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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

  • #6,421
  • Dec 20, 2013 3:21am Dec 20, 2013 3:21am
Quoting kumaramy
{quote} And Mr. Pip was saying something about round numbers. What does round numbers mean ?
With 4 digit pairs like the EURUSD they mean Y.XX00 and Y.XX50 (for example 1.3500 an 1.3750) and with JPY pairs you have YYY.00 an YYY.50

The markets are a great psychological machine. People put their limits and stops near these numbers either to protect their trades or to enter new ones. Basically round numbers will act as support or resistance when price gets there. But as with any line, price can break them without even care a thing about them. They are there to add confluence to your analysis.
Best time to plant a tree was 20 years ago, second best is now
  • #6,422
  • Dec 20, 2013 3:22am Dec 20, 2013 3:22am
Quoting itinerant
{quote} Price often interacts with the round numbers (for example, 1.35000, 1.36000, 1.37000 etc).
I prefer these better, only 00, without intermediate 50... but to be honest I don't use any

They are in my head but I prefer to use fibonacci pivots.
Best time to plant a tree was 20 years ago, second best is now
  • #6,423
  • Dec 20, 2013 3:26am Dec 20, 2013 3:26am
EURUSD: Clear decrease in momentum and projection? Price just needs to get through S2 / 38.2
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  • #6,424
  • Dec 20, 2013 3:29am Dec 20, 2013 3:29am
Quoting itinerant
EURUSD: Clear decrease in momentum and projection? Price just needs to get through S2 / 38.2 {image}
I'm currently out of this one. If you are a bear you might hold your positions.

My plan was to go long around 1.3620 but I detect a lot of resistance at every diminute tick of activity. 1.36 might be cut like margarine. Will better check what happens when we get a retracement here or we get to the 1.35 arena.
Best time to plant a tree was 20 years ago, second best is now
  • #6,425
  • Dec 20, 2013 3:32am Dec 20, 2013 3:32am
Quoting horuxito
Hey, I'm still alive after 2 weeks live trading without indicators!
That's great!
  • #6,426
  • Dec 20, 2013 3:37am Dec 20, 2013 3:37am
Quoting itinerant
{quote} That's great!
Alive but broke

Just kidding. Nothing of that! Actually I'm leaving this week with a nice increase in balance. I guessed I earned the tokens for another week
Best time to plant a tree was 20 years ago, second best is now
  • #6,427
  • Dec 20, 2013 3:41am Dec 20, 2013 3:41am
Quoting horuxito
{quote} I'm currently out of this one. If you are a bear you might hold your positions. My plan was to go long around 1.3620 but I detect a lot of resistance at every diminute tick of activity. 1.36 might be cut like margarine. Will better check what happens when we get a retracement here or we get to the 1.35 arena.
I'll be keeping an eye on price around the marked area, provided that the newly-formed low doesn't shift too much.
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  • #6,428
  • Dec 20, 2013 4:02am Dec 20, 2013 4:02am
Quoting horuxito
{quote} Alive but broke Just kidding. Nothing of that! Actually I'm leaving this week with a nice increase in balance. I guessed I earned the tokens for another week
how much experience do you have ?
-milkeyway
  • #6,429
  • Dec 20, 2013 4:59am Dec 20, 2013 4:59am
Quoting itinerant
{quote} I'll be keeping an eye on price around the marked area, provided that the newly-formed low doesn't shift too much. {image}
Price shot through there with strength... maybe I'll be looking for longs today
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  • #6,430
  • Dec 20, 2013 5:50am Dec 20, 2013 5:50am
Quoting horuxito
{quote} I prefer these better, only 00, without intermediate 50... but to be honest I don't use any They are in my head but I prefer to use fibonacci pivots.
I agree re: the 50s... although I see quarter and three-quarters (x.x250 and x.x750) having an effect more similar to the '00s.
  • #6,431
  • Dec 20, 2013 6:25am Dec 20, 2013 6:25am
So after a choppy time yesterday I ended the day 15 pips up. Although it was a very up and down day and it was only my last trade when I shorted GBPUSD that took me into the positive.

