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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

  • #8,661
  • Apr 23, 2014 7:49am Apr 23, 2014 7:49am
Quoting pampaq
{quote} Great Kuma: Congratulations, and I'm learning how to operate your. Thank you. regards
Thanks. But remember that I can't do this if I use indicators that you use. I can do this only with clean chart.!
-milkeyway
  • #8,662
  • Apr 23, 2014 8:47am Apr 23, 2014 8:47am
Thanks for the reply. Really nice that the EURUSD is playing out what you expected earlier... Unfortunately i didnt get a chance to get in from anywhere... But I managed to take a long in EURAUD which I have question for you.

I booked some profits (about 65 pips) on one position and moved the stop loss to + 30 on the second position. I took it based on an ABCD on the daily. The price hang out in PRZ for a while which led me to doubt my set up a little bit as you have said earlier that it is not good for price to hang in PRZ for long time. But yesterday I saw an aggressive C buy opportunity also in 4 hr for the same pair. So it completed ABCD in daily and an aggresssive C on 4 hour . I went in. Now it is up few pips.....

My question to you is this...
As per 4 hour chart the ABCD completed now and the price may come down from a confluence of 78 fib(it is not a gartley i hope since dominant swing didnt each 61 fib retracement). But if you see my daily chart (I have marked the 38 fib and 61 fib of AD(daily chart AD) in magenta and as per ROE I should be taking profits at target 1 (38 fib) and target 2 (61 fib.) However I can see a significant structure on daily chart(blue box) which may act as resistance....i just want to ask your opinion on how will you manage this trade..... I plan to see the price action around structure (Bluebox) and decide depending on what it does.....or is there a better way to do this... like wait PATIENTLY for the daily chart to work out by reaching the 38 and 61 fib on daily chart..hope my question is clear...thank you for the advice...

Quoting Mr. Pip
{quote} 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?...
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Enter Signature
  • #8,663
  • Apr 23, 2014 10:04am Apr 23, 2014 10:04am
Quoting Wills
Thanks for the reply. Really nice that the EURUSD is playing out what you expected earlier... Unfortunately i didnt get a chance to get in from anywhere... But I managed to take a long in EURAUD which I have question for you. I booked some profits (about 65 pips) on one position and moved the stop loss to + 30 on the second position. I took it based on an ABCD on the daily. The price hang out in PRZ for a while which led me to doubt my set up a little bit as you have said earlier that it is not good for price to hang in PRZ for long time. But yesterday...
Nice Trade Wills,

I like your thought process in trade management. I'm not Mr. Pip, nor do I have his expertise but I personally think structure supersedes ratios for price targets. But you got the right idea on monitoring Price as it approaches these areas and let price tell you. If price approaches structure with acceleration / momentum then you can expect it to fail. Price may still pull back into it tho. It doesn't work all the time, but it does most of the time.

Btw, I don't see a vaild gartley.

I also consider the overall order flow. If I'm against orderflow, I'm very aggressive in my trade management and conservative with price targets. If I'm with Order Flow, I'll give price more breathing room.
  • #8,664
  • Apr 23, 2014 10:10am Apr 23, 2014 10:10am
Quoting kumaramy
{quote} Thanks. But remember that I can't do this if I use indicators that you use. I can do this only with clean chart.!
All right!, I try to go, but the important thing is to be more green than red.
Thanks for your input, it is very important to me.
regards
  • #8,665
  • Apr 23, 2014 10:18am Apr 23, 2014 10:18am
Quoting pampaq
{quote} They did wait a bit, but reached the marked area, +22 pips. The power of fibos and ratios, together with the structure and order flow, are enormous. For input, under a TF and as nothing in the world is instant, I hope the Mmtum, in reversing, decompose into ABC, and when D, or swing in favor of the previous trend, strikes again support or resistance, or pivot, control, as is his mmtum whether increasing or decreasing. If it is accelerated near the edges, high probability of rupture, if the motion is slowed, most probably rebound, and back...
An example of harmonics in 5M, once completed the 1TO 1 is price seeking his 38 and then 61%, as we have shown in the previous chart.
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  • #8,666
  • Apr 23, 2014 10:58am Apr 23, 2014 10:58am
Hi Mack,

Nice to hear your thoughts. Thank you for the reply. "structure supersedes ratios for price targets."....ok.....I believe(assume) it is because more people regardless of what strategies they use( ratios and harmonics or SR or whatever)... see and give more empasis to those areas and so it has more power than ratios....i may be wrong... not sure.....

thanks for confirming my suspicion about gartley.....I have a general idea about the momentum.. orderflow etc from the video.. but I will have to se the videos few more times before i get the hang of it.. Thanks again for your thoughts and help. Appreciate very much.



Quoting Mack2013
{quote} Nice Trade Wills, I like your thought process in trade management. I'm not Mr. Pip, nor do I have his expertise but I personally think structure supersedes ratios for price targets. But you got the right idea on monitoring Price as it approaches these areas and let price tell you. If price approaches structure with acceleration / momentum then you can expect it to fail. Price may still pull back into it tho. It doesn't work all the time, but it does most of the time. Btw, I don't see a vaild gartley. I also consider the overall order...
Enter Signature
  • #8,667
  • Apr 23, 2014 11:04am Apr 23, 2014 11:04am
Quoting pampaq
{quote} An example of harmonics in 5M, once completed the 1TO 1 is price seeking his 38 and then 61%, as we have shown in the previous chart. {image}
Nice job pampaq.
  • #8,668
  • Apr 23, 2014 11:08am Apr 23, 2014 11:08am
I can't believe how simple things get, when u get to know the price movement... in this GBPJPY 8H trade I took today... the momentum of the price on the upside was decreasing, but that could mean a renewed strength on the upside, hence, to confirm drew trendline and it supported my case of shorting the pair (confluence area) as it provided me a resistance zone at 172.73.

