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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

  • #5,681
  • Dec 8, 2013 8:27am Dec 8, 2013 8:27am
Quoting kumaramy
AUD USD 4HR Price action testing. Hello Mr. Pip. This is my guess about the price action. 1] Battle of candle C won bulls 2] Battle of candle B won bulls & price could not reach 50 % of the previous candle So it is bullish sign. 3] So right now closing price of candle A is above the 50 % of candle B so market is still bullish. 4] Trend line also broke. All of above observations indicates me that AUDUSD may go higher than the current price. Let me know what i am doing wrong with price action. Thanks. {image}
This indicates a bullish bias however it also indicates that the bulls are weak as well they are unable to close above the high of the previous two candles. You are on the right path.
If you fail to plan, you plan to fail.
  • #5,682
  • Dec 8, 2013 8:29am Dec 8, 2013 8:29am
Quoting TheScorpS
Thank you Mr.Pip for the encouragements words you share with us, learning is never an ending path, its when we sink deeply that things get clearer and easier, so when someone give up after a long battle, its where others pick up and continue the march only then they find success One of the trader one day shows an example of how those ones that climb the mountain Everest feels , so many climbers fails and retrieve back down from the middle of the mountain and some even from near the top, but fighters climb their way to the top, now if we are in the...
Good for you and that will take you to where you want to be.
If you fail to plan, you plan to fail.
  • #5,683
  • Dec 8, 2013 8:31am Dec 8, 2013 8:31am
Quoting Mr. Pip
{quote} This indicates a bullish bias however it also indicates that the bulls are weak as well they are unable to close above the high of the previous two candles. You are on the right path.
Yes this is how i think about price action. Any other thing is required/remained to observe ? Path is right but the way of thinking is same as your's and right ?
-milkeyway
  • #5,684
  • Dec 8, 2013 8:37am Dec 8, 2013 8:37am
Quoting itinerant
Mr. Pip: Thank you for your video on order flow; it was most informative. I hope you don't mind, but I have a question regarding momentum. Momentum can look very different on tick charts than it does on time charts, particularly during the low volume trading hours. I know you normally trade on tick charts... would you place less emphasis on momentum if you were only trading on time charts?
Absolutely not it is all the same Tick, Renko, Range, Min, it is all the same it is a key component in our process to identify breakdown or weakness in a particular short term or long tern trend.

This looks the same on any chart.
If you fail to plan, you plan to fail.
  • #5,685
  • Dec 8, 2013 8:53am Dec 8, 2013 8:53am
Quoting samansadeghi
{quote} {image} {image}

Get to learn the anatomy of the pattern you are trading. Get to learn what invalidates these patterns. but more importantly learn to read your charts like professional. This is the same chart you posted look at what you missed. Do the magenta lines resemble something important?
Attached Image (click to enlarge)
Click to Enlarge Name: $NZDJPY (60 Min) 12_6_2013.jpg Size: 161 KB
If you fail to plan, you plan to fail.
  • #5,686
  • Dec 8, 2013 8:59am Dec 8, 2013 8:59am
Quoting samansadeghi
EURGBPDaily INV AB=CD {image}
You have nothing there learning the anatomy will help you greatly point C can never be above or below point B.
If you fail to plan, you plan to fail.
  • #5,687
  • Dec 8, 2013 9:07am Dec 8, 2013 9:07am
Quoting interputure
{quote} Is there any place that summarizes that subject in an esy and understandable way? as this website: http://www.trade-forex-harmonic-patterns.com/harmonic-forex-patterns.html i learned from it a LOT about pattern , the articles are not long , easy to understand and give you the exact tools that you need.
The patterns should not me the focus it is just a setup. Not all setups should be taken . The information on the chart has to confirm strength in the direction you are looking to trade. You just can't trade blindly for that continue to trade with indicators.

You want to make money doing this? Then learn to read the chart. Put in the time required to do so or you will struggle your whole life and eventually blow your account. It's time to stop trying to find the shortcut there isn't one. Only hard work.

