Harmonic Trading - Traders Hideout | futures io social day trading
futures io futures trading


Harmonic Trading
Updated: Views / Replies:51,630 / 165
Created: by George Attachments:130

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 130  
 
Thread Tools Search this Thread
 

Harmonic Trading

  #81 (permalink)
Elite Member
Denver
 
Futures Experience: None
Platform: NinjaTrader
 
TraderJesse's Avatar
 
Posts: 83 since Aug 2009
Thanks: 50 given, 89 received

Found this one George

The all the different colors are killing me ! I'll will work with and try to figure it out later.



Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Attached Files
Register to download File Type: zip threebarreversalpaintv3.zip (2.1 KB, 88 views)
Reply With Quote
The following user says Thank You to TraderJesse for this post:
 
  #82 (permalink)
Elite Member
Sweden
 
Futures Experience: Master
Platform: TT, NT, MetaTrader
Broker/Data: Velocity Futures, MB Trading
Favorite Futures: EUR/USD
 
George's Avatar
 
Posts: 401 since Jun 2009
Thanks: 1,005 given, 1,168 received

Ok, hope it works out well!

/George

Reply With Quote
 
  #83 (permalink)
Elite Member
Sweden
 
Futures Experience: Master
Platform: TT, NT, MetaTrader
Broker/Data: Velocity Futures, MB Trading
Favorite Futures: EUR/USD
 
George's Avatar
 
Posts: 401 since Jun 2009
Thanks: 1,005 given, 1,168 received


1,618 Projection

1,618 projection usually indicates exhaustive price action. Often, when price action exceeds the 1,618, it usually represents extreme price action that is difficult to sustain. The 1,618 can also be considered as overbought/oversold since the 1,618 represents price action that is too extreme. Therefore reversals that occur beyond this area will usually happen quickly. When the 1,618 projection within a PRZ has been tested, the determination of the trades execution is imminent.


Bullish 1,618

When a bullish 1,618 projection occurs we can often assume that we're facing an extreme sell-off. When price action is declining, the trend can often become over-extended. Then 1,618 projection point can identify profitable set-ups, since price action that reverses from these over-extended areas can frequently provide sizable reactions.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).



Bearish 1,618

This one is an important level because it is an excellent area to take profits or enter a short position. The same goes for this one, it represents an extreme price area. Often, when an established trend tests a significant 1,618 projection, it will encounter some degree of resistance.

Although price action does exceed the 1,618 area, it is important to understand that such action can be difficult to maintain. Also, if the area is exceeded, the price action should rally strongly through the area to ensure that a reversal will not occur. Therefore, it is critical to examine closely the area and be prepared to sell, regardless of the best prospects perceived.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 3 users say Thank You to George for this post:
 
  #84 (permalink)
Elite Member
Sweden
 
Futures Experience: Master
Platform: TT, NT, MetaTrader
Broker/Data: Velocity Futures, MB Trading
Favorite Futures: EUR/USD
 
George's Avatar
 
Posts: 401 since Jun 2009
Thanks: 1,005 given, 1,168 received

A small Summary

0,618
0,786
1,270
1,618


We started this journey with the ,618 retracement. It's one of the most significant Fibonacci numbers out there. We also included into this HR the 0,786 retracement level. This one appears when price action has gone past the ,618 retracement level and it indicates extreme price action. In case it fails, the price action continues in the direction of its previous move.

In order to find HR out there, we start the whole HR journey by measuring relations in price movements. We simply pick a movement and we apply the 0,618 retracement level in order to project the reversal area. In case the movement has passed beyond the 0,618 are, we look for the next level which is the 0,786 retracement level.

No rocket science here right? Just a simple observation of where the price action has started, ended and a retracement projection.

Next step is to measure the projection from beginning to the end. After that you put out the projection. If the retracement is 0,618 then the projection is of 1,618. If the projection is 0,786 then the projection is 1,27.

IF we put all this together we get the AB = CD pattern. By now we have alltogehter a relationship of three HR's. That gives the pattern a high probability.