A better start today, took an agro C with the current trend and order flow. Went against me initially and was close to SL but then bounced back for a nice start.
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  • #6,432
  • Dec 20, 2013 6:33am Dec 20, 2013 6:33am
Quoting horuxito
{quote} Alive but broke Just kidding. Nothing of that! Actually I'm leaving this week with a nice increase in balance. I guessed I earned the tokens for another week
Lol, I started proper live trading yesterday and it is a lot different. I found myself entering more positions than normal and that is probably why it was my worst day profit-wise. Only took 15 pips and my worst this week was 25 pip gain, although I guess I should expect some loser days at some points.

I am liking Ninjatrader though, much cleaner.
  • #6,433
  • Dec 20, 2013 7:16am Dec 20, 2013 7:16am
I was watching to this, but M5 is too quickly for me. Aggressive C with AB=CD.
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  • #6,434
  • Dec 20, 2013 7:35am Dec 20, 2013 7:35am
Aggressive C didn't work, so it's time for Gartley. Look, 1.27 of AB is equal to 0.786 of XA.
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  • #6,435
  • Dec 20, 2013 11:43am Dec 20, 2013 11:43am
Meh, another slightly annoying day today!! Was doing really well, had 3 trades, 1 scratch and 2 wins for about 28 pips up (one of these I got a bit twitchy and jumped out with 15 pips rather than trusting the TP which was hit and would have put me about +50 for the day!!). Then I went with my emotions on a couple of trades and lost out so actually ended the day about 10 pips down

Oh well live and learn, I just need to step away if I feel my emotions taking over.

So another roller coaster day for me. Got to take the positives, when I am trading using the rules and system then I generally win most trades, just need to get a grip on the emotional trades, think using real money makes me think about the winnings rather than the trade. I am sure I will get hold of this side of my trading just need to keep it at the front of my mind.

Anyway have a good weekend a Christmas people!! Think that is me done until after Christmas.
  • #6,436
  • Dec 20, 2013 2:15pm Dec 20, 2013 2:15pm
Horuxito, i am sorry, but you gave me bad advise, allready twice. I understand that you are lerning and me too. But don't say if you are not sure.
i posted trade with UJ M1, you told me my swing was wrong, so i had to reread thread, post 638 the same situation as I had, and it was correct.
Second you told me that my ABCD, AB is not equel, i even opened a book, and again you confused me. AB=CD, has to be equel legs for valid pattern. For ABCD there is no hard rule.
I appreciate for your answears, and please no offence
Even though I walk through the darkest valley, I will fear no evil
  • #6,437
  • Dec 20, 2013 2:44pm Dec 20, 2013 2:44pm
Quoting monocor
Horuxito, i am sorry, but you gave me bad advise, allready twice. I understand that you are lerning and me too. But don't say if you are not sure. i posted trade with UJ M1, you told me my swing was wrong, so i had to reread thread, post 638 the same situation as I had, and it was correct. Second you told me that my ABCD, AB is not equel, i even opened a book, and again you confused me. AB=CD, has to be equel legs for valid pattern. For ABCD there is no hard rule. I appreciate for your answears, and please no offence
No ofense at all. Could you please quote or link those posts.

I want to say something out laud here to everyone. We should never take ongoing trades of other people's analysis. You can perfectly see their thinking process and check if is similar to yours but just that.

The ONLY person I can be responsible for here it's ME. I've had a successful week and I never ever have told anyone to enter or take any trade. This thread is the home of people willing to learn harmonics, not a signal service.

I have very clear the rules of ABCD and AB=CD trust me. But people forgets things about main and dominant swings, or stuff like "100 people out of 100 people has to agree this is the low this is the high". If you want to make your trades "a la carta" so they can fit your observations in past history go ahead. But in real trading you want to be sure of the things you are doing.

