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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

  • #6,221
  • Dec 17, 2013 9:19am Dec 17, 2013 9:19am
Quoting horuxito
I am long at 6235 in the GBPUSD. Time to update where the bears might be heading... 1.6205 looks like the number. Average Daily Range is 90 pips and we have 120 today. That, and the fact we are at 2nd resistance, provides me a little expectation to catch a retracement to the upside. {image}
nice call, you use basic pivot points?
  • #6,222
  • Dec 17, 2013 9:21am Dec 17, 2013 9:21am
hi,

my first post here based on my understanding. please let me know if my thinking is in the right way.
Potential reversal zone (yellow oval) on 6J (USDJPY futures) based on:
70.7% retracement of bigger main swing
88.6% retracement of main swing
AB=CD (in this case BC = DE)
170.7% ext BC


thanks
calvinB
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  • #6,223
  • Dec 17, 2013 9:31am Dec 17, 2013 9:31am
Quoting monocor
Hello ! This thread is amazing. I enjoy reading it. I just start reading this thread, I had couple of books before, but this thread is gold. Thank you, that you Mr. Pip and members of this thread for all the work you did. I doing first steps with harmonics, I am starting with ABCD. I had 2 trades M15 this week, one is still running on EU, I moved my SL to BE, so it is no loss granted. I will post it later. The first one was EA this monday M15, I choose M15 because it is where I trade. So, any way I had this trade. It worked well, I had 50 pips....
Monocor, welcome.

Nice trade, works wonderfully doesn't it?

its not always this simple though seeing as price has the potential to shoot through the roof especially with the momentum before

but hey you identified a nice opportunity and pulled the triggers at the right time great job.
  • #6,224
  • Dec 17, 2013 9:41am Dec 17, 2013 9:41am
Quoting gaf
{quote} Nods I understand that. How did you read the short term orderflow there? Did you read it differently to me? Or if you did did you just hold longer than I did. At the time I'm not sure if I even looked at the 38%. I was expecting a shallow pullback which I got on strength so I pulled the stop and got faked out. I'm going to modify my plan to suit these issues. Thanks to everyone who replied. Cheers.
Reading order flow is definitely my weakest aspect of trading this style. If I'm honest, during the early stages post-entry I don't analyse order flow to change my stops. Why?

I'm trying to be rigid in my trading rules and to not chop and change too much during order management. This is because I'm trying to be consistent so that it is easier to identify what is and what isn't working for me. I'm not good enough to dissociate retests from failure right at the start of the trade, so I don't apply active order management until the 38.2 point (after then , I do).

I identify a PRZ which I'm happy has a sufficiently strong case to action.
Once price reaches the PRZ, I look for signs of reversal on the 144 tick chart. I do my best at figuring out what price is telling me (as I said, still my weakest part).
After pulling the trigger, I let the trade run its course to either 38.2 or SL. In this case, it reached 38.2 and then would have knocked out my SL if I had moved it to BE... but having moved SL to swing high, it didn't.
After the 38.2 point, I (attempt to) manage the trade more directly... moving stops to structure or other significant fibs and deciding where the final TP will be.

This approach does mean that a 38.2 is not a "win" for me (in this case, I still had 4 pips on the table at 38.2 rather than being at BE). However, it is the approach I've had to adopt to deal with late entries leading to premature stopping out. As my skill level improves, perhaps I will be able to apply the 38.2 / BE rule.

Probably not the best plan in the world, but a plan nevertheless :-)

But if I was applying order flow analysis to the first stage of the trade's management, those 2 bullish candles which stopped you out would have scared me, yes! Ignorance is bliss?!
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  • #6,225
  • Dec 17, 2013 10:19am Dec 17, 2013 10:19am
Hello Mr Pip,

First of all i would like to thank you for your effort of educating me. I read the whole thread two times and it is starting to come together.
The youtube videos you posted are great. I can recommened anybody to watch them a couple of times.
At the moment i am trading the 15 min charts of EurUsd, GBPUSD, and USDCHF.

I collected all images that are uploaded in this thread.
Everybody can download them from the following link: http://www.megafileupload.com/en/file/479715/pictures-rar.html (http://www.megafileupload.com/en/file/479715/pictures-rar.html)
  • #6,226
  • Dec 17, 2013 10:28am Dec 17, 2013 10:28am
Here's another GBPJPY aggressive C trade during NY session. Lined up quite nicely with the support becoming resistance

