Ratios & Harmonics: a Different Way to Trade
Hi Mr. Pip and Happy birthdayI think that i am one of those that getting a little confused with the complex correction. I have posted 2days' EUR/USD chart (with some notes on) and i 'd like to know what would have been your thoughts around this area with the little yellow arrow. What are the things that we should focus on to understand that the market will not continue down anymore..{image}
{quote} Hi Mastermind; The Candles, that are printed to form a Chart, are only the surface you need to understand what Institutions are doing to make those candles print as they do. Without this understanding you are only seeing half the picture. It has nothing to do with fib levels they are only interested in Liquidity "they" actively seek it out and Manipulate the Market (False Breaks) (Stop Raids) in their search of it and to generate it. Take a look, at any Chart, and see how many times a Swing Level will be breached by a few pips and then reverse....
{quote} I disagree almost completely. While the big players need to find liquidity one way or another is true and sometime will play dirty to fill their needs, the markets have order and a pulse. If your statement were true Harmonics and ratios would not be as powerful as they are. We are not at the mercy of the big banks and central players, We are empowered traders with expectations that play out the majority of the time and that is huge power. Those that are at the mercy of these player and believe in noise and all the other nonsense are traders...
{quote} Let's agree to disagree on this one. They do play dirty and at the expense of the little fish. I also understand it's what they must do that doesn't make it clean. It's not a business model it's more like I need to fill these orders and to do this I have to eat everyone in my path. You don't need to understand much more beyond that. Accumulation and distribution who cares. We know where decisions are being made based on our expectation. We can't compete toe to toe with them so we need to be smarter and better then them. I can tell you have...
{quote} The major aim here is to build up a story about where you anticipate price will go. Confluence and an expectation for price provide incredibly powerful tools that if applied correctly will yield very good results. Fibonacci ratios are simply ratios however they have stood the test of time in many different areas of life including trading. The fib ratios should not be perceived to be precise price levels but rather as areas or zones of interest. A trader should not view the fib ratios as the be all and end all in trading but rather as potential...
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{quote} Tell me prior to your arrow, What would your expectation be for the correction? What kind of momentum were you expecting? Let's start there.
