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Ratios & Harmonics: a Different Way to Trade

  • #12,821
  • Feb 9, 2015 4:19pm Feb 9, 2015 4:19pm
Quoting honestknave
{quote} Hello, yes sorry that was a busy (working) chart. Hopefully this will help explain things a little better: Price did correct beyond the 78.6, but "looking left" (off the chart) clearly showed the significance of this area. The corrective swing comprised of an AB=CD (green), with a smaller scale 61.8AB=CD (red). The latter fell away from the line, which was a good sign that price would react. It was an aggressive entry (some might consider pre-emptive) but the stop was very tight located just above the green line (1.13500). Price reacted...
Nice trade, but the second AB=CD doesn't look like the CD leg is as long as the AB leg?

My day was a little hit and miss today, 2 losses (15 pips), a BE,and 2 small wins totalling about 20 pips, so down 10 pips on the day.

still letting a few silly errors dictate some of my trades but better than Friday. The BE trade hit my SLOW within a pip then went on to hit my TP of 20 pips, so the call on the trade was correct.
  • #12,822
  • Feb 9, 2015 9:32pm Feb 9, 2015 9:32pm
I have been keeping an eye on both the AJ and AU pairs for possible shorting opportunities.

So far I have resisted the urge to short the AJ pair although it has completed an ABCD (wicks flicking slightly deeper than a 38.2)

Waiting for the AU pair to hit my PRZ and then decide from there based on OF and PA.

However, if the bears show a strong presence then shorting the pair (s) may occur sooner rather than later.

The Asian session also shows a 'predictable' habit of wanting price to make its way back to the DO on many occasions (not always of course).

AUDJPY M5

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AUDUSD M5

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Would prefer the AU to go a little further up before thinking about shorting it...we shall see based on OF and PA.

Masterrmind..........
Master your Mind then Master your Trades
  • #12,823
  • Feb 9, 2015 9:42pm Feb 9, 2015 9:42pm
Short both AJ and AU

Masterrmind..........
Master your Mind then Master your Trades
  • #12,824
  • Feb 9, 2015 11:17pm Feb 9, 2015 11:17pm
Update on AJ and AU trades

AUDJPY + 7 pips

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AUDUSD + 7 pips

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PA and OF ...gave the trades some room to move but after the 382 was seen to be prolonging their downward move I closed them out close to that fib level.

Asian session a little slow as "normal" so as I say once you feel price is hesitating and you have given it reasonable room to move and it has not responded the way you want it too then don't give profit back to the market...close the trade and keep some profit.

I'm happy with those trades as minimal DD on both trades!


Masterrmind...........
Master your Mind then Master your Trades
  • #12,825
  • Feb 9, 2015 11:33pm Feb 9, 2015 11:33pm
About 25 minutes after closing out the AJ and AU trades both predicted TP's were hit @ about the 50 Fib level.

Masterrmind...........
Master your Mind then Master your Trades
  • #12,826
  • Feb 10, 2015 12:08am Feb 10, 2015 12:08am
AJ and AU (next setup)

Looking to go long from the blue zone

AUDJPY M5

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AUDUSA M5

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The bulls have left without us on this trade as my PRZ zone was a little deeper.

FF Open due in less than an hour so I anticipate some PA.

If key levels are crossed then the chart will need to be re-analyzed as required.

Good trading,

Masterrmind...........
Master your Mind then Master your Trades
  • #12,827
  • Feb 10, 2015 12:16am Feb 10, 2015 12:16am
AU Update

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Bears have grabbed hold of price again....lets see where they take price

EDIT AJ no longer a valid setup as key levels have been taken out..... so AU possibly in doubt?

Masterrmind.........
Master your Mind then Master your Trades
  • #12,828
  • Feb 10, 2015 1:14am Feb 10, 2015 1:14am
Quoting Masterrmind
AU Update {image} Bears have grabbed hold of price again....lets see where they take price EDIT AJ no longer a valid setup as key levels have been taken out..... so AU possibly in doubt? Masterrmind.........
I'm watching the 4hr TL on the AU that has just been broken on my broker. There's a few that can be drawn but I think current level is important.


