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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

  • #5,181
  • Nov 18, 2013 2:13pm Nov 18, 2013 2:13pm
Quoting Mr. Pip
{quote} Yes this was an AB=CD taken at point D upon price action confirmation my stop was place just above the 161.8 Ext. on the next candle from entry the trade went against me by 6 pips then proceeded to move in my favor. Manage to pick the high within 5 pips. This is the kind of precision one could expect from harmonics and rations. {image}

Hi MR. pip about the green rectangle what are we looking at ?are we looking where the prize will react on this green rectangle ? which will affect our order?if prize goes there on the green zone you label do we have to make decision to closed or hold on in our order? and how do we indentify those green rectangle on chart? so we can label them on our chart ? how do we know this is a green rectangle or zone? sorry to many question going on in my mind?
  • #5,182
  • Nov 18, 2013 2:21pm Nov 18, 2013 2:21pm
I also forgot to mention that price only retraced back to the 38.2 Fib another sign that we are in a very bearish market. Those of you that like to lock in profit on the way down can do so at 5 pips above the last swing high. I have done this on this trade as an example. I have also drawn out my expectation and PRZ. My profit target is on the high side of that which is fine with my.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (15 Min) 11_18_2013 Update 7.jpg Size: 163 KB
If you fail to plan, you plan to fail.
  • #5,183
  • Nov 18, 2013 3:15pm Nov 18, 2013 3:15pm
Quoting Forexbuster
{quote} Hi MR. pip about the green rectangle what are we looking at ?are we looking where the prize will react on this green rectangle ? which will affect our order?if prize goes there on the green zone you label do we have to make decision to closed or hold on in our order? and how do we indentify those green rectangle on chart? so we can label them on our chart ? how do we know this is a green rectangle or zone? sorry to many question going on in my mind?
Quote
are we looking where the prize will react on this green rectangle ?

Yes I expect price to have a price reaction to my rectangle. They are created on principles of supply and demand and analyzing order flow.

Quote
which will affect our order?

They do not affect my order, the trade was already protected at BE +5. One thing that could be done is if the order flow starts to break down on the way to your profit target is to move you your to lock in profit 5 pips above/below the the previous swing. This might be an indication that price might not reach your profit target and looking in profit might not be a bad idea. There is no need to give back to the market any more than necessary.

Quote
if prize goes there on the green zone you label do we have to make decision to closed or hold on in our order?

This would depend on you and your trade management rules. I does not affect my rules. It is a confirmation tool on the progression of my trade. Is price strengthening or weakening in my favor and adjust accordingly.

Quote
and how do we indentify those green rectangle on chart?

You can use any tool that is easy for you to use. They come from having an expectation based on the order flow and supply and demand zone confluence.
If you fail to plan, you plan to fail.
  • #5,184
  • Nov 18, 2013 3:33pm Nov 18, 2013 3:33pm
Looks like price is trying to find support at the round number and at the demand zone. A slight increase in momentum can be seen on the bulls allowing for a deep correction.

From a structure stand point we have made a new structure low so our expectation is a lower high followed by a new structure low. This deeper correction was expected as there is a round number and prior structure. Also from an order flow stand point the weak new structure low shows weakening and a deeper correction should be expected.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (5 Min) 11_18_2013 Trade Progress.jpg Size: 184 KB
If you fail to plan, you plan to fail.
  • #5,185
  • Nov 18, 2013 4:43pm Nov 18, 2013 4:43pm
Quoting Mr. Pip
Looks like price is trying to find support at the round number and at the demand zone. A slight increase in momentum can be seen on the bulls allowing for a deep correction. From a structure stand point we have made a new structure low so our expectation is a lower high followed by a new structure low. This deeper correction was expected as there is a round number and prior structure. Also from an order flow stand point the weak new structure low shows weakening and a deeper correction should be expected. {image}

