Ratios & Harmonics: a Different Way to Trade

Nice. I took the short too and got taken out BE+3 when price pulled back.

EDIT: I looked wrong. I took the short one swing later...

This one worked better. Done for the day.

really nice trade. awesome entry and exit. congrats

Rocky, before you head out, i had a question, but it was a page or 3 back:

"Rocky, I was curious if you would possibly share your parameters for your OFA software. I'm playing around with it and was curious.

I'm not able to message you or reply on your other thread due to my 'junior' status, or else I wouldn't post this request here.

Also, GREAT live session Mr. Pip"

Hi Forexgineer, you mean the parameters that took me 5 years to test and perfect Sure, why not. My charts are off now but I'll post them on my thread some time this weekend. Which version did you buy? The only tool inside the OFA I use is the Momentum tool. I use this tool mostly with the 6/5/2, 14/3/2 rotation charts. Most of my entries are based on the orderbook. Plug in orderbook trading on youtube to learn more, Rocky!

Absolutely. Life is all about teaching right? I'm currently using the 14/3/2 rotation, but for some reason the cluster markers aren't making sense to me (as compared to your screenshots). I'm still looking into jigsaw, but wanted to try OFA out first. I'm currently doing a trial of the NT8 version.

Here's a snapshot from my parameters, i'm sure out differences are here:

Thank you for your contributions rocky, you offered a lot to think about plus anothers perspective is always nice to review. best of luck my friend.

great job Mr.Pip. Your getting a real nac for this. your speach is clear and consise. To the point and easy to understand even for a dummy like myself. lol! I'll be going over it again this weekend.

I really appreciaste your thoughts on patience. I've been struggling with jumping the gun on trades. Something I'm currently working on. Sort of getting better with as well.

Do people reallly make money in the markets looking to the stars and planets? I wonder how Mrs. Cleo is at timing trades

I'll have better questions on the second go?

Thank you

Hi rocky

You wrote something to the effect that they're a few things that you disagree with regarding Damian's teaching but you did not identify them in your chart or i missed something. Could you clarify them if possible?

About the concept of liquidity, i have looked at the new and innovative platform named Bookmap from Velox which allows us to see hisrotical liquidity as shown on the DOM but in a more visual way. The first thing you realise is that liquidity always appear above of below significant swing hi/lo's which is not surprising hence my question... how can such a tool be helpful since we already can infer where liquidity will be by looking at price structure?

However, i do agree that looking at a tool like the footprint is useful but for entrys and exits only or to better gauge the imbalance that occurs near a turning point like a double top or at a support or resistance level or pinppoint an area of imbalance where a test is likely to iccur. Most traders that i know and who use these tools are scalpers whereas Damian is looking for greater profit where these tools seem to have a marginal influence.

Good morning

This would be my interruptation of the price action and swings. with the benefit of hindsight of course. its much more difficult in real time.

I believe your main error came from your nsl which gave you the conclusion to expect more mores up and a bullish bias..... heres why

I hope this helps

It has been a journey following this thread. I started in October and i can finally say I have caught up to this and finally feel i can post. I have been testing each and every lesson and learning as I go through this. I would like to thank Mr. Pip for this amazing learning tool and thread and hope that i can contribute and help others here learn as well. Also seeing Jmezz progress as a trader throughout this was absolutely fascinating so props to you brother. My goal is to be consistently making profit by the end of this year but enough about me, here is my chart and feel free to tear it apart as you see fit!

(PS i am a full time college student and work full time so if i take a awhile to reply i apologize but I will get back to you!) (Also haven't figured out how to post charts straight in post yet)

Hi Everybody, Good Morning.
Friday was a hard day...
I had almost always bad experiences tradind Fridays but, as I saw and heard Mr.Pip trading these days normally and managing trades as usual, I am committed to follow the teaching and do simply the same.
With time I am confident it will also erase my negative mental bias toward this specific trading day of the week, which I am sure plays its role in my decisions...at least at a subconscious level.
But we are here to slay the Dragon, right? And rinse and repeat, and again, and move on.
So, first trade of the day, a long on Usd/Jpy 5 min

Pretty much a “Standard entry” according to the metodology taught here. After London Open, price did accelerate into a NSH with increase of momentum. I waited for a retrace to 38,2fib to enter. I did not like at all the two big black candes forming the retracement, so when I saw the first attempt to rotation i did not take it intentionally....also, i did not like its wick to the downside making a new low. I had more info with the following candle that was bearish but not that strong, and did not succeed to close below 50% of the previous bullish candle. I actually took the following bullish rotation at candle close, receiving also a bad fill and losing 1,5pip right at the start
Hindsight talk : 1- entering the first rotation candle would have been better. 2- with that fill I had even less space to protect the trade...

SL : Under structure level and right under 61,8% fib. I couldn't afford going down to 76,4%


Price shooted fast in my direction, so i moved my SL progressively up (see SL II, III, IV, V) and looked for extended targets till being stopped after a stall for +19,7pips.

With all this bullish strenght I keeped lookin for a re-enter.
After another NSH prices corrected more deeply, and though projection was decreasing i still trusted the Bulls reading the move as a healthy retracement from the major swing.
I pulled the trigger again at the close of a good rotation candle closing to its very high....and still a sh#!§y fill!


