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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

  • #4,041
  • May 8, 2013 9:23am May 8, 2013 9:23am
Quoting Whenever
I just couldn't stop yet. It just seems too "easy".... probably just a lucky day... (or not ? ) {image}
I see SKILL. Well done my friend!!!
If you fail to plan, you plan to fail.
  • #4,042
  • May 8, 2013 9:29am May 8, 2013 9:29am
Quoting Whenever
I now really disappear for sometime...was intrusive enough today. Come on, I just can't believe it myself.... am I suddendly a market maker ??? Anyway really interesting how all together sometimes really seem to have a sense and no randomness... {image}

Not intrusive at all. It's always great to see what happens when we step out of the shadows and learn to properly read a chart. I'm very proud of you, your contribution, and determination to become a professional trader. I'm looking forward to seeing more charts.
If you fail to plan, you plan to fail.
  • #4,043
  • May 8, 2013 9:42am May 8, 2013 9:42am
Quoting cuchuflito
Interesting, cause I posted a very short, "blunt statement" on "stop hunting" (which is quite blunt anyway, like the market). No ill intentions whatsoever, on my part. What came out, is all kinds orf reactions, some very long explanations...and some people laughing at my comment. I´ve been trading for 15 years, Forex for 10. I´m an expert in EW, (which is just another pattern game),Fibos, and specially Fibos on the time axis.(some traders believe, these are even more important than price Fibos). No problem if you don´t like the...
I'm sure being an expert in wave theory the practice of stop hunting should be something you could spot. From one professional to another this is insignificant to me as well as the news. If we properly place our stops then this becomes a non issue.
If you fail to plan, you plan to fail.
  • #4,044
  • Edited 10:31am May 8, 2013 10:18am | Edited 10:31am
Hi Mr. Pip

I'm only at page 23 of the thread and still have a lot to read and forgive me if this question was asked already.

My main problem in trading is to know which pattern has more chance to be successful than another one. In a post you were talking about price action and orderflow. And I would like to know more about what to look at to increase the odds of a successful trade. When you display a chart it seems so easy to see the orderflow and the price action, but I'm unable to do that on my own.

In post #450, you explain that the pattern a member has drawn is not at the right place. On the chart you've given, we can see that the XA leg looks like an impulsive move, and ABCD move looks like a corrective move. On the chart of that member, the XA leg was your ABCD move. What do you look at in order to avoid chosing the wrong pattern?
  • #4,045
  • May 8, 2013 2:12pm May 8, 2013 2:12pm
Dear Mr. Pip,

I trust you are well. please find attached GBUS daily chart. I see ABCD unfolding. confluence looks good. PA i think is looking good candles dbl tops. NSL/NSH looks good. i am thinking a short with gigantic profits...lol....could retire on this one "if goes" according to plan.

I would be grateful to here if you agree and more especially if you could be so kind to share your thoughts.

thanking you for your kind support.

best wishes,
Attached Image (click to enlarge)
Click to Enlarge Name: GBUS8MAY.jpg Size: 104 KB
choose a job you love and you will never have to work a day in your life
  • #4,046
  • May 8, 2013 5:19pm May 8, 2013 5:19pm
To EWGCORP

This is how I will play it. Get ready for the long haul since you found it on the daily

If it breaks past 1.5585 structure then I will play the AB=CD to Aggressive C sell zone to D completion on the daily then sell it.

If it says as is. I will play the current Aggressive C down to D completion(on the 4hr) then play the bat pattern (which is also an Aggressive C) up to Aggressive C sell zone then play it down to D completion.

Hope it make sense
Empower Your Mind
  • #4,047
  • May 8, 2013 7:41pm May 8, 2013 7:41pm
Quoting CNTrader
Hey traders, chart should be self explanatory. For those that desire to, I suggest you pull it up on your own charts and do the analysis too. See if you can visualize the patterns taking place then get the fib tool out and try to piece it together. At any rate currently I have a short for different reasons but these areas marked in orange will have my attention if and when price get to them. Enjoy, make a fantastic day, have fun, do your due diligence and may we all make BANK!! {image}
Update: Hey Traders I chose one target for the long entry at the shark/Bat combo because of the resolve of the RBNZ to try and devalue the Currency recently.A decent 70 pips I'm ok with. I also took the long because as many of you know, nothing goes straight up and nothing goes straight up. Here is the update of the areas I'll be watching for the price behavior. I will also be looking to take shorts along the way but currently flat until I'm not lol. Enjoy, have fun, make a great day and may we all continue to make Bank!!
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd hr 4.gif Size: 81 KB
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #4,048
  • May 8, 2013 7:58pm May 8, 2013 7:58pm
Hey Traders this is what I'm currently involved with regarding the Gbp/Usd. The charts should be self explanatory and so should the analysis. Fib levels have been taken off the 4hr chart for a little more clearer look. Enjoy, have fun, make a great day, and lets continue to make bank!!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 80 KB
Click to Enlarge Name: gbpusd 4hr.gif Size: 73 KB
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #4,049
  • May 9, 2013 2:26am May 9, 2013 2:26am
Mr. Pip! What you are explaining in this thread is really beautiful! That's a real gold mine! That's amazing how it even works on M1 charts and that's so accurate. I'm trading very unsuccessfully for more than 7 years, and you oppened my eyes!

