Ratios & Harmonics: a Different Way to Trade

Hey Mr. Pip, is nice to see you around. You've mentioned some interesting things here. People jump from one trading system to another precisely because they don't practice and don't take the time to learn the basics. And the first thing we should learn is psychology with all the components to avoid: fear, greed, arrogance and revenge; and the things to embrace: practice and persistance, positive attitude, stick to one strategy and keeping things simple.

No matter what our strategy is we will always see the same things acting together:

- Support and Resistance Levels
- Round Numbers
- Price Action

They all form structure and create confluence. While price does all that is were our eyes see momentum and exhaustion, entry opportunities and exit signals.

Harmonics to me mean measuring ratios and projecting swings based on structure. Is not about labeling patterns with the names of animals like many would believe. That's why Mr. Pip said that ABCD and AB=CD are the bread and butter of this particular strategy.

If you are new to this thread and haven't taken the time to read the whole thing, there is no reason why you should start disqualifying anything just because you came late to the party. Mr. Pip has already taught everything that you should know and took a great amount of time in doing that. Now is your turn to practice and master yourself. That's right, you and only you are the holy grail in trading, there's no secret formula or system, ONLY you.

A couple of weeks ago I came across a wonderful tool. A friend of mine who has 5 years in this learning process told me that he wished he would had known of this a long time ago. And I think a lot would beneficiate doing this. Is not about demo practicing or seing past history. Is a different word, and is to SIMULATE. Simulate a real scenario that took place in the past and trade it like if it were the here and now. You should travel a year ago or so, that way you won't be biased about what happened next with that pair. It works on MT4 and you could use any broker's demo account for this matter. It's an EA that uses the Strategy Tester in Visual Mode. You can select to trade tick by tick to have a realistic motion of price, and you can adjust the speed and pause it. It comes along some scripts to introduce and close buy and sell orders. (Tip: when you use scripts in MT4 you can right click on them and assign Direct Keys, for example Alt+L to enter a Long, that way you don't need to have the navigator open. Also you can close the Strategy Tester subwindow while running the simulator or draw the Subwindow and make it a little square to put it in one corner, you know, to have a bigger visual space and still being able to pause the thing). I have been able to trade very realistically a whole week NY/London overlap in a matter of 4 hours. This is the link of the simulator, a free tool: http://www.forexfactory.com/showthread.php?t=70742

So there is no excuse now to practice and get out from the shadows!!! Mr. Pip, probably you could include the advice about simulating in Post #1.

The great thing about this whole process of learning and practicing is that you start knowing yourself.

For me the process should be something like this:

- Study, and never quit studying
- Simulate, a LOT, and keep simulating even when you are a real trader
- Start Demo Trading for a couple of days/weeks to have a more real idea of your working sessions
- Open a Real Account of $100. You don't need more. $100 provides the same amount of feeling as a $100,000 account. It's the %s what count (risk, reward, MM, pips count), not the dollars.

Compounding is escencial. With an account as little as $500 but being consistent about getting 20 pips everyday, and risking no more than 3%, you can do very well.

Make it your own and have good pips!

hi everyone, I am definitely a late subscriber to this thread but recently, I myself subscribed and paid for a course in Singapore to learn harmonics trading. What Mr Pip has done and said is invaluable and it's a real pity some of you have chosen to discredit his work. unless you are doing far better than him or you found a way to tweak his rules to make his system work better, I don't think you should put him down like that.

As I trade harmonic patterns myself, I do know what a great tool it is to have for any Price-Action based, technical trader. Nothing in the market can be predicted but it can be projected. What is most important in trading is to know your calculated risk. If you are not willing to lose, then don't trade. It's not for you. Don't blame the markets or unselfish teachers such as Mr Pip who has devoted his time to teach. You only have yourself to blame, so start with yourself firstly.

Mr Pip, I am sure there are some here who are still pretty much interested to continue learning from you, if you are willing to continue or start a new thread, I am more than willing to contribute what I know.

Successful and professional traders don't blame the markets for any of their trades gone wrong. Does that tell you anything about yourself all you harsh critics?

