You must be wondering why I say scalping on the 30 minute plus time frames. The answer is simple once a harmonic pattern is found, analyzed, and confirmed to be of high probability I will trade it for only 30-50 pips depending on size, shape, and symmetry. The idea is to get in and out fast taking profit from even failed patterns at times.
I wont be going into how/why these setups work. This information can be easily found by visiting the links below.
If you want/need more information about harmonic trading there are many books available free from your nearest library, or for purchase on amazon/Barns and Noble.
My favorite three are
Trade what you see by Larry Pesavento
Harmonic Trading Volume’s one and two by Scot M. Carney.
Last but not least The Harmonic Trader PDF by Scott M. Carney (Free)
All that’s left to say is I’ll be trading on a practice account for a little while till I’ve saved up enough money to deposit into a FxTrade live account.
For now I use the latest zup indicator with the recommended build found here.
Here is the list of indicators I use
CZigZag
DT_ZZnen
IVAR - This is the hurst exponent used to measure persistence/antipersistence click here for more info
P4L Clock8 shows which trading sessions are open
spread - shows current spread
zigzag-newnen
zupv-101
I’ve compressed all of this including a template labeled a-harmonics.tpl in a compressed folder for anyone who may want it. Download Here
If there is a way of uploading files directly to babypips please let me know. Hopefully this answers your question.
Not a problem Pipster glad to help. Note zupv-101 will find larger more reliable patterns which is why I find it better then previous versions. Feel free to post any patterns you may have questions about.
Tmoneybags was a great teacher to all of us here at babypips. I can only hope this thread to live in the shadow of his.
It’s working fine for me. Can anyone else confirm this? Note you must wait 25 seconds for the regular download button to appear at the bottom right there should be a count down timer.
Here is the process I go through to define valid butterfly’s.
When the ZUP indicator precidts a pattern it will have a rectangle close to where price action is. This is called Price Reversal Zone (PRZ). This is where D will likely form.
Just because the indicator says there’s a pattern there doesn’t mean it is valid! Next we need to check fib ratio of B. Draw fib lines backwards from X to A like this.
This is the exciting part deciding where D will form before it does. First draw fibs from B to A and move 0 fib onto the tip of C. Next check for fib lines of XA and BA to be either vary close (within 5-10 pips) or right on top of each other. As you can see below 0.618 of XA have just these conditions and price bounced slightly then moved further down to form the true D at 1.272 of XA and 100% of BA. Now we have defined D.
There are many ways to choose targets most common for butterfly’s would be B C and A. Another way would be to set take profit at the 0.382 fib level. Why 0.382, because whenever price bounces this is normally the least fib level it will bounce to. This is really up to you.
It seems like our browser here in Malaysia was being blocked to enter megaupload.com website maybe for some reasons.
Is there any other way that could you help to solve this. 4shared.com or Rapidshare.com seems allowable to be accessed… sorry.
Just entered short on USD/CHF 4H butterfly. This is the second test of 100% of XA and 1.272 of BA. Because it is a second test the pattern may fail. Convergence is good and price is stalling at major resistance.
I hate to sound like the bad guy so do not take it this way, but harmonics can get you a lot more than 10 pips. The lower your pip count the more times you will hit a profit, but if your risking 20 pips to make 10 its just a matter of time before your money management kills your trade idea. Why not use the target points that others suggest?
Absolutely, using an arbitrary target like 30 pips for every trade and every pair isnt the best way. support / resistance using Fibs, pivots, swing hi / lows is another idea. and having multiple targets too i find helps the $$