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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

  • #4,441
  • Aug 7, 2013 5:11am Aug 7, 2013 5:11am
Hello friends
In that figure, fibo ratios {0.382;0.886} x {1.13;3.14} are shown to construct AB=CD patetern
We must select for example the couple (0.618;1.618) for construct a perfect one.
But is (0.886;3.14) a validate one ?
Can somebody indicate correct couple of ratio that can be used in a AB=CD ?
Attached Image
  • #4,442
  • Aug 8, 2013 2:50am Aug 8, 2013 2:50am
These ABC aggressive entries are an absolute load of rubbish.

What the author conveniently fails to tell you, is that depsite the good (and unrealistic) R/R ratio, it has a 20% success rate, at best.


You buy inside the 61-78% zones, and price will just keep going through, even if it stalls for a short period before doing so.
  • #4,443
  • Aug 8, 2013 4:56am Aug 8, 2013 4:56am
Quoting Axlz
These ABC aggressive entries are an absolute load of rubbish. What the author conveniently fails to tell you, is that depsite the good (and unrealistic) R/R ratio, it has a 20% success rate, at best. You buy inside the 61-78% zones, and price will just keep going through, even if it stalls for a short period before doing so.
Please post charts to support your premise. Did you consider order flow? Did u follow the 38.2% breakeven rule? Did you take a look back to see if you are trading d right anchor swing? How many trades did you take to come to a conclusion? Always remember you cannot win all..
  • #4,444
  • Aug 8, 2013 5:01am Aug 8, 2013 5:01am
Quoting omo_nla1
{quote} Please post charts to support your premise. Did you consider order flow? Did u follow the 38.2% breakeven rule? Did you take a look back to see if you are trading d right anchor swing? How many trades did you take to come to a conclusion? Always remember you cannot win all..
I'm not sure if I'm measuring order flow correctly.

If price is making higher lows, then I take long aggressive abc entries. If lower lows, then shors.

Does that sound like a good idea?

Also, can you elaborate on the anchor swing and what you mean by that?
  • #4,445
  • Aug 8, 2013 6:01am Aug 8, 2013 6:01am
Quoting Axlz
These ABC aggressive entries are an absolute load of rubbish. What the author conveniently fails to tell you, is that depsite the good (and unrealistic) R/R ratio, it has a 20% success rate, at best. You buy inside the 61-78% zones, and price will just keep going through, even if it stalls for a short period before doing so.

You can't just take any retracement into that zone. You need to have some other confluence (s/r levels, abcd's or other fibs) in that area to give the trade a higher probability. Also consider the trend and finally PA has to agree with trade. Post a chart of your Aggressive C trades and we'll take a look to help you.
Barry
  • #4,446
  • Aug 8, 2013 6:05am Aug 8, 2013 6:05am
Quoting Bary
{quote} You can't just take any retracement into that zone. You need to have some other confluence (s/r levels, abcd's or other fibs) in that area to give the trade a higher probability. Also consider the trend and finally PA has to agree with trade. Post a chart of your Aggressive C trades and we'll take a look to help you.
I don't understand what you mean. Please explain.


If I see price making higher lows, I take longs. Lower lows, I take shorts. I enter in the zone, when I see PA give signals in the 61-78% fib level of last swing.

And I use fib expansions and trend line of last swing distance to measure TP zone, as Mr Pip taught.

Is that correct?




Here is a recent ABC aggressive entry I took.

SL was hit at profit target one, at 38% fib.

