Ratios & Harmonics: a Different Way to Trade

I think today Eur/Usd was not very easy to trade.
Price did not decently move for a while, ranging in 10 / 15 pips for a couple of hours.

I would like to contribute with my today's thinking process and trade in the attached chart, hoping it may help somebody to get a new input in the way of looking at price, or either to confirm the actual one.
(Anyway be aware that I am far from mastering this thinking process yet, but willing with all my passion to get there).

My experience is leading to the thought that it all comes to a matter of "Expectation".
Of learning to look at what price is doing and of knowing what you should "Expect" next.
That is really more "mechanical" than most of us think.

As soon as you have your Objective, Price Dictated "Expectation", it comes to looking either price respects that Expectation or not.

If "Yes", then you know what you should "expect" next.
If "No", then you have to change your mind and expect the related move to the just experienced "Expectation Failure".

And here again: as soon as your Expectation is respected and Price is in the best R/R Area (surely better if with the Trend) than consider to Enter your Trade.
That's it.

For me some great aspects of "Expectation" are that:

1) you trade unbelievable more relaxed, you have your "IF - THEN" thought in your mind and even your " IF NOT - THEN".

2) if you are in a trade and price fails to meet your expectation, if you are not yet at Break Even and you get a loss, you know that you respected the Rules and you know that your Expectation will more often respected than not.

After a small NSL (my exit), my expectation would have been a deep correction to the upside, but still only making a LH.
Instead price went up like a Rocket.
So what ? Disappointed ?
Absolutely not.
Just change your mind and see what happens.

A GREAT Trader I Know says: " I am an Opportunist ! "
There is the secret of this "game".

Taking the trade at those lows would have given you an opportunity to get to a breakeven point if price found resistance above. Having awareness of what your are trading into will help you decide how aggressive you have to be with your trade management.

Looks nice!

Well done! Good explanation. We must always have a bias that is in tune with what is happening on the chart when that changes so must our bias. We as traders have to adapted as the market changes or we are toast.

Hello everybody. I think you guys are unquestioning questions have been answered many times he pips. You should read the page from 1-100. This page in about everything you need.

I have that one as well on the radar.

hi guys

EUR / USD 26.7.2013

The attached chart is M5.

Looking at H4 you could also see that the trade short was taken at the 78,6 of the last Main Short Swing.

Hey Mr Pip,

Thanks for taking the time to share this. As you can see this is my first post so this is the first system on here that I want to start to trade.

I see there have been some abusers on here based on your comments, so as you said why are they getting involved??

So I have to say thanks to Kilian19 for summarising this info, honestly would have taken me ages to get through the 222 pages on this thread!!

So I have not traded for a few years so feel it is time to get back on it and make some money. I have gone through a basic online training course just to refresh my memory and have just finished reading Scott Carney's Harmonic Trading Vol 1. So time to summarise the rules for pattern recognition and then do some back testing to try to get a better eye, then next week I am going to start some trades (on a demo account of course!!).

Hope to be able to contribute some findings to this thread and share some of my trades.

Hello Mr Pip,

Thank you for taking the time and energy to share all this information with this forum. I can only imagine the amount of patience and perseverance it takes to try to teach through this forum. Last year I had myself trained by a professional trader, it took me a full year to really comprehend the material, but it was worth it.

I noticed some traders in my network making use of Harmonics, and got interested, found this thread, and at this moment I am going through all the material.

Here is my view of a AB=CD from DAX from last week. It didn't have the added confluence of the BC extension, and did not quite make it, but did retrace from the PRZ to Target 1 (38.2)

looks like Mr Pip is gone. Another good thread has died. Rats.

i dont think hes gone. since hes already teached the basics, and he wants you guys to get back to the basics, he doesnt post often. just keep on posting if you want to. explore, expand your mind, have fun

I was tracking this potential Gartley in the DAX (cash) today, it missed the 61.8 XA by half a point, so I did nothing with it. It then did make a close at C below the 61.8 of AB, and now I am still watching it to see if it will hit the PRZ at D at 8316 area. However, it seems to be struggling at the moment, the rules of engagement kept me out..

Daily EJ Trade let see what happens. Adios

Update: Brokeven on Trade

Trying it again on EJ 4hr. Its got some up chuggin to do but have my areas of interest. Don't worry about spaceship crazy lines I am only concerned with turning points(confluence) areas that may terminate at harmony levels.
Peace and Hair grease

I am seeing Butterfly pattern in the EURCHF 2H chart can anyone help me validate the pattern... i want ur opinion everyone...

Prabesh,
Price is moving up strong with no sign of exhaustion. There is a small chance of a stop out for you. but we will see.

Yeah... you were right on the strong move. Hit out on stop loss.... i have to be careful of the price movement while a pattern is being formed... thanks VQTrader...

USDCAD H4 Bearish Impulse Wave 0.886 @ 1.0420

EDIT: Nevermind, found some great posts by Mr Pips.