Simply harmonics

I have recently started dabbling in Harmonics, and want to create a journal to track my trades and invite discussion of the trades i make. This started as the Matts Micro rags to riches Trade explorer, but it just did not work for me, but i was trying to implement the harmonic approach, as it tends to have a high R:R which would suit the MMR2R money management - unfortunately, having a set SL and TP as a R:R value is not my cup of tea, and found it too difficult to change how I manage my SL and TP effectively.

I realised pretty quickly that a lot of what i know about Forex, and strategies that I have developed over the years, fits in very nicely with what i started to learn about harmonics. So hopefully i can make this my bread and butter as it seems a logical next step in my trading.

I plan to post most of my trades and why I took them, and hopefully let others see how i trade, and see what advice others can give to me! Afterall, I am a novice at harmonics, but the fundamental idea behind it i get, but there is a lot to look at going forward!

subscribed Good luck! looking forward to your posts, harmonic patterns trading is an interesting concept.

Cheers Leon,

First trade (although there have been subsequent that have hit SL:

Bullish Cypher on the USDCAD:



There seems to be a head and shoulders formation forming, which should help this to go quite high and hit my 3rd TP, although that is only there for a 'lets see what will happen'.

Still learning, so a few losing trades which I thought looked pretty decent, but looking back they were wrong entries which led to wrong SL being placed. A couple have turned round as well, so just need to focus on the correct entry and SL, and should be onto something...

Any more experienced trader in harmonics care to pass a view - all criticism, greatly appreciated!

Another Trade I have just opened - a bearish bat on the NZDJPY.

I think that the trade seems to be in good stead, with the ratios working out very nicely, and the Potential reversal zone I put in a few days ago being hit up to the top, and then falling down and seeming to stay below the support and resistance line, where the pattern completed at D.



I know it sounds strange, but I am not too concerned about the bank balance, this is pocket money to trade with at the moment, and it is an education fee that I am more than willing to pay - getting the psychology right for letting trades run their course.

I did have a +ive pip balance of just under 500 pips at the start of the week, but the USDCAD did not quite hit the TP level - a trailing stop probably should have been employed, and it would have been profitable, but I want these trades to run their course (with moving to BE at the first TP for the second position).

I am not worried about position size at all, only the fact that these trades run their course, this will in turn help me to be more profitable when I fund my account with my usual starting balance of c.1K

My trade closed out as I moved my stop to break even once it hit about 50 pips, and then it retraced quite quickly... Not to worry, as I am still learning this stuff, and it was a bit of an experiment to see when to move my stops, and at what point - I prefer leaving stops in place and either having them hit, or have my TP hit.

What I am trying to do is open up two positions, and have one go to TP1, and then the next going to TP2 with a risk free trade.

Anyway, not a trade yet, but the set up is there, but this is what I love about the harmonic style of trading - a bearish Gartley pattern followed straight away by a bullish pattern (of course, this is a wait and see job at the moment!) but the pattern looks to be set up on the 4 hour chart... just go to wait to see what will happen - I would also say that it is a high probability trade as there the 78.6 completion is also a perfect ab=cd pattern, which makes these setups all the more better! Wait and see what happens, but if I was a better trader (and at my computer a little more to have seen the bearish gartley form, then it would have been a very easy trade to go from the bearish D point all the way down to the bullish gartley D point which would be a 215 pip ride...

An interesting one here - a bullish crab on the CHFJPY 4hr chart - what is even better, is that it turned on a pin head as to where I had projected it to potentially turn..

My crab is the second of the patterns (the Gartley is automated software), however the D point on the Gartley is in the same place, so having two patterns starting at the same time has to be a good thing.... right???

I hope so!!!



My SL is quite close (as to how I usually place them, as I missed the correct entry, but still have plenty of potential profit to come out of it...