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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #14,821
  • Nov 25, 2015 1:10pm Nov 25, 2015 1:10pm
Quoting smarajit1
Mr. Pip, i was trading forex last 5 years but recently i read some books on Harmonic trading. It looks very interesting to me then i started to test these. But my initial experience was getting stumbled in some area. could you please guide me? 1) Whenever i tried to sell CD leg getting stopped out most of the time and observing the pair setting a new C and then falling exactly upto the PRZ. How to overcome this? 2) many times i find the price passing through the PRZ tripping SL , even if sometimes it gets a initial bounce from PRZ also coming back...
Just thought I'd share what I see to try to help. I think you have the right idea but your patterns need to be better chosen.

On the first chart for your main swing (X,A) looks a little wrong. The pullback midswing looks too deep and thus only the last bull movement could be called the main swing. In this case then there is no pattern.

On the second chart the A,B leg doesn't look deep enough. The B point hasn't made a new LL from the previous bull candle and is indecisive so naming it a "B" low could be dangerous as the bulls at this stage still look in control. I know what I just wrote doesn't sound right but correctly speaking the duration of each leg should be the same, it's just something you get used to looking at.

Don't force the patterns and weed out those that are doubt.

Hope this helps.

Cheers,
Matt.
As the lights go by so too do the shadows move
  • #14,822
  • Nov 25, 2015 9:20pm Nov 25, 2015 9:20pm
Mamy thnx mr. Matts,
As i told i am new to harmonic, could you please guide me how to decide the first leg xa? And other key points for drawing flawless pattern? What are the key points to remember while deciding a pattern?
  • #14,823
  • Nov 26, 2015 1:48am Nov 26, 2015 1:48am
this is what we have today:
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (233 Tick) 26_11_2015.jpg Size: 143 KB
  • #14,824
  • Nov 26, 2015 2:09am Nov 26, 2015 2:09am
Quoting smarajit1
Mr. Pip, i was trading forex last 5 years but recently i read some books on Harmonic trading. It looks very interesting to me then i started to test these. But my initial experience was getting stumbled in some area. could you please guide me? 1) Whenever i tried to sell CD leg getting stopped out most of the time and observing the pair setting a new C and then falling exactly upto the PRZ. How to overcome this? 2) many times i find the price passing through the PRZ tripping SL , even if sometimes it gets a initial bounce from PRZ also coming back...
Professional traders never trade patterns alone. Pattern completion is just one confluence for taking the trade, nothing more than that. Please find my comments in the image:
Attached Image (click to enlarge)
Click to Enlarge Name: $GBPAUD (240 Min) 26_11_2015.jpg Size: 160 KB
  • #14,825
  • Nov 26, 2015 2:57am Nov 26, 2015 2:57am
EU update:
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (233 Tick) 26_11_2015.jpg Size: 173 KB


can you tell why I took the trade (a bit preliminary actually)? and why my TP is where it is? Where is a good place to go short? Can we move TP to that place and take a nap or should we be aggresive with stop losses and do as Mr.Pip says "protect our investment"?
Well, if you can answer all these questions, then u're on the same table with Mr.Pip and other pros of this business. Good Luck!
  • #14,826
  • Nov 26, 2015 3:10am Nov 26, 2015 3:10am
Quoting ujku80
EU update:{image} can you tell why I took the trade (a bit preliminary actually)? and why my TP is where it is? Where is a good place to go short? Can we move TP to that place and take a nap or should we be aggresive with stop losses and do as Mr.Pip says "protect our investment"? Well, if you can answer all these questions, then u're on the same table with Mr.Pip and other pros of this business. Good Luck!
ok, right now i don't like PA, so moved SL to B.E. +2pips. might enter again at a better price.

see, the thing is that, as Lance Beggs puts it, when we enter, we want the price to go straight to TP. if for whatever reason we're not getting that, then we either are wrong (our reading of the market is not right) or our timing is wrong. And in either case you want to get out.

Trade closed at B.E.
  • #14,827
  • Nov 26, 2015 3:37am Nov 26, 2015 3:37am
Quoting smarajit1
Mr. Pip, i was trading forex last 5 years but recently i read some books on Harmonic trading. It looks very interesting to me then i started to test these. But my initial experience was getting stumbled in some area. could you please guide me? 1) Whenever i tried to sell CD leg getting stopped out most of the time and observing the pair setting a new C and then falling exactly upto the PRZ. How to overcome this? 2) many times i find the price passing through the PRZ tripping SL , even if sometimes it gets a initial bounce from PRZ also coming back...
second chart: comments in the image
Attached Image (click to enlarge)
Click to Enlarge Name: $EURAUD (Daily) 15_12_2011 - 26_11_2015.jpg Size: 163 KB
  • #14,828
  • Nov 26, 2015 3:40am Nov 26, 2015 3:40am
Quoting ujku80
{quote} ok, right now i don't like PA, so moved SL to B.E. +2pips. might enter again at a better price. see, the thing is that, as Lance Beggs puts it, when we enter, we want the price to go straight to TP. if for whatever reason we're not getting that, then we either are wrong (our reading of the market is not right) or our timing is wrong. And in either case you want to get out. Trade closed at B.E.
well, after all price want's to go higher. I should have waited two more candles before I moved my S.L. But, sometimes, better be safe than sorry, right guys?
  • #14,829
  • Nov 26, 2015 3:48am Nov 26, 2015 3:48am
Quoting ujku80
{quote} well, after all price want's to go higher. I should have waited two more candles before I moved my S.L. But, sometimes, better be safe than sorry, right guys?
and remember that we don't follow price. for whatever reason that we get stopped out at a loss or at break even we don't do revenge trading. just wait for the next move and see where price is and then build the case to where it might go.

but with time we'll get better at entry and at trade management. this is just the beginning of a pro trader. My days as a novice trader ended when I came across this thread.

green pips to all.
  • #14,830
  • Nov 26, 2015 4:00am Nov 26, 2015 4:00am
just some thoughts in the image:
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (233 Tick) 26_11_2015_1.jpg Size: 157 KB
  • #14,831
  • Nov 26, 2015 4:08am Nov 26, 2015 4:08am
food for thought: image below
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (233 Tick) 26_11_2015.jpg Size: 197 KB

let's see if that case scenario plays out
  • #14,832
  • Nov 26, 2015 4:13am Nov 26, 2015 4:13am
if you have comments, questions, suggestions regarding my analysis, like whatever u think, is it good or bad, or does/doesn't make sense just say it. whatever comes in your mind i don't get offended. just let me know.
it's also a good practise for me doing this, as I'm learning myself from my own charts ,sort of self teaching
  • #14,833
  • Nov 26, 2015 4:18am Nov 26, 2015 4:18am
if someones wish that I draw some patterns i can do that also. but i'm affraid that might lead the novice traders into thinking that this is all about patterns.
  • #14,834
  • Nov 26, 2015 4:25am Nov 26, 2015 4:25am
hey, u wanna know smth funny?! I'm getting a bit paranoid because anytime i post a live trade here, market moves against me. As if those m... ([email protected]) fat cats are reading my trades and sabotaging me on purpose hehe, it's just psychology playing now.

"trading in the zone" http://www.amazon.co.uk/Trading-Zone-Mark-Douglas/dp/0735201447/ref=sr_1_1?ie=UTF8&qid=1448533397&sr=8-1&keywords=trading+in+the+zone

is a good book on trading psychology. a bit repetitive but it's still good.
  • #14,835
  • Nov 26, 2015 4:43am Nov 26, 2015 4:43am
Quoting smarajit1
Mr. Pip, i was trading forex last 5 years but recently i read some books on Harmonic trading. It looks very interesting to me then i started to test these. But my initial experience was getting stumbled in some area. could you please guide me? 1) Whenever i tried to sell CD leg getting stopped out most of the time and observing the pair setting a new C and then falling exactly upto the PRZ. How to overcome this? 2) many times i find the price passing through the PRZ tripping SL , even if sometimes it gets a initial bounce from PRZ also coming back...
since i have nothing better to do (apart from my daily work to get my monthly salary to pay my bills) let's see this last chart that u placed above:
Attached Image (click to enlarge)
Click to Enlarge Name: $EURJPY (240 Min) 26_11_2015.jpg Size: 207 KB
  • #14,836
  • Nov 26, 2015 4:50am Nov 26, 2015 4:50am
anybody else wants me to analyze his/her charts? it's free. It's dedicated to Mr.PiP. So thank him if it proves to be successful, and blame me if it proves to be wrong.
  • #14,837
  • Nov 26, 2015 5:05am Nov 26, 2015 5:05am
Quoting ujku80
{quote} since i have nothing better to do (apart from my daily work to get my monthly salary to pay my bills) let's see this last chart that u placed above: {image}
this looks better i think. if you enter long, and follow Mr. Pip's rules, than S.L. should be below X, which is at ca. 126.00. I'd prefer to place it below 88.6% retrace as it would negate the legit bat that we have. but your take on that.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURJPY (240 Min) 26_11_2015.jpg Size: 219 KB
  • #14,838
  • Nov 26, 2015 5:29am Nov 26, 2015 5:29am
Quoting ujku80
anybody else wants me to analyze his/her charts? it's free. It's dedicated to Mr.PiP. So thank him if it proves to be successful, and blame me if it proves to be wrong.
take a look at eurusd and audusd
  • #14,839
  • Nov 26, 2015 5:46am Nov 26, 2015 5:46am
i am looking at EURUSD and just waiting for price to reach PRZ, which is 61.8% of AB swing, so that we get a gartly and can trade aggressive C. well, right now price is going nowhere so we just have to wait.

as for AUDUSD, maybe another little swing and time to enter long :nerd:
Attached Image (click to enlarge)
Click to Enlarge Name: $AUDUSD (233 Tick) 26_11_2015.jpg Size: 187 KB
  • #14,840
  • Nov 26, 2015 6:06am Nov 26, 2015 6:06am
u know what's funny with trading, is that if you draw supply and demand zones correctly, and observe price how it approaches them (with focus on weakness and strength), u have a good probability to trade and come at a profit almost anytime. maybe little profit, but still. And that's why this trading style that this thread teaches really rocks. You combine all this with harmonics & ratios and u have an amazing tool. or to put it in Mr.Pip's words, you will be handing over keys of a beautiful car (if you listen to him).
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