Reply With Quote
The following 2 users say Thank You to George for this post:
 
  #85 (permalink)
Elite Member
Sweden
 
Futures Experience: Master
Platform: TT, NT, MetaTrader
Broker/Data: Velocity Futures, MB Trading
Favorite Futures: EUR/USD
 
George's Avatar
 
Posts: 401 since Jun 2009
Thanks: 1,005 given, 1,168 received

AB = CD


Before we studyied levels of retracement and projection. Now let's get to the patterns.
The most basic pattern is a the AB=CD. In this pattern, the A to B leg is the first price move. After a brief retracement from point B to point C, the pattern will complete the C to D leg, which is the same length as AB. Simply, after the AB and BC legs have been established, you project the AB length from point C.

Although the price action will not always be exactly equivalent, the AB=Cd legs usually will be close enough to determine the reversal point. Sometimes this pattern will be exact, however it's up to the trader if he/she wants to wait for the CD leg to be at least equal the AB leg. Although, it is not uncommon for the CD leg to slightly exceed the length of the AB leg, the most important concept is to study the area where these two price legs are closely equivalent.

The price legs should be generally symmetrical possessing a consistent slope. It is important to study the time duration of each leg. The AB and CD legs should be approximately the same length of time to complete. For example, if the AB leg is ten price bars, the CD leg should require the same length of time. Although this is an ideal situation, the time duration does not need to be exact. If the price legs are close, the pattern is still valid.

This pattern occurs frequently, and if you train your eye to notice these patterns, they will begin to jump out at you. It is important to look for two price legs that are distinct. Once you study several examples, you will be able to decipher AB=CD patterns easily.


Bullish AB=CD

In the bullish picture below the point A is the highest point and point D is the lowest. Each price leg should be distinct with a symmetrical slope down.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


It is difficult to observe this pattern form on a price chart and believe that a buying opportunity exists. Once the CD leg breaks down past point B, it seems as if the price action is weak. Although it may be difficult to perceive, the pattern is actually indicating an excellent buying opportunity.


Bullish AB=CD Stop Loss


The stop loss in this pattern is somewhat subjective. Generally, the stop loss should be a point below the exact completion of the pattern.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


If a reversal is going to occur, the price action usually will turn bullish in this area. So, it's important to study this area closely to determine the validity of the trade. Once the price action tests the area where the pattern completes, it "should" begin to rally. If the price action does not turn around, thee are some signs to be aware of that will invalidate the set-up. If the price action closes below the completion point or continues to decline after hitting the area, this would signal that the reversal probably would not occur.

Reply With Quote
The following 2 users say Thank You to George for this post:
 
  #86 (permalink)
Elite Member
Sweden
 
Futures Experience: Master
Platform: TT, NT, MetaTrader
Broker/Data: Velocity Futures, MB Trading
Favorite Futures: EUR/USD
 
George's Avatar
 
Posts: 401 since Jun 2009
Thanks: 1,005 given, 1,168 received

Ideal Bullish AB = CD


The ideal bullish AB = CD pattern will have two distinct declining price legs. The pattern begins at the point A with a sell-off to point B. After a retracement to either the 0,618 or 0,768 of the AB leg, the CD leg begins. The sell-off of the CD leg should complete either at the 1,27 or the 1,618 projection of the BC leg.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


The completion of this pattern should have two harmonic calculations converging in a specific area. The most important number is the point where the CD leg equals the AB leg. Try to consider the completion of an exact AB=CD as a minimum requirement before entering a trade. Sometimes, the price action will reverse just shy of the exact completion point. In this situations, wait for a clear reversal sign in the price action before executing a trade. The BC projection, either 1,27 or 1,618, should converge very close to the completion point at D to complement the PRZ.

Although the AB= CD is usually distinct, the Fibonacci calculations can be very effective in determining the completion of the pattern. As a rule of thumb, examine the retracement of the AB leg to determine the BC leg projection. Specifically, if the BC leg retraces to the ,618 of AB, the completion of the pattern will occur at the 1,618. If the BC leg retraces to the 0,786 of AB, the pattern will complete near the 1,27 BC projection.

This pattern occurs frequently. Often the ideal pattern will bounce almost exactly off the harmonic numbers and provide a set-up that almost seems too good to be true.



Same rules applies to the the Bearish AB = CD, but in the opposite direction.

