Ratios & Harmonics: a Different Way to Trade

Bottom structure has held but the rotation was way to expensive so on the sidelines at the moment. We will see what price does here and high impact news coming out in 13 min

Going to sit this one out....

Nothing to do price is ranging nasty style. This makes everything all that much difficult.

A long slog long (+36 pips) but got there eventually.

The bulls were in charge during the Tokyo session (marked in Red) but Frankfurt open saw the start of a bearish pullback.

By London open, price was in the 61.8-78.6 range (the small Blue box).

The pullback formed an AB=CD completion beyond the 78.6 (marked in Magenta).

A confluent smaller scale bearish 161AB=CD was seen as exhaustion as momentum dropped (marked in White) in light of the bullish 127AB=CD that formed in between (marked in Lime) to which the bears had no comeback. This was the trigger to enter long.

Price hit resistance at prior structure before falling. In isolation, this would be enough to exit the trade. However, a cluster of high impact GBP news had just happened so this was taken as a blip rather than a reversal. Trade protected at BE to be on the safe side.

The line in the sand become the Daily Pivot Point. Price decelerated nicely into this support before settling into a sideways grind that felt like it lasted forever

Exit was eventually achieved just before NY Open as the completion of AB=CD started during the Tokyo session confluent with Daily R1. This was comfortably just below 1.1600 that had been so significant yesterday.

Cheated on the bulls went short have to update chart but I'll show my entry and then explain

Okay just an update on my initial trade this morning as I had to pop out.

Entered the trade at the first sign of a correction when the AB=CD completed, plus there was some previous structure at the .5135 level adding to my reason for entry.

A better entry was at the retest and the second line I drew, I took this as a live real money trade as was very confident in the chances of success. Price cam down and hit the RN and couldn't break it. Really I should have held it tighter and maybe got out sooner, probably on completion of the second bullish bar, so gave a few pips away. Either way I took a 13 pip gain for my first trade on the day.

I did think about a reverse trade but had to go out so just left that.



Matts Micro, similar to yours but I measured my AB leg to the first high, rather than the second. I always do it to the first high possible to get a better feel on price as the initial correction was lower than the second which you measured to.

This trade might not work out it's an extremely difficult area to read however these are the facts of my case.

Long term order flow is bearish price has consistently stayed below the 50%
Price has so far failed on the expectation of that NSH as heavy selling has entered resistance area highlighted on the chart.
Bulls struggling to take price higher adds strength to my case.

Right now I'm down and is still a very difficult read. I will manage my trade and keep you updated. This many be a rerun of yesterday and we will see if I can come out on top.

Well it's up and down, up and down, lets see which side takes ownership...

Ok finally price is showing its colors

Locked in 5

It's important to keep reading price to pick up on these changes and realign yourself. Its what separates the professionals from the rest.

Why were you not looking at a TP on completion of the ABCD?

Well tough day on the battle field taken out at +5. Struggling today but at least I'm not losing money.

Really crappy price action difficult market to deal with.

Good that you locked in a profit, price is going a little crazy out there at the moment. Just popped 30 pips so time to let it settle a bit I think.

After taking a cheap shot (bounce off the DPP after ECB announced QE), I don't look at this as leaving 80pips on the table, but as taking 28 pips for less than 3 minutes work.

Stops were tight below DPP. Conservative exit at hesitation coincidental with 50 fib plus 1.1600.

Could I have trailed it? Possibly, but I'm happy with the easy pips.

For sure mad craziness I'm done for the day finished with +8 but I'm please that I read the chart correctly and also pleased with my management of the trades.

Could had had more but also could have had much less.

Kudos for trading that ugly PA and coming out on top!

Thanks

Taking a trade opportunity, to the MS. + 21Pips greetings
The last letter is to see as might have been exploited, the great mmtum, I just took advantage of what was published. regards