Term: Short
Pair: AUD/CAD
Pattern: Cypher
Entry: 1.022
Stop Loss: 1.0214
Target: 1.024
The trend before the reversal point was not weak enough in order for a reversal.
-10 Pips
This weekend I went through the trades I took from November 2nd to November 11th. I have come across a few things that I think need to be incorporated into this week’s trading:
- Precision
Precision I think will play a huge role in predicting where I should enter. Drawing patterns from wick to wick will help me know exactly where my price reversal zones will be. Also, precision will help me get into the trade at a better price and hold the trade for more pips.
- Reversal Probabilities
I think I have found a way to use a technique to my advantage in finding which patterns are more likely to complete and reverse in the price reversal zone. Hopefully, this will eliminate the weak patterns in which the C to D Leg strength is too much causing price to blow past the price reversal zone. This technique should only let me enter into the creme de la creme of patterns where the probability of a reversal in the price reversal zone is very high.
- Dedication
My last idea that I think will be helpful is dedication. Being a student means I can’t trade during the big NY and London Session so, the Sydney and Tokyo sessions are crucial. I know there isn’t much volume but, there are still patterns completing and I need to push myself to stay up and wait it out until those patterns complete.
I hope these three ideas will help me at least break even this week! I love what I do and one day I will be the best in the world!
Sriddy
Term: Short
Pair: AUD/JPY
Pattern: Shark
Entry: 81.139
Stop Loss: 81.28
Target: 80.814
I ended up exiting the trade manually because I totally forget to use my new technique in order to sort through all the patterns. Plus, when the technique was used it wasn’t giving me an enter trade signal.
-2 Pips
Term: Short
Pair: EUR/GBP
Pattern: Bat
Entry: 0.8615
Stop Loss: 0.8623
Target: 0.860
I can’t pinpoint what I’m doing wrong. Do I not know my patterns? Is this not what I was meant to do in life? Is this going to work out? Should I switch trading plans? I tried to trade only patterns where the D Point is final unlike shark or cyphers but, it’s not working out. I see all the people that got me into harmonics achieving their trade targets but, not me. Last 24 hours have been tough…
- 7 Pips
Update: I just realized that my stop loss was placed incorrectly and price went to target profit.
Date: 11/17/2016
Time: 2:45 AM
Term: Short
Pair: CAD/JPY
Pattern: Cypher
Entry: 81.39
Stop Loss: 81.573
Target: 81.2
I think I have found a way to put more winning trades under my belt. But, that by no means that this solution has no setbacks. This needs to be tweaked, tuned, and retuned.
“Don’t complain about your plate being full when you asked god for a buffet.”
+18 Pips
Here is what I feel needs to be worked on this week…
-
Dedication/Consistency
I feel like I can give more. Over the weekend, I came to the conclusion that I feel empty when I don’t trade. I feel like I am missing my true happiness and I feel useless. I will make this work and that is a promise. -
Time Frame
Every since I have moved up to the higher time frame that I use now, there is a lot less D Point completions during the night. I might get one or two compared to when I used to get five or six. That worries me because I am used to lots of action and I feel like I won’t be able to fill my quota that I have set for myself. There are three options for this problem:- Use the higher time frames as a guidance and trade on the lower time frames
- Stay on the higher time frames and lower my quota
- Stay on the higher time frames but, also start “scalp harmonics” where I basically find very short time patterns
-
Mindset
I need to get back to my old rhythm of reading. I have missed out on many hours of reading and self-education that I feel will just help me clear my mind, learn, and keep me focused on my goals and trading.
I know my trading so far has been everything but great. But, I made a promise to myself when I was eight that I would be wealthy. I made a promise to myself at ten that I would change the world. I made myself a promise at thirteen I would ride Forex all the way to the top. And I made a promise to myself when I was sixteen that I would be the best in Harmonic Price Patterns in the world. I intend to keep those promises.
