Ratios & Harmonics: a Different Way to Trade | Page 431 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

Learning to trade with harmonics 11 replies

Time for Change - Pivots & Harmonics to freedom 67 replies

180 reasons to trade Harmonics and Patterns 13 replies

Group Trading based on Elliott wave and Harmonics 0 replies

Attachments: Ratios & Harmonics: a Different Way to Trade
Exit Attachments

Ratios & Harmonics: a Different Way to Trade

  • #8,601
  • Apr 19, 2014 9:58pm Apr 19, 2014 9:58pm
Quoting Magix
{quote} I have several profitable systems, but the learning never stops. When I first got into forex, I was working with a self adjust fib scale put out by TRO...Can't remember what it is anymore, but always liked the triggering that it offered. Issue was, during lags and off sessions, it lost it's edge on the faster TFs. My triggering is still M1 based and I typically work on price surge, more along the lines of VSA for exits instead of hard targets...the actual triggering isn't thread relevant so wouldn't want to discuss it here, but really hasn't...
Thank you for your reply Magix. Mr. Pip has a great thread and is very helpful. Will be happy to offer anything of value in the way of harmonics.
The world you desire can be won. It exists.. it is real.. it is possible..
  • #8,602
  • Edited 5:27pm Apr 20, 2014 12:16pm | Edited 5:27pm
Good morning, I don't usually trade the higher time frames but do use it for a top down analysis, just to get a better insight into the overall picture. Its also hard to have enough time to post and explain a 5 minute chart in relevent time. If anybody has any thoughts please don't hesitate to provide some input. All positive critisism is welcomed. Thanks in advance.

I'm currently looking at 1 to 1 completion on the EURAUD - 1Hour, which would also complete a butterfly pattern.

1) Structure: There’s a weak hiccup in the main swing that coexists with the Kill Zone and a round number just above to back it up. The round Number also aligns with the 78.6 retrace of the main swing providing some extra strength. Even tho there’s some confluence, I expect this area to provide some supply, i would consider it as having moderate strength. There is a major demand area above but too far to be considered for a stop or my analysis.

2) Order Flow: The big picture trend (Beyond this snap shot) is down. Current L/T Order Flow is down but has produced a double bottom with 2 full retraces looking like consolidation. It’s too soon to tell if this is hinting at a trend reversal so I'll sick with my bearish bias and look for shorting opportunities.

3) Price Action: The Bulls looked like they were making a push into the Supply Area. There was a slight decrease in momentum compared to the previous up swing but there was also alittle fight from the bears. So my expectation was for the supply area to hold as sellers came into the market. But on Thursday April 17 it looked like everybody decided to go home for the long weekend and price stalled.

My expectation: I'll have to gauge the strength of the Bulls and Bears when markets open to see the gap and direction of participation. But currently i expect the current supply area to hold which would invalidated the 1 to 1 completion. The probability of direction is 50/50 so no edge. Even if the Price gaps up into the Kill Zone, I'll be cautious of is validity. I expect trading to be slow on Sunday so I'll reevaluate on Monday.

Any thoughts???


http://icmarkets.ctrader.com/images/screens/FMjnn.png
  • #8,603
  • Apr 20, 2014 7:03pm Apr 20, 2014 7:03pm
Quoting Mack2013
Good morning, I don't usually trade the higher time frames but do use it for a top down analysis, just to get a better insight into the overall picture. Its also hard to have enough time to post and explain a 5 minute chart in relevent time. If anybody has any thoughts please don't hesitate to provide some input. All positive critisism is welcomed. Thanks in advance. I'm currently looking at 1 to 1 completion on the EURAUD - 1Hour, which would also complete a butterfly pattern. 1) Structure: There’s a weak hiccup in the main swing that coexists...

Well done!!!!
If you fail to plan, you plan to fail.
  • #8,604
  • Apr 20, 2014 7:24pm Apr 20, 2014 7:24pm
Well Traders, my limit order is set may get filled may not. About 3 pips off at the moment I would like to enter this market again but expect this to come down a bit to fill me. Looking for the aggressive C buy as I took Thurs night but went nowhere. As we can see everything that was suppose to hold held and i feel even better about this set up. A couple of rough areas for price if it does follow expectation marked with a pair of ovals.