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  • #4,447
  • Aug 8, 2013 7:54am Aug 8, 2013 7:54am
Quoting Bary
{quote} You can't just take any retracement into that zone. You need to have some other confluence (s/r levels, abcd's or other fibs) in that area to give the trade a higher probability. Also consider the trend and finally PA has to agree with trade. Post a chart of your Aggressive C trades and we'll take a look to help you.
Well? Anything more I should be doing, or is that what we're suppose to do?
  • #4,448
  • Aug 8, 2013 8:18am Aug 8, 2013 8:18am
Quoting Axlz
{quote} Well? Anything more I should be doing, or is that what we're suppose to do?
Your entry on this one looks OK. The trend is up and you have support at 1.3342 area and also the 61% fib of larger swing. That's what I consider confluence.
The target on aggressive C trades is the D completion or the PRZ area. You move to BE when the price reaches 38% retrace of the BC leg 1.3350.
If your entry is to close to the BE point then give it some room to move against you, like the last swing low.
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Barry
  • #4,449
  • Aug 8, 2013 9:23am Aug 8, 2013 9:23am
Quoting Bary
{quote} Your entry on this one looks OK. The trend is up and you have support at 1.3342 area and also the 61% fib of larger swing. That's what I consider confluence. The target on aggressive C trades is the D completion or the PRZ area. You move to BE when the price reaches 38% retrace of the BC leg 1.3350. If your entry is to close to the BE point then give it some room to move against you, like the last swing low. {image}
Thanks.

Any tips, tricks or advice you can give me to perfect my harmonic trading skills?

Thanks.
  • #4,450
  • Edited 1:31pm Aug 8, 2013 1:17pm | Edited 1:31pm
HI GUYS EURJPY H1
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THERE IS NO SYSTEM
  • #4,451
  • Aug 8, 2013 3:32pm Aug 8, 2013 3:32pm
holla peeps,
Been on vaca. here is the end result of the EJ 4h sell trade I posted last week. out with 400 pips or so. I will look to buy soon
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Empower Your Mind
  • #4,452
  • Aug 8, 2013 8:15pm Aug 8, 2013 8:15pm
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  • #4,453
  • Aug 9, 2013 3:49am Aug 9, 2013 3:49am
USDJPY Wolf wave and ab=cd
chfjpy ab=cd
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THERE IS NO SYSTEM
  • #4,454
  • Aug 9, 2013 4:42am Aug 9, 2013 4:42am
Could this be a possible ABC aggressive entry if PA shows signs of reversal within the highlighted zone ?

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  • #4,455
  • Aug 9, 2013 5:02am Aug 9, 2013 5:02am
I seriously don't understand the logic behind these aggressive C entries.

Just looking at history, they fail so often its ridiculous...
  • #4,456
  • Aug 9, 2013 5:59am Aug 9, 2013 5:59am
Quoting Axlz
I seriously don't understand the logic behind these aggressive C entries. Just looking at history, they fail so often its ridiculous...
I don't trade the aggressive C trades to often. It would have to be a "perfect" setup for me to take one. Try concentrating on the ABCD trades. They are higher probability if traded properly. They are the bread and butter of harmonics.
Barry
  • #4,457
  • Aug 9, 2013 6:03am Aug 9, 2013 6:03am
Quoting Bary
{quote} I don't trade the aggressive C trades to often. It would have to be a "perfect" setup for me to take one. Try concentrating on the ABCD trades. They are higher probability if traded properly. They are the bread and butter of harmonics.
I just took another ABC aggressive trade, inside a Gartley, so its also an aggressive XABCD trade, am I correct ?


ANd how does the trade look?

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  • #4,458
  • Edited 6:42am Aug 9, 2013 6:26am | Edited 6:42am
AXlZ Explain to us why you took it. In my overall view it looks bearish. It looks like its running out of bull gas But I am also looking at 15min TF and what do I know anyway
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Empower Your Mind
  • #4,459
  • Aug 9, 2013 6:27am Aug 9, 2013 6:27am
Quoting vqtrader
Get out of trade. I will explain my view later
Just got out.



I see bearish order flow, but with these aggressive trades, you have to ALWAYS go AGAINST order flow, due to the way they are structured, right? They are reversal patterns, going against order flow.


Awaiting your response.
  • #4,460
  • Aug 9, 2013 6:30am Aug 9, 2013 6:30am
And I have another question.

How are we suppose to trade harmonics WITH order flow?


Harmonic patterns by nature, are reversal patterns, meaning they go AGAINST order flow.

So I don't understand what all this talk about going with order flow is, when harmonics are suppose to be reversal patterns.
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