Hence, took short at 172.60 with stoploss at 172.81... it hit the profit at 171.75. I got a better risk reward this time... risk of 21 bps and reward of 85 bps (1 risk to 4 reward)! ... Now waiting for 170.65 to decide on taking long or putting a fresh short.... Getting to know the price movement!
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  • #8,669
  • Apr 23, 2014 11:59am Apr 23, 2014 11:59am
A/U 4hr near some support. Will it hold? I'm tempted to get in.

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  • #8,670
  • Apr 23, 2014 12:47pm Apr 23, 2014 12:47pm
Hey guys! I have just joined the forum and I'm also relatively new in the harmonic ways, so please guide me well.
Here are a few patterns I have been keeping my eyes on:
1. A Gartley on the Daily EURNZD
Attached Image (click to enlarge)
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2. A Bat on the H4 EURUSD
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3. And another Bat on the Daily USDCHF
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Any feedback is welcomed!
  • #8,671
  • Apr 23, 2014 1:40pm Apr 23, 2014 1:40pm
Quoting Psyren
Hey guys! I have just joined the forum and I'm also relatively new in the harmonic ways, so please guide me well. Here are a few patterns I have been keeping my eyes on: 1. A Gartley on the Daily EURNZD {image} 2. A Bat on the H4 EURUSD {image} 3. And another Bat on the Daily USDCHF {image} Any feedback is welcomed!
Welcome, there is some information compiled in post #8464 that may assist you in your journey.

I only follow the EURUSD of those pairs so I can only speak on that specific pattern. As per my modified rules I would of liked a C point candle close beyond the 61.8. Maybe Mr.Pip can correct me on this. Its also to early to tell if the pattern would be valid. Theres alot of barriers in between now and completion.

If it did complete, the D completion does have some nice structure and round number (1.37) tho. Remember that the completion point is a zone between the AB 161.8 and 88.6 XA which I consider the Potential Reversal Zone or Kill Zone.

I hope the information helps.
  • #8,672
  • Apr 23, 2014 2:29pm Apr 23, 2014 2:29pm
Quoting Wills
Thanks for the reply. Really nice that the EURUSD is playing out what you expected earlier... Unfortunately i didnt get a chance to get in from anywhere... But I managed to take a long in EURAUD which I have question for you. I booked some profits (about 65 pips) on one position and moved the stop loss to + 30 on the second position. I took it based on an ABCD on the daily. The price hang out in PRZ for a while which led me to doubt my set up a little bit as you have said earlier that it is not good for price to hang in PRZ for long time. But yesterday...
Make sure you get to BE since you are on the daily you can even lock in something along the way. But you have to be patient and follow the order flow and expectation to see if your intended profit zone is attainable.
If you fail to plan, you plan to fail.
  • #8,673
  • Apr 23, 2014 2:31pm Apr 23, 2014 2:31pm
Quoting Mack2013
{quote} Nice Trade Wills, I like your thought process in trade management. I'm not Mr. Pip, nor do I have his expertise but I personally think structure supersedes ratios for price targets. But you got the right idea on monitoring Price as it approaches these areas and let price tell you. If price approaches structure with acceleration / momentum then you can expect it to fail. Price may still pull back into it tho. It doesn't work all the time, but it does most of the time. Btw, I don't see a vaild gartley. I also consider the overall order flow....
If you fail to plan, you plan to fail.
  • #8,674
  • Apr 23, 2014 3:26pm Apr 23, 2014 3:26pm
Quoting Prabesh
I can't believe how simple things get, when u get to know the price movement... in this GBPJPY 8H trade I took today... the momentum of the price on the upside was decreasing, but that could mean a renewed strength on the upside, hence, to confirm drew trendline and it supported my case of shorting the pair (confluence area) as it provided me a resistance zone at 172.73. Hence, took short at 172.60 with stoploss at 172.81... it hit the profit at 171.75. I got a better risk reward this time... risk of 21 bps and reward of 85 bps (1 risk to 4 reward)!...
Well done, congrats!
  • #8,675
  • Apr 23, 2014 5:28pm Apr 23, 2014 5:28pm
long EU.. could be a gartley or a bat idk its a ABCD pattern ending into structure and larger 61.8 fib in line with medium and long term OF
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  • #8,676
  • Apr 24, 2014 4:04am Apr 24, 2014 4:04am
Shorted EJ and EU....& long GC...SL moved to BE..
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-milkeyway
  • #8,677
  • Apr 24, 2014 5:20am Apr 24, 2014 5:20am
Quoting kumaramy
Shorted EJ and EU....& long GC...SL moved to BE.. {image} {image} {image}
Closed all trades with +64 pips total..now entered GC short...don't know it will work or not.
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-milkeyway
  • #8,678
  • Apr 24, 2014 7:18am Apr 24, 2014 7:18am
Quoting FineForex
long EU.. could be a gartley or a bat idk its a ABCD pattern ending into structure and larger 61.8 fib in line with medium and long term OF {image}
+23
  • #8,679
  • Apr 24, 2014 7:18am Apr 24, 2014 7:18am
Quoting kumaramy
Shorted EJ and EU....& long GC...SL moved to BE.. {image} {image} {image}
nice trades keep it up
  • #8,680
  • Apr 24, 2014 7:52am Apr 24, 2014 7:52am
first trade for the day
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