SL this time under fib 76,4, and TP at 1:1 completion of the minor (green) up swing.

This did not work out. After 3 good bullish candle, 2 closing at 100% of the range price came tumbling down in the opposite direction, so when I saw it piercing my entry level i moved the stop at least at the first level of structure (see SL II)....and was stopped out there for – 15,3pips.


Well....more than enough for just one post i guess ...take your coffee and relax, the worst is to come in the next coming post!!

Ok...to continue...I had one more Yen trade for the day but
With that second Usd/Jpy long already opened, I saw also an opportunity on Gbp/Usd
Price was developing a bearish structure (NSL, LH, NSL) and made a wild swing after a deep retrace just after London open.
I did NOT short that rotation because :
1- the last bullish candle before rotation was very strong and closed at its 100%, so I guessed the bulls were not completely done.
2 We were going straight into major news time for Gbp (10:30 my time here in Germany).
So, after that move was exausted into a NSL, I waited a bounce for entry.
The first LH was too shallow and did not come to the 38,2 fib.
A NSL followed and the subsequent move to the LH conteined a HUGE bull candle that closed at 100%
I think here is where my subcontious kicked in : since i still believe Fridays are Shark days, and this is supported by numerous experiences in which i was stopped out for just 1,2pips (stop hunting??), I read that candle as a fake, a fade to the real intended direction of the market.
And, that big white candle had absolutely no follow up, so it was reasonable to me to short the Cable at the close of the first clear rotation available (..its up wick made a double high with the preceeding one and closed almost 100% down).



SL beyond the top of the swing +5p + spread (trying hard to be prudent...) and TP at the end of 1:1 completion of the same swing, that actually had confluence with the inverse fib 127% of the last bounce.
.here the fill was great!...but something was around with the Usd since price behaved almost like inversed carbon copy with the other Usd/Jpy trade I had already on.
After 4 bearish candles with decreasing momentum price made a first rally ending right at my entry level...this was maybe the main reason why i did not move my stop but waited.



After the price resumed the move upside, decision time was when everything stalled with 2 doji's right at the supply level. There I was confident in a strong reaction to the downside. Also, the 1:1 harmonic from the previous bounce would end under my stop level.....the overall look was still bearish so i decided to (suffer and) hold.
Finally price pierced the area taking me out at full stop 23,7 pips (OUCH!)

ok...Last trade of the day, back to Japanese Yen :
Price did speak out it wanted to go down, so according to the plan i was waiting for a retracement and a rotation to the downside to enter short.
The retracement was a bit deeper than expected after that strong NSL (that completed a 1:1 down), but I had a decent rotation candle confluent with the 50% fib.
Pulled the trigger and the fill was good.
Hindsight talk : Price made another miniswing testing the NSL but was not able to go lower (see ...uhm..??!..).
SL beyond supply and 76,4% fib. TP at 1:1 bearish completion with the previous swing.



After a good strong bear candle, price made a strong bullish pin whose low did not reach the previous NSL, hence i did not move the stop to BE, waiting for more informations. Then to my surprise and disappointment price just exploded to the upside!


I was at the point labeled manual exit. Here I think i lost my cool : according to the rules, there is not much more I should have done ( and of course I welcome all critics and comments) but I remember clearly my bad emotions kickin in hard :
oh crap! Here comes ANOTHER loser!
why You Id#]<T did not walk away with that first winner on the Yen, and be a happy camper for the weekend???!???!
c'mon that structure level will hold! Momentum to the downside was strong!! it will reverse...
Woulda, coulda...you know the story...
Price pierced the area like butter and kicked me out again at full loss -17,8pips.
I was really tired at that moment. I was at the the screen (preparation and live trading) for something like 10 hours. So i closed everything and walked away.

So, to resume : 1 winner, 3 bad losers (+19,7 -15,3 -23,7 -17,8 = 37,1pips for the day)

bad, bad, crappy day...
my reflections on the next coming post....I hope i am not boring anybody, my intent is truly to show the whole decision process, with charts and emotional content, leaving nothing uncovered for my personal advantage (i can check my own skills and grow from your contributions) as well as for the benefit of all the partecipants here, so that everybody is provided with valuable material to speed his learning curve and reach his personal trading goals as fast and effectively as possible.
maxx

Hello Traders,

Sorry the I've been a bit lost these last few days. I caught a real nasty bug that laid me out for a few days. I feel much better and will be answering every post. So keep them coming. I will be getting busy with you all again tomorrow but will do my best to start catching up later on today.

Much appreciated Rocky, adding to study list!

Was going to reply to this but Mack's analysis basically covered what I was going to say.

Thank you sir, still a ways to go

Some notes on your GBPUSD trade.

You just had a very strong wave of selling, followed by another leg where the projection was halved:



Even though you got the pullback, looking at this picture and shorting against that super bullish bar was too aggressive.

Something I like to do when you get very volatile move is to zoom out or go to a higher timeframe and see the lay of the land. If you did that you would have seen this:



Chart above shows long term view where you have an OFC and harmonic pb to support / demand.

On USDJPY, yeah you got the order flow change so the short would have been the better option to go for or manage your long trail aggressively testing that consolidation zone.

2nd USDJPY trade looks like it should have been a b/e as it tested the structure.

These just my thoughts btw.