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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

  • #23,921
  • Jan 22, 2017 3:46pm Jan 22, 2017 3:46pm
Quoting maxx7
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...

Sorry to hijack your chart Maxx but this was obvious to me If your interested in this common PA pattern google channel breaks and 2 leg pullbacks and 2 leg trap for more info
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  • #23,922
  • Jan 22, 2017 3:58pm Jan 22, 2017 3:58pm
The pattern is a common major reversal pattern we had a classic in the eurusd on friday
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  • #23,923
  • Jan 22, 2017 4:16pm Jan 22, 2017 4:16pm
and reading further into your post you got hit by that again. Here the original leg that broke the channel is marked as the first leg, this happens when the first pullback is very deep, expect another leg then resumption, retest of the high and then a change of trend
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  • #23,924
  • Jan 22, 2017 4:39pm Jan 22, 2017 4:39pm
And sitting at my comp watching the eurusd we just had the same Not trading as spread too wide.
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  • #23,925
  • Jan 22, 2017 11:32pm Jan 22, 2017 11:32pm
Quoting Ren1058
{quote} Sorry to hijack your chart Maxx but this was obvious to me If your interested in this common PA pattern google channel breaks and 2 leg pullbacks and 2 leg trap for more info {image}
Interesting stuff Ren, never seen this before. I will do my research later tonight (i have to go to...work/school....it would be long to explain)
But the first question that arise from the top of my head watching this is : how do you filter bear trap moves from a regular market structure developing (NSH,HL,NSH or NSL,LH,NSL and so on)?
i'd guess you stick to what microstructure tells you (once the HL or LH is violated you go with the new reversed flow)...or is my guess too simplistic??
If you quit, it is NEVER going to happen...
  • #23,926
  • Jan 23, 2017 2:26am Jan 23, 2017 2:26am
Quoting maxx7
{quote} Interesting stuff Ren, never seen this before. I will do my research later tonight (i have to go to...work/school....it would be long to explain) But the first question that arise from the top of my head watching this is : how do you filter bear trap moves from a regular market structure developing (NSH,HL,NSH or NSL,LH,NSL and so on)? i'd guess you stick to what microstructure tells you (once the HL or LH is violated you go with the new reversed flow)...or is my guess too simplistic??
I dont really think in those terms (NSH NSL etc) but more in 'legs' as most moves have 2 legs, its just something to be aware of when you see a 2 legged pullback just watch out for the bear trap, we just had another in eurusd 5min. best of luck:
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  • #23,927
  • Jan 23, 2017 3:45am Jan 23, 2017 3:45am
Trying to understand and train this trend expectation and order flow trading approach to see how I can integrate this knowledge in my trading plan.
There's so much free quality content around, especially in this thread.
Going to focus here for a while, hope you don't mind my charts and please comment if you see any mistakes or have a different opinion.
The best learning experience is when you teach

EU 5m

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After the strong move up, not so much convinced to see such a deep RT.
But for a good R:R I'm not looking for an entry before the 0.618 fib.

Alternative scenario
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the 3rd wave is the crowd's wave
  • #23,928
  • Jan 23, 2017 3:45am Jan 23, 2017 3:45am
This has also turned out to be the change of trend pattern I mentioned a few posts ago(see annotation) good luck
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  • #23,929
  • Jan 23, 2017 4:05am Jan 23, 2017 4:05am
USDJPY 5m I think the sellers start to show some weakness, I would like to see a NSH in the short term OF for additional confirmation.
Only concern is that the sellers were quite strong on approach... But I think the buyers at demand could attack soon:
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I think the deep retracement was expected after a weak NSH and expectation failure, so should not be a concern.
the 3rd wave is the crowd's wave
  • #23,930
  • Jan 23, 2017 4:41am Jan 23, 2017 4:41am
Same again, like shooting fish in a barrel
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  • #23,931
  • Jan 23, 2017 4:49am Jan 23, 2017 4:49am
Quoting Ren1058
Same again, like shooting fish in a barrel {image}
Nice patterns Ren ... but what do they have to do with Mr.Pip's method ?
  • #23,932
  • Jan 23, 2017 4:50am Jan 23, 2017 4:50am
Quoting Mr. Pip
Who feels like there trading is progressing in a good direction? How has the last couple of weeks benefited your trading and what do you feel se need to look at deeper? I know about trading psychology and accumulation and distribution of orders. But what else. I also want to put to paper the date of the next stream. This time I want to see lots of you guys there.
I feel my trading is progressing in a very good direction. I have to admit, after starting reading this thread and saying goodbye to indicators, I felt a little lost in the last weeks. But since last week's wednesday, I am starting to get a sense of the market, and having alot of good guesses of what moves it will do and more importantly, I am starting to have a good idea at what areas it usually either resumes or reverses.