I am watching this PRZ. Price has already bounced sharply, waiting to see PA if a retest comes.
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As the lights go by so too do the shadows move
  • #12,829
  • Feb 10, 2015 1:28am Feb 10, 2015 1:28am
Just what I'm looking at on the AU. Imo it's in an area of bullish confluence (lots of support). Also notice the H&S that could possibly be about to be confirmed that could be a correction to the topside. EU currently taking a dive though so will be interesting to see if AU will follow suit.
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As the lights go by so too do the shadows move
  • #12,830
  • Feb 10, 2015 1:33am Feb 10, 2015 1:33am
AJ short in progress...........

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TP set about the 618 on this trade but as always PA will dictate its exit.

Masterrmind...........
Master your Mind then Master your Trades
  • #12,831
  • Feb 10, 2015 1:35am Feb 10, 2015 1:35am
Quoting PipTrendz
{quote} Nice trade, but the second AB=CD doesn't look like the CD leg is as long as the AB leg? My day was a little hit and miss today, 2 losses (15 pips), a BE,and 2 small wins totalling about 20 pips, so down 10 pips on the day. still letting a few silly errors dictate some of my trades but better than Friday. The BE trade hit my SLOW within a pip then went on to hit my TP of 20 pips, so the call on the trade was correct.
Hello PipTrendz,

Indeed, the second one was a 61.8AB=CD (so the CD leg was 0.618 the length of AB). I trade these quite a lot. In fact, I utilized it for the exit too on this occasion.

It always depends on context, but in very general terms it is a sign of weakness when price fails to complete a 1:1 move.

I also monitor other AB=CD variants such as 127AB=CD and 161AB=CD, all of which help to tell a story about strength, weakness and exhaustion.

I hope that helps, and good luck today!
  • #12,832
  • Feb 10, 2015 1:45am Feb 10, 2015 1:45am
Quoting Matts Micro
{quote} I'm watching the 4hr TL on the AU that has just been broken on my broker. There's a few that can be drawn but I think current level is important. I am watching this PRZ. Price has already bounced sharply, waiting to see PA if a retest comes. {image}
Hi Matt,

Hope your trading day goes well.

I'm having a good day.

Lets hope it continues.

I've been watching the AUDUSD and the AJ

Thanks to a trade management EA on another chart this trade was cut short at a TP of 5 pips.

So being aware of this I entered another trade (larger lot size) so 2 by TP's on the same pair.

AUDJPY 2 by TP's (total +9.6 pips)

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Predicted TP @ the 618 Fib right on the money!


Masterrmind.........
Master your Mind then Master your Trades
  • #12,833
  • Feb 10, 2015 1:57am Feb 10, 2015 1:57am
Hey Masterrmind

Asian session for me was a bit up and down but all good thanks. Good to see some green pips there

I have entered the EG trade though 1 min later with PA than I would have liked (I was havin a whizz because it was taking too long and I've drunk too much coffee hehe), but in the trade now, about 1 pip above my PRZ.

I have bullish signs on most Euro pairs but I'm still doubtful. The EU is really screwed up atm due to their instability which is bounced all over many crosses, dam they need to sort their shite out, it makes our job so much harder hehe
As the lights go by so too do the shadows move
  • #12,834
  • Feb 10, 2015 2:10am Feb 10, 2015 2:10am
Quoting Matts Micro
Hey Masterrmind Asian session for me was a bit up and down but all good thanks. Good to see some green pips there I have entered the EG trade though 1 min later with PA than I would have liked (I was havin a whizz because it was taking too long and I've drunk too much coffee hehe), but in the trade now, about 1 pip above my PRZ. I have bullish signs on most Euro pairs but I'm still doubtful. The EU is really screwed up atm due to their instability which is bounced all over many crosses, dam they need to sort their shite out, it makes...
Are you short or long the EG?

