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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

  • #20,161
  • Jul 15, 2016 11:14am Jul 15, 2016 11:14am
Quoting Mack2013
{quote} Anybody think we are going to get a zig (Fake out) then zag out of the consolidation area?
You still in this? Think you should be in profit now.

I think big picture we are headed a bit higher.

As we entered the consolidation price action was up so I think it will continue up. Also on ES, the all time high was created in the overnight session and usually these don't last, so it should be tested in rth session.

The question is how far we are going to pull back or if we'll lose this conso area.
  • #20,162
  • Edited 12:44pm Jul 15, 2016 12:04pm | Edited 12:44pm
Today (actually the whole week) went well, could catch today 7 pips with big lot and 11 with small lot.
  • #20,163
  • Jul 15, 2016 12:37pm Jul 15, 2016 12:37pm
Quoting jmezz
{quote} You still in this? Think you should be in profit now. I think big picture we are headed a bit higher. As we entered the consolidation price action was up so I think it will continue up. Also on ES, the all time high was created in the overnight session and usually these don't last, so it should be tested in rth session. The question is how far we are going to pull back or if we'll lose this conso area.
Yep. It was a really nail biter. almost got taken out by 1 pip only to grind higher. at each level i was think close close close but I stuck with it.

My chart doesnt show anything after 12:15 for about 1/2 hr. so I had to monitor it on my brokers acct

+31 pips . A nice end to a rough week for me

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  • #20,164
  • Jul 15, 2016 12:39pm Jul 15, 2016 12:39pm
Quoting jmezz
YM +8, +8, +15 = +31 ES -1.5, -2.00, +1.00 = -2.5 This was almost a losing day until my last ES trade, however am ending the day on a small profit. Once I went from red to green I decided to close the position as I wanted to head out and hit the gym and didn't feel confident in price action. It did keep on running a bit so I should have left it open but what can you do. Notes on charts. {image} {image}
Again nice job. you will be financial free in no time at this rate. (If your not already)
  • #20,165
  • Jul 15, 2016 12:49pm Jul 15, 2016 12:49pm
Quoting evocpr19
Today (actually the whole week) went well, could catch today 7 pips with big lot and 11 with small lot.
Nice job. you seem to be doing well
  • #20,166
  • Jul 15, 2016 2:47pm Jul 15, 2016 2:47pm
Quoting Mack2013
{quote} Nice job. you seem to be doing well
Thank you. I cannot glance with big moves of the type +30...40pips in one go, but I try this month a modified method based on the teaching of Mr. Pip which fits much better to my available trading timeframe (beside my fulltime job). So far it is working out very well, but I need to watch out on the long term.
Beside the fact that I do not know how to post charts based on MT4 with entries and take profit (like jmezz with Ninja), I think that it would not help.

Since it is still training phase, after a win with big lot I do all other trades on the same day with little lot in order to go out with profit and to have the learning effect.
  • #20,168
  • Jul 17, 2016 11:25am Jul 17, 2016 11:25am
Good morning traders.

I've been working on some research on demand and supply zones and resistance levels and wanted to post a exercise to get your guys thoughts.

Hers a chart;

1) how would you structure your supply / demand zones
2) where would you structure resistance and support? Do you think they are the same as supply and demand?
3) what do you think is the strength of those zones are? how confident do you think they will hold and why?

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Thanks in advance for your participation. feel free to download the pic and modify. that is why I left it blank
  • #20,169
  • Edited 3:13pm Jul 17, 2016 3:03pm | Edited 3:13pm
Found this price section on my Ninja however the PA was slightly different so opted to use your screenshot instead.

I wasn't completely clear on what you were asking for, if you meant to draw S/D and S/R in relation to current price as if you were going to use them to play off of, or if you were asking for us to define ALL of the S/D S/R that we see in the image. So here's what I did:

Orange zones = S/D zones I might have drawn at the time and how price reacted to them.
Blue zones = S/D zones I would use for price action going forward.
Yellow lines = S/R lvls I would look at. I look at S/R that has been tested from both sides, or S/R that has not yet been tested.
#1 = This line has been tested multiple times from both the top and bottom (blue circles)
#2 = This level is currently untouched and a great bounce candidate.
Empty blue zone = This is an area where one might choose to use the entire portion as a demand zone vs using just the yellow support line.

So to answer your questions:

1) how would you structure your supply / demand zones

See image.

2) where would you structure resistance and support? Do you think they are the same as supply and demand?

Some people have posted that they are essentially the same, others have posted that they are different. TBH I don't really care if they're the same or different, all I care about is how I use each one. That said, I do use them differently from each other.

I use S/D to show areas of overwhelming buying or selling, this can be shown via large range bars or by wicks. I also draw them if I notice price pivoting around an area that is broad or tough to signify via S/R level. The second blue S/D zone from the top of the image is an example of this.

I use S/R when price is cleanly pivoting around a level which can be shown with just a single line. I also use S/R when a level is left untested.

3) what do you think is the strength of those zones are? how confident do you think they will hold and why?

When I see price pivoting around a S/D zone or S/R level and it's testing it from both sides then to me that is confirming strength and validity.

Also, when I see an untested zone or level then that also confirms strength to me because price technically *should* reject that first test. However this is not always the case, and it is impossible to know beforehand the degree of rejection you'll see (except maybe if you were using an OFA chart).

I will say that I switch off from using each one of these. Sometimes I want to keep track of a specific level while other times I just want a general area and when price hits then I'll monitor PA closely.

In your image I see a few different minor levels that I probably wouldn't mark up but would keep in mind if price action was close by, and I didn't mark leg starts that I've been using on your chart because that'd be a whole new topic of discussion haha.

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  • #20,170
  • Jul 17, 2016 3:04pm Jul 17, 2016 3:04pm
Quoting evocpr19
{quote} Thank you. I cannot glance with big moves of the type +30...40pips in one go, but I try this month a modified method based on the teaching of Mr. Pip which fits much better to my available trading timeframe (beside my fulltime job). So far it is working out very well, but I need to watch out on the long term. Beside the fact that I do not know how to post charts based on MT4 with entries and take profit (like jmezz with Ninja), I think that it would not help. Since it is still training phase, after a win with big lot I do all other trades...
Great job on your trades the past couple of weeks!
  • #20,171
  • Jul 18, 2016 9:16am Jul 18, 2016 9:16am
Quoting jmezz
Found this price section on my Ninja however the PA was slightly different so opted to use your screenshot instead. I wasn't completely clear on what you were asking for, if you meant to draw S/D and S/R in relation to current price as if you were going to use them to play off of, or if you were asking for us to define ALL of the S/D S/R that we see in the image. So here's what I did: Orange zones = S/D zones I might have drawn at the time and how price reacted to them. Blue zones = S/D zones I would use for price action going forward. Yellow lines...
Thanks for your input jmezz. I agree with all your points especially the difference between supply/demand and support /resistance

Usually I just print these levels out on my chart and never really thought much more about it. Just waited for price and its reaction. I think I might of got careless a bit. The thing I found interesting is how recent and how fresh a level was has a higher probability of holding (dealing with 1 time frame). Another one was the break out of previous trend usually gets retested... eventually

The only thing I really kept in mind was what was previous reaction.

You were right with what level had the most strength and which had the highest potential to hold. Thanks again
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  • #20,172
  • Jul 18, 2016 9:39am Jul 18, 2016 9:39am
US30 - 89 T

Its hard to trend follow in consolidation. haha. Price is in the middle, not an ideal location to enter. Kind of thinking that price will hold true to the consolidation and test the lower limit which would complete a 1 to 1 but then again you never know. I don't like the idea of entering in the middle. looks like I might be waiting

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  • #20,173
  • Jul 18, 2016 10:03am Jul 18, 2016 10:03am
YM -8, +20 = +12
ES -1.5, +.5, -1.75, +1.5 = -1.25

Really just a shitty day. My read was garbage from the start and I spent most of the day pretty negative.

A lot of dumb mistakes on my part - chasing price, reversing in a shit spot, not moving to b/e etc.

My targets for my last shorts were a little lower than where I closed the positions but I wasn't fully confident that those targets would be reached, so given the fact that I was doing awful I decided to take profits to get myself back to around even for the day.

I am ending the day very slightly negative which I am happy with considering I was very negative for most of the day.

Clearly I am not reading the action correctly today so I think that's it for me.

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  • #20,174
  • Edited 11:11am Jul 18, 2016 10:54am | Edited 11:11am
I could collect +5 pips on dax. Was not really happy with the moves. When I expected that price would go north, I had to stop trading because of other commitments.

I expect price to go south on dow, but i will not trade it.
Update: Dow is not moving a lot.


@Mack: nice exercise. Next time I will give my 2 cents even if they are not so valuable as jmezz comments.
  • #20,175
  • Jul 19, 2016 9:20am Jul 19, 2016 9:20am
Good Morning

US30 - 89T

Got to my computer and immediately took this. I dont really like trades right away but this seems good. The only negative is the current strength of the bearish short term order flow. Could press down on me

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  • #20,176
  • Jul 19, 2016 9:27am Jul 19, 2016 9:27am
Quoting jmezz
YM -8, +20 = +12 ES -1.5, +.5, -1.75, +1.5 = -1.25 Really just a shitty day. My read was garbage from the start and I spent most of the day pretty negative. A lot of dumb mistakes on my part - chasing price, reversing in a shit spot, not moving to b/e etc. My targets for my last shorts were a little lower than where I closed the positions but I wasn't fully confident that those targets would be reached, so given the fact that I was doing awful I decided to take profits to get myself back to around even for the day. I am ending the day very slightly...
hahahaha besides trade 2 and 3 on the ES I think your doing great. I think you had justification to take the first on the YM. It just didn't work out.

I appreciate your honesty tho. criticizing oneself is not easy sometimes. it could really hurt the self esteem.

take a look at this garbage I did yesterday even after I said I wouldn't take anything until the outer limits. Honestly I don't even know what I was thinking. trading into support.... what an idiot. the second trade was straight up revenge. Took 2 unnecessary losses. I dont understand why I choose to ignore myself sometimes

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  • #20,177
  • Jul 19, 2016 9:31am Jul 19, 2016 9:31am
Hi I just found this thread and I'm fairly new to Forex Factory Forums. I was trying to follow the training that was initiated on the thread by Mr. Pip but I'm having a hard time following the lessons. Can anyone give me any suggestion on how to weed thru the thread and just identify his weekly lessons. Thanks in advance for our help​
  • #20,178
  • Jul 19, 2016 9:36am Jul 19, 2016 9:36am
Quoting nevadra
Hi I just found this thread and I'm fairly new to Forex Factory Forums. I was trying to follow the training that was initiated on the thread by Mr. Pip but I'm having a hard time following the lessons. Can anyone give me any suggestion on how to weed thru the thread and just identify his weekly lessons. Thanks in advance for our help​
Here is his teachings on youtube. I would put a heavy emphasis on structure and order flow. Make sure you watch them a few times
https://www.youtube.com/channel/UCw8CjBPrQlRH7jbiRbQcc1w

http://www.forexfactory.com/showthre...95#post8722695 (http://www.forexfactory.com/showthread.php?p=8722695#post8722695) and start here

I know its a lot but there is some really good stuff from a lot of supporters

Make sure you do the practice and dont try any short cuts. its worth it. trading takes time to learn
  • #20,179
  • Jul 19, 2016 9:41am Jul 19, 2016 9:41am
Quoting Mack2013
{quote} Here is his teachings on youtube. I would put a heavy emphasis on structure and order flow. Make sure you watch them a few times https://www.youtube.com/channel/UCw8CjBPrQlRH7jbiRbQcc1w http://www.forexfactory.com/showthre...95#post8722695 (http://www.forexfactory.com/showthread.php?p=8722695#post8722695) and start here I know its a lot but there is some really good stuff from a lot of supporters Make sure you do the practice and dont try any short cuts. its worth it. trading takes time to learn
Thanks so much for the quick response I will definitely take your advise.
  • #20,180
  • Jul 19, 2016 10:36am Jul 19, 2016 10:36am
Quoting Mack2013
Good Morning US30 - 89T Got to my computer and immediately took this. I dont really like trades right away but this seems good. The only negative is the current strength of the bearish short term order flow. Could press down on me {image}
After initially going in my direction . PA pull backed and stopped me for - 1 pip. Tried to hold on as long as possible cause I still believe it will test the upper limits again but I didn't want to turn a profit into a loss.
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