Hello Mr Pip, and it is nice to hear from you again, i add my vote to all of those that said how wonderful this thread has been. But like i said ( and sadly) it is a HAS BEEN, and that happened ever since you got busy and stopped posting. A Classroom needs a teacher present otherwise it's chaos ( no matter what age are the pupils) the same as the sheep herd need their Shepherd otherwise we all know they will scatter,, and so on. we all appreciate what you have done here and mostly appreciate too that you are a busy man and have your own private and trading life to live, but you started this and i ask you please continue at your own pace even few posts a week should keep things on track, and be firm with all time wasters even if you have to upset some of them, still the rest of us will back you up. After all it's your thread ( your Baby) and not theirs

Mr. Pip, it is good to see you are still around. i hope you will continue. you know i was listening to Dale Carnegie the other day and he said something i found quick remarkable about people and their self image and the way they view them selves. in this instance i think it may be well and pertinent to highlight the story about Dutch Scholtz a renowned gangster, he was shot dead by police in a shoot out in his hotel. he wrote with blood on his hands...i am good guy...what did i do to deserve this...can you imagine this man a few weeks prior he was sitting in his car and a police officer approached Dutch and his girl friend, who were busy with a little hanky panky and Dutch shot the officer dead. what i found remarkable about this story as Mr. Carnegie highlighted was Dutch was a cold blooded murder yet he found no fault in his behavior.....well in conclusions of my blabber mouth...this is a human trait it is easier to blame others before reflecting on ourselves and taking accountability and responsibility for actions. i do hope that while i am on your thread that i remain pure and true to harmonics.

hi Mr.PIP thanks for popping in. my trading has changed 100% since i subscribed to this thread and want to say thank you very much for helping to find my way of trading. It would be very nice to see even a couple of your charts every week and compare them with what wee other guys see on charts and keep on learning from you. i already walked long way and im not going to give up

I'm really glad to hear you are doing better. I will make the effort to post charts of my trades. I also would like to see your trades as well and post some questions. This goes for everyone. Lets get back to basics and to the those that wish to disrupt the process please find another home.

EUR/USD-4 hour
I'll kick it off For ole time sake then I have to back up as I am getting bug eyed from too much screen time and no pay off

We hav NSH and NSL swing which equal downward longterm orderflow. Our expectation should be a move up(short-term orderflow) to complete a LH(which is working now). On the short term orderflow up we see strong momentum with a shallow pullback so we should expect and increase in projection(which we didn't get) before another pullback. What this means to me that this might be an early clue of bull weakness. Further, we have an overall weak short term swing momentum(another clue). Lastly, I see a possible 1 to 1 harmony point completion in the structure zone and candles are showing signs of weakness.

In Summary,(what the hell doe this mean) and what do I expect?
1. Waiting on LH completion(this is also a very deep pullback of the longterm orderflow swing)
2. Long term orderflow is down
3. Weakness in short term orderflow
4.Candles are slowing down
5. 1 to 1 harmony completing around structure
6. For me, if price action agrees I would expect price to head down.

That's all I got.
Peace folks. Please stick to the basics this time and not get side tracked. Take care everyone

SORRY I SEE THE PAIR AND TIMEFRAME

Very nice next time please show pair and timeframe so I can help. It would also help to draw a Fib from the high to low and look for confluence in your designated PRZ.

sorry, my english is not possible to explain all problems in the picture ..

white frame. you notice small rolled. back in the frame in blue colors. (If you sell at blue frame, the rate of risk / reward 1:1,5). then the price continues to decline. experiencing s / r and to return.



This is the method I search C potential.

HI
Gartley

people think???

Real-time trading is very different from the in historical model.

Excellent. Thank you for deciding to come back.

Ditto. Good to see you back Mr. Pip. Grateful for your time and effort.

Sorry for my question beeing in a wrong place, but wanted an opinion from more experienced guys. What broker to choose on NinjaTrading platform? Wililng to open 10-20k account. My current broker has Mt4 only so i do analysis on NT and execute my trades on MT4, but its not handy for me cause i get a biy different price and need to redo analysis. Apreciate your answers. Thank you

I am going back to the beginning of this thread and starting fresh. I want to learn Harmonics, but dont really know where to start. Mr. Pip's thread should be a great place.

I use FXCM, Interactive Brokers I hear is also good but the customer service sucks

Hey Mr. Pip glad to see you back hope all is well.

Still trying to put everything in the proper context, wondering how you would handle this area.
I hesitated because I didn't want to buy into resistance and my expectation was for the larger pattern to complete

Yes, we had that one then another.

What do you think about this potential entry ?