NexusFi: Find Your Edge


Home Menu

 





Harmonic Trading


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one George with 56 posts (128 thanks)
    2. looks_two MajorMagnuM with 29 posts (1 thanks)
    3. looks_3 TraderJesse with 19 posts (27 thanks)
    4. looks_4 Fat Tails with 9 posts (20 thanks)
      Best Posters
    1. looks_one Big Mike with 5.8 thanks per post
    2. looks_two George with 2.3 thanks per post
    3. looks_3 Fat Tails with 2.2 thanks per post
    4. looks_4 TraderJesse with 1.4 thanks per post
    1. trending_up 112,085 views
    2. thumb_up 248 thanks given
    3. group 69 followers
    1. forum 166 posts
    2. attach_file 130 attachments




 
Search this Thread

Harmonic Trading

  #11 (permalink)
 
websouth's Avatar
 websouth 
Perdido Beach, AL
Market Wizard
 
Experience: Intermediate
Platform: graph paper
Trading: The shiny stuff
Posts: 1,209 since Jul 2009
Thanks Given: 1,116
Thanks Received: 1,335

I will need to look at the numbers you are talking about . I have been using the fib extension tool instead of the retracement tool. A trick I learned from Gio on this board. It provides pretty safe entries. I think it is the same numbers just inverted..... looking into it now.

I draw A-B and C. Then wait for the price to make a decision to fail the retrace and go back thru the 0 line or confirm with a move up thru the 50% line (green). This is entry at the latest. Then looking for price to shoot through the 100% line. (seashell) If price goes thru this and comes back immediately I exit with breakeven or small gain. If price contines thru the 100% line then the target is the 127/161 (fuschia) area look to take profits here. If continues then next area is 231/261 (dark cyan) and final target is 423 (seashell). 423% is a great day...

Price really seems to respect these levels...

In image below I was hoping for a long but it could have gone either way. Confirmation was break of green line (50%) A break to the downside would have just set up in the opposite direction....




Also I use the tool to look for tops... If momentum seems to fading. The put the "tool" on and watch. If price can't make it past the 100% (seashell line) then look for more weakness.


Attached Thumbnails
Click image for larger version

Name:	fibExtensions.jpg
Views:	922
Size:	139.4 KB
ID:	3037   Click image for larger version

Name:	lookingfortop.jpg
Views:	862
Size:	109.3 KB
ID:	3038  
Visit my NexusFi Trade Journal Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Ninja Mobile Trader VPS (ninjamobiletrader.com)
Trading Reviews and Vendors
Exit Strategy
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
37 thanks
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #12 (permalink)
 keepdchange 
California
 
Experience: Intermediate
Platform: Ninjatrader
Broker: Zen Fire
Trading: ES, Currency Futures (6E)
Posts: 157 since Sep 2009
Thanks Given: 78
Thanks Received: 10

Yes George, Thanks. My questions really is, in your last attachment for example, why are not the waves previous to the one you are showing A-B waves. How come you started showing the possible point A from there and not before.

Thanks
-Keep

Reply With Quote
  #13 (permalink)
 
George's Avatar
 George 
Sweden
 
Experience: Master
Platform: TT, NT, MetaTrader
Broker: Velocity Futures, MB Trading
Trading: EUR/USD
Posts: 401 since Jun 2009
Thanks Given: 1,005
Thanks Received: 1,323


Websouth,

Thanks for the input. But isn't the effect of what you're describing giving you somehow random probabilities?

What you're describing is not Pessavento AB=CD, because it lacks the relationship BC = ,618 or ,786 of AB

What I mean by random is that it doesn't respect the harmonic retraces of ,618 or ,786 (,382 if strong move). The BC which is the key in this case is random. The way I understand it, you could be jumping on any pullback, as long as it's a pullback!

Just my 2 cents.
/George

Started this thread Reply With Quote
  #14 (permalink)
 
George's Avatar
 George 
Sweden
 
Experience: Master
Platform: TT, NT, MetaTrader
Broker: Velocity Futures, MB Trading
Trading: EUR/USD
Posts: 401 since Jun 2009
Thanks Given: 1,005
Thanks Received: 1,323


keepdchange View Post
Yes George, Thanks. My questions really is, in your last attachment for example, why are not the waves previous to the one you are showing A-B waves. How come you started showing the possible point A from there and not before.

Thanks
-Keep

Keep,

They could be, put a retracement on them and measure them. See if they respect the rules, if they don't it means that the AB=CB relationship doesn't exist. What you want is the odds with you. Imagine you are out there with a stick, measuring stuff, when you've found the thing you're looking for and it fits your stick, then it means it's gone work well, with your expectations. And your expectations are based on the value of your stick.

