Ratios & Harmonics: a Different Way to Trade
To see if anyone was here.- #29,088
- May 30, 2017 9:15am May 30, 2017 9:15am
- | Joined Mar 2016 | Status: Trader | 1,068 Posts
YM +29
NQ +3.5
NQ +3.5
- #29,090
- May 30, 2017 9:31am May 30, 2017 9:31am
- | Joined Mar 2016 | Status: Trader | 1,068 Posts
{quote} There goes the train..... Read the Order Flow correctly but needed more confluence to build a case. Too bad price did not come into my AOI in order for me to pull the trigger.....
Also, I had untested breakout on my radar from last week, should have been open to the idea of the retest this week as order flow was headed down. Would have been a nice flip short at structure to retest the breakout. There was also a demand level there at 998 which price drilled to the tick.
- #29,092
- May 30, 2017 1:07pm May 30, 2017 1:07pm
- | Joined Mar 2016 | Status: Trader | 1,068 Posts
{quote} I guess I drew my Fib with a bigger TF and did not get the Golden Ratio in time. The Order Flow behaved exactly the way I wanted but I did not want to break my rules and moreover I had a SD zone nearby. Guess I am playing extremely safe and should be aggressive in the future. By the way, the way you took your trade on YM was spot on and you did not even wait for the candle to close bullish. Hope to learn more from your post and one day include this way of trading into my trading plan. {image}
Look for a bar that gets engulfed and then use the open of the bar that gets engulfed as your level. If it's a doji, you can use the open / close of the doji or the open of the bar prior to the doji.
Another type of level I like to use is something I call a leg start. At a swing high, it is the very first sell bar after the swing high and vice versa for a swing low. I see reactions at these levels all the time with best reactions being when price hits an untested level.
Example of reactions:
There is almost always a pause at the very least at both of these types of levels, but most instances there's a bounce to be played and possible continuation and that's where you can apply principles from this thread. If using higher timeframe levels, I like to look for price weakening on the tick going into the level itself. Because a lot of times price bounces right to the tick, am finding that you don't have to give these too much room on the higher timeframes. On the tick charts, your risk is obvious as you use the swing high or low to place your stop. The pops or drops can generate some cash flow but ultimately you're looking for price to keep progressing away from your level or for price to put in a higher high or a lower low depending on what type of trade you take.
Basically am trying to shrink my risk as much as possible. Playing these levels lends opportunity to keep risk under 10pts on YM (sometimes less) and anywhere from 1-3pts on NQ. My trade on YM today was 29pts on an initial risk of 6pts, which I immediately altered to 2pts once I saw price bounce, which I then locked in a couple at the structure test.
- #29,096
- May 31, 2017 7:48am May 31, 2017 7:48am
Hey everyone, Been trading for some time now and using areas of structure combined with trend lines for most of my trades and have been profitable, however I am very new to these advanced patterns and would like someone to take a look at what I am seeing here and let me know if this is a strong potential setup, or if I am looking at something incorrectly. Of course this pattern isn't valid until price reaches that zone and presents a Bullish PA, however it appears the bears won't have an issue reaching that zone this upcoming week. I still think...
Oh well..
- #29,097
- May 31, 2017 8:33am May 31, 2017 8:33am
- Joined Nov 2009 | Status: Trader | 2,232 Posts
{quote} I've touched on this before, mostly keep an eye on these types of supply / demand levels on higher timeframes but lately have found they work well on our tick charts as well. They allow for great r:r and straightforward trade management. Look for a bar that gets engulfed and then use the open of the bar that gets engulfed as your level. If it's a doji, you can use the open / close of the doji or the open of the bar prior to the doji. {image} {image} {image} {image} Another type of level I like to use is something I call a leg start. At a...
Luck has no place in trading. Leave that for the poker table.