You are not ready to attempt to start trading these patterns yet you want to run when you can't even crawl. I am here to hold your hand but you cannot get ahead of your self.
If you fail to plan, you plan to fail.
  • #5,688
  • Dec 8, 2013 9:12am Dec 8, 2013 9:12am
Quoting itinerant
{quote} There are plenty of patterns out there, with subtly different ratios etc. However, Mr. Pip (who started this thread) has focused on a select few with quite specific ratios. Take a look at the attachment in this (http://www.forexfactory.com/showthread.php?p=7133204#post7133204) post. If you want more wider-ranging patterns, I suggest you head over to http://www.harmonictrader.com/ (http://www.harmonictrader.com/) where you will find most patterns listed.
I have made these patterns my own with specific ratios to optimize results, I encourage you all to do the same or use mine. The original patterns had PRZ that were to wide leading to undesirable R/R and patterns that jumped or could now be two different patterns. I eliminated that and made them easier to trade.
If you fail to plan, you plan to fail.
  • #5,689
  • Dec 8, 2013 9:19am Dec 8, 2013 9:19am
Quoting lithium1
Bearish BAT at EURUSD H4? {image}
Again Traders get to know your patterns that Bat has not completed yet. I will get you there but we must learn the fundamentals about reading price and the chart.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (240 Min) 12_6_2013.jpg Size: 170 KB
If you fail to plan, you plan to fail.
  • #5,690
  • Dec 8, 2013 9:24am Dec 8, 2013 9:24am
Quoting kumaramy
{quote} it's not a bat it is gartly.
get to know you patterns, it is not a gartley. Can we focus on what matters for now?

structure, order flow & bar by bar. Abcd
If you fail to plan, you plan to fail.
  • #5,691
  • Dec 8, 2013 10:20am Dec 8, 2013 10:20am
Quoting Mr. Pip
{quote} Absolutely not it is all the same Tick, Renko, Range, Min, it is all the same it is a key component in our process to identify breakdown or weakness in a particular short term or long tern trend. This looks the same on any chart.
Thank you for your reply.

I fear I have not explained myself well, so I will post a picture.

I have drawn momentum lines from the same points, but one is a 233 tick chart and the other a 5M chart.

The low volume at the end of the week made the momentum line appear to flatten on the 5M chart. Whereas on the tick chart it actually gave the opposite impression.

(Note: I pick these points merely to show that marked changes in volume relative to time can make momentum appear significantly different on time charts and tick charts)
Attached Image (click to enlarge)
Click to Enlarge Name: difference.png Size: 137 KB
  • #5,692
  • Dec 8, 2013 11:52am Dec 8, 2013 11:52am
Quoting itinerant
{quote} Just a few thoughts regarding the "it has to turn around somewhere. Too aggressive. Pass" point. (All with the benefit of hindsight, I must admit) {image}
Agreed there are actually 2 abcd corrections going on there but if you look at my PA. There is only a bullish bar then a bearish bar above my abcd completion on great strength with great projection and I'm expecting a shallow projection and I'm against orderflow. D trades against orderflow are difficult for me so I passed the trade.

My PA was also away from the channel top so that was another factor for me. Probably one that was emotional for me and I'm going to be working on that this week . Thanks for your review though!
Finally out of the shadows.
  • #5,693
  • Dec 8, 2013 11:56am Dec 8, 2013 11:56am
Quoting Mr. Pip
Hey Traders, I want to address a couple of things. Never let anyone tear you down. Negativity has no place in your trading. Emotions have to be controlled. Remember the failure rate in this business, chances are you are hearing that from one of those people. You have to have posture you have to follow a plan. If you do not have one then get one quick this is a business and you have to treat it as such. Do not take advice from those less successful then you. Why do the rich stay rich and the poor, poor? Who are you listening to? What are you putting...
Thank you for this reminder. I will work on hardening up
Finally out of the shadows.
  • #5,694
  • Dec 8, 2013 12:24pm Dec 8, 2013 12:24pm
Quoting Mr. Pip
{quote} get to know you patterns, it is not a gartley. Can we focus on what matters for now? structure, order flow & bar by bar. Abcd
Your this post is confusing me. I am confused because it is exactly as given in this example=>http://www.trade-forex-harmonic-patterns.com/harmonic-gartley-pattern.html. I tried to trace out why it is not a gartly. but couldn't find out. Is it invalid gartly ? Can you please tell me the reasons why it is not gartly?
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 35 KB
-milkeyway
  • #5,695
  • Dec 8, 2013 12:29pm Dec 8, 2013 12:29pm
Quoting kumaramy
{quote} Your this post is confusing me. I am confused because it is exactly as given in this example=>http://www.trade-forex-harmonic-patterns.com/harmonic-gartley-pattern.html. I tried to trace out why it is not a gartly. but couldn't find out. Is it invalid gartly ? Can you please tell me the reasons why it is not gartly? {image}