Or imagine this. You're looking for a constant value of 10 bars. If we look at a chart with a frame of 3 ranges for i.e. then you might get a range from 1 to 5! So each bar represents 3 ranges, and what you want is the value of 10 bars.

Now if you take a bar of 10 ranges, will you then get another range value? Yes you will!
But nevertheless the relationship hasn't changed! You still have a value of 10 bars.

So in this case if you measure the top from another position, you're still looking for that value of retracement. Aren't you?

R u with me now?!

/George

Started this thread Reply With Quote
Thanked by:
  #15 (permalink)
 keepdchange 
California
 
Experience: Intermediate
Platform: Ninjatrader
Broker: Zen Fire
Trading: ES, Currency Futures (6E)
Posts: 157 since Sep 2009
Thanks Given: 78
Thanks Received: 10

I have to look at it in a closer detail I think. Thanks for the explanation. My experience with waves has been that let's say market drops from point A to point B, then it retraces back (and they usually do by .38, .5 or .618). Most do that. So does that mean each one is a wave AB?

Thanks
-Keep

Reply With Quote
  #16 (permalink)
 KJAVED 
Toronto Canada
 
Experience: Intermediate
Platform: ninja Trader, Ensign,Market Delta
Broker: AMP,Global Futures
Trading: Eminis
Posts: 97 since Jun 2009
Thanks Given: 46
Thanks Received: 83

The answr to Your question is simple. To understand Harmonic patterns some one must have sound knowlege/understanding of Elliot waves and Fib. For Elliot waves you must look for good ZigZag Indicator. Some are available free on this forum as well as on Ninja trader forum. But all just works up to certain level. So I advise you to look into market for some good Elliot wave tool. Then make your self well trained in Elliotwave count. After that make lot reading on Fibs and read charts or their proper application. As Elliot wave and Fib have very close relation to each other and always keep you on write side of market. I spent a complete year to study them. Now I am comfortable. Once you get all this, then Its very easy for you to see harmonic patterns and pattern with in patterns. Answer for AB indification, it can be be any wave. I hope may be These few words helpful or you.

Reply With Quote
Thanked by:
  #17 (permalink)
 keepdchange 
California
 
Experience: Intermediate
Platform: Ninjatrader
Broker: Zen Fire
Trading: ES, Currency Futures (6E)
Posts: 157 since Sep 2009
Thanks Given: 78
Thanks Received: 10

Thank you KJAVED. Would you be able to recomend any Elliot tools?

Thanks
-Keep

Reply With Quote
  #18 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,399 since Jun 2009
Thanks Given: 33,175
Thanks Received: 101,539

Here is a AB=CD example PDF with illustrations/charts.

Mike

We're here to help: just ask the community or contact our Help Desk

Quick Links: Change your Username or Register as a Vendor
Searching for trading reviews? Review this list
Lifetime Elite Membership: Sign-up for only $149 USD
Exclusive money saving offers from our Site Sponsors: Browse Offers
Report problems with the site: Using the NexusFi changelog thread
Attached Thumbnails
Harmonic Trading-gft-abcd-bearish.pdf  
Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
  #19 (permalink)
 gio5959 
Chiron
 
Experience: None
Platform: ninjatrader
Broker: Amp Futures/Zen-Fire
Trading: ES
Posts: 737 since Aug 2009
Thanks Given: 25
Thanks Received: 155


keepdchange View Post
Thank you KJAVED. Would you be able to recomend any Elliot tools?

Thanks
-Keep

keepdchange

the best wave tool is the elliot osc found at ninja forum

however, im lazy and use MTP which i got from rich's ttt
,
take care

Attached Thumbnails
Click image for larger version

Name:	elliot waves.jpg
Views:	651
Size:	102.3 KB
ID:	3056  
Visit my NexusFi Trade Journal Reply With Quote
  #20 (permalink)
 
websouth's Avatar
 websouth 
Perdido Beach, AL
Market Wizard
 
Experience: Intermediate
Platform: graph paper
Trading: The shiny stuff
Posts: 1,209 since Jul 2009
Thanks Given: 1,116
Thanks Received: 1,335


This indicator will probably do the searching as far as finding qualifying retracements.... Because the fib draw tool is a stock ninja feature I don't think you can edit it or call an edited version. You can click on it and edit while on your chart but a refresh goes back to standard settings as far as the fib - showing all the levels and the text description. It would be nice to show clean just the 3 levels you mention as in screen shot...

Attached Thumbnails
Click image for larger version

Name:	swingtemp.jpg
Views:	543
Size:	160.6 KB
ID:	3058  
Visit my NexusFi Trade Journal Reply With Quote




Last Updated on October 29, 2018


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts