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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

  • #16,081
  • Feb 7, 2016 11:13am Feb 7, 2016 11:13am
Great video!

Audio: Apart from some buzzing (possible fan in the background?) it was clear
Video: Superb!
Content: Really good, don't worry about the length you did fine.

My take on EURUSD 15 min
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Rise and rise again until lambs become lions
  • #16,082
  • Feb 7, 2016 11:18am Feb 7, 2016 11:18am
Quoting Timwelch
However, the Momentum would "look" differently on your 233 tick chart as opposed to my 10 minute chart. Or even someone else's 5 minute or 15 minute. Your 233 tick chart Momentum might be showing a weakening when my 10 minute is showing a strengthening, or vice versa. How do we overcome that? I
First of all, I love the video! And I do have the same question as Tim. But also have an answer.
233 tick candles all have the same volume, time based candles do have different volumes. Especially when the market jumps up or down the volume increases, we should look at volume as well.. but that's not easy to do manually. I may write an indicator for this in Metatrader4, somewhere this week.. which is able to show some number or quantification for the momentum for a certain swing taking volume into account; or just do the same based on the incoming ticks projecting it over the normal chart..

But besides this small difference in the client.. a great great video! Thanks
  • #16,083
  • Feb 7, 2016 12:49pm Feb 7, 2016 12:49pm
Quoting hovedguy
Hello Mr Pip Once again, amazing video !! Yea, you're right, it will need lot of time and patience to master this imo. I've got couple of questions, lets go one by one. Now when the new expectation is established (the vertical line) we don't have information about the projection and depth of previous swing right? So, what should be our approach to access the market strength in case so as to enter long? {image}
Good Questions,

First I want to point out that you must use the tails in Order Flow Analysis. We must account for how far price got so tails are important here. In your analysis you disregarded this on every swing. The second part of you question you have to learn to work with the facts that are available at the time that you are assessing matters. To make a more in depth assessment it is true you do need more information before that can be accomplish but lets look at what you do have and what you can compare. The yellow lines indicate an increase in buying momentum which can be visually compared and we can see that the increase was significant. We can also see that price made a decent projection when at best it should have made w very weak one since the expectation was for a NSL and that move was unreasonable from an expectation stand point. These two facts lead up to a mid to slightly deep correction, I high lighted the area of structure in that neighborhood that should hold price if the assessment is correct. Those are the facts that are present on the chart and what we can work with.
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If you fail to plan, you plan to fail.
  • #16,084
  • Feb 7, 2016 12:53pm Feb 7, 2016 12:53pm
Quoting evocpr19
@hovedguy: I think that on the right side of your chart is a mistake. The "depth" is far as I have understood the height of the correction. Hence, it should be the height of your "NSH" to "HL" and the projection is the height of previous low to next low. Hence it should be the height from your "NSL" to "HL". In case that I am wrong please correct me. I am also learning and this is also new for me.
You are correct we must also include the tails. Good eye I missed that one mistake.
If you fail to plan, you plan to fail.
  • #16,085
  • Feb 7, 2016 12:58pm Feb 7, 2016 12:58pm
Quoting Timwelch
Love the new video, Mr. Pip! I have a question on Momentum. I understand that Projection and Depth will be identical no matter what chart type or timeframe you use. Because that is based on how far price has moved, and that won't change. However, the Momentum would "look" differently on your 233 tick chart as opposed to my 10 minute chart. Or even someone else's 5 minute or 15 minute. Your 233 tick chart Momentum might be showing a weakening when my 10 minute is showing a strengthening, or vice versa. How do we overcome that? It seems to me like...
It all works itself out the same way as structure analysis. Whatever time frame you use each chart will have it's own order flow and it can be assess the same way. Where there are issue is if you are trying to compare between time frames. That is a can of worms and completely unnecessary. Keep in mind that the order flow analysis is more important to evaluate on your trading time frame. I only use one time frame to trade everything I need to know is right in front of me.
If you fail to plan, you plan to fail.
  • #16,086
  • Feb 7, 2016 1:05pm Feb 7, 2016 1:05pm
Quoting AlexC
Damian, On structural analysis you marked the high or low close levels with horizontal lines to show those levels that will either hold or break. In the order flow analysis video, you took the swing highs and swing lows (wicks included) for projection, momentum and depth. Is order flow analysis a generalized percentile reading on the degree of strength or weakness of expectations and therefore less specific than structure?
The close on Structure Analysis is the only thing that matters as its the only way we can know if price made a NSH or NSL or not. It also helps us understand where the next close needs to be for our expectation to play out or fail. On Order Flow Analysis We want to see how far the driving forces being the buyers and seller at the extensions and corrections got so we can measure the distance of travel to compare and contrast strengthening or weakening. The close here is of little importance as price seldom closes at the high or low of a swing.

