Whats the difference between a butterfly and crab pattern?..these look identical. The only difference seems to be the amount of the retracement on "B".
Ratios & Harmonics: a Different Way to Trade
- #8,464
- Edited 4:19pm Apr 14, 2014 3:08pm | Edited 4:19pm
- | Joined Dec 2013 | Status: Trader | 1,118 Posts
Hello First I want to thanks to Mr. Pip for the great thread !!! I'm trying to trade the Forex about a year , but because of my bad English skills ( sorry also for my very bad English) I do not have much success with my selflearning.About 2 weeks ago I came across a topic here. I have not read it all , but some things began to understand and I started reading a "Harmonic trader", because I saw Mr. Pip to recommend this. However harmonic trading here is explained well for me here and I started to try myself looking patterns. I want to ask - if...
Attached are some reference material. Once you've memorized the material, you'll need to back test the patterns to see what works for you. Don't trust anybody with your wallet, make your own conclusions. No offence to anybody. I found the videos, not only to be inspiring but also of great help. I watch them over and over and over... etc. I pick up something new every time. They are truly excellence source for a visual learner like myself. Also make sure you go through the entire thread. There are great insight in here. Take your time and learn from them.
Attached File
http://assets.forexfactory.net/images/attach/docx.gif DCASTFX Advance Pattern Reference Guide Revised.docx (http://www.forexfactory.com/attachment.php?attachmentid=1406706&d=1397490585) 607 KB | 8 downloads
Videos:
https://www.youtube.com/channel/UCYMMaQVL85vGxjy2ffRgC5A
https://www.youtube.com/channel/UCw8CjBPrQlRH7jbiRbQcc1w
Youtube is full of material to assist you in your journey but you'll need to filter out the uninformed and uhm..... deception.
Your objective is to Analysis Strength and Weakness. Always trade with strength and always trade against weakness. Some things to consider in your analysis is to help in calculating your expectations are
- Areas/Zones of Demand, Supply and Challenges. How does price react in these Zones? Have they been abused?
- Ratio Confluence. Assess all angles. Do any of these ratio confluences line up with structure?
- Order Flow. Are you with long term order flow?
- Bar by Bar Analysis. What is price telling you?
Harmonics, Advance patterns and Ratio confluence can only provide you with areas of opportunities. You'll need to assess order flow and price action in conjunction with structure to calculate expectations and whether or not those expectation meet with the goals of your set up. Ones you've built a case for entry you can use your expectations to take advantage of those opportunities that patterns provide. Knowing all the patterns is fine but try to become an expert of a couple first. Spotting the patterns is one thing but you need to understand why they work to implement them successfully.
Take the time to back test those patterns. I know it’s boring and a lot of work but its necessary. You'll find things that will work for you and not other traders plus your training yourself to spot the set up. You'll also filter out what doesn't work. Personally, I like the AB=CD, ABCD. They're easy to spot and are harmonically linked.
Analysis then predict then execute. Once executed, monitor and ask, "Is price moving as anticipated?"
"We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle (http://www.brainyquote.com/quotes/authors/a/aristotle.html)
It will take some time. Rome wasn't built in a day. But with some hard work, dedication, and focus you can achieve consistent profits. As Mr.Pip has repeatedly said and I quote, "He can lead you to the water, but you have to drink."
Like you and many others, I'm here to learn. So, I hope this helps. Good Luck.
P.S. Mr. Pip, if I ever step out of place, just tell me to shut up.
- #8,469
- Apr 14, 2014 3:58pm Apr 14, 2014 3:58pm
- | Joined Dec 2013 | Status: Trader | 1,118 Posts
{quote} Good way to evaluate your setup. You don't need to pass on the trade if you are with the order flow sometimes the risk reward is not optimal and although I normally pass on bad RR the most important factor is if there is enough room to remove risk before your bias hits structure. I would never do this if I am against order flow. You have to be more aggressive with the management of these trades as they do carry a higher degree of risk. I do believe we sometimes have a habit to over think our approach but stick to your process and set of...
I also want to thank you for your advice in post #8455. This is something I forgot to put in my post analysis. I know, it seems critical, uh. But usually I only review wheather or not I was right/wrong and if my expectations were meet. Haha.
Update on my trade: (Entry: Red Circle/Exit: Yellow Circle)Price did reverse as expected but bears were less enthusiastic then anticipated. They did make a push to minor structure, completing a small AB=CD pattern. I expect Price to stall then push a little lower so I didn't exit at the 61.8% retracment of the main leg. But Price just stalled then made a bullish push so I exited the trade. +14 pips. Good thing too, PA trailed higher afterwards, market dying down.
- #8,471
- Apr 14, 2014 5:01pm Apr 14, 2014 5:01pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
- #8,472
- Apr 14, 2014 5:06pm Apr 14, 2014 5:06pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
- #8,473
- Apr 14, 2014 5:12pm Apr 14, 2014 5:12pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
{quote} Hell B3g1nn3er, maybe I can be of some assistance. I'm going to give you the long answer.... lol Attached are some reference material. Once you've memorized the material, you'll need to back test the patterns to see what works for you. Don't trust anybody with your wallet, make your own conclusions. No offence to anybody. I found the videos, not only to be inspiring but also of great help. I watch them over and over and over... etc. I pick up something new every time. They are truly excellence source for a visual learner like myself. Also...
Well said
If you fail to plan, you plan to fail.
- #8,474
- Apr 14, 2014 5:20pm Apr 14, 2014 5:20pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
- #8,475
- Apr 14, 2014 5:29pm Apr 14, 2014 5:29pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
- #8,477
- Apr 14, 2014 6:41pm Apr 14, 2014 6:41pm
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
If you fail to plan, you plan to fail.