Just wanted to say a big thanks to you for walking us through your trade, can't say there are many threads here of FF where someone has the balls to do that, gives us confidence in your teaching and of course the power of harmonics!
  • #5,186
  • Nov 18, 2013 5:26pm Nov 18, 2013 5:26pm
Quoting SuperSic58
{quote} Just wanted to say a big thanks to you for walking us through your trade, can't say there are many threads here of FF where someone has the balls to do that, gives us confidence in your teaching and of course the power of harmonics!
You are quite welcome. It always separates the boys from the men, LOL. All kidding aside It's a real pleasure! Enjoy the rest.
If you fail to plan, you plan to fail.
  • #5,187
  • Nov 18, 2013 5:30pm Nov 18, 2013 5:30pm
Another quick update here on the progress of the trade. We had another correction and price has respected the correction zone for the moment. I do see some weakness and hope its just the round number. My expectation remains the same a new structure low but it's weaker then I would like to see.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (15 Min) 11_18_2013 Update 8.jpg Size: 169 KB
If you fail to plan, you plan to fail.
  • #5,188
  • Nov 18, 2013 5:36pm Nov 18, 2013 5:36pm
I've got a question with the commented trade.

Mr. Pip, you say we should always have an expectation in price and even an expectation about what the correction should be.

You had an expected target below 1.3480. If you knew you were going to have a correction above 1.3510, is it a good idea to add another position to the trade at the first sign of weakness in the correction before price resumes the expected bearish move? Or because the R:R is not so good as the original entry you would stay away from doing this?
Best time to plant a tree was 20 years ago, second best is now
  • #5,189
  • Nov 18, 2013 6:18pm Nov 18, 2013 6:18pm
Quoting horuxito
I've got a question with the commented trade. Mr. Pip, you say we should always have an expectation in price and even an expectation about what the correction should be. You had an expected target below 1.3480. If you knew you were going to have a correction above 1.3510, is it a good idea to add another position to the trade at the first sign of weakness in the correction before price resumes the expected bearish move? Or because the R:R is not so good as the original entry you would stay away from doing this?
Great question! It is not in my practice to add to any trade however, if I were to add it would be on the first correction with the support in this case being increase in bearish momentum. The fact that price only came back to the 38.2 Fib gave us this confirmation. Anything after the first correction you are asking for trouble.

Remember that when you add to any trade you are averaging your entry this has both pros and cons. Use good judgment and exercise caution when doing this!
If you fail to plan, you plan to fail.
  • #5,190
  • Nov 18, 2013 6:33pm Nov 18, 2013 6:33pm
Mr. Pip,

I am a rather private person, always have been, and I very seldom make my personal feelings made public. I consider myself an accurate judge of character, based on many years of administration in the fields of hospital/public school administration, and owner of a small business. You, no doubt, are a very intelligent/analytical/hard-working individual that have perfected a personal method of currency trading, based on your rules of engagement, that produces a lucrative source of revenue each and every month. I personally want to thank you for sharing with those of us with open minds, the absolutely golden opportunity to learn a method of trading the currency markets that will make us financially independent.

In the State of Texas, we refer to you as the caliber of man that we would fight for until the end,
Gary
  • #5,191
  • Nov 18, 2013 6:43pm Nov 18, 2013 6:43pm
Quoting Mr. Pip
{quote} Great question! It is not in my practice to add to any trade however, if I were to add it would be on the first correction with the support in this case being increase in bearish momentum. The fact that price only came back to the 38.2 Fib gave us this confirmation. Anything after the first correction you are asking for trouble. Remember that when you add to any trade you are averaging your entry this has both pros and cons. Use good judgment and exercise caution when doing this!
Haha I liked the sentence "anything other than that you are asking for trouble".

