I’ve lost about 3 months of my income in total in FX trading since I started to trade. I’m about to give up or at least take a break and come back when my morality increases. Let’s give this Harmonic Trading a go, I believe it will work due to the nature of Fibonacci.
I’ve been studying Harmonic trading for a while.
I decided to start a thread, I will be posting my charts, and I will explain the rules, why I chose to enter, and my results.
Anyone can feel free to post their charts and questions.
The patterns that I will be trading are as follows:
AB=CD, Gartley, bat, butterfly, crab.
A potential Gartley/ AB=CD pattern is spotted on m5 chart of AUDJPY.
I will enter at B with my TP at 61.8 of AB. But I might miss this trade as I will be sleeping.
Let’s see.
Thanks for showing your interest in replying to my thread and pushing me further.
I’ve tried combinations of different indicators, like moving averages, parabolic Sar, RSI…
I guess most lagging indicators don’t work due to the following reasons:
News driven
Due to speculating activities. [The GameStop Play caused loads of hedge funds to go bankrupt. ]
Why do I think this might work for me?
It’s based on the fib ratio.
The petals of flowers tend to obey the Fibonacci, the length of a tree, the population(growth curve) of rabbits, and the formation of water ripples obey the Fib numbers.
Secondly, Harmonic patterns are totally relying on price action.
Price action is a leading indicator while most other indicators like MACD, moving averages, etc are lagging indicators.
Leading indicators will sound more appealing to me I believe.
Thanks for the clarification. I disagree with almost everything you have put into the post but I suspect you don’t need me telling you that, nor whay i disagree.
Anyroad up, it will be more than interesting to hear at some future point how you’re getting on. Well, I do hope.
IMO nobody should be trading with actual money unless and until they have statistically significant proof from demo trading that they can do so without much risk of losing money. Unfortunately, that requires first learning how to judge that reliably, a process which very many people find so difficult that they try to circumvent or avoid it.
I’m really very sorry to hear that, too. I know it won’t be what you want to hear, but I really think it’s an extremely misguided approach and one that will hinder you greatly. This recent post more-or-less explains why … (the link at the end of it is really worth following and studying) …
Good morning guys, I have just taken a trade
Gartley - ${M5} - AUDJPY
Risk Reward is 1 to 1.53.
TP 6 pips.
I realized that a smaller time frame have to take account into brokerage spread.
A higher time frame will have a greater RR.
Looking forward to post another trade.
In my opinion, the things that matters are the risk reward ratio and level of confluence.
Yeah, different people have different opinion, which causes the change in the currency price.
What work for you work for you.
An AB=CD pattern on D1 chart for EURUSD, I shorted at C.
Risk reward is about 1 to 3.18.
Also, this is a good entry, it found support on the trend-line.
