Ratios & Harmonics: a Different Way to Trade

Mr. Pip, could you please, when you have time, make a video to explain how you analyse orderflow and how you define the likely direction of the price? You have already done a video about PA, but I think PA is used to improve our entries. Oderflow is used to trade in the right direction.

Good Day traders,

I've been reading books, threads and articles, but its all about theoretical knowledge. Now I am trying to practice. As I saw Mr. Pip recommended 233T chart. May someone can help me with this issue on Metatrader? I found one way, but there is a bug, ticks don't have history.

Thank You in advance

Hi,, i don't think tick charts are available on MT4, but you certainly can get them on Ninja, all you have to do is open a free demo account with any broker that supports the Ninja platform

good question that would be a great video for him to make.

Personally, I have had to come up with my own solution (and am now working on actually practicing it). Basically, the market is divided into segments where each segment has a similar characteristic. Then you connect important market transition points (highs, lows, sometimes stalling points), and the ideal is that these lines will be important resistance/support levels for the next market segment. I call this a flow line. A flow line highlights the relationships between highs and lows and connects market segments. A market segment will have internal relationship between highs and lows which actually define it as a market segment separate from the rest of the market.

The idea is that when the market is in a flow (a certain relationship between highs and lows), it will continue in this manner until a flow transition occurs, and a flow transition will be hinted at before it actually occurs. So, in other words, a change in the relationship between highs and lows will be hinted by price action before the change actually occurs.

Now i am trying to apply it live, i think it will work out well.

As you gain experience, just draw lines that connect important points, like below... Its sort of 'iffy' right now for me, im learning ,but i like the viewpoint it brings to the market.


So in order to trade in the right direction you
(1) draw the short term and long term flow line
(2) assume the flow lines will be obeyed until a transition occurs (continuity axiom)
(3) look for hints of a transition, and when it occurs change flow lines
(4) Be aware of what market segment you are currently in, just look at past charts and see how you would divide the market into similar characteristics, then think how you can do this live.
(5) Take trades that are with the "flow" (basically when price reaches one of the flow lines, without a hint of transition)

There will never be a transition without a hint in the previous swing .... All transitions will be verified before they actually occur (price will follow the slope of the new flow line in the previous swing, ... still looking into this). Then you will flow with the market.
Just my 2 cents.

no input. . . . .

What a lovely day!

24 pips today, 14 pips total this week. Excellent! I am going to multiply my pips to extreme levels soon!

Anyways, these flow lines are a little tricky to integrate with my intuition.
Trades didnt meet my assassin's standards of pinpointing tops and bottoms but thats because i messed up with da flow! Thankfully it wasnt a high volume day because i always use 10 pip stop loss!

Awesome Starry!

I had a bust day. Poor discipline on the trade you took had me out early @ BE. Distractions made me miss the ride back up and two misreads/hesitations made me miss the remaining 20 or so pips not impressed. But I have identified weaknesses in my trading mindset so I'll have to work on these before I can harvest all the pips available. Hopefully it won't take too long. Its not so cool to be missing all these nice moves . Well always more trades tomorrow. Cheers.

Hey we're all getting there! Thats exactly what im working on also, my traders mindset. I call it the "flow mindset" It will help me maximize my harvest mwahaha!

Tomorrows another day

hello

found this site very innovative method on harmonic forms look for yourself

http://www.ericdavid-forex.com/robot-harmonic.html

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.[/quote]


So finally someone with authority recognizes the fact that stop hunting exists.

What worries me, is a newby could jump in the thread, learn how to draw some pretty colourfull Charts, even precisely, and think he will get rich in a week, with tick Charts.

"properly place our stops", Needs to be understood, defined, tested and prcaticed for any time Frame, cause it will affect you account dramatically.
That alone is a study in itself: just consider the diference on each time Frame in terms of distance, and the Impact of those stop sizes on your bottom line.
Add that to Position Sizing and you have a whole subject, which if neglected, will spoil your efforts.
That´s what I said in the beginning, unless you are trading daylys, stop placement (won´t say stop hunting to avoid hurting people´s feelings), will dramatically affect your bottom line.

I would go as far as to say, that if you just master Position Size, and "stop placing" (trailing), you are better off flipping coins, than drawing pretty Charts without those mentioned.
Then, if you master both...we are talking serious Business here...
All the best to all...

In my opinion, stop hunting is a subjective interpretation of normal price movement.

People here object to the term because it is usually used as an excuse, displaying an ignorance of normal price movements . Normal not because of stop hunting lol ..... Just normal

No need to scare anyone with intangible, spooky stop hunting. Give me a chart with stop hunting and i will interpret it for you using technical analysis. Well i can try anyways ......

in no case I wanted you blaisser

cordially

Brot

So finally someone with authority recognizes the fact that stop hunting exists. What worries me, is a newby could jump in the thread, learn how to draw some pretty colourfull Charts, even precisely, and think he will get rich in a week, with tick Charts. "properly place our stops", Needs to be understood, defined, tested and prcaticed for any time Frame, cause it will affect you account dramatically. That alone is a study in itself: just consider the diference on each time Frame in terms of distance, and the Impact of those stop sizes on your bottom line. Add that to Position Sizing and you have a whole subject, which if neglected, will spoil your efforts. That´s what I said in the beginning, unless you are trading daylys, stop placement (won´t say stop hunting to avoid hurting people´s feelings), will dramatically affect your bottom line. I would go as far as to say, that if you just master Position Size, and "stop placing" (trailing), you are better off flipping coins, than drawing pretty Charts without those mentioned. Then, if you master both...we are talking serious Business here... All the best to all...[/quote]



If you were truly worried about a newbie jumping in and losing his account you would post some stop hunting in charts for discussion. Show us how they hunt our stops with specific charts of spikes that are not normal priceaction that were not hinted at before hand on a chart.

You have the story on how Mr. Pip trades. He has mentioned that we must know where we are "wrong" in our interpretation and it has been mentioned where above structure we need to be placing our stops for the time frames we trade. There is much more to the story if you can read orderflow properly. You know where the institutions are likely to test. If they test further they run the risk of someone else running their stops or changing the orderflow on the chart. There are giant footprints left on the chart of where price may go. I use a wide stop but a strong close above structure and I'm either out or reassessing. A 15 pip spike up and down does not change my assessment of where price is going to go. There is also the subject of graceful exits which has not been discussed yet. Most people have been introduced to money management via Mr. Pip's posted articles and his MM spreadsheet. I'm sure most are not going to jump in in a trade and scale up 200% while they've only made .01 of their emergency stop.

Please if you are just about "I told you so" then good on you, you're awesome . But if you really want to help then show us the error in our ways. I'm sure everyone will be very objective if this affects our bottom line so much. Cheers.

mr pip,
hows the trading going ? havent heard from you in a while!

I'm always entering a trade too much early and I'm stopped out, right before price resumes in the expected direction. Any idea on what would be a real confirmation of a reversal?

I recently had a great amount of bad trades, so now I'll do the following:

1) I'm looking at the second higher timeframe to identify trend direction: if traing on M1, I look at M15, on M5 I look at H1 and on M15 I look at H4.

2) I wait for an aggressive C trade, in confluence with an ABCD pattern (I mean: the retracement move going to the C point is an ABCD pattern.

3) I put a limit order between 0.618 and 0.786 retracement of the big AB move in the direction of the trend.

This is almost like a Gartley, although I'm using the rules of the aggressive C entry: price don't need to reach 0.786.

Hey Dvarrin,

I understand your frustration. We never know for sure that a reversal is here. If you wait for confirmation your fill may be bad or you may miss the trade. We can identify very high probability reversal points where price itself will tell you in many ways.

You have to become very good at reading weakness in price action. This is no good on its own. You have to understand what structure is telling you (lows and highs, where price closes, supply/demand zones and support and resistance). You then have to understand what orderflow is telling you (structure, momentum, retracement among other things). When you see price approaching your zone you have to weigh the evidence on hand to see if you have a trade.

You know before hand what you expect. The market has screamed at you that a new high or low needs to be made. It has bonked you on the head and said "hey bro I'm slowing down, while all the other guys are thinking short you should be preparing to go long for the new leg up". It nudges you and whispers hey I'm having trouble closing lower near this demand zone, fib, projection, abcd completion point. It says hey everyone thinks this is a new trend leg but I'm telling you a secret: Its going to be a range.

If you can start and see half of these things realtime which you can train by scrolling back through charts of any timeframe and simulate trading you can start to learn to react in real time. Mr. Pip isn't a fan of the conventional PA ie pin bars, candle patterns etc. He looks at the candles in terms of weakness and strength as in his video on it back in the thread.

At any rate keep plugging away. It has to be fun or you'll never survive . Hope this helps a bit. Cheers.

Better day today .

Still not as aggressive as I should be but 2 trades made today and others missed. First one I targeted for 10 or so pips to the other side of the range. The second I misshandled and got emotional about. I exited gracefully (wrongfully) early expecting one more push down and over analyzing the tails on top of the candles. Target would have been 61% of the ab=cd or 61% level. Quit early as I'm not a fan of rangy mangy markets.

So better than yesterday and I'm on the board this week with 10 + 2 = 12 pips on my platform. Hope you all made bank. Cheers.

Did better than me, no trades today!

Excellent and may we all make $$!

HARMONIC Trading (Profitting From natural Flow Of Market) BOOKS BY SCOTT M CARNEY BOTH VOLUMES. Work hard.....

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