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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

  • #11,661
  • Jan 8, 2015 3:04pm Jan 8, 2015 3:04pm
Quoting Mr. Pip
{quote} Hello Mikali, I don't normally respond to your initial question not to be an ass but because I don't want traders to become dependent on someone else to confirm a pattern or setup. I would be doing you a disservice if you don't know what you are looking at. This may not be you but most traders want to run before they can walk and thus the high failure rate in this business. You had posted your question and touched on the dynamics surrounding that particular setup, that would have been an entirely different scenario. I don't where you are...
Mr. Pip,
Thank you for taking the time to reply to my post; I appreciate your input and respect everything you are doing here on this thread. I ran into your thread by accident and was overwhelmed (but in a good way) with all the information and your personal commitment in presenting the information in an orderly fashion.

To answer your question, I'm familiar with market structure and have some grasp on order flow, but have some questions which I will post in the near future.

Mr. Pip, I have a great deal of respect for what you are doing and would never consider blaming you or anyone else for that matter on any failed trades I place. My original post was just to gauge if I was on the right path not to have someone confirm a potential trade signal. I will be the first to admit that I have a great deal to learn about Harmonic theorem...I'm still learning to crawl never mind running or even walking....lol

Mr. Pip thanks once again for taking the time to reply to my post...going forward I will attempt to detail my thought process on the potential set-ups.

Respectfully,
Mikali
  • #11,662
  • Jan 8, 2015 3:13pm Jan 8, 2015 3:13pm
Quoting Mr_Burns
{quote} Your expectation might very well happen but you made some mistakes. This can't be a ABCD since the BC leg retrace only to 38.2% (your fib retracement should be reversed). It can however become an AB=CD. Now if you look at order flow you see that the projection is slowing down and correction increases. Add this to a 61.8% retracement (if prize reaches our PRZ) and some previous S/R and we have nice confluence (it would also fulfill a smaller ABCD, see the blue lines). So lets see how price reacts to the PRZ if it gets there. {image}
Mr_Burns,

Thank you for your response I have two questions:
1) For an ABCD pattern to be valid the BC Leg must retrace to the 50% Fib?
2) When you mention order flow are you referring to the price action with see the candle formations?

Respectfully and with thanks,
Mikali
  • #11,663
  • Jan 8, 2015 4:13pm Jan 8, 2015 4:13pm
Quoting Mikali
{quote} Mr_Burns, Thank you for your response I have two questions: 1) For an ABCD pattern to be valid the BC Leg must retrace to the 50% Fib? 2) When you mention order flow are you referring to the price action with see the candle formations? Respectfully and with thanks, Mikali
Check out Mr. Pip's youtube videos, there you find answers to your questions and much more. I provided the videos that explains your questions.
1. Difference between ABCD and AB=CD (https://www.youtube.com/watch?v=GrCdDmkJMuY)
2. Order flow explained (https://www.youtube.com/watch?v=u8eGrIvlCBQ)

I strongly recommend that you watch all content in both channels since it's pure gold imho.
Also you can check out this (http://www.forexfactory.com/attachment.php?attachmentid=1551738&d=1416192765) .pdf for pattern rules.
Rise and rise again until lambs become lions
  • #11,664
  • Jan 8, 2015 4:42pm Jan 8, 2015 4:42pm
Quoting Mr_Burns
{quote} Check out Mr. Pip's youtube videos, there you find answers to your questions and much more. I provided the videos that explains your questions. 1. Difference between ABCD and AB=CD (https://www.youtube.com/watch?v=GrCdDmkJMuY) 2. Order flow explained (https://www.youtube.com/watch?v=u8eGrIvlCBQ) I strongly recommend that you watch all content in both channels since it's pure gold imho. Also you can check out this (http://www.forexfactory.com/attachment.php?attachmentid=1551738&d=1416192765) .pdf for pattern...
Mr_Burns,

Thank you so much for the links....if Mr. Pip's videos are anything like his thread I know they will be hidden gems.

Respectfully and with great thanks,
Mikali
  • #11,665
  • Jan 9, 2015 12:52am Jan 9, 2015 12:52am
NZD JPY 1H harmonic Bat pattern , going shout ?
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what ever it takes
  • #11,666
  • Jan 9, 2015 5:25am Jan 9, 2015 5:25am
Quoting Wolves77
todays trade was a loser, but not sure if my analysis was off or if it was just the market. I took an aggressive 'c'. After another NSL i was expecting price to pullback into the golden zone and a (slightly messy) previous structure. Price did that, so monitoring bar by bar i entered on the completion of the second doji as the bulls seemed to be getting pushed back in that area. My TP was an expectation of an ABCD 1:1 completion into structure, which was also a 61.8 retracement of the Main swing. However, price just pushed on through the golden...
For me you need to have clear rules on entry. Yes there was an increase in momentum for the bears on the previous swing and then price retraced to an area you expected there to be some resistance. I then look for a final bar by bar indication of expectation before trading.

You mentioned the 2 doji candles but they are indecision, plus they are more weighted to the bulls, even though rejected, there is little movement down. I always wait for a candle in my favour before entering, and at this point there was not one.

The shorter term is still bearish with the last NSL and you would expect that price should not make a NSH, in fact it hit the last high to the pip and rejected strongly, then the following candle would be my indication for entry, bearish with little fight by the bulls.
  • #11,667
  • Jan 9, 2015 6:54am Jan 9, 2015 6:54am
GM traders!