Masterrmind.........
Master your Mind then Master your Trades
  • #12,835
  • Feb 10, 2015 2:27am Feb 10, 2015 2:27am
Quoting Masterrmind
{quote} Are you short or long the EG? Masterrmind.........
Long as it hit my PRZ (see chart above). It was a BO to the downside but I'm thinking support will hold and combined with other confluence may bounce this back on the top side. It is currently making a right shoulder for H&S as it is on the EU. If it breaks below the left shoulder it will be a no go. I am currently long USD vs CAD, I hate being in disagreement with myself but I trade what I see on individual charts but it also probably means one of my trades will lose
As the lights go by so too do the shadows move
  • #12,836
  • Feb 10, 2015 2:32am Feb 10, 2015 2:32am
Currently short EU. A good example of how I don't trade the news, but I have a healthy respect for how it can ruin your day.

Price was hovering in the area for a short, but CHF news inbound. As soon as that came in as expected, I was happy to enter.

Many hurdles for this one to overcome: daily pivot (currently there), major 50% fib, 61.8AB=CD, major TL, 1.13000.

So It will be kept on a tight leash.

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  • #12,837
  • Feb 10, 2015 2:45am Feb 10, 2015 2:45am
Quoting Matts Micro
{quote} Long as it hit my PRZ (see chart above). It was a BO to the downside but I'm thinking support will hold and combined with other confluence may bounce this back on the top side. It is currently making a right shoulder for H&S as it is on the EU. If it breaks below the left shoulder it will be a no go. I am currently long USD vs CAD, I hate being in disagreement with myself but I trade what I see on individual charts but it also probably means one of my trades will lose
The EG trade has a bit going on for the down side from what I can see.

Hope you are fairing well though.

News floating around too....

UC for the upside has potential?

I won't be entering that trade though as I would have preferred to enter far earlier (not to worry as I simply was not watching that pair...good luck with the trade...looks fine at the moment).

Masterrmind.............
Master your Mind then Master your Trades
  • #12,838
  • Feb 10, 2015 2:59am Feb 10, 2015 2:59am
Quoting Masterrmind
{quote} The EG trade has a bit going on for the down side from what I can see. Hope you are fairing well though. News floating around too.... UC for the upside has potential? Masterrmind.............
I'm doing well ty and to hope you are too

I'm starting to see the downside for EG as well. I tightened the stop with the last downward move...... just about to hit as I type.

Cable has been a lot of fun the past couple of days, very harmonic and giving up a few pips. This is what I have being looking at, this latest move may be the beginnings of a BO to the top side but I will use my BO strat to enter if it approaches (descending TL).

(EG missed my stop by .2 pips and giving me (false) hope it might be on the rise again heh. I will let the trade play out though, it is good R:R if it works)

Edit: EG is out as expected.
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As the lights go by so too do the shadows move
  • #12,839
  • Feb 10, 2015 3:09am Feb 10, 2015 3:09am
Quoting honestknave
Currently short EU. A good example of how I don't trade the news, but I have a healthy respect for how it can ruin your day. Price was hovering in the area for a short, but CHF news inbound. As soon as that came in as expected, I was happy to enter. Many hurdles for this one to overcome: daily pivot (currently there), major 50% fib, 61.8AB=CD, major TL, 1.13000. So It will be kept on a tight leash. {image}
Closed out +25 pips on confluence of 127AB=CD and major trend line.
I wasn't prepared to wait and see how well defended the round number is.
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  • #12,840
  • Feb 10, 2015 3:14am Feb 10, 2015 3:14am
Quoting honestknave
{quote} Closed out +25 pips on confluence of 127AB=CD and major trend line. I wasn't prepared to wait and see how well defended the round number is. {image}
Nicely traded, a bird in the hand in worth 2 in the bush
As the lights go by so too do the shadows move
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