank!!

Hello again traders. Here a little something on the Eur/Gbp that i will share before I get some shut eye for the night. The charts should speak for itself. I have removed the fib ratios to make the pic a little clearer but if you want to then just pull it up on your chart and do the measurements for yourself and consider this a little cheat sheet lol. Also for a clearer picture of the 15m shark scroll to the 15m chart on your charts and check it out. It's there lol. Anyway Enjoy, have fun, make a great day and as always lets all make Bank!!

Hi Mr Pip and all traders
Im still learning this strategy and wanted to ask more experienced guys for more info about order flow and few examples would be great. Have a good trading all!

Eur/Usd Target 1 was attained. I banked 80% and will now wait until the press conference and price behavior to decide what to do with the remaining position. Patience is needed with these pattern set ups so lets see what happens. Good luck Good day. May we all make bank!!

Hey traders its like a ghost town in this thread lol here is a look at the Gbp/Usd 15m chart. Enjoy!! remember still some fundamental catalysts to get through so be cautious, have fun. make a great day and lets BANK!!

Brilliant CN!

You could be Mr. Pip's twin . Thank you for your input and thoughts. With your guidance I will some day to be as astute and trade as you guys do. Just freakin awesome. Cheers.

wweeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee hahahaha yeeeaaah booooiiiiii!! lol

Target 2 attained and now stops rolled to BE. Thats trading folks and having a clear picture of what price behavior is really doing.

Random movements my ass . Two quick trades for the day. Thanks to starry for pointing out the 3 push idea. I used it today to confirm this mornings top. I missed quite a few as the pa was fast but I caught a small scalp up to the 38% and light structure avoiding the ride down and keeping some profit for a 2:1 and 1.2:1 RR. Hope you all make bank, I know CN and Mr. Pip will. Cheers.