Ratios & Harmonics: a Different Way to Trade | Page 1030 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

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

Learning to trade with harmonics 11 replies

Time for Change - Pivots & Harmonics to freedom 67 replies

180 reasons to trade Harmonics and Patterns 13 replies

Group Trading based on Elliott wave and Harmonics 0 replies

Attachments: Ratios & Harmonics: a Different Way to Trade
Exit Attachments

Ratios & Harmonics: a Different Way to Trade

  • #20,581
  • Edited 2:32pm Oct 4, 2016 11:43am | Edited 2:32pm
Quoting jmezz
YM +4, -12, +26, +11 = +29 Really didn't see this price action coming so I locked in what I thought was good profit only to shaft myself by not letting my positions run. Even though I made my daily quota I didn't trade smart today. Notes on charts. {image} {image} {image}
I could only see part of the nervous PA. Since I could not really figure out a direction, I prefered to stay out.

Congrats Jmezz.

Edit: Could finally catch +4
  • #20,582
  • Oct 4, 2016 5:58pm Oct 4, 2016 5:58pm
Quoting evocpr19
{quote} I could only see part of the nervous PA. Since I could not really figure out a direction, I prefered to stay out. Congrats Jmezz. Edit: Could finally catch +4
Yeah the PA today was pretty crazy haha.

Nice job evo!
  • #20,583
  • Oct 4, 2016 10:17pm Oct 4, 2016 10:17pm
Quoting jmezz
YM +4, -12, +26, +11 = +29 Really didn't see this price action coming so I locked in what I thought was good profit only to shaft myself by not letting my positions run. Even though I made my daily quota I didn't trade smart today. Notes on charts. {image} {image} {image}

Nice trades today especially in some difficult price action. I know you feel like your trading was off and not efficient but you ended in the green. I was looking at some. particularity trade 2 and 3.

I notice in trade 2 you were aggressive with your stops but in trade 3 you gave it some room. I'm interested in your stop placement on trade 3. It was the right call so good on you. Its weird but I usually do the opposite. My first stop is loose and if I engage again, i try to exit a bit more aggressively, if the trade goes against me.

As for your target. I see what your saying. a bird in hand is better then 2 in the bush. I tried to look back at the chart and see if I could of predicted such wild price movement and I came up with nothing. sure there was a supply zone here and support there but nothing that could of indicated overwhelming strength. I guess it was just the luck of the flop.

Looking at the chart. You would figure that the first retest of Demand would of had a bigger reaction if there was demand at that level so another variable would of had to change.
Attached Image (click to enlarge)
Click to Enlarge Name: Chart.png Size: 61 KB
  • #20,584
  • Oct 5, 2016 7:50am Oct 5, 2016 7:50am
Quoting Mack2013
{quote} Nice trades today especially in some difficult price action. I know you feel like your trading was off and not efficient but you ended in the green. I was looking at some. particularity trade 2 and 3. I notice in trade 2 you were aggressive with your stops but in trade 3 you gave it some room. I'm interested in your stop placement on trade 3. It was the right call so good on you. Its weird but I usually do the opposite. My first stop is loose and if I engage again, i try to exit a bit more aggressively, if the trade goes against me. As for...
Thanks man. I know I didn't let that trade run because I had the fact that I was negative on the day weighing on my mind. I know I shouldn't take emotions from one trade into the next but it's really hard not to when you're negative.

Also looking back on my first trade I noticed that it hit a profit of 20pts however I ended up getting stopped out for the +4. I'm now questioning how to handle trades like this because my daily quota is 20pts. So now should I close out of trades early if I hit my quota? Maybe do it if the trades aren't A+ setups? I'm not sure, I need to think about it more.

But to answer your question, you're referring to trades 2 and 3 being the shorts I made right? Because I made an error on the 3rd chart that I posted lol, I mistakenly put "3rd trade" when it should read "Trade 4."

In regard to the shorts, my stop each time was 1 tick above the HOD. The first time I got stopped out for -12. Typically I would wait for a signal in order flow to attempt a fade but there was a loss of momentum into the 113 so felt that I'd be fine fading off a candle signal only. After getting stopped out the first time I wanted to wait for a signal on order flow to show up before attempting again but once I saw the rejection candle I decided to go for it again. Probably not good practice to do this as price could have simply just went up again and taken me out, which is almost what happened.

If you were referring to the long trade I made, I had a stop of 16pts. Kind of on the high side for me, generally I like to have stops in the area of 10-15, however if I am in profit for the day then I will be a little more lenient with stop size in order to try and capture more profit.

In both scenarios I use stops at 1 tick beyond the HOD or LOD as my thought process at the time includes waiting for an area that I think will be the HOD or LOD for at least a long duration of time. This way you can be a little bit more calm in your trade and allow it to run or work itself out if it's going to trend sideways for a bit.

I'm glad you posted that chart because it just occurred to me that I didn't have that supply zone marked at all on mine, I'm not sure what I was thinking. Could have been beneficial to have on there to fade that 2nd test.

I'm also confused on the demand zone test. Really looking at it now though, I think that strength on the 1st bounce yesterday and even on the 2nd can be attributed to shorts being squeezed. Traders got very short on both declines and once structure held and started to rise I think shorts got nervous and bailed on both rallies. I have no proof of this but it makes sense in my mind haha.
  • #20,585
  • Oct 5, 2016 8:17am Oct 5, 2016 8:17am
YM this morning

Not really sure here, maybe another leg up or possibly full retracement of yesterday's range.

Oil inventories today too.

Gonna take it easy today and see what develops.

Sidenote - now we can 'like' posts on the forum.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 114 KB
  • #20,586
  • Oct 5, 2016 8:25am Oct 5, 2016 8:25am
Hey jemzz,

really nice trading as usual. I got blown out of the water yesterday. When you talk about a signal in orderflow: do you mean the Ninjatrader DOM?
  • #20,587
  • Oct 5, 2016 8:28am Oct 5, 2016 8:28am
Quoting stavrogijn
Hey jemzz, really nice trading as usual. I got blown out of the water yesterday. When you talk about a signal in orderflow: do you mean the Ninjatrader DOM?
Morning Stavro. Thank you.

Which trades did you make?

Market about to open but I'll make a post later today about what I like to see.
  • #20,588
  • Oct 5, 2016 8:50am Oct 5, 2016 8:50am
YM +23

Morning note ended up playing out.

Notes on chart.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 113 KB
  • #20,589
  • Oct 5, 2016 9:44am Oct 5, 2016 9:44am
Quoting jmezz
{quote} Morning Stavro. Thank you. Which trades did you make? Market about to open but I'll make a post later today about what I like to see.
Normally I have no problem showing my trades, but yesterday was a bit too cruel: I took 2 each on the first swing points. Got stopped out once and moved to BE where I was taken out for 2nd trade right before it went off. Got tilted and took counter-trades on the way up. Pretty bad. It should not happen, I should not have traded as distracted as I was. My psyche is my biggest enemy by now. Looking for ways to train on that specifically.
  • #20,590
  • Oct 5, 2016 9:44am Oct 5, 2016 9:44am
YM

Locked in 5 so far here

Edit - now +11 might get taken out.

Edit - Out +35 = 58 for today.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 90 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 79 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot3.png Size: 105 KB
  • #20,591
  • Edited 10:59am Oct 5, 2016 9:53am | Edited 10:59am
YM

Might reshort if we hit this supply zone

Edit - touched this zone and rotated but no followthrough bar afterwards. No trade. Price ended up blowing through it later on.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 92 KB
  • #20,592
  • Oct 5, 2016 11:41am Oct 5, 2016 11:41am
Quoting stavrogijn
{quote} Normally I have no problem showing my trades, but yesterday was a bit too cruel: I took 2 each on the first swing points. Got stopped out once and moved to BE where I was taken out for 2nd trade right before it went off. Got tilted and took counter-trades on the way up. Pretty bad. It should not happen, I should not have traded as distracted as I was. My psyche is my biggest enemy by now. Looking for ways to train on that specifically.
Don't feel bad, I did the exact same thing yesterday. Funny thing is, if I had stuck with it the next two trades would have put me well into the black. Oh well, chalk it up to experience.
  • #20,593
  • Oct 5, 2016 11:44am Oct 5, 2016 11:44am
Quoting jmezz
YM Might reshort if we hit this supply zone Edit - touched this zone and rotated but no followthrough bar afterwards. No trade. Price ended up blowing through it later on. {image}
Interesting, I entered long at the same place you took profit. Just got stopped out for +35.
  • #20,594
  • Oct 5, 2016 12:08pm Oct 5, 2016 12:08pm
Quoting DocPMD
Interesting, I entered long at the same place you took profit. Just got stopped out for +35.
Price was in a range so jmezz faded one side of the range and you did fade the other side in line with the current trend. I like to use the 1 minute opening range as demand or resistance depending where price is. Today the 1 min. opening range went from 18147 to 18162. Price did penetrate this area (18156) and failed to attract sellers. On a 3 min. chart you can see a red pin bar (hammer) followed by a bull bar that closed just above the mid at that time.
  • #20,595
  • Edited 12:48pm Oct 5, 2016 12:36pm | Edited 12:48pm
I came late to the charts. Tried to go short, but ended with majestic "0".
  • #20,596
  • Oct 5, 2016 4:32pm Oct 5, 2016 4:32pm
Quoting DocPMD
{quote} Interesting, I entered long at the same place you took profit. Just got stopped out for +35.
Quoting crixus
{quote} Price was in a range so jmezz faded one side of the range and you did fade the other side in line with the current trend. I like to use the 1 minute opening range as demand or resistance depending where price is. Today the 1 min. opening range went from 18147 to 18162. Price did penetrate this area (18156) and failed to attract sellers. On a 3 min. chart you can see a red pin bar (hammer) followed by a bull bar that closed just above the mid at that time.
Notes on chart.

Doc what was reasoning for going long there?

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 118 KB
  • #20,597
  • Oct 5, 2016 5:02pm Oct 5, 2016 5:02pm
Quoting stavrogijn
Hey jemzz, really nice trading as usual. I got blown out of the water yesterday. When you talk about a signal in orderflow: do you mean the Ninjatrader DOM?
Although I do monitor DOM order flow, I was speaking about price action order flow.

Basically once price hits an area I think will yield a nice fade I will wait for a:

  1. break of prior swing point
  2. retest of structure
  3. failure at structure

You could say that I'm looking for a head n shoulders or inverse head n shoulders. Validity added to the pattern if it's an order flow change.

I've attached some examples. If you're not sure of something let me know and I'll try to explain it better.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 107 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 93 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot3.png Size: 92 KB
  • #20,598
  • Oct 5, 2016 5:10pm Oct 5, 2016 5:10pm
I'd like to start posting my trades as they're in progress but even posting that one today was a bitch.

I don't want to light the thread up with reply after reply and editing is a pain in the ass. Not to mention what I have to do to get the screenshot and attach it to the post.

I don't like taking my eyes off the charts or DOM because I'm sitting there watching how every single bar forms and what price is doing on the DOM.

Right now it's easiest for me to hold onto my trades and post them once I'm either done for the day or when I don't see an opportunity forming for a little while. If I think of a more efficient way to post my trades in progress then I'll do that.
  • #20,599
  • Oct 5, 2016 6:44pm Oct 5, 2016 6:44pm
The YM like the ES is forming a triangle. Energy is building up and will dissipate one way or another. So far all the GAPS between RTH sessions have been closed except the last one created today. There is a chance that this triangle will hold until the presidential election in November. My expectation is for price to close today's gap. We'll see tomorrow and the range to stay small. Expect chop if we stay in the middle of this triangle.

Attached Image (click to enlarge)
Click to Enlarge Name: YM_struct_20161005.jpg Size: 169 KB
  • #20,600
  • Oct 5, 2016 7:52pm Oct 5, 2016 7:52pm
Quoting jmezz
{quote} {quote} Notes on chart. Doc what was reasoning for going long there? {image}
Although looking at the short term swings I saw the same thing you did, I also saw things the way I have it drawn on my attached chart. I basically looked at those last swings as a complex correction. I liked the big bullish bar at the support area that I had drawn.

I used a pretty tight stop because, as I said, I also saw that on the basis of the shorter term swings, that could also have been considered a NSL.

I think the more important question is why did you go short when you did? The up trend was definitely weakening, but there was no reason to change the expectation of a NSH.

Attached Image (click to enlarge)
Click to Enlarge Name: 2016-10-05-TOS_CHARTS.png Size: 46 KB
8 traders viewing now