B didn't retrace to 61.8% fib so it can't be a Gartley.
  • #5,696
  • Dec 8, 2013 12:51pm Dec 8, 2013 12:51pm
Quoting itinerant
{quote} Thank you for your reply. I fear I have not explained myself well, so I will post a picture. I have drawn momentum lines from the same points, but one is a 233 tick chart and the other a 5M chart. The low volume at the end of the week made the momentum line appear to flatten on the 5M chart. Whereas on the tick chart it actually gave the opposite impression. (Note: I pick these points merely to show that marked changes in volume relative to time can make momentum appear significantly different on time charts and tick charts) {image}
You are looking at momentum from the wrong context. I will show you another example what I'm able to get to a chart in the meantime revisit my video I posted on order flow.
If you fail to plan, you plan to fail.
  • #5,697
  • Dec 8, 2013 1:05pm Dec 8, 2013 1:05pm
Quoting Mr. Pip
{quote} You are looking at momentum from the wrong context. I will show you another example what I'm able to get to a chart in the meantime revisit my video I posted on order flow.
Thanks Mr. Pip

I've watched the video a couple of times and I think I must be missing something - I thought momentum was fundamentally the gradient of the line from the pullback to the next swing low (or high). If that's the case, unless there is constant volume throughout the time period you'll always get different results on tick charts to time charts.

Hopefully it'll make more sense to me later.
  • #5,698
  • Dec 8, 2013 1:11pm Dec 8, 2013 1:11pm
Quoting gaf
{quote} Agreed there are actually 2 abcd corrections going on there but if you look at my PA. There is only a bullish bar then a bearish bar above my abcd completion on great strength with great projection and I'm expecting a shallow projection and I'm against orderflow. D trades against orderflow are difficult for me so I passed the trade. My PA was also away from the channel top so that was another factor for me. Probably one that was emotional for me and I'm going to be working on that this week . Thanks for your review though!
Haha, it wasn't a review! That would be most presumptuous of me, as I think it is fair to say you're ahead of me on this style of trading.
I was merely looking back over the past week and comparing my results to what people had posted on here.
  • #5,699
  • Dec 8, 2013 1:41pm Dec 8, 2013 1:41pm
Quoting kumaramy
{quote} Your this post is confusing me. I am confused because it is exactly as given in this example=>http://www.trade-forex-harmonic-patterns.com/harmonic-gartley-pattern.html. I tried to trace out why it is not a gartly. but couldn't find out. Is it invalid gartly ? Can you please tell me the reasons why it is not gartly? {image}
Gartley needs B of 61.8, Bat 50. You have a 50 there.
The world you desire can be won. It exists.. it is real.. it is possible..
  • #5,700
  • Dec 8, 2013 1:47pm Dec 8, 2013 1:47pm
Quoting kumaramy
{quote} Your this post is confusing me. I am confused because it is exactly as given in this example=>http://www.trade-forex-harmonic-patterns.com/harmonic-gartley-pattern.html. I tried to trace out why it is not a gartly. but couldn't find out. Is it invalid gartly ? Can you please tell me the reasons why it is not gartly? {image}
It may well be a Gartley in the wider harmonic community, but this thread is focusing on Mr. Pip's versions of the patterns which are more restrictively defined.
There is guide in previous posts showing all the pattern ratios which are discussed in this thread which will probably help to explain.
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