Harmonics 30M+ Scalping - 10 Pips Trading Log

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 are not sure what harmonic trading is reference the following links.
Tmoneybags - 30 pips keeps your money at bay
How to identify Gartley and Butterfly patters tutorial (youtube link part 1)
Identify Gartley 222 and Butterfly Patterns using Fibonacci 2 of 2. - YouTube (youtube part 2)

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.

Edit: Fixing links

Here’s a butterfly pattern I entered Friday at 0.9760ish exited Sunday around 5:30pm est for +35pips.


Edit: Double post. Sorry the full pattern wasn’t pictured next one will be! :smiley:

Hi 10Pips

What pattern recognition indicator are you using? Is it Zup? If so, what version?

Or is it Elemental Trader?

Thanks & keep up the great trades!

G

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.

Hey, thanks 10Pips! :smiley:

You really over delivered… much appreciated!

L@@King forward to learning from your trades.

G

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.

Edit: D*** I can’t spell!

finally a harmonic pattern trading thread! Looking forward to it, i miss tmoneybags thread badly.

Hi 10pips…

It seems that your download link is not working…hope you’ll correct this.
Thanks in advance for your kindness on sharing this…

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.

Next make sure C has retraced at a major fib level.

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.

See next post.

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.

Hope this helps,
10pips

Here we have a EUR/CAD daily chart you can see it bounced off of 0.618 of XA 2 days ago. It looks like be a vary unsymmetrical Gartley.

Draw the fibs see if you get the same result. This is great practice.

Green