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Ratios & Harmonics: a Different Way to Trade

  • #21,261
  • Nov 15, 2016 5:47pm Nov 15, 2016 5:47pm
Quoting Mr. Pip
{quote} I'm going to stay away for the rest of the session. There may be a shorting opportunity between 18800 and 18017. 18804 completes a 1:1 exhaustion lies at 18811 for the bulls but orders are being accumulated on both sides this one could blow either way. If she drops expect support around 18700 good structure there. Expect the bears to come in around 18827 and again around 18876. Going to get lunch I'll be back later to catch up. Thank you all for the participation and to Mastermind for taking the time to provide his detailed thought process....
My pleasure!

And thanks to all the other regular contributors here such jmezz, evocpr19, Mack2013 and others for keeping this thread ticking over.

To this day (and yes I have been following this particular thread for a very long time) it amazes me how only a few traders participate.

Is it just us few who see the incredible value in PA, order flow and harmonics?

Enough of my rant ... time to trade!

Good trading,

Masterrmind...........
Master your Mind then Master your Trades
  • #21,262
  • Nov 15, 2016 6:13pm Nov 15, 2016 6:13pm
EURUSD [M5 Chart]

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Tokyo just opened so lets wait and see how PA behaves before committing one way or the other.

PA has been very tight as expected for the start of a new trading day.

It is possible to short the pair now with a TP just inside the lower channel (trendline) @ 1.07050 and a stop above the 1.07330 level

Lets see how it unfolds ... I'll observe at this stage unless PA starts to drive off with intent.

Note 1: you'll notice I have the magenta (pink) colored lines drawn lwr left to upper right but these are just showing spacings and how precise they are however I am looking for shorts only at this stage.

Note 2: even if price drives up a little higher to test recent highs (near the upper trendline) I may hold off on a short in that immediate area because usually I do not like to short back into the DO line from only a few pips out since often price will move much further out before returning.

Masterrmind...........
Master your Mind then Master your Trades
  • #21,263
  • Nov 15, 2016 6:34pm Nov 15, 2016 6:34pm
Quoting Masterrmind
EURUSD [M5 Chart] {image} Tokyo just opened so lets wait and see how PA behaves before committing one way or the other. PA has been very tight as expected for the start of a new trading day. It is possible to short the pair now with a TP just inside the lower channel (trendline) @ 1.07050 and a stop above the 1.07330 level Lets see how it unfolds ... I'll observe at this stage unless PA starts to drive off with intent. Note 1: you'll notice I have the magenta (pink) colored lines drawn lwr left to upper right but these are just showing spacings...
EU

Attached Image


Bulls are in control at the moment ... pushing price up higher.

Observation time!

Masterrmind...........
Master your Mind then Master your Trades
  • #21,264
  • Nov 15, 2016 6:46pm Nov 15, 2016 6:46pm
Quoting Masterrmind
{quote} EU {image} Bulls are in control at the moment ... pushing price up higher. Observation time! Masterrmind...........
EU

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Now short.

Based on bearish rotation type candle plus chart structure (to the left).

Slightly aggressive entry for a short in my opinion but I'm in it.

Note 1: SL will be reduced rapidly as trading progresses.

Note 2: TP is set at 1.07050 just above the handle but I'll probably close out the trade if price reaches the DO line or thereabouts.

Masterrmind...........
Master your Mind then Master your Trades
  • #21,265
  • Nov 15, 2016 6:51pm Nov 15, 2016 6:51pm
Quoting Masterrmind
{quote} EU {image} Now short. Based on bearish rotation type candle plus chart structure (to the left). Slightly aggressive entry for a short in my opinion but I'm in it. Note 1: SL will be reduced rapidly as trading progresses. Note 2: TP is set at 1.07050 just above the handle but I'll probably close out the trade if price reaches the DO line or thereabouts. Masterrmind...........

