Ratios & Harmonics: a Different Way to Trade

GJ (M5) Update (+10 pips from 2 quick trades)........ pips do add up afterall!



Came back and took a few quick trades for 10 pips in total

Bullish action breaking down so will keep observing PA........

Will consider possible re-entry if OF and PA agree

Masterrmind...........

EU (H1) chart Update



Price has entered and made a very small bounce up from my PRZ zone.

An interesting channel where price is at the moment.

I would prefer not to be taking a trade from this immediate area at the moment however it is a 70 pip trading channel so the opportunities will be there.

Suggest an M1,5 or 15 TF to trade it!

Other than that I would want to see price rise up above a "certain zone" and produce some bullish strength for a long.

A short entry is also possible!!

Further analysis required and simply watching the charts for a possible entry!

Masterrmind...........

Looking to go long the GJ (M5) subject to the right timing for the entry.



Watch for PA in and around the pivot........ crucial!

Masterrmind............ :nerd:

GJ (M5)



Watch out for the PA in and around the pivot!!

Masterrmind............

GJ (M5)



Prolonged and tighter trading range (about 20 pip range or so)

PA showing no intent to go 1 way or the other.

Search for something else to trade but keep this pair on the back burner just in case things change (you never know!)

Take a look again when NY kicks off in about 15-20 minutes ........

Masterrmind..........

I trade Harmonic patterns but started using it 3months back, Mr Pips will you be treating different patterns like gartley, butterfly, crab etc
Thanks for adding to my limited knowledge on this

Hi jimrohn,

Welcome to the thread

If you haven't done so already you might like to take a look at his latest videos where he trades live and mentions that he doesn't really trade the patterns as much anymore. This does not imply that he has stopped of course.

But he has said that he focuses more on trading OF and PA using the 233 tick charts (ninja trader)

I hope that helps but as always it might be better to PM him as he hasn't been around for awhile.

My guess would be that he is doing very well in his trading!

Masterrmind...........

That's about me done for the week.....

Will focus on a few quick trades for the next hour or so.

Have a great weekend and hopefully see you all next week.

Masterrmind............

USD/JPY- entered short for an aggressive C entry.
I am still never sure when to take profit. The question of whether to trust the stop loss or to exit manually?

I've just began to study harmonics. I've spotted this structure on UJ-M15. Is the dark green a valid PRZ ?
Almost the same pattern on EJ-M15.

Thank you for evrybody's help.

Best,
Bubincka

On EJ-M15 reversal has already began... I'm on first chapters of S. Carney's book so in case of entry I don't know where to place TP and how to manage the trade... learning in progress.

61.8 was a big ask in current bearish market imo, was surprised to see it breach 38.2. Entered fairly late with the break back below 1.13.

A trade taken last night, who gave his TP, today. + 31 pips
regards

Hello bubincka,

Much of this trading style is based around having an expectation of what price will do.

As every setup is unique, it is difficult to have hard and fast rules like "SL goes x pips below the swing".

An alternative (and very general) way to look at things is to place your SL just beyond the point at which you consider your expectation to have failed: "if price gets to this point, I know I got wrong. So this is where my SL is going".

TP is also based upon expectation. After analysing each setup's strengths and weaknesses, you should have an idea about where price will get to. Of course, this becomes a dynamic process and both TP and SL can (and should) be managed as price runs its course.

I don't trade that pair so I apologise that my comments will be somewhat limited.

I'd consider this more of a non-standard AB=CD because point A isn't an obvious swing high. Nevertheless, trading these patterns from breaks or rapid moves is perfectly acceptable in my opinion. The 1:1 harmonics look good, but I'd be concerned about the bears. I see 7 consecutive bearish candles which are also accelerating (see how price bowed away from your second line? Or to put it another way, the CD swing starts off slowly then gathers up speed).

So, while it isn't unrealistic to expect price to have some form of reaction at this point, you must ask yourself "how much of a reaction do I expect?". Do you have any additional points of confluence to support a reaction? I see a RN a little beyond point D, but price hasn't really reached it to test it.

If you entered long at this point, you would be fighting the short term orderflow so you'd need to be confident that the bears are weakening and the bulls are strengthening. However, I'm not seeing much bear weakness so I wouldn't expect a huge retracement.

Safer options include waiting to enter short on the retracement, because this would be in line with short term order flow.

Or waiting for some clear bear weakness followed by bullish strength and entering long.

Just my thoughts, but I hope they help.

Hi Honestknave,
thank you for your reply.

Your thoughts helped me alot in this new journey. They give me a 360 degree insight of the whole picture that clearly I don't have being at the beginning. Especially the hints on TP & SL were useful, simple yet very effective.

Any other comment is welcome.

Best,
Bubincka

You're most welcome.

I pulled up your chart to see how it played out - provided your stop wasn't too tight it would have played out well, but it's actually a great example of expectation too:

Yes, last Friday at 17:00 (gmt +1) a couple of good news boosted the EUR. And things like these don't happen all the time.

Hoping to see, as this figure is defined.

Entering short, ctrl, for great bull mmtum, when in doubt, go to BE.