Just took a low risk trade with order flow. Expectation is a NSH. Great RR so went long. Waiting for the bulls to show some strength.
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Barry
  • #11,668
  • Jan 9, 2015 7:06am Jan 9, 2015 7:06am
Loss of -9.
Should of given it more room, as there was structure in the area of my SL.
Expectation still NSH. Looking to enter lower at D and 50Fib.
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Barry
  • #11,669
  • Edited 7:39am Jan 9, 2015 7:29am | Edited 7:39am
Hi traders!

In this trade, price found support within the 61.8 zone, solid support, trade is with long term order flow.

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EDIT: News took me out, +2 pips.

EDÍT 2: Shouldn't moved my TP above the 127.2 but got a bit greedy since price showed increasing momentum to the upside. Also failed to see that high impact news was around the corner.
Rise and rise again until lambs become lions
  • #11,670
  • Jan 9, 2015 7:39am Jan 9, 2015 7:39am
Good morning,

I am recording my live session for you guys and my thought process so this is the first trade and the only one I will post as I will be giving you my recorded session today.
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If you fail to plan, you plan to fail.
  • #11,671
  • Jan 9, 2015 7:45am Jan 9, 2015 7:45am
Quoting Mr. Pip
Good morning, I am recording my live session for you guys and my thought process so this is the first trade and the only one I will post as I will be giving you my recorded session today.
Good morning (afternoon here), I look forward to watch the recording. Good luck!
Rise and rise again until lambs become lions
  • #11,672
  • Edited 8:08am Jan 9, 2015 7:57am | Edited 8:08am
Long GBPUSD, expectation 1.5146 (61.8 retracement). Found support in PRZ after completing a 1to1.[attach]1585868
[/attach]

EDIT: Took a +5 pip profit after price turned on me.
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Rise and rise again until lambs become lions
  • #11,673
  • Jan 9, 2015 8:14am Jan 9, 2015 8:14am
Quoting Mr_Burns
Long GBPUSD, expectation 1.5146 (61.8 retracement). Found support in PRZ after completing a 1to1.{image} EDIT: Took a +5 pip profit after price turned on me.
Same trade here. +9
Barry
  • #11,674
  • Jan 9, 2015 8:32am Jan 9, 2015 8:32am
what about this? would turn out to be a perfect double top? how would you play this if you was to?
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  • #11,675
  • Jan 9, 2015 9:11am Jan 9, 2015 9:11am
Quoting NWGstudent
what about this? would turn out to be a perfect double top? how would you play this if you was to? {image}
Very carefully as momentum and projection is on the increase.
If you fail to plan, you plan to fail.
  • #11,676
  • Jan 9, 2015 9:15am Jan 9, 2015 9:15am
Setup:

EU M1 chart. It is an aggressive ABCD against short term order flow. Note the nice rejection within the golden zone which is for me a good trading opportunity. Entered Long on bullish rotation after recent bearish weakness (Weak NSLs).

Trade Management:

Stop loss was initially a little bit below the 78.6 fib, but I was tightening it little by little as the trade went with me. I was being aggressive because I was against order flow.

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TP was hit for +27 while I was typing...

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  • #11,677
  • Jan 9, 2015 9:16am Jan 9, 2015 9:16am
This is today's battle field ended up with 3 trade 2 wins 1 loss for +37 there is a video of the whole thing with plenty of trade management and lots of small talk. The market was not easy to trade today made me think and you are fortunate to see how I navigate through complex corrections and some expectation failures. all good things for you.
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If you fail to plan, you plan to fail.
  • #11,678
  • Jan 9, 2015 9:21am Jan 9, 2015 9:21am
I see good trading keep it up!
If you fail to plan, you plan to fail.
  • #11,679
  • Jan 9, 2015 9:27am Jan 9, 2015 9:27am
Quoting Mr. Pip
So how is trading coming along for most? Still some entry jitters? Are the markets getting easier to work with? How awesome is it to be able to forecast and predict what price will do next with accuracy? Come on let it out. Pat yourself in the back or kick yourself lets hear it?
So how is trading coming along for most?

Trading has been better for me. There have been certain times where I felt that the market no longer holds me and my decisions.

Still some entry jitters?

Yes, definitely. Sometimes my finger just fails to click immediately when the opportunity is right at my face, thus getting in late.

Are the markets getting easier to work with?

Yes, it has been easier because of your lessons, but it is still hard overall.

How awesome is it to be able to forecast and predict what price will do next with accuracy?

Very awesome when done right. I still have my losing days but I have kept them at a minimum thanks to the trade management that you have taught. Still doing my best to improve on my road to financial freedom.
  • #11,680
  • Jan 9, 2015 9:38am Jan 9, 2015 9:38am
Quoting YoungCroc
{quote} So how is trading coming along for most? Trading has been better for me. There have been certain times where I felt that the market no longer holds me and my decisions. Still some entry jitters? Yes, definitely. Sometimes my finger just fails to click immediately when the opportunity is right at my face, thus getting in late. Are the markets getting easier to work with? Yes, it has been easier because of your lessons, but it is still hard overall. How awesome is it to be able to forecast and predict what price will do next with...
Well this video that is taking forever to render but at some point today it will be up for you all to see and review over the weekend. Study it this exactly what I do every time I trade. nothing changes and it's 2 hours long of tips and commentary so I hope it's not too painful to watch. It should also help out with a lot of the issues you and other Traders are still having.

In it I address short term order flow, long term order flow, bar by bar, timing trades and the big one trade management. I believe it to have great value and also show posture and emotional control.
If you fail to plan, you plan to fail.
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