{quote} Lol yeah in the UK here, get some good trading time tooGuess you are the other side of the pond? You not up at 4am, man you lazy
Ratios & Harmonics: a Different Way to Trade
- #5,826
- Dec 11, 2013 2:37pm Dec 11, 2013 2:37pm
{quote} fine forex can you tell us more details how you mark those rectangel shape or should i say structure pls? thnx what are the criteria to make a structure like that? thnx
I don't have rules for determining whether it is a critical area or not.
in this pic see what price is doing in this box, its interesting...
I learned how to spot better zones from CNTrader, he used to post in this thread before making his own.
maybe post a chart or a pair and timeframe and ill show you what I see if you want
- #5,829
- Dec 11, 2013 4:50pm Dec 11, 2013 4:50pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
- #5,831
- Dec 11, 2013 6:43pm Dec 11, 2013 6:43pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
- #5,833
- Dec 11, 2013 7:37pm Dec 11, 2013 7:37pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
- #5,834
- Edited 8:22pm Dec 11, 2013 7:58pm | Edited 8:22pm
2 Nice ABCD today in GBPUSD coming from a strong supply area above.
Price is been doing lower lows and lower highs changing structure to the downside. The bears are showing strength but the bears are still fighting, which is nice because the PRZs worked after the abcd's completion
GU had reached multi-year highs 2 days ago. It seems as though that is how high price could get.
Edit: The first of the two was an AB=CD and the second was a perfect ABCD as per the rules.
After those 2 trades and with the order flow very well defined, it was now time to look for a short trade. The third ABCD of the day, this time bearish. A close up to the 3 pips range bars provides a better view. Note how great price respects the blue box not getting higher than the 161.8% extension. Price went easily to the 61.8% retracement target from A to D later.
Price is been doing lower lows and lower highs changing structure to the downside. The bears are showing strength but the bears are still fighting, which is nice because the PRZs worked after the abcd's completion
GU had reached multi-year highs 2 days ago. It seems as though that is how high price could get.
Edit: The first of the two was an AB=CD and the second was a perfect ABCD as per the rules.
After those 2 trades and with the order flow very well defined, it was now time to look for a short trade. The third ABCD of the day, this time bearish. A close up to the 3 pips range bars provides a better view. Note how great price respects the blue box not getting higher than the 161.8% extension. Price went easily to the 61.8% retracement target from A to D later.
Best time to plant a tree was 20 years ago, second best is now
- #5,836
- Edited 10:56pm Dec 11, 2013 10:28pm | Edited 10:56pm
- Joined May 2011 | Status: Trader | 1,374 Posts
-milkeyway
- #5,837
- Dec 11, 2013 11:09pm Dec 11, 2013 11:09pm
{quote} If you check earlier pages, of this thread you would notice that the questions about price action I asked were unique.
Wow, that's a monthly chart! Do you realize all what's going on inside each candle? You will get 4.2 weeks inside each and 22 trading days inside each of them, not to mention the 88 4H candles that IMO are the ones that start creating the patterns we are concerned about. You see, big candles, bigger than D1 are the result, the end product, but at less I'd be a huge hedge fund, an investment company or a bank I wouldn't be looking at them.
It's absolutely a bad idea IMHO to look at monthly candles for harmonic patterns. They are macro economic driven. The candles you asked Damian are some that ocured in 2008 right before the US Economy colapse. Edit: your example was 2011.. but still, we are talking the same.
Anyone can correct me here but the initial point to start looking at are the daily candles, weekly tops. Every profesional trader has as basic unit 1 day or 1 week, but even them are more concerned about how the H4 candles are closing because they are more related to the Asian, European and American sessions.
You have to remember that we are not only looking for patterns here but for strength/weakness and suppy/demand structure. The problem is that if you zoom out too much you will miss a lot of the party going.
Even if you trade the H1 chart you might be interested to watch the M5 chart to see how price travels to the PRZ, if it's doing it with strenght and if it's going to start showing signs of exhaustion.
About price action, we don't have the typical pin bars, double top, hammers, hanging man, piercings, soldiers, outside bars, inside bars, dojis, etc, just to name a few. It's more about reading how strong the bulls are and if the bears are ready to take over the party, or viceversa.
Price will accelerate towards the PRZ but then the opposite gang will be ready to buy cheap or sell dear at the better wholesale price.
Best time to plant a tree was 20 years ago, second best is now
- #5,838
- Dec 11, 2013 11:14pm Dec 11, 2013 11:14pm
- Joined May 2011 | Status: Trader | 1,374 Posts
-milkeyway
- #5,839
- Dec 11, 2013 11:24pm Dec 11, 2013 11:24pm
{quote} My focus is not on the time frame. What if it happens in 1hr or 15 min timeframe ? this pattern can happen in any time frame. So the common confusion is if this happens in 15 min or 1 hr then what would be in mind ?
The bulls reached a supply area with acceleration and the bears took over and the bulls were not willing to fight that battle anymore. The supply acted as a very strong resistance level.
If you zoom in your picture a little to weekly you will see that you almost had a perfect gartley, but since BC was not perfect, the all you could expect was a AB=CD, however you needed price reaching at least the 138.2% extension when you were going from the 50% retracement.
Best time to plant a tree was 20 years ago, second best is now
- #5,840
- Dec 11, 2013 11:29pm Dec 11, 2013 11:29pm
- Joined May 2011 | Status: Trader | 1,374 Posts
-milkeyway