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Harmonic Currency Pair Cross Index

  #3 (permalink)

Edmonton, Canada
 
 
Posts: 187 since Apr 2011
Thanks: 12 given, 162 received


Hello Fat Tails,

Sorry. I did not draw out the harmonics on either charts this time. I'm still in the testing phases with the trading platform the produced the charts and I've just been told by the company that made the trading platform, that they are getting ready to release a trunk version of the same platform with some of the much needed improvements and optimization that it current lacks.

I was basically trying to demonstrate (somewhat visually) that harmonic patterns exist not only on standard time-frames and non-standard time-frames, but harmonic patterns exist even across multiple, aggregated currency pairs, that have either the same Base or the same Counter.

The charts above are cross pair index charts. So, in this index, the chart is an aggregation of six (6) different pairs with EUR as the Base:

EURUSD
EURCHF
EURCAD
EURAUD
EURNZD
EURJPY

I'm using a 27 inch monitor, running a 1920 X 1080 resolution. So, by the time I get the image onto the tinypic host for conversion, the pixel resolution gets fogged up a bit. It looks razor sharp on my 27" LG, but I can't seem to find a way to get that image quality transferred to an image hosting site. I've tried just about every image resolution I can. Of course, if I let the site upload the image in its native resolution - then it looks razor sharp - but it also blows out the HTML framing on Big Mikes server and you end up with an image that's a mile wide and two miles in height.

I'll draw-out the patterns the next time - at least that way you can see what I'm referring to. Again, the real interesting part (I thought) was find out that indeed, the harmonics do exist on standard and non-standard bar aggregated cross pair index charts. That tells me that the markets are more harmonic than I first thought.

Getting harmonics on a single currency pair is one thing. Getting them to show up so vividly across multiple dissimilar currency pairs in the Price Aggregate, is quite another.

I'll do some more later. I'm trying to see if I can get ZUP or Korharmonic

In the meantime, this is a short video on the concept. It is an idea that been around for a while. But, the carts that Larry is working with are all based in a singular currency pair in his examples, which is quite different from that have posted here.

Fibonacci: 4/9: Larry Pesavento: 8/7/10 (you can also watch 5/9 through 9/9 on your own)

This link should also lay it out for you fairly well: HarmonicTrader.com - Harmonic Price Patterns
This link has other forms of harmonic-like patterns as well: http://www.traderslaboratory.com/webinars/suriDuddella_TL_Oct2408.pdf

Of course, there are books written on the subject of Harmonic Patterns that you can use to sharpen the eye:

Harmonic Trading, by Scott Carney
Trade What You See, by Larry Pesavento
Trade Chart Patterns Like The Pros, by Suri Duddella

Now, I have another form of Harmonic Pattern that I am not ready to release yet. It comes from my own research and its basic structure comes from an Indicator that I created many years ago. I never looked at it as being "harmonic" until I started to recently pay some attention to Larry, Scott and Suri. I had read Constance Brown, but the I did not connect the dots until I saw the video that I just posted for you above with Larry, and the basic Gartley pattern.

My harmonic patterns are unlike the others because they are fixed in time. In other words, you know exactly when the pattern will start and when it will end. In fact, my patterns starts with Bar [0] and ends with Bar [1]. So, harmonic pattern structure covers the span of any two bars of data. I call the pattern: Harmonic Trajectories. This is because the patterns are based on the core principle embedded within my system called the Trajectory. I'll get into some of the details on Trajectories later. There are different types of Trajectories in my system, but the two that form the harmonic pattern that I'm referring to now come from one of the indicators that I created in the early stages of system development, many years ago.

I am still working on this concept, so it is not yet fully formed, nor am I trading it right now because it has not yet been through any certification for inclusion into my system. But, I do believe it to be a brand new frontier for my system, as I had once thought that I simply had no more ideas left to improve upon the systems overall performance.

So, at this point, I am studying standard harmonics to the Nth degree, so that I can generate as many ideas as possible for the development of Harmonic Trajectories. As I develop the idea and figure out what I can release to the public and what I cannot release, I will post some examples of what they look like and how they function - to the degree that I can.

The very early summary thesis is two fold:
1) Harmonic Trajectories will always lead to the "D" point of Standard Harmonic Patterns, when the Harmonic Trajectory is Non-Conforming.

2) Harmonic Trajectories will always lead to the Dominant Trajectory, when the Harmonic Trajectory is Conforming.
[I realize that I have not defined any of these "terms" yet, but I'm just basically laying out the research path that is now before me.]

Basically, if this works out, I should be able to push my trading system's accuracy to a specified target, into the very high 90% range and keep it there. Also, if this works out, then the Harmonic Trajectory Patterns will essentially become the early warning indicator for when a standard Harmonic Patterns stands the highest probability for failure. Of course, that's my current, unfinished theory and it is subject to change.

I'll come back to define some terms and post some charts a little later.
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