Sriddy
Been away for a while. I felt that my potential reversals zones where such a hit and miss and I just didn’t know where price would reverse. This bothered me all of last week. I felt like a failure, like a one hit wonder, and I felt that the only reason I made money was because the market pitied me. I questioned myself many time. Would this work? Is this my calling in life? Should I just give up? Restless nights and second guessing myself was the normal in the past week. I decided to do something about it. I found Scott Carney’s Harmonic Trading Books and have started to read them. That was step one in order to solve my problem. My second step was to relearn the patterns and I have now learned the AB=CD Pattern. Hopefully, by refreshing the patterns in my mind I will be able to eliminate simple mistakes. The last step in coming to a viable solution to my problem, hit me out of nowhere. I continue to implement this tactic but, it does require a lot chart watching and studying. Again, I can’t complain when all I asked for was to eat. I have also scratched the surface on Andrew’s Pitchfork, it is an interesting piece of technical analysis that I hope to use when D points of patterns are far off. This past week has been rough but, I know persistence wears down resistance. I know I will be the best in the world someday…
Sriddy
Term: Short
Pair: AUD/JPY
Pattern: Bat
Entry: 84.53
Stop Loss: 84.58
Target:84.32
That was just a great trade! Amazing risk to reward and flawless execution. But, my method for entering trades and picking the best reversal zones worked! Hopefully I didn’t just get lucky on this one!
+21 Pips
Term: Short
Pair: EUR/GBP
Pattern: Shark
Entry: 0.8308
Stop Loss: 0.83009
Target: 0.8323
This trade took a little longer than I like to hit my target but, then again it is Sunday night. I really wanted to manually exit this trade but, my gut told me to hang in there until my target and it was right! Again, the thing that makes me the happiest is that my new method of entering trades and finding the best potential reversal zones seems to be working! This week is starting off good!
- 16 Pips
Pattern: ABCD
Entry: 1.2745
Stop Loss: 1.275
Target: 1.3734
I took this ABCD Pattern twice. Once at a PRZ zone near the 1.414 and another at a PRZ zone near the 1.618. On the second time, I should have been a little more patient and waited until I got a red candle close. This was the first time trading an ABCD pattern but, I’m glad I took this trade. This trade showed me I have to work on my judgement when price reaches to the PRZ zone. Hopefully by improving on this, I can find patterns that are more likely to complete.
- 10 Pips
Pattern: ABCD
Entry: 85.0
Stop Loss: 85.076
Target: 84.98
My last three losses since my week of studying have been abcd patterns. Maybe I should stick to what I know and learn more about these patterns…
- 1 %
Pattern: Butterfly
Entry: 85.313
Stop Loss: 85.393
Target: 85.138
I think I need to wait for a conformation on the timeframe I trade not on the one’s below it.
One day I will master this…
-8 Pips
Been a while for a while working on fine tuning my way to pick reversals, I will update with a full post soon.
Pattern: Cypher
Entry: 88.174
Stop Loss: 88.224
Target: 88.114
Sure this trade lost but, I could care less about that. My revised strategy has helped me pinpoint my exact reversal points. I AM SO EXCITED to see what lies ahead!! This trade however was a loss due to my late entry into the trade, this caused my stop loss to be very tight and my risk to reward to be atrocious. Price did follow through and hit profit target. I will get this down…
- 5 Pips
First, I’ve been trading on a live account for almost two months. Every loss that I take comes out of hours I spent grueling at a 9-5. But, I also know that I am getting closer and closer day by day toward the life I envisioned for myself when I first started trading. Big plans this coming year…
Pattern: Shark
Entry: 0.68944
Stop Loss: 0.6884
Target: 0.691
I got into this trade with good execution, my position size was good, my entry price was good, and price moved from the PRZ quickly. I closed this position at break even because at the halfway point to target profit , I always put my stop at breakeven. I had a candle spike down and trigger my stop loss at breakeven. The trade went onto reach target profit.