Profit target is set just below the PRZ and the 78.6 of XA. Stops just below the round number and previous support 20 pips from entry TP about 66 pips about 3:1 RR Here is the chart. If this pattern completes I will look for shorts and then the Bat comes into play. Those of you that will take this trade good luck and I am placing a 20 pip trail stop so i can get to a break even as soon as possible in case those two areas become an issue for price.
Attached Image (click to enlarge)
Click to Enlarge Name: Limit Set EURUSD.jpg Size: 168 KB
If you fail to plan, you plan to fail.
  • #8,605
  • Apr 20, 2014 8:12pm Apr 20, 2014 8:12pm
My order is filled price came down as expected and my buy limit was filled on more strength then I wanted to see but it's on now. We need gravity to reverse and price to climb. Well things are on auto pilot and I"ll update you in the morning hopefully with good news.
Attached Image (click to enlarge)
Click to Enlarge Name: Buy Filled.png Size: 102 KB
If you fail to plan, you plan to fail.
  • #8,606
  • Apr 20, 2014 8:42pm Apr 20, 2014 8:42pm
first time playing around with harmonic patterns. the way i see it im short on AB=CD . Breaking even at 127 TP at 88.6 of XA looking to buy at completion of bat pattern as you see on pic. The gap not being filled is making me nervous, tell me what you guys think
Attached Image (click to enlarge)
Click to Enlarge Name: cT_cs_3000952_EURUSD_2014-04-20_18-29-23.png Size: 106 KB
  • #8,607
  • Apr 20, 2014 9:23pm Apr 20, 2014 9:23pm
Quoting Mr. Pip
My order is filled price came down as expected and my buy limit was filled on more strength then I wanted to see but it's on now. We need gravity to reverse and price to climb. Well things are on auto pilot and I"ll update you in the morning hopefully with good news. {image}

Hi Mr.Pip,

My first post. Thank you for taking time to teach us. I have a question regarding the EURUSD trade that you took. Please see the chart I have attached.

1. The ABCD in the magenta line is also a possibility right? Magenta ABCD completion area aligns with 61% of the bigger swing(I think it cannot be main or dominant swing considering where price is now. hence the name bigger swing...lol..please correct me if I am wrong. it also have a confluence of 127 -161 area of AB and BC.)

2. Also I have a question regarding the PA which happened just now. If you can please check my second chart,there is a pin bar completion. I saw your PA video which says to consider the previous candle close,its high,low etc to understand the whole price action instead of a single candle like Pin bar or anything else.. my question is will you consider the last candle(yellow arrow) a good candle to go long[I understand you are already long in this pair]. the reason I ask is the last bullish candle didnt close half way up the previous breaish candle which has too much strength and closed near it low. Or will you give more empasis to the fact that it is near a round number, it is near previous swing lows and it can also form a double bottom. Thank you.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EU1.JPG Size: 173 KB
Click to Enlarge Name: EU2.JPG Size: 222 KB
Enter Signature
  • #8,608
  • Apr 21, 2014 12:57am Apr 21, 2014 12:57am
Quoting sideshowbob
first time playing around with harmonic patterns. the way i see it im short on AB=CD . Breaking even at 127 TP at 88.6 of XA looking to buy at completion of bat pattern as you see on pic. The gap not being filled is making me nervous, tell me what you guys think {image}

Hi my take is theres another bigger bullish BAT, AB=CD's , ABCD possibilities to the upside and downside there too, heaps of them lol !! So point is try not get caught up in just 1 pattern,also more importantly look for the structure

