Ratios & Harmonics: a Different Way to Trade

Very slow, I go out with +3, greetings, was a great day.

Well I am back in the states for a little bit, but I still won't get to trade the American session. I have been playing the Asian session, and it is super slow. Not to mention I had my ass handed to me yesturday. 4 trades 4 losses.

I know that the banks are closed due to MLK day, but I could resist. Long on EU 233T. Looking at the start of the CD led of an ABCD pattern on the long term order flow(top picture). My entry was based on the short term order flow (bottom picture).

Stopped out! Talk about a losing streak.

Thanks Mr. Pip.

And what follows is an example of bad trade management through inattention.

After making a new high, the bulls were clearly running out of steam... a LH followed by a LL.
The bulls pushed through one more time but only managed to retest the earlier high.
And then, despite making a HL, the bulls simply disappeared. Price wandered around the Weekly Pivot Point and this was enough to enter short.

Price moved down to make a LL before settling into a descending triangle (or whatever term you wish to use - I don't tend to place too much emphasis on names because they are irrelevant, it is simply price telling you that the bears are exerting constant pressure while the bulls are weakening with each passing swing).

Price made a break downwards. TP was set just above the 1.1600 because this level has been very significant today (see previous trades).

Unfortunately, I wasn't paying attention at the time. The monstrous spreads of my new broker meant the trade didn't close. By the time I returned, price had retraced almost 50% of the move.

A decision had to be made whether to close out with half the profit, or keep going. The bulls were showing clear weakness so the trade was kept alive.
SL was moved just above structure to lock in +6 pips.

Price once again moved down to test 1.1600 and the trade was closed manually at +24 pips (once bitten, twice shy!).
It actually turned out to be unnecessary, as price continued a few more pips down anyway.



Lesson learnt - pay attention to trades and keep an eye on the new broker's spreads! 3.1 pips at the moment

Edit: I should add that I am only demo'ing a potential new broker this week

This is my order flow analysis. If anything wrong, correct me.

A nice short on EURUSD (+35 pips).

Price had made a HH immediately prior to news which led to a sharp drop.

Once price found support, the bullish correction started off with acceleration but then clearly decelerated into the retest. The strong bearish candle on retest triggered the short.

After entry, there was one more retest before the bears pushed through.

First decision point was at structure. The bulls showed no commitment so SL was used to lock in profit and the trade continued.

Exit was as price found support at 100% retracement.



That spread makes my eyes water.

Good Morning Traders,

How's life?

I'm short on cable got in a bit early but its trying to go.

The bears are really struggling against the underlying order flow. Let's see if I can survive.

Patience is paying off

Hey Mr. Pip,


I wrote you a shout on your home page. Anyways... I have been reading your thread recently from the first page. Lots of great Q and A from you and other members. I am very excited to learn more about Harmonics. I it will probably take me several weeks to catch up on reading all of the pages on this thread. But finally some light bulbs are starting to turn on. I want to post a practice pic and get your critique on it. Thanks in advanced for your help and valuable time.

Good thanks Mr Pip!!

Missed yesterday as helping my brother in law move a kitchen, including a granite worktop!! Ouch!!

Just found out it was a holiday so not too important that I missed.

Hope you had a good long weekend?

1 trade for the day +2 and currently gone long on the GBPUSD

Although in D, the mmtum is very bullish, we are looking for some points in 5M, to break down the pivot reference control there, greetings

Thank you for the shout out, I will take a look and before I give you my critique I would like to tell me about your chart. What do you see? What is your bias (order flow)? Where are your opportunities?

In the pivot, we expect weak reaction, adjust sl, we took part lot, see

Yeah I don't trade on bank holidays I'm short and you are long on cable well at least one of us will win

Lol yeah, although I dont like the thought of being against you

Why do you call it cable?

BE
In R1, leaving

Hello Everyone,

This is my first post in forex factory, although I have been a reader for awhile and have followed this thread in particular since winter of 2013. I really want to thank Mr. Pip for his patience and sharing in showing how trading can be comprehensible, possible, and fun! I greatly value your videos and posts and have also read Scott Carney's three books based on your recommendation. I feel I've learned a lot and agree with others who have posted here saying that the webinars you've posted recently have been very useful in pulling it all together.

I think I've definitely been getting better at identifying good entries and profit targets, but my trading results remain so-so, I think because I still struggle in the area of trade management. Specifically, I have a hard time in getting the stop placement right. When I'm strictly trading ideal harmonic patterns, it's a little easier because I know to put it a certain distance above the X point, but it seems that otherwise the stop placement is an art I have not mastered yet. Sometimes I put it too close and am needlessly taken out of a perfectly good trade and miss a lot of potential profit, but sometimes when I set it further away hoping to avoid this, I lose what seems like an unnecessary number of pips on a trade that was not going to go my way regardless. I try to bring the stops to break even quickly, but that has resulted in me being taken out early of a number of trades. Hopefully more screen time, study, and internalizing a sense of the price action will continue to help. Meantime if anyone has any advice or suggestions I'm all ears. I trade the hourly charts because my non-trading commitments prevent me from keeping up with the lower time frames.

I also want to thank all of those of you who have been posting your own charts on this thread. It's very helpful to see how this style of trading works out for different traders and it's encouraging to see the success you are having. I find there's something to learn from almost every chart and trade that is shared.

That is the pair's nickname. The name is derived from the steel cable laid under the Atlantic Ocean in 1858 to link the UK and US