- 0 Pips
Lesson: I need to wait a little while longer until I can put my stop loss at breakeven.
Pair: USD/JPY
Pattern: Shark
Entry: 114.06
Target: 114.53
Stop Loss: 113.945
I got into this trade at the perfect time, followed my rules, and placed my stop loss at breakeven according to my rules. I got stopped out at breakeven, sometimes that is just how harmonics work…
- 1 Pip
Been awhile since I posted but, I haven’t given up! I realized that I’ve spent too much time going from one indicator to the next to try to confirm if the pattern will follow through to the target profit. There will be no more indicators used (expect RSI), just the sheer power of my mind and my experiences!
Pair: EUR/JPY
Pattern: Gartley
Entry: 121. 952
Exit: 112.042
Target: 121.752
I took this trade a little early but, lesson learnt! This trade tested the 78.6% level then bounced off. I moved my stop loss to 121.993 as trade headed toward target profit. But, before reaching the 38.2% level was achieved, price sparked back up and through the point where I consider the pattern invalid. I followed all my rules but, selling pressure was just not enough.
- 4 Pips
Pattern: Gartley
Entry: 0.76164
Target: 0.76294
Stop Loss: 0.76104
I waited until price tested the whole PRZ. I followed all my rules but, was a tad bit late to entry because I was scared, I admit. That is one thing I have to work on, fear, I shouldn’t be afraid of the trade. I followed all my rules for exiting as price went toward my direction. I did exit on the test of boundary which I should’ve waited for it to close below it. I manually exited this trade.
- 2 Pips
UPDATE: Price retested the PRZ and went to target profit. I need to wait for the close of the candle.
Pattern: Gartley
Entry: 81.92, 81.91
Target: 82.03
Stop Loss: 81.84, 81.83
Here’s something I learned on this trade. First, the reason why the pattern failed was because the B point was not the beginning of the biggest retracement. Also, as I actively manage the trade, I will have to scale from the bottom to the top and ALWAYS be managing my trade!
-10 Pips (Both Trades Total)
I have been away for a while. I stopped trading and went out and learned. Learned everything I could: how to execute, when to execute, when the pattern fails, how price should I react. I have done as much learning as possible now, my learning continuing forward will be only something experience can teach me. I have spent a full year with harmonic patterns and it is now time to reap the benefits of my chosen trading strategy. I can not wait to see what the road for me is like and I am so ready to kill it!
Pattern: Butterfly
Timeframe: 5 Minute
Reversal: Type 1
Entry: 84.86
Target: 84.53
Stop Loss: 84.91
I followed all my rules on this trade. Waited for price bar to close on right timeframe, zoomed into the lower time frame and waited until I got my sell trigger. Price initially went my way following a downward trend line but, didn’t make it out of the PRZ before violating the trend line. Once that happened price went up and triggered my stop loss. Price then went on climbing, this pattern was a reaction pattern.
I am not mad that this pattern failed at all. Why get mad when it was a failed pattern? I have some ideas that may help me develop a strategy that will help me take the opposite side of the trade when stuff like this happens. I will not stress myself out anymore about patterns that fail, I will only focus on the patterns that I get stopped out of because of impatience or illogical placement of PRZ.
Friday night, going over a lot of trades from the previous week. Seeing all the trades I missed and self reflecting. What is bugging me lately, is that patterns on the 5 minute chart rarely reach profit targets. Most of them are quick reactions but never really any true reversals. That is really bugging me. Is this the timeframe I should be trading on? Should I move up to the fifteen minute timeframe? Price will initially react but only for a few pips barely even giving me a one to one risk to reward when the trendline is broken. I have a few ideas on how to trade a failed pattern but, I don’t want to employ it until I master trading patterns.
I could make a list of a million things that need to be worked on but, the only thing I care about is trading the patterns. I just want to make it through my trading day and take all the trades that my strategy tells me that’s all.