And I would like to thank you for your patience! Even if some members go sometimes out of the way, you're never getting angry and you're always willing to help anybody and we can ask questions without risking to be banned, as in some other threads! Those are for sure the qualities of a really great trader!

BIG THANKS Mr. Pip!!


PS: Please tell us a bit more about structure and orderflow ;-)
  • #4,050
  • May 9, 2013 5:41am May 9, 2013 5:41am
Would we considere this ABC pattern to be a valid trade?

At C, a bar closed above 78.6% level, but this is less than 1 pip.

Also below we have some support and B point was formed right at that support area.

If we look at the price action at C, the first test of the zone could be considered as a good entry, with a nice price rejection. But is it a good idea to enter the trade given the structure? Price failed to go higher at A when resistance was crossed and went below resistance again. What is the most important? The failed breakout of the resistance or the supoort below?

Attached Image (click to enlarge)
Click to Enlarge Name: EurUsd ABC Aggressive.png Size: 49 KB
  • #4,051
  • May 9, 2013 7:41am May 9, 2013 7:41am
Quoting ewgcorp
Dear Mr. Pip, I trust you are well. please find attached GBUS daily chart. I see ABCD unfolding. confluence looks good. PA i think is looking good candles dbl tops. NSL/NSH looks good. i am thinking a short with gigantic profits...lol....could retire on this one "if goes" according to plan. I would be grateful to here if you agree and more especially if you could be so kind to share your thoughts. thanking you for your kind support. best wishes, {image}
I would not rush to go short here. although price is finding resistance at the 50%, structure and order flow suggest possibility of further price advancement.
Attached Image (click to enlarge)
Click to Enlarge Name: $GBPUSD (Daily) 7_12_2012 - 5_9_2013.jpg Size: 133 KB
If you fail to plan, you plan to fail.
  • #4,052
  • May 9, 2013 8:33am May 9, 2013 8:33am
Hey Traders. I Agree never want to rush a trade. Here is an update of what I'm looking at. If we can get through this LTL then we possibly have this potential bullish bat that could lead us back up to test it again. Off for the rest of the morning. Enjoy. have fun, make a great day and may we all make bank!!
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd 4hr.gif Size: 80 KB
Don't follow me! You can and most likely will LOSE all your money!!!!
  • #4,053
  • May 9, 2013 8:56am May 9, 2013 8:56am
Quoting dvarrin
Would we considere this ABC pattern to be a valid trade? At C, a bar closed above 78.6% level, but this is less than 1 pip. Also below we have some support and B point was formed right at that support area. If we look at the price action at C, the first test of the zone could be considered as a good entry, with a nice price rejection. But is it a good idea to enter the trade given the structure? Price failed to go higher at A when resistance was crossed and went below resistance again. What is the most important? The failed breakout of the...
Yes one pip is fine above or below even two is ok. You have to see what is good for you. S/R is always something to be respected and if you find yourself trading into an area with the premise that it will fail you have to keep in mind that it may not. Make sure you have enough room to protect your trade with a breakeven or just skip the setup.
If you fail to plan, you plan to fail.
  • #4,054
  • May 9, 2013 10:51am May 9, 2013 10:51am
Weakness is just Weakness !

Today I made a Mistake, ended well, but still a stupid mistake to learn from.
So I wanted to post it, not for punishing myself but in the hope to may open someone else's eyes (apart of mine )

As I opened the PC I saw a missed ABCD. Nice double top at 78,6.
So my greedy started to look around as a stupid shark for anything to attack now !
At that moment price was moving sideway in the 200 Extension (or Exhaustion) Area of that ABCD.

...hmmm...weakness? ...exhaustion ? = FOOD !
So the stupid Shark Attacks (veeeery far away from the cold blooded assassin): Enter Long.

Just after the entry I realized that the CD Leg of that ABCD was more than completed with Acceleration instead of Slowing down....
Moreover after the completion a very shallow correction was saying that Price had no intention at all yet to change direction.

Instead I should have expected at least the completion of the new AB=CD just forming.

I then added at completion + previous S/R level and closed at BE (even because that was again a 61,8), but was not happy at all.

Lesson: Weakness is nothing else than Weakness.
That Alone means nothing yet.

