I’m thinking what is better, to draw fibonacci levels using high/low of the candles or using the open/close of the candles…, or maybe it don’t care about that.
That was just my opinion. however this same pattern can be drawn on 1D, 4H, 1H or even 30m as you wish at the same point.
do you trade butterflys with the main trend?
lol, at least its positive 
I have many two pip ‘wins’, but again, at least they are all positive! need to break through lots of coal lumps before you find the diamond!
I cant actually see a major trend at all at the moment. its probably the reason for the high volitility and an undecided market. There is a potential wedge forming at the monthly level, but there a clearly no major trends that I can see…
There are lots of minor uptrends which seem to be holding strongand new one forming… I think its better not to trade against these at this stage, not until we start seeing some minor uptrend breaks.
Hi Medisoft
Personally, I draw them wick to wick unless there is strong support/resistance at the opn/close level. others draw open/close to open/close. one person on here finds it better to draw them wick to body. so I guess it is down to personal preference. Everyone seems to have their own preference. the only way to find yours is to draw a few both ways and see which you prefer.
by few, I mean many!
I dont think its important to necessarily trade harmonic patterns ‘with’ the trend (I think you will wait for a long time before putting on a trade).
I think it is more important not to try and trade a harmonic pattern through an opposing trend, major or minor. what I think you need to look for is a wide enough gap between trends where you get a harmonic pattern, then you can trade this regardless of with or against trend, as long as you dont try and go through trends.
Does this make sense? this is only my opinion by the way… others here do try and trade through them or may not be aware of them.
One question,so I had a bad day today? -55 pips on 4 trades all lost. 3 of my trades reached my SL and after this was going down(all bearish).
I’m thinking of a (objective) way to identify a impulse wave. I see that if i calculate the ATR or the Average Candle Size of let’s say 20 bars, an impulsive move should be the length of the move divided by the ATR or the ACS plus/minus a little variation.
If the move was 30 pips, and the ATR or ACS is 5 pips per bar, the move should be between 6 + 10% bars length to be identified as a impulsive move. If the move takes more than that number of bars, the strength of it is less. What do you think about this?
Another thing… if you have a trade open with a pattern, lets say, a bull one, and after reaching some profit, you see another (smaller) pattern, this time a bearish one, what do you do?
I see these options:
[ol]
[li]Ignore it, and follow your first pattern, until you reach the profit, the trailing stop moves the stop or the stop is hit.[/li][li]Tight the stops just one fib level bellow and wait to see what happens.[/li][li]Close the trade with the current profit.[/li][li]Because the new bearish pattern is smaller, calculate if the target of that pattern is below the stop loss of the bull order, and if not, ignore, if it is below, then take profits, and maybe enter the bearish trade.[/li][/ol]
Mmm, sorry, I didn’t catch your idea.
So, is not very important for harmonic trading to place the trades in the direction of the current trend, but what do you refer when you say about the gap between trends?
I entered a trade for a valid Crab, but it finished with loss. Please review it and if you can, please tell me if you see that trade, do you would trade it or pass it, and why. I see that a very long candle formed just before I entered, so maybe a check to see if the current move is very strong (3 or more times the average candle size in one candle on current candle or previous one) then is better to pass the trade and wait for a quieter one.
Don’t worry about gap between trends… Another way to put this is, ensure you have drawn all your trend lines in… Then when you see a gartley pattern, ensure your d point or your target does not try to break the trend line. You need to be aware of all trends, major and minor.
Is that a little clearer? Refer to my post on page 545 about trend lines if you need to
Please be aware, I am not stating facts, just my opinion.
Medisoft…do you have software/indicators that draw harmonic patterns for you? What other indicators do you use?
Congrats! 
nice trade
You are spot on, it is always risky to enter on such a strong final movement towards d. Have you read ‘harmonic trader’’? This book explains this concept quite well, also gives you other pattern negating factors to consider.
Hey all
I had a coffee with Modo earlier today… One thing came up during our conversation that I thought I would share with you all. We were discussing a very stupid trade I put on prior to the Aus CPI news break. I was expecting this news but thought I would be out the trade before the break. The market went absolutely dead as soon as I placed the trade causing no movement. Instead of pulling the trade, I left it on. I didn’t (for the first time and reasons unknown to me) place a hard sl.
I happened to luck out because the news went in my favour and I made a profit. This is still a super bad trade. If it had gone the other way, I would have been down about 1k.
The reason I am bringing this up is because, when you are trading, I think we have to accept we will all make mistakes as stupid as this… (I hope it doesn’t get too much stupider than that!). So the question is, WHEN (not if) you make a stupid mistake and take a hit, do you have a plan on what you will do?
I personally have a plan on how to handle two bad trades in a row… Then I have a further plan if the next two trades go south. If I slump the next two trades again, there is another plan and so on. I have exercised my plan numerous times and has enabled me to turn a loss on its head. Btw, the plan includes shouting and punching the hell out of my punchbag and it involves going for a run… Then taking steps in my trading to resolve the issue.
I find people tend to plan for only well executed trades and pat themselves on the back. But badly executed trades require much more planning because you need a plan to handle the emotion that goes along with it.
Anyways, just thought I would share this because I think it’s more important than anything else in trading.
Trade AUD/JPY 39 m CD leg. entry 81.799, SL 81.61. decide TP later.
update: TP at 100%CD. + 33 pips. It’s a Friday after all.
Good Luck…my first TP would be 82.10…but let’s see…
You did confuse me when you said trend is not important. Trend is deadly important. But trend can change, that is even more important. Catch the oncoming trend (what ever it is, major or minor) is the secret of success. But that is the hardest!:15: