Harmonics

[traden4x 10]

Hello,

 

I am looking for others that may trade harmonic patterns or fibonacci for the forex market. I would like to work and collaborate in the use of these tools for the benefit of those that contribute.

 

Please let me know your thoughts.

 

Cheers,

Carl

[traden4x 10]

Took this setup

http://www.tradingrooms.com/chartpost/ShowImage.asp?username=TRoom&roomid=_tr_traden4x4xtrading_img&imagename=traden4x982008235159.png

and traded off the 1min.

[traden4x 10]

Looking at USDJPY monthly, in an ABCD pattern. Potentially larger move short.

[traden4x 10]

In off of the 5min harmonic and out on the 1min 50%. +18 in 12 mins. Not as good as the gy setup today with 109 in 11 mins.

[traden4x 10]

2 new trade setup taken.

[traden4x 10]

In the larger GY view, will price make it to D completion or find support in the 179/180 area?

[OAC 10]

This is a good blog to check out : http://www.tradingwhatisee.com/about/

[traden4x 10]

Thanks OAC,

 

Yes all pretty common price action strategies.

[OAC 10]

Thanks OAC,

 

Yes all pretty common price action strategies.

 

They may be very common price action strategies for you and me, but very foreign to 99% of the members here, sad to say.

[traden4x 10]

OAC,

 

Yes very true. I am trying to find a few or a small group of traders that want to work together and trade. I mean those that have the understanding that is needed and along the way the newer traders learn from it. It makes the time much more beneficial and enjoyable if you can find that.

 

Cheers

[traden4x 10]

Looking at this for possible D leg target if 88.6 holds. 400 pip target.

[traden4x 10]

EY went past 88.6 so long projection is invalid. Did ride the 15min setup short and still going.

[traden4x 10]

For those interested, here is a word doc, fib price patterns, that shows several of the harmonic patterns and the fib values with a description. The doc harmonic patterns values is the same but without words so pics are easy to few and in the order of growing fib values for each successive pattern. The 5-0 doc is written by Scott Carney http://www.harmonictrader.com. It explains another setup.

 

Hope this helps a little. More later.

 

Carl

Fib Price Patterns.doc

Harmonic Patterns values.doc

The5-0Pattern.pdf

[traden4x 10]

Setup to watch, USDCHF daily inside bar in a harmonic pattern. I haven't done any projections yet but will be watching the lower TF's for entry confirmation.

 

EURCAD is in a harmonic pattern, watch the lower TF's.

Edited September 9, 2008 by traden4x

[traden4x 10]

This pic is a potential 5-0 pattern. The fib levels don't match completely with what is in the pdf but one of my goals is to log and evaluate fib levels for each currency pair and validate the actual fib levels and and hopefully timing as well for these patterns. Lets see if this long signal works out.

 

Trade update, 11 mins later +28 on the trade. Out @ 50% level.

Edited September 10, 2008 by traden4x
Update

[traden4x 10]

Setup for a 1min trade. looking to grab the D leg of a potential gartley, bat, crab or butterfly pattern. I will look to close this in < 60 mins due to timing completion.

 

Out of the trade 22 mins in. +11

Edited September 10, 2008 by traden4x
Close trade

[traden4x 10]

I wish I had held on. Another 30 mins and still < the 60 mins originally targeted, price moved up +65 for the D leg completion.

[traden4x 10]

Ready for another week?

 

Many great harmonic patterns last week but didn't have much time to post them. I will try to show some as examples later.

 

A call I did make on Thurs was EURUSD to go long. This is the basic setup.

 

I added the monthly on EU and as you can see, much support @ the 50% retracement, ABCD 100 level from the prior corrective swing and the high from the previous impulsive move.

Edited September 14, 2008 by traden4x

[traden4x 10]

GU had a fabulous move short. In the weekly we have the bearish gartley and I also showed it in the daily. These patterns are very nice to find and trade when they are found in the corrective wave before the C wave or other impulse wave begins.

 

From the weekly and daily you can review the fib levels that were met.

 

Hopefully you find this interesting and would like to add your comments or observations.

 

Carl

[traden4x 10]

In this pic is a closer look at the reversal point from the 30min butterfly pattern. From this pattern and taking the CD leg, price extended to the 223.6 level.

 

I have been testing where patterns succeed and fail and often I find this off of the CD leg fib values.

 

The next pic will show the 15min and where a bearish harmonic pattern fails in the long position trade. This is at a fib level off of the CD leg. At that time of failure, I begin looking for 3 Drive patterns for price to extend to.

 

Carl

[traden4x 10]

The 15min chart shows a red ABC with the fib expansion (fe) applied to it. Here is a case where price retraces to 78.6 of red AB to C. We can look to trade short here with initial targets being the leg C of any of the harmonic patterns.

 

Upon breaking the low of red B, I look for the fib extensions and expansion levels. You can see that after the red C in the yellow XA leg was a nice 12345 or 3 Drive pattern. Within this pattern blue d is at the 161.8 extension of the red AB leg and never closed below the fe-redABC 138.2. Final completion of 5th leg of yellow XA came at red fe-ABC 161.8.

 

The yellow A is also where the 30 min bullish butterfly pattern is now in effect.

 

Next post will comment on the turn and the following long.

[OAC 10]

I don't know how many people would agree with me here, your charts are hard to read, you need to get rid of some of the cluttered lines. May be you should use something other than Pevasento Patterns from Ensign ?

[traden4x 10]

Here are the fibs after the 30 min signaled a reversal butterfly. I will often look to the lower TF's of the 5 or 1min and look for the TL break and enter in. Going against a major trend ai will look for smaller targets.

 

Price first reversed to the 61.8 of yellow XA. 2nd move was point yellow C where the 88.6 of yellow AB was hit. Now as you know harmonic patterns and that we are in a lrger bullish butterfly, we now have a lower TF harmonic setting up for leg D of a bearhish pattern. We look to trade the higher TF pattern with the lower TF patterns price targets.

 

In the 1st pic you see price went to 123.6 of yellow XA, 200.0 of yellow AB, 211.4 of yellow BC. This for D completion and a bearish harmonic signaling.

 

In the 2nd pic you see price retracing to 38.2 of yellow CD. This is where the bears fail and price moves long. I now bagin to look for larger targets both from the 30min pattern legs and from this TF where 3 Drives or extension patterns come into play. Still even the reversal signal was a winner if you played the fibs correctly.

 

In the 3rd pic we have a fe_CDE to 114.6. This level is past the fe-CDE 100.0 aka, ABCD and yellow CD 161.8 extension confluence. The final price level was from the 30min TF CD leg with 223.6 extension. Remember to watch the higher TF's for targets as that is where the larger signal is from.

 

Carl

[traden4x 10]

I don't know how many people would agree with me here, your charts are hard to read, you need to get rid of some of the cluttered lines. May be you should use something other than Pevasento Patterns from Ensign ?

 

Sorry if they are a little hard at times. Limitations with the platform to delete only single lines.

 

I hope the message that it is conveying is worth more than the strain on the eyes.

 

This isn't from ensign.

[suriNotes 11]

Hi,

 

GBPUSD 30m Harmonic Charts.

 

 

Regards,

Suri