Did you understand my answer? I want to make sure we can understand the significance of both and their importance to each other.
If you fail to plan, you plan to fail.
  • #16,087
  • Feb 7, 2016 1:07pm Feb 7, 2016 1:07pm
Quoting Whenever
Great Video again, Damian. Thank you for that, and for all the aahm and so on. That's you. Never change that ! Of course, Mr. Scotty was only meaning it good, we all know that, but well, I think most of us likes that. You are not only a great teacher, but a very nice person too. Long time not posting here. Well, I guess it is time to change that. Interesting to realize how actually the Trading Journey teaches us that to be able to learn more we need to make things as simple as possible. No indis, no getting crazy about small details, nothing...
Thank you my friend, looking forward to your posts.
If you fail to plan, you plan to fail.
  • #16,088
  • Feb 7, 2016 1:13pm Feb 7, 2016 1:13pm
Quoting Mr_Burns
Great video! Audio: Apart from some buzzing (possible fan in the background?) it was clear Video: Superb! Content: Really good, don't worry about the length you did fine. My take on EURUSD 15 min {image}
Thanks yeah the fan on my PC is starting to act up it use to be real silent have to get it replaced it bugs me too lol. I like your take on the EUR you can even break it down slightly more to include the next smaller level of main swings but not needed. Sometimes when i find myself in extreme market conditions it helps me see breakdown this also helps in range bound markets. But I like your take just wanted to mention that so you can keep it in mind.
If you fail to plan, you plan to fail.
  • #16,089
  • Feb 7, 2016 1:20pm Feb 7, 2016 1:20pm
Quoting sanderov
{quote} First of all, I love the video! And I do have the same question as Tim. But also have an answer. 233 tick candles all have the same volume, time based candles do have different volumes. Especially when the market jumps up or down the volume increases, we should look at volume as well.. but that's not easy to do manually. I may write an indicator for this in Metatrader4, somewhere this week.. which is able to show some number or quantification for the momentum for a certain swing taking volume into account; or just do the same based on the...
I will address volume when we get into Bar by Bar Analysis. This is easily seen in the candles no need to complicate this beyond what you need to make a decision. The decisions most time will be sharp and correct. Please don't post the indicator order flow is specific to whatever time frame you are trading 1m, 10m 15m 1h, ticks, renko it doesn't matter it is visible and can be assessed, compared and contrasted.
If you fail to plan, you plan to fail.
  • #16,090
  • Feb 7, 2016 1:25pm Feb 7, 2016 1:25pm
Traders,

If you post a question or something and I do not answer it don't get mad. Sometimes when I look at the thread it is not there and then later I got back and see a post that wasn't there before. So if I don't answer you let me know shoot me a pm as a reminder or re post your question. Sometimes I just miss it, I'm human and put my pants on one leg at a time.
If you fail to plan, you plan to fail.
  • #16,091
  • Feb 7, 2016 1:52pm Feb 7, 2016 1:52pm
Okay Traders,

I just made a 10 min video on Order Flow on the DOW 240 min (4H) chart so you all can see that the time frame does not matter. Order Flow is Order Flow and specific to the time frame you are looking at. It is rendering and that will take some time to complete and then I will upload it. I hope it has equal value to you!
If you fail to plan, you plan to fail.
  • #16,092
  • Feb 7, 2016 1:55pm Feb 7, 2016 1:55pm
Considering that we already have some views of the actual situation of Eur Usd, I thought I go back to a random place of the same cross and wanted to start training with the others.

So here would be my analysis on that.
Every comment or better suggestion is of course welcome.
Not only from Mr.Pip, from the rest of the Team too of course.

I know it is still too early to talk about S/R or S/D (and I am looking for to that moment), but it was just too evident, how Price respected those levels and what happens when it doesn't anymore.

Step by step

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  • #16,093
  • Feb 7, 2016 1:59pm Feb 7, 2016 1:59pm
Quoting Whenever
Considering that we already have some views of the actual situation of Eur Usd, I thought I go back to a random place of the same cross and wanted to start training with the others. So here would be my analysis on that. Every comment or better suggestion is of course welcome. Not only from Mr.Pip, from the rest of the Team too of course. I know it is still too early to talk about S/R or S/D (and I am looking for to that moment), but it was just too evident, how Price respected those levels and what happens when it doesn't anymore. Step by step ...
Excellent! How does it feel to be able to see this without any indicator? How free and powerful do you feel?
If you fail to plan, you plan to fail.
  • #16,094
  • Feb 7, 2016 2:01pm Feb 7, 2016 2:01pm
The video is still rendering its at 62.7% so I figure in about 30 give or take I will be able to have it up.
If you fail to plan, you plan to fail.
  • #16,095
  • Feb 7, 2016 2:21pm Feb 7, 2016 2:21pm
Okay Traders,

Here is the short video on the Order Flow process for the DOW Futures 240 Min (4 H) NinjaTrader like minutes LOL.

I wanted since the question has been raised and commented on that it would be easier to show you in a short video vs explaining it even though I tried to.


https://youtu.be/vFKgO6Sn66A
If you fail to plan, you plan to fail.
  • #16,096
  • Feb 7, 2016 2:54pm Feb 7, 2016 2:54pm
Quoting Mr. Pip
Okay Traders, Here is the short video on the Order Flow process for the DOW Futures 240 Min (4 H) NinjaTrader like minutes LOL. I wanted since the question has been raised and commented on that it would be easier to show you in a short video vs explaining it even though I tried to. https://youtu.be/vFKgO6Sn66A
Thanks for the video, it indeed shows that timeframe doesnt matter, the order flow appears everywhere..

Though, one question: You have drawn a momentum line from the 13th of Jan to the 17th of Jan and this blue momentum line overlaps two swings, why?
  • #16,097
  • Feb 7, 2016 3:07pm Feb 7, 2016 3:07pm
Quoting sanderov
{quote} Thanks for the video, it indeed shows that timeframe doesnt matter, the order flow appears everywhere.. Though, one question: You have drawn a momentum line from the 13th of Jan to the 17th of Jan and this blue momentum line overlaps two swings, why?
Oh that one is really easy because I screwed up. Thanks for catching that and I apologize I will be more careful in the future.
If you fail to plan, you plan to fail.
  • #16,098
  • Feb 7, 2016 3:08pm Feb 7, 2016 3:08pm
Quoting evocpr19
@hovedguy: I think that on the right side of your chart is a mistake. The "depth" is far as I have understood the height of the correction. Hence, it should be the height of your "NSH" to "HL" and the projection is the height of previous low to next low. Hence it should be the height from your "NSL" to "HL". In case that I am wrong please correct me. I am also learning and this is also new for me.

Hi Evocpr

Thank you very much for your comment, this is how we sharpen our knife

Yea, I was wrong on depth. In fact, unless the correction happens, we have no depth value available to us (in case its the first swing after the change in expectation).
Projection is the vertical distance b/w latest and previous swing high (in case of bull) and low (in case of bear).
  • #16,099
  • Feb 7, 2016 3:10pm Feb 7, 2016 3:10pm
Quoting Mr. Pip
{quote} Good Questions, First I want to point out that you must use the tails in Order Flow Analysis. We must account for how far price got so tails are important here. In your analysis you disregarded this on every swing. The second part of you question you have to learn to work with the facts that are available at the time that you are assessing matters. To make a more in depth assessment it is true you do need more information before that can be accomplish but lets look at what you do have and what you can compare. The yellow lines indicate an...
Thank you very much for the clear clarification. Feeling very comfortable and in control now
  • #16,100
  • Feb 7, 2016 3:16pm Feb 7, 2016 3:16pm
Quoting hovedguy
{quote} Thank you very much for the clear clarification. Feeling very comfortable and in control now
If you fail to plan, you plan to fail.
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