Was quite a runner:
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  • #6,227
  • Dec 17, 2013 10:35am Dec 17, 2013 10:35am
Quoting FineForex
{quote} Monocor, welcome. Nice trade, works wonderfully doesn't it? its not always this simple though seeing as price has the potential to shoot through the roof especially with the momentum before but hey you identified a nice opportunity and pulled the triggers at the right time great job.
Thank you! Nothing is easy in forex, I am still learning. But I hope in couple month I will trade like you guys.
Even though I walk through the darkest valley, I will fear no evil
  • #6,228
  • Dec 17, 2013 10:36am Dec 17, 2013 10:36am
Second trade this week M15 EU +40 pips. Buy at 127% profit at 61% of AD.
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Even though I walk through the darkest valley, I will fear no evil
  • #6,229
  • Dec 17, 2013 10:40am Dec 17, 2013 10:40am
Helo ! Could anyone help me with hot to get a Ninja Platform to see tick charts... I dont know how to login because it said that you must have real account.
Thanks in advance with you helping me )
  • #6,230
  • Dec 17, 2013 10:40am Dec 17, 2013 10:40am
EurUsd H4/M15
We are trading in the zone for now...
H4 bat and these days back-to-back patterns on LTF cypher-gartley-potentila cypher now...
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  • #6,231
  • Dec 17, 2013 10:44am Dec 17, 2013 10:44am
I have a question about aggressive entry at 127%. Normally, I go to M5 from M15, to see what price is doing in PRZ.
Does it give the edge, if you just enter at 127% and place stop below (above) 160% ?
And do you always take a profit at 61% of AD ?
I have tried what Mr Pip recommended place trailing 10 pips at 61% of AD, but price always rejecting from 61% and I got 10 pips less profit.
Even though I walk through the darkest valley, I will fear no evil
  • #6,232
  • Dec 17, 2013 10:44am Dec 17, 2013 10:44am
Quoting LuisPrinc
Helo ! Could anyone help me with hot to get a Ninja Platform to see tick charts... I dont know how to login because it said that you must have real account. Thanks in advance with you helping me )
You can try setting up a free demo account on either MB trading or FXCM. Both will give you feeds in ninjatrader.
  • #6,233
  • Dec 17, 2013 10:51am Dec 17, 2013 10:51am
Quoting lobogabor
EurUsd H4/M15 We are trading in the zone for now... H4 bat and these days back-to-back patterns on LTF cypher-gartley-potentila cypher now... {image} {image}
Sorry for asking !
What is that indicator with dots on your chart, is it simafor ? Doesn't it help to identify swings ?
Even though I walk through the darkest valley, I will fear no evil
  • #6,234
  • Dec 17, 2013 11:26am Dec 17, 2013 11:26am
Quoting itinerant
{quote} You can try setting up a free demo account on either MB trading or FXCM. Both will give you feeds in ninjatrader.

Thanks Man ! Appreciate.
  • #6,235
  • Dec 17, 2013 11:39am Dec 17, 2013 11:39am
Quoting monocor
{quote} Sorry for asking ! What is that indicator with dots on your chart, is it simafor ? Doesn't it help to identify swings ?
moncor, of course, ask what you want to know, that is why we are here I guess...
It is like ZZ-semafor, but called chaos semafor - 3 mod...does the same, but both repaint a lot...
Could help with supply demand together, but one should know about repainting...
  • #6,236
  • Dec 17, 2013 11:53am Dec 17, 2013 11:53am
Quoting FineForex
{quote} nice call, you use basic pivot points?
I use Fibonacci Pivots, they are better in my opinion.

I am starting a journal just like you... and I'll talk about these things.
Best time to plant a tree was 20 years ago, second best is now
  • #6,237
  • Dec 17, 2013 12:27pm Dec 17, 2013 12:27pm
Quoting horuxito
{quote} I use Fibonacci Pivots, they are better in my opinion. I am starting a journal just like you... and I'll talk about these things.
horuxito, where do you start your journal?
  • #6,238
  • Dec 17, 2013 12:28pm Dec 17, 2013 12:28pm
Quoting itinerant
{quote} Reading order flow is definitely my weakest aspect of trading this style. If I'm honest, during the early stages post-entry I don't analyse order flow to change my stops. Why? I'm trying to be rigid in my trading rules and to not chop and change too much during order management. This is because I'm trying to be consistent so that it is easier to identify what is and what isn't working for me. I'm not good enough to dissociate retests from failure right at the start of the trade, so I don't apply active order management until the 38.2 point...

Nope you followed your plan, I was just curious to see what everyone else was doing. Thanks for response. Cheers!
Finally out of the shadows.
  • #6,239
  • Dec 17, 2013 1:57pm Dec 17, 2013 1:57pm
Quoting lobogabor
{quote} horuxito, where do you start your journal?
You are all invited

Horuxito's Journal (http://www.forexfactory.com/showthread.php?t=463034)
Best time to plant a tree was 20 years ago, second best is now
  • #6,240
  • Dec 17, 2013 2:16pm Dec 17, 2013 2:16pm
Quoting horuxito
{quote} You are all invited Horuxito's Journal (http://www.forexfactory.com/showthread.php?t=463034)
Looks good
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