Harmonic Currency Pair Cross Index | Currency Futures

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Harmonic Currency Pair Cross Index

  #13 (permalink)

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

feelnot View Post
Putting a high period ADX on the chart for direction and then me pin pointing entries myself. I think will make me much more comfortable trading in general. When a high period ADX is on, even though it lags. It seems to find the powerhouse direction so it's much more likely that any sudden spikes go in your direction. I don't like the default period because it whipsaws a lot so crossings can not be used. But waiting for a more clear + over - and it becomes irrelevant because the direction has reversed on you.

feelnot View Post
My point is I don't want to go trade harmonic patterns or some advanced stuff before I'm comfortable trading a very nooby way yet still able to make a profit.

Newbie ways of trading are not the optimal ways of trading. I would not call Harmonic Patterns very advanced and certainly the Newbie can understand them and trade them after spending the requisite amount of time studying them. In fact, they are easier for the Newbie, because you really are not that much concerned with tracking a trend -and- you can have equally as many good trades against the trend, as you can trading with the trend when using Harmonics.

I would most certainly classify Elliot Waves, has being more "advanced" than Harmonic Patterns. I would not tell a Newbie (unless they already had a technical background) to go out and start learning about Elliot Wave Theory, and be ready to implement a trading plan within a week. However, in less time, you can learn Harmonics and be trading with it to some degree of success. Once you get used to seeing them, Harmonic patterns are easily spotted on almost any chart. It is like anything else - the more you expose your brain to it, the easier it becomes to recognize it.

On the other side of your statement, you should know that the newbie can take a simple EMA Cross Over method and make it work, using the right MM strategy. However, it won't (can't) be optimized to remove the high percentage of failed trades that must occur with such methodologies, unless you add other filters to the strategy. Newbies, do have choices, but getting them to see those choices is another matter altogether.

Anybody that has spent enough time on the M1 (or M5) chart, should know how to pay the bills trading the right currency pair at the right time. Unfortunately, just like my signature says, it takes people a really long time to figuring this out, such that they finally realize that the most basic of trading methods can and do work, if applied correctly and if decent MM is used. But, that's just a basic, pay the bills existence. I'm not talking about building real wealth using an EMA Cross Over. I don't want to be misquoted, here. I'm talking about a Newbie, building up some initial confidence that he or she can make it in this business by doing something simple enough that a 12 year old should be able to do with relative ease. Just don't expect to "drain the banks" doing it!

What I'm attempting to do, is formulate the basis for a pure Harmonic trading system that is different from the standard Harmonic patterns or systems out there. I use two (2) different types of Harmonic Patterns (conventional and my own creation) and I am trying to understand whether or not there is a causal link. I already know that some kind of link exists between the two. What I need to find is the causality for the link between the two patterns and that takes a lot of research.

I'll post some pics to help illustrate.

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