ABCD of course has hard rules. We are talking about an harmonic pattern. ABCD needs 2 things: a retracement of 61.8 to 78.6 of AB and an extension of at least 127.2% of that same swing. You also project AB to get a defined PRZ.

Again, I am not ofended and I accept I'm still learning, but I won't accept to be told I'm wrong for things I've done my homework throuroughly.
Best time to plant a tree was 20 years ago, second best is now
  • #6,438
  • Dec 20, 2013 7:29pm Dec 20, 2013 7:29pm
I took two ABCD trades on NZDUSD M5 on Friday. Was not sure about M5 stop loss, so my first stop loss was just 1-2 pips below 161.80%, and was soon hit. The 2nd trade was better, reached first 38.20% target by pip, but I still didn't move my stop loss to BE (because technically 38.20% was not hit), so eventually the 2nd trade also turned into a losing one.

Price found support 16 pips below 161.80% level, and as expected had this big move up.

As a hindsight I could say that both of my entries didn't have enough confluence, but I wonder what others would say. Were these "valid" ABCD entries/trades, or could I improve something to reduce the loses or even do not take the trades?

That lowest structure support I draw later, after the trades. Although I was aware that there is a stronger confluence further below 161.80%.

Julius
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  • #6,439
  • Dec 20, 2013 7:33pm Dec 20, 2013 7:33pm
Quoting monocor
{quote} I post my charts after the trades was done, and all was in profit. The comments was after that. cople pages back and you will see my posts. I am 6 years in this bussines, and i wouldnt stay in bussines if i would listen somebody where to open orders. I do take dicisions on my own. I posted charts to see if everything is right, as i started to learn harmonics 3 weeks ago. But it is pretty simple, it has a lot of common with dinapoly.
Guys, we don't need to point any fingers between us. We all are learning from Mr. Pip's great teachings.

Monocor, when you presented your chart you asked "What do you guys think?", and I simply said, you have your ABCD but the A point didn't start from the very low. Is that bad advice? I think is not, I simply observed something I think people with more than 3 weeks here are able to recognize. I have 1 year in this thread and I personally asked Mr. Pip for the "difference between main and dominan swings" video, and he was very nice to make it for us all. Nowadays I have absolutely no problems in identifying those swings. And I won't put name to a pattern if I am not being honest about picking evident swings turning points (tops and bottoms).

http://www.youtube.com/watch?v=319oUEQTm_Y

Please forgive me if you feel I provided bad advice, but I will keep my word about my observation, your ABCD didn't begin from a low we could say "this is the low 100%"... nope, I know it and you know it, everyone does. Truth is bad advice? Well, that's your choice. If you cannot accept those observations and interpret them as bad advice, then simply don't bother in asking since you were already right, the question invalidates any possible answer since you were right to begin with... By the way, Post 638 was wrong too, that wasn't the low. When I see Mr. Pip's pictures about ABCD's is evident they are ABCD's. But traders with less experience see what they want to see. I'm not saying that's your case but in general, that's what happens. They plot the ZUP indi in their charts and the indi isn't identifying the real deal because it relies in ZigZag which is also arbitrary.

Peace man.
Best time to plant a tree was 20 years ago, second best is now
  • #6,440
  • Dec 20, 2013 7:44pm Dec 20, 2013 7:44pm
Quoting horuxito
{quote} Uhmm. I am sorry if I comment here but I see a couple of things, maybe three. 1. That is a forced Aggro C. The rules of the swings are: "100 out of 100 people agree this is the high and this is the low". And in your picture you are not taking what we could consider a low in your A point. 2. The AB swing must be equally projected to CD and all I see is 2 different swings. They might have the same height, I don't know. But I know they don't look the same. 3. You must have a Fibo extension of the AB swing to get confluence with the swing harmonic...
You don't remember you own words ? That is sad
Even though I walk through the darkest valley, I will fear no evil
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