Ratios & Harmonics: a Different Way to Trade

Hello traders,

With such a high level trading going on here it is very daunting for us newbies to post charts, but we al have to start somewhere...
I'm just incorporating a few things I've learned so far into a chart(missing order flow analysis ).
I know in hindsight it's much easier , but I think this is a great way to learn.

Regards

Nice work. You are doing great. As for gaps they can be hard to process sometimes due to the missing price action. They often try to fill as in this case. When you don't have a clear expectation due to gaps or choppy markets the best thing to do is acknowledge that you need more information and wait for it to print on the chart. I have more experience so I drill down into shorter term order flow and see what it's telling me about those expectations and then I see how that fits into the longer term order flow and the context of time and space. That may be over you experience level at the present so don't feel overwhelmed. A couple of questions that are important to ask your self are.

What at does this means?

How does this affect the expectation ?

If you can't answe those questions you need to wait for more information to print. I hope this helps and I'm pleased with your assessment good chart!

hi mr pips. first thanks you video and sorry for waste you time to made video
and i think i need explain of my post.
my system is current on developming, no real trade even demo trade,
mean me is begin backtest only... if real trade i think i will need at least few year backtesting on this for more confident to this ...
i also no expect you use my post pic made a video....
because i post that post not ask your question , that is my share and play play only....
i not like the 5min chart. cause it too fast for me...and i no so many time to focus..
normally i use 1hourchart... but for this backtest i use 15min .. 15min is the most low time i can accept...

for the stoploss ,i think market will change behavior after some time...
in my opinion, the behavior normally is = market pips range, some times market range many big , and for this trend system / breakout system / ma system that is very good, but sometimes market range were reduce to small and almost in sideway, now the bolingerbands/swing system is good and trend system will now not work
sometime trade stoploss will be large eg 40-60pip and sometimes will be small eg 20-30pip

so i think can do it by smaller the trade lot size, because if market range big,profit can big too
eg my trade size is 1pips=usd 1... 20pip... but when market rangebig, my sl become 40pip , i can reduct lot size to 1pips=usd 0.5 and my tp 20pips will become 40pip too. so my loss profit in any range market will same, so stoploss bigger is same as the low stoploss , cause we need based on the market range, if market range big , stoploss 20point may easy hits... same as market range low, stoploss smaller too... sl based on market range not market based on my sl..

this is my opinion only... i got two year no trade for busy some works.. just this month come back again.. two year ago i got view your post, no understand too... 2014 that year i view your post all is harmonic pattern（abcd,bat,butterfly）, but now come to this post the harmonic patter disappear... that is what i not like.. mean the system change change change... maybe after two year.. system change again... in that year new way to determine/expect market again///

i upload newpic again to explain my post
but i need to say again this is under developming...dont be serious about this and my reply
because i am a losing trader... just own opinion only
don't scold me
and i need honest to say i still not understand what you say on video
very sorry...

How did your trade end? I took a look on my MT4 platform after your post to better understand your train of thoughts and was curious to see how you would manage it. Not sure a rescue mission "a la Damian" would have worked on this setup. Anyway, thanks for sharing.

if change 15min chart to 5min chart it seems good ratio for mrpips say
in this pic 51pips take profit / 17pips sl 127.2% tp / 0.0% SL

Out just above the 1.42 handle for a loss on that entry.

Then EA went like a rocket to the moon.

I do have a recover strategy that I apply quite often but it forms no real part in the methods of this thread so I will not elaborate too much here.

Except to say it can be a combination of hedging in the same or different pairs such that the loss is significantly reduced.

In short the first trade will end as a loss usually but the additional trades will be traded to offset this loss.

ps. At the present time I am trading the big guns both GA + GN.

Masterrmind...........

Thx a lot for the videos and the teaching this kind of trading without any further indicators.
i tried this short on live account but with extrem small positionsize. --Some kind of demotrading.--
The suport under the B line was very strong but as long as volume grows, i hold this short and trailing SL to B/E. TP was on the expectation point

Mr Pip. Great video on the trading session, appreciate the time and effort on creating them, please keep them coming

I've got a question on one of your potential trades, if you were to trade the below retracement into demand area:

1) would you stoploss be below the previous swing low?
2) would your target be the extension of the green line if you moved the green line up to your entry? (hope that made sense)

Example of doubts that go into my mind, written in the chart: today's uk100 in 5 minutes Timeframe.

Questions are in red. I guess when the corrections come, especially if they are complex, its a problem, now that I am without indicators. And I cannot even look at putting one, not even for a second, because it will influence my ideas.

Monday-Sell Day
2:12am-4:40am: Breakeven (really loss have to pay commision) Trade executed 4:11am
Took an aggressive short into structure using short term order flow thinking we would have a break to the downside. 3 hours later it for a breakeven.

Lessons Learned:
Leave short term order flow alone unless in a tight range
Wait for stronger momentum
Wait for the break of intermediate structure

GM Traders, I will catch up on the thread later today. Let's get on with today's outlook.

Today we have a market in which the Bulls are trying to recover. We can see this because the broke structure to the high side with a NSH above the main swing. Momentum and volume were good but structure held and the weak NSH with the expectation failure gives us an expectation of a deep correction which we got. We would expect the buyers to step into the market somewhere around here where price is at since there is structure to the left. Overall longer term order flow is to the down side so caution on the longs and on the shorts as well. My bias favors the bears however will not be unreasonable to look for some longs as well as long as the risk reward is justified.

Also forgot to mention no real scheduled volatility until 1:30 that the Feds speak.

The Bulls came in where expected as I mentioned but they look like crap and the bears are already showing aggression. Will be looking for shorts around as early as 820- the highs

Did not get short as the bulls got a dose of espresso.

I am no longer in the market for shorts for the time being. NSH had been achieved so the market is speaking saying long. Will see if I can get a good correction here for a long. So far the market is moving in line with the intraday expectation and in tune with my initial analysis.

RR is not optimal here plus it appears like the bears should be able to correct deeper. I will patiently wait for price to come into my area of interest at 811-800 for the long. Let's see if price gets there.

Bears are likely to defend 830 area and higher so I need room to protect.

I might have missed the entry. Price did not correct deep enough for me to protect but, I might still get another shot at the long. Can you all see how I stay ahead of price action and am aware of the obstacles ahead of me. I don't mind missing opportunities if price did not come to me. I will not chase price or take on risk in it's terms.

Remember I said the bears are likely to defend 830 or high a couple of post back and needing room to protect. look at the chart. this is what is happening. Having situational awareness is very important. Understanding what areas are likely to be defended by your opposition help you to not get in trouble early on in your trade. Still hunting for longs but price has to come to me.