I went long at the break of structure
  • #21,266
  • Nov 15, 2016 7:13pm Nov 15, 2016 7:13pm
Quoting Harmonic1976
{quote} I went long at the break of structure
One of us will be right I guess.

You'll be looking for continuation.

I'll be looking for a reversal to the downside.

So far I've had to wear about 7 pips in DD.

This is trading and my entry was on the aggressive side I must say.

Lets see how it progresses.

Masterrmind...........
Master your Mind then Master your Trades
  • #21,267
  • Nov 15, 2016 7:17pm Nov 15, 2016 7:17pm
Blue line entry, going to try to practice patience on this one and not sell to soon.
Attached Image
  • #21,268
  • Nov 15, 2016 7:22pm Nov 15, 2016 7:22pm
Quoting Harmonic1976
Blue line entry, going to try to practice patience on this one and not sell to soon. {image}
Yes you can see that nice bearish rotation type candle which I entered at the midway point.

But the bulls came straight back into the attack and have driven price back up.

Not alot I can do ... either close for a loss or give the bears a chance to return.

Note: as for your long entry if it keeps pushing higher you may not need to worry about a short.

Masterrmind...........
Master your Mind then Master your Trades
  • #21,269
  • Nov 15, 2016 7:29pm Nov 15, 2016 7:29pm
Quoting Masterrmind
{quote} EU {image} Now short. Based on bearish rotation type candle plus chart structure (to the left). Slightly aggressive entry for a short in my opinion but I'm in it. Note 1: SL will be reduced rapidly as trading progresses. Note 2: TP is set at 1.07050 just above the handle but I'll probably close out the trade if price reaches the DO line or thereabouts. Masterrmind...........
EU

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Slight adjustments to SL and TP levels with greater levels applied based on chart structure.

Maintaining a favorable risk to reward ratio.

Trade will be given more breathing space but could also be closed out if the bulls are seen to continue their aggressive nature to the upside.

I'm also keen to see what PA does nearer to the 1.07500 psych level (there is also nice structure at this level too).

Lets see!

Masterrmind...........
Master your Mind then Master your Trades
  • #21,270
  • Nov 15, 2016 7:30pm Nov 15, 2016 7:30pm
Quoting Masterrmind
{quote} Masterrmind...........
The good news is that you can re-enter long at a pullback and ride it up if it continues to do so
  • #21,271
  • Nov 15, 2016 7:44pm Nov 15, 2016 7:44pm
Out at +15pts, even though we don't know when the pullback will occur, it's hard for me to just let that sit on the table especially after the first break of structure (NSH). I'll re-enter long after the first pullback to .50 to .618 fib or structure, whichever syncs up.
  • #21,272
  • Nov 15, 2016 7:44pm Nov 15, 2016 7:44pm
Quoting Harmonic1976
{quote} The good news is that you can re-enter long at a pullback and ride it up if it continues to do so
Yes that's right.

That might end up being what I have to do.

There are always multiple ways to attempt a recovery but choosing the right one can be very interesting.

Masterrmind...........
Master your Mind then Master your Trades
  • #21,273
  • Nov 15, 2016 7:45pm Nov 15, 2016 7:45pm
Quoting Harmonic1976
Out at +15pts, even though we don't know when the pullback will occur, it's hard for me to just let that sit on the table especially after the first break of structure (NSH). I'll re-enter long after the first pullback to .50 to .618 fib or structure, whichever syncs up.
Great trade!

Masterrmind...........
Master your Mind then Master your Trades
  • #21,274
  • Nov 15, 2016 7:48pm Nov 15, 2016 7:48pm
Quoting Masterrmind
{quote} Great trade! Masterrmind...........
Thanks, hopefully you kept your stop in place, you might be able to get out around break even.

I have a pending buy order at 1.0734
  • #21,275
  • Nov 16, 2016 12:00am Nov 16, 2016 12:00am
Quoting Harmonic1976
{quote} Thanks, hopefully you kept your stop in place, you might be able to get out around break even. I have a pending buy order at 1.0734
Trade is still active.