Right now an australian announcement made the AU get a little higher and taking momentarily the EU along with him. It also takes time not to panic about those sudden moves and keep the reasonable expectation in the target.
Best time to plant a tree was 20 years ago, second best is now
  • #5,192
  • Nov 18, 2013 6:45pm Nov 18, 2013 6:45pm
Quoting gbmcgee
Mr. Pip, I am a rather private person, always have been, and I very seldom make my personal feelings made public. I consider myself an accurate judge of character, based on many years of administration in the fields of hospital/public school administration, and owner of a small business. You, no doubt, are a very intelligent/analytical/hard-working individual that have perfected a personal method of currency trading, based on your rules of engagement, that produces a lucrative source of revenue each and every month. I personally want to thank you...
Thank you for your kind words! I am speechless! I hope to not disappoint you and those that are following our thread!
If you fail to plan, you plan to fail.
  • #5,193
  • Nov 18, 2013 6:47pm Nov 18, 2013 6:47pm
Quoting horuxito
{quote} Haha I liked the sentence "anything other than that you are asking for trouble". Right now an australian announcement made the AU get a little higher and taking momentarily the EU along with him. It also takes time not to panic about those sudden moves and keep the reasonable expectation in the target.

If you fail to plan, you plan to fail! Follow you plan always for it is the beacon in the storm.
If you fail to plan, you plan to fail.
  • #5,194
  • Nov 18, 2013 7:02pm Nov 18, 2013 7:02pm
Another quick update on our trade. Things have take a turn in an unfavorable direction. I mentioned in earlier post that there was more weakness then I would like to see and the bulls have managed to create a new structure high. So what now? Do we abandon ship or do we stay and fight?

My expectation has failed price has not produced a new structure low and momentum has definitely increased to the high side. It also appears that the demand area and round number at present are too strong for the bears to punch through.

We have locked in some profit so we can't be too upset if we are taken out. I have adjusted the correction zone to a more defined zone. Let's see if it holds. It will take more then the bears have been able to produce to turn this ship around and hit profit.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (15 Min) 11_18_2013 Update 9.jpg Size: 169 KB
If you fail to plan, you plan to fail.
  • #5,195
  • Nov 18, 2013 7:15pm Nov 18, 2013 7:15pm
just took this abcd completion
Attached Image (click to enlarge)
Click to Enlarge Name: nov 18th asian session usdjpy abcd.jpg Size: 140 KB
  • #5,196
  • Nov 18, 2013 7:16pm Nov 18, 2013 7:16pm
This is the final update for this trade. Our trail stop was hit I hope you got to see and appreciate a trade in real time from start to finish even if we did not get to our expected profit target. As you saw using structure and order flow I was able to 4 of the correction with accuracy and identify order flow breakdown putting our profit target at risk. I also showed you how we can safely lock in profit while still giving the trade ample breathing room to move. I consider this a successful trade that could not have been managed followed or explained any better.

I open the floor to questions, comment or anything else.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (15 Min) 11_18_2013 Final Update.jpg Size: 163 KB
If you fail to plan, you plan to fail.
  • #5,197
  • Nov 18, 2013 7:18pm Nov 18, 2013 7:18pm
Quoting FineForex
just took this abcd completion {image}
Nice, what did you see in the PRZ that helped you build your case for entry?
If you fail to plan, you plan to fail.
  • #5,198
  • Nov 18, 2013 7:33pm Nov 18, 2013 7:33pm
Quoting Mr. Pip
{quote} Nice, what did you see in the PRZ that helped you build your case for entry?
confluence of patterns and zone weakness
Attached Image (click to enlarge)
Click to Enlarge Name: nov 18 usdjpy 15 min trade reasoning.jpg Size: 131 KB
  • #5,199
  • Nov 18, 2013 7:47pm Nov 18, 2013 7:47pm
Quoting FineForex
{quote} confluence of patterns and zone weakness {image}
Nice work!
If you fail to plan, you plan to fail.
  • #5,200
  • Nov 18, 2013 7:51pm Nov 18, 2013 7:51pm
Quoting Mr. Pip
{quote} Nice work!
looks pretty. almost hit my stop tho, still in lets see

volume all of a sudden dried up. not used to these hours but hey why not practice
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