Harmonic Trading - page 475

[Aki Miu]

didjeridoo:
hi all, in the ZUP, is it possibile to have the Bullish pattern in blue and the Bearish pattern in red?

Yes but you have to reprogram it.

[Mike]

RyuShin:
Hello Mike, could you expand on "signal with current trend"? I'd like to comprehend clearly. Do you mean it in scalping too?

look at this

3 patterns indicated against the main trend which is UP trend

but look at this !

two 121 patterns indicated with the current trend ( down )

it's always the best to trade with the current momentum , 121 signals are usually like that , if the pair goes down lets say 200 pips then up 100 pips then down 200 pips then up 100 pips chances are the pair is moving back down and not up , on the other hand most of other patterns like crab , butterfly and so on , a lot of times they show up against a strong current trend . for me personally i don't take trades against trend ,the word TOP and BOTTOM doesn't make sense to me , so in the example above for USDCHF the pattern worked but it's against my rules as it happened against the trend also there were about 3 patterns that failed before the one you see worked .

to make it simple for you , right now NZD/USD , AUD/USD are on a downtrend , if i see 20 patterns at the same time that show BUY i will not buy , if i see one small pattern shows sell I will sell . very simple just zoom out the chart and look where the price is actually going from west to east .

[Mike]

RyuShin:
Thanks Mike, that's very informative. You say "I'll wait for at least 2 Green candles on daily and then start looking for buy signals", do you mean by buy signals with harmonic patterns or without?

I mainly use support and resistance and trendlines with candle price actions , the shape of the candles means just about everything to me , I also use bollinger bands because the price stays within the channel most of the time so you can confirm your analysis with it and lastly i use harmonics , so if get a signal on harmonics i use another clean chart and look for confirmation , if bollinger bands + price action confirms that harmonic signal i place the trade , however when it comes to scalping i break all the rules most of the times except for the rule of

[Aki Miu]

Mike_Mike:
look at this 3 patterns indicated against the main trend which is UP trend but look at this ! two 121 patterns indicated with the current trend ( down ) it's always the best to trade with the current momentum , 121 signals are usually like that , if the pair goes down lets say 200 pips then up 100 pips then down 200 pips then up 100 pips chances are the pair is moving back down and not up , on the other hand most of other patterns like crab , butterfly and so on , a lot of times they show up against a strong current trend . for me personally i don't take trades against trend ,the word TOP and BOTTOM doesn't make sense to me , so in the example above for USDCHF the pattern worked but it's against my rules as it happened against the trend also there were about 3 patterns that failed before the one you see worked . to make it simple for you , right now NZD/USD , AUD/USD are on a downtrend , if i see 20 patterns at the same time that show BUY i will not buy , if i see one small pattern shows sell I will sell . very simple just zoom out the chart and look where the price is actually going from west to east .

I see. Now it's clear. So basically you always follow the trend. Although you're totally against the trend when scalping, is it correct? Or do you follow the trend even when scalping? When do you decide to do scalping? Do you have any ground rule to initiate scalping?

[Mike]

RyuShin:
I see. Now it's clear. So basically you always follow the trend. Although you're totally against the trend when scalping, is it correct? Or do you follow the trend even when scalping? When do you decide to do scalping? Do you have any ground rule to initiate scalping?

no i don't break the rule of trend even when i scalp , but when i scalp i don't care about the other rules such as candles price action and bollinger bands , i get the 121 signal i wait for the candle to close , i enter right at the opening of that candle , so if i scalp on 5M time frame i don't care about the trend no 1H or 4H i only look at the frame i got the signal on . got it ?

[Aki Miu]

Mike_Mike:
no i don't break the rule of trend even when i scalp , but when i scalp i don't care about the other rules such as candles price action and bollinger bands , i get the 121 signal i wait for the candle to close , i enter right at the opening of that candle , so if i scalp on 5M time frame i don't care about the trend no 1H or 4H i only look at the frame i got the signal on . got it ?

I got it Mike. However, the main question is WHEN do you decide to scalp (let's say on M5). Do you start scalping on a whim or you have rules to start scalping like when you see 121 pattern on M5?

[poruchik]

It isn't pleasant to me 121 in korh

[poruchik]

the elementary 121

EurJpy M15

[Mike]

RyuShin:
I got it Mike. However, the main question is WHEN do you decide to scalp (let's say on M5). Do you start scalping on a whim or you have rules to start scalping like when you see 121 pattern on M5?

i decided to scalp when i see the 121 pattern , the pattern will show while the price is moving but i don't get in until that candle is closed , i usually scalp on 5 mins frame , look at this trade i did just a few seconds ago

you see the candle where the last leg of 121 , as soon as it was closed i entered see the buy line ( keep in mind the spread ) the actually entry is the exact close of the candle but it shows a bit higher due to broker spread.. my SL is is usually 2-4 pips beyond the the high or the low of that candle that gave me the signal , however if u r less aggressive you may set SL right below the green area , so my TP is the nearest swing (Green line ) . if the last swing is so near that you cant target twice the amount u risk then it's not worth it . so remember SL is static but TP is flexible .

also you must be on a very fast excution broker or else you can never scalp , most brokers i tested are terribly bad when comes to scalping because it may take 2-3 pips off to open and close and that's not good at all because in scalping every pip count .

[Aki Miu]

Mike_Mike:
i decided to scalp when i see the 121 pattern , the pattern will show while the price is moving but i don't get in until that candle is closed , i usually scalp on 5 mins frame , look at this trade i did just a few seconds ago you see the candle where the last leg of 121 , as soon as it was closed i entered see the buy line ( keep in mind the spread ) the actually entry is the exact close of the candle but it shows a bit higher due to broker spread.. my SL is is usually 2-4 pips beyond the the high or the low of that candle that gave me the signal , however if u r less aggressive you may set SL right below the green area , so my TP is the nearest swing (Green line ) . if the last swing is so near that you cant target twice the amount u risk then it's not worth it . so remember SL is static but TP is flexible . also you must be on a very fast excution broker or else you can never scalp , most brokers i tested are terribly bad when comes to scalping because it may take 2-3 pips off to open and close and that's not good at all because in scalping every pip count .

Okay now I see why you decide to scalp. Thanks Mike.