Attached Image (click to enlarge)
Click to Enlarge Name: eur21414.jpg Size: 195 KB
Never said I was Batman,all I'm saying is you'll never see us together.
  • #8,609
  • Apr 21, 2014 5:40am Apr 21, 2014 5:40am
hello Mr. pips, can you please elaborate your stop loss policy in case of Gartley and Bat pattern.
  • #8,610
  • Apr 21, 2014 6:54am Apr 21, 2014 6:54am
Hi again, Mr.Pip.
Sorry for my newbie question and please, delete this post if there was a similar question before, but...tell me.
If CD leg (from AB=CD) touch 161.80 Fibo of BC, but is far away from 0.86 from XD - is this valid Bullish Bat?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdh4.png Size: 52 KB
Your best teacher is your last mistake ...
  • #8,611
  • Apr 21, 2014 8:36am Apr 21, 2014 8:36am
Quoting sideshowbob
first time playing around with harmonic patterns. the way i see it im short on AB=CD . Breaking even at 127 TP at 88.6 of XA looking to buy at completion of bat pattern as you see on pic. The gap not being filled is making me nervous, tell me what you guys think {image}
This is definitely a possibility and the Bat pattern technically is in play however the bias here although weakening is bullish for the reasons I stated in my post from Thursday. There is definite weakness on the bulls and the market is breaking down but we are also still dealing with half the players present. I have reduced some of the risk early just in case no sense taking a full loss when you can see an obvious breakdown in price. Time will tell.
If you fail to plan, you plan to fail.
  • #8,612
  • Apr 21, 2014 9:02am Apr 21, 2014 9:02am
Quoting Wills
{quote} Hi Mr.Pip, My first post. Thank you for taking time to teach us. I have a question regarding the EURUSD trade that you took. Please see the chart I have attached. 1. The ABCD in the magenta line is also a possibility right? Magenta ABCD completion area aligns with 61% of the bigger swing(I think it cannot be main or dominant swing considering where price is now. hence the name bigger swing...lol..please correct me if I am wrong. it also have a confluence of 127 -161 area of AB and BC.) 2. Also I have a question regarding the PA which happened...
All of this is a possibility but we must listen to what order flow is saying here and what is in play. There are definite and compelling opportunities to the down side here but longer term order flow is bullish and there are signs of breakdown on the bullish order flow which is why I have reduced some risk. In reference to you question on the PA we have to consider the context and ask that does this mean? Price will have a reaction to this level because there is structure here. But the question is this. Is price accepting this level or not? What is being supported at this level higher or lower price action?
If you fail to plan, you plan to fail.
  • #8,613
  • Apr 21, 2014 9:05am Apr 21, 2014 9:05am
Quoting headfake
{quote} Hi my take is theres another bigger bullish BAT, AB=CD's , ABCD possibilities to the upside and downside there too, heaps of them lol !! So point is try not get caught up in just 1 pattern,also more importantly look for the structure {image}
Well put!
If you fail to plan, you plan to fail.
  • #8,614
  • Apr 21, 2014 9:09am Apr 21, 2014 9:09am
Quoting 1sandeepgupt
hello Mr. pips, can you please elaborate your stop loss policy in case of Gartley and Bat pattern.
That has been posted look in the attachments. In some cases I manage these more aggressively when the situation calls for it like in this case order flow keeps breaking down on me so I have to be aggressive but not too aggressive your trade still needs room to breath but know where price should and should not be if your analysis is correct.
If you fail to plan, you plan to fail.
  • #8,615
  • Apr 21, 2014 9:13am Apr 21, 2014 9:13am
Quoting b3g1nn3er
Hi again, Mr.Pip. Sorry for my newbie question and please, delete this post if there was a similar question before, but...tell me. If CD leg (from AB=CD) touch 161.80 Fibo of BC, but is far away from 0.86 from XD - is this valid Bullish Bat? {image}
This makes your PRZ and your area of interest to watch PA to determine and opportunities or pass on them.
If you fail to plan, you plan to fail.
  • #8,616
  • Apr 21, 2014 9:29am Apr 21, 2014 9:29am
Well I sort of already given you an update on my trade but here is the official one. The market shortly after entry progressed in my intended direction and at one point I was 20 pips in profit. My trail adjusted and risk was reduced. Price has come way back deeper then expected making a HL followed by a LH and a NSL on the short term order flow. Structure is struggling to hold but the bulls are simply too weak to take price higher at the moment. This breakdown should not be happening this early in the attempt to take price higher.

I am taking an aggressive approach to managing this trade. Structure is the line in the sand here and my stop is just below that.
Attached Image (click to enlarge)
Click to Enlarge Name: Update EURUSD.jpg Size: 150 KB
If you fail to plan, you plan to fail.
  • #8,617
  • Apr 21, 2014 9:31am Apr 21, 2014 9:31am
Bearish Gartley setting up on ADBE 15min chart..

Attached Image (click to enlarge)
Click to Enlarge Name: adbe-gartley.png Size: 40 KB
  • #8,618
  • Apr 21, 2014 9:49am Apr 21, 2014 9:49am
Quoting big_pipin
Bearish Gartley setting up on ADBE 15min chart.. {image}
That is not a valid Gartley price closed below the 78.6 of C
If you fail to plan, you plan to fail.
  • #8,619
  • Apr 21, 2014 10:02am Apr 21, 2014 10:02am
Entered GU short....these are pretty high probable trades when you enter at unique level which gives you chance to move your SL at BE.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm30.png Size: 27 KB
-milkeyway
  • #8,620
  • Apr 21, 2014 10:02am Apr 21, 2014 10:02am
Stop Hit -10.6
If you fail to plan, you plan to fail.
6 traders viewing now