I feel that this was the major breakthrough for me last week: What areas really matter and I should wait for market decisions, and areas where its just dead noise, to disregard PA and in no way chase price or feel missing out.

I still need alot of work in market structure and order flow, but I also feel I am improving on it. I will probably need a few weeks to validate what I know, because maybe last wednesday/thursday/friday, maybe I was just lucky on those days.
  • #23,933
  • Jan 23, 2017 5:04am Jan 23, 2017 5:04am
Switched to short, reversal at PRZ target 1.27 ext
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  • #23,934
  • Jan 23, 2017 5:11am Jan 23, 2017 5:11am
stop to entry no follow through at new PRZ
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  • #23,935
  • Jan 23, 2017 5:43am Jan 23, 2017 5:43am
Re-entered short. I think my stop to entry was a reasonable response to the the PA at the potential PRZ of the last up-leg as my primary goal is not to lose money I would have entered much higher but a phone call took me away from the screen
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  • #23,936
  • Jan 23, 2017 6:35am Jan 23, 2017 6:35am
took a 2 pip loss on last trade but picture now clearer. Long:
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  • #23,937
  • Jan 23, 2017 6:45am Jan 23, 2017 6:45am
again
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  • #23,938
  • Jan 23, 2017 7:03am Jan 23, 2017 7:03am
Quoting juriFX
USDJPY 5m I think the sellers start to show some weakness, I would like to see a NSH in the short term OF for additional confirmation. Only concern is that the sellers were quite strong on approach... But I think the buyers at demand could attack soon: uj 5m 30m.png;2151185 I think the deep retracement was expected after a weak NSH and expectation failure, so should not be a concern. {image}
(USDJPY continued)

Short term aligning with longer term expectation?
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Bears have still some volume but weakening, I'm long now.

EDIT: and now this rotation candle showed up
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the 3rd wave is the crowd's wave
  • #23,939
  • Jan 23, 2017 8:39am Jan 23, 2017 8:39am
very nice swing trade after difficult morn Discovered recent volatility was defence of DXY at crucial support http://www.zerohedge.com/news/2017-01-23/dollar-index-crucial-level (http://www.zerohedge.com/news/2017-01-23/dollar-index-crucial-level)
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  • #23,940
  • Jan 23, 2017 8:44am Jan 23, 2017 8:44am
Quoting grambo21
Mr Pip, Thank you for the live stream. Excellent Work. I am unclear on how you identify when to move Stop Loss to breakeven. Can you please explain.
Hello, I'm still not doing well but will catch up today and look to trade tomorrow.

As to when to move stops to a break even point. There are two scenarios we trade as traders regardless or what people might think:

1. A correction- These are found at point D of patterns and after a continuation or what other traders call an impulse move or leg. The breakeven for this should be at the 38% correction point of the main swing.

2. A continuation- This is the C to D leg of the patterns and you are looking to benefit from the expectation of next NSH or NSL. The breakeven for this is at the test of the previous high or low depending in which direction you are trading.

If this is unclear or I've not answered your question let me know and I will work on something more visual.
If you fail to plan, you plan to fail.
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