Reply With Quote
The following user says Thank You to George for this post:
 
  #87 (permalink)
Elite Member
Sweden
 
Futures Experience: Master
Platform: TT, NT, MetaTrader
Broker/Data: Velocity Futures, MB Trading
Favorite Futures: EUR/USD
 
George's Avatar
 
Posts: 401 since Jun 2009
Thanks: 1,005 given, 1,168 received


TraderJesse View Post
George:

Other than RSI I haven't been using indicators but I did download the Scapler and set parameters as you have shown. It doesn't seem to paint bars consistently. I followed it on a 2 minute CL and SPY chart. It painted a few bars but them just would put the indication arrow up and not paint bars. Although I did see the bar at 11:02 paint after the 11:48 bar closed. Refreshing the chart would then paint all the bars that should be painted, I think. So I not sure if it's working properly for me.

See attachments of CL bars not painting then refreshed CL. Black is the paint bar color. I added the indicator at 9:15-9:30ish on chart.

Also thanks for long write up, I got a lot out of it.

Jeff

Jeff, I was playing around with my charts and put the Candle Clear indicator on one of them. Do you happen by any chance to have that on?! Because in that case the same thing happens to my charts. The scalper doesn't plot. And that's because of the "Thick wick = True".
Se the picture:

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


/George

Reply With Quote
 
  #88 (permalink)
Elite Member
Sweden
 
Futures Experience: Master
Platform: TT, NT, MetaTrader
Broker/Data: Velocity Futures, MB Trading
Favorite Futures: EUR/USD
 
George's Avatar
 
Posts: 401 since Jun 2009
Thanks: 1,005 given, 1,168 received

Alternate Projections of the AB = CD Pattern

Although the AB=CD pattern is a great set-up when each leg equals the other exactly, there are many situations where alternative Fibonacci calculations are required to clearly define the PRZ. Although there might be a clear pattern developing, it is not uncommon for the AB=CD to be unequal. These alternate projections should merely complement an area that possesses other harmonic numbers.


1.27 or 1.618 AB = CD


When the equivalent AB=CD completion point is blown out, the 1,27 or 1,618 can be used to determine other potential reversal points. These alternate calculations are not difficult to calculate. Depending upon which number is used, multiply the AB leg by either 1,27 or 1,618 and project that distance from point C.


Alternate Bullish 1,27 or 1,618 AB=CD
(same rules applies to the alternate bearish ab=cd but in the opposite direction)

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


The bullish alternate projection is useful to gauge other potential reversal areas for price moves that exhibit a clear AB=CD pattern. The CD leg usually will experience an extended decline that reverses off the 1,27 or the 1,618 of the AB leg.

Reply With Quote
 
  #89 (permalink)
Elite Member
Denver
 
Futures Experience: None
Platform: NinjaTrader
 
TraderJesse's Avatar
 
Posts: 83 since Aug 2009
Thanks: 50 given, 89 received


George View Post
Jeff, I was playing around with my charts and put the Candle Clear indicator on one of them. Do you happen by any chance to have that on?! Because in that case the same thing happens to my charts. The scalper doesn't plot. And that's because of the "Thick wick = True".
Se the picture:


/George

George:

No never had that indicator, only the RSI, Volume, and pivots on stocks. I'll try a chart with nothing but the Scalper Indicator and see if that makes a difference.

Jeff

Reply With Quote
 
  #90 (permalink)
Big game hunter
NY
 
Futures Experience: Advanced
Platform: Esignal, MBT navigator
Favorite Futures: Currencies
 
Posts: 2,526 since Jun 2009
Thanks: 1,397 given, 2,570 received



TraderJesse View Post
The all the different colors are killing me ! I'll will work with and try to figure it out later.



Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

3 bar reversal paintbar - that is probably the only indicator you will ever need to make money trading futures.

Reply With Quote
The following user says Thank You to Eric j for this post:

Reply



futures io > > > Harmonic Trading

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Harmonic Trading George NinjaTrader Programming 5 January 23rd, 2016 02:16 PM
Harmonic Setup wh Currency Futures 14 August 22nd, 2011 11:04 PM
Harmonic pattern recognition software? tingos318 Platforms and Indicators 3 July 16th, 2011 10:17 PM
Harmonic Trading Big Mike Traders and Trading Methods 0 July 8th, 2010 02:31 AM
Harmonic Trading George Psychology and Money Management 6 October 1st, 2009 05:31 PM


All times are GMT -4. The time now is 03:16 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
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.
no new posts
Page generated 2017-12-18 in 0.18 seconds with 20 queries on phoenix via your IP 54.163.209.109