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BE is not really an option that I'd take.

But it will depend on how PA behaves once it drops ... if it does.

Not the prettiest trade out there but all in all the maximum DD in pips has been just 27 pips.

Depending on the pair the stops can be as wide as 40 to 60 pips but usually I tend to avoid this play since at 40+ pips you are probably very wrong with your direction.

Note: if price makes it down to the DO line (black horizontal line) the current plan will be to lock in 2 pips profit and trail the stop until taken out by the market.

Lets see how this pans out.

Masterrmind...........
Master your Mind then Master your Trades
  • #21,276
  • Nov 16, 2016 12:41am Nov 16, 2016 12:41am
Quoting Mr. Pip
{quote} I'm going to stay away for the rest of the session. There may be a shorting opportunity between 18800 and 18017. 18804 completes a 1:1 exhaustion lies at 18811 for the bulls but orders are being accumulated on both sides this one could blow either way. If she drops expect support around 18700 good structure there. Expect the bears to come in around 18827 and again around 18876. Going to get lunch I'll be back later to catch up. Thank you all for the participation and to Mastermind for taking the time to provide his detailed thought process....
I am at least happy that I saw the possibility of the up move. However, I did not think that price would go that high. Hence, I ended finally with +5.
Thank you for your input during trading time. I have to learn to be more patient and to let things run.
  • #21,277
  • Nov 16, 2016 12:55am Nov 16, 2016 12:55am
Quoting Masterrmind
{quote} Trade is still active. {image} BE is not really an option that I'd take. But it will depend on how PA behaves once it drops ... if it does. Not the prettiest trade out there but all in all the maximum DD in pips has been just 27 pips. Depending on the pair the stops can be as wide as 40 to 60 pips but usually I tend to avoid this play since at 40+ pips you are probably very wrong with your direction. Note: if price makes it down to the DO line (black horizontal line) the current plan will be to lock in 2 pips profit and trail the stop until...
Are you trading 24/7?
  • #21,278
  • Nov 16, 2016 1:35am Nov 16, 2016 1:35am
Quoting Masterrmind
{quote} Trade is still active. {image} BE is not really an option that I'd take. But it will depend on how PA behaves once it drops ... if it does. Not the prettiest trade out there but all in all the maximum DD in pips has been just 27 pips. Depending on the pair the stops can be as wide as 40 to 60 pips but usually I tend to avoid this play since at 40+ pips you are probably very wrong with your direction. Note: if price makes it down to the DO line (black horizontal line) the current plan will be to lock in 2 pips profit and trail the stop until...
EU trade

Attached Image (click to enlarge)
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Closed out at the DO line for +11.2 pips.

Not the prettiest of entries I must say.

Anyway its money for jam.

Masterrmind..........
Master your Mind then Master your Trades
  • #21,279
  • Nov 16, 2016 1:41am Nov 16, 2016 1:41am
Quoting evocpr19
{quote} Are you trading 24/7?
Certainly not but I do put in some hours from time to time.

I start looking for setups around Tokyo Open and close up shop a few hours after NY fires up.

Alot depends on how I'm feeling.

Some days you are reading PA like a football and other days you know you need to have a break and unwind.

Day trading can be very demanding on a trader but the individual always has the power to say enough is enough.

Sadly for me I am painted with the workaholic brush so I seek out any green pips that I can find.

Masterrmind............
Master your Mind then Master your Trades
  • #21,280
  • Nov 16, 2016 1:55am Nov 16, 2016 1:55am
Quoting Masterrmind
{quote} EU trade {image} Closed out at the DO line for +11.2 pips. Not the prettiest of entries I must say. Anyway its money for jam. Masterrmind..........
Lets see if I can find a far better trade than the last one .....

Aggressive entries are not always the nicest of trades and in a nutshell I'd say avoid them or at least minimize them as much as possible.

Ok then onto the next setup.

Masterrmind.............
Master your Mind then Master your Trades
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