I will need to look for more confluence of decision factors.
And for sure: Cancel Greedy out of my trading !
Attached Image (click to enlarge)
Click to Enlarge Name: EU 9 Maggio 2013.png Size: 192 KB
  • #4,055
  • May 9, 2013 12:10pm May 9, 2013 12:10pm
One breakeven trade today. I didnt take the ab = cd trade after this, probably because i sensed the weight of the market was to the downside, though i couldnt objectify that during the trade. everything else looked good on the ab = cd trade.

Im trying hard to learn this 'order flow' concept, its really not as easy as it seems: here, it made an equal low, then a lower low, followed by that lower high and then the large bear run down. So it wasnt always making lower lows ....
trying to connect lines between highs and lows to highlight and distinguish the relationships between currents highs and lows to make order flow easier for me to predict *accurately* .... seems it will take some time but it will work out!

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_5_9_2013.png Size: 209 KB
  • #4,056
  • May 9, 2013 1:47pm May 9, 2013 1:47pm
Quoting vqtrader
To EWGCORP This is how I will play it. Get ready for the long haul since you found it on the daily If it breaks past 1.5585 structure then I will play the AB=CD to Aggressive C sell zone to D completion on the daily then sell it. If it says as is. I will play the current Aggressive C down to D completion(on the 4hr) then play the bat pattern (which is also an Aggressive C) up to Aggressive C sell zone then play it down to D completion. Hope it make sense
Hi vqtrader,

thanking you for your reply. i was waiting for PA to move down. the attached 1H chart i drew in black trend lines, interesting period i think will it break through, since the 3 drive harmonic pattern is also involved. i hope i am not forcing myself to see what i see!!
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD 1H 9MAY.jpg Size: 105 KB
choose a job you love and you will never have to work a day in your life
  • #4,057
  • May 9, 2013 1:48pm May 9, 2013 1:48pm
Quoting Starry
One breakeven trade today. I didnt take the ab = cd trade after this, probably because i sensed the weight of the market was to the downside, though i couldnt objectify that during the trade. everything else looked good on the ab = cd trade. Im trying hard to learn this 'order flow' concept, its really not as easy as it seems: here, it made an equal low, then a lower low, followed by that lower high and then the large bear run down. So it wasnt always making lower lows .... trying to connect lines between highs and lows to highlight and distinguish...
Hey Starry,

You're not alone in this respect. That bull spike had me fooled as well. I missed the full up thinking we would have a breakdown soon at the finish of the abcd you mention. Momentum was strong and the small LHs made me think my trade would fail so I got out early. I did not want to take the ride down as I was expecting a HL to go long to complete the expectation of the 61% on the abcd. After the aggressive bear close I put the fibs on and looked at the previous large swing. It only retraced to 50%. The entry on the abcd only retraced 50% so bears were clearly in control. Thus I may have been a little more aggressive with the Agro C down sensing that the larger abcd may want to complete or in this case a full bear run down.

If we took the run down against current structure and momentum we still made a LH in the overall bigger orderflow even though we had a deeper pullback by the bulls showing us that they were getting aggressive. What sucks is that once we miss that entry we realize our mistake when it slashes through our 61% and we are trapped out of the trade. These subtle signs are always there but I find that they are sometimes hard to spot particularly if you have convinced yourself that you are looking for a HL. Just my 2 cents.

3-5 really nice opportunities today if we were clued in. 50% retrace, abcd completion, agro C down, 38% double top, double bottom abcd completion. I would only trade 3 of those and I had left before the DB. I only got a few pips off the abcd completion thinking there was going to be a failure and instead got a spike up then a continuation down. The cool thing is that each day we learn more about trading and what we missed makes us look for those clues tomorrow. Cheers.
Finally out of the shadows.
  • #4,058
  • May 9, 2013 1:49pm May 9, 2013 1:49pm
See, lines are useful to demonstrate the relationship between highs and lows. i will start drawing these lines where appropriate....

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_trend_line.png Size: 200 KB
  • #4,059
  • May 9, 2013 1:55pm May 9, 2013 1:55pm
Quoting Mr. Pip
{quote} I would not rush to go short here. although price is finding resistance at the 50%, structure and order flow suggest possibility of further price advancement. {image}

Hi Mr. Pip,

i am always thankful for your kind support.

may i please ask why would discount the 3 drives in this time?

best wishes,
choose a job you love and you will never have to work a day in your life
  • #4,060
  • May 9, 2013 2:16pm May 9, 2013 2:16pm
Quoting CNTrader
Hey Traders. I Agree never want to rush a trade. Here is an update of what I'm looking at. If we can get through this LTL then we possibly have this potential bullish bat that could lead us back up to test it again. Off for the rest of the morning. Enjoy. have fun, make a great day and may we all make bank!! {image}
Hi CNTrader,

thank you for sharing this chart your analysis is insightful and quite remarkable. i missed this completely.

best wishes,
choose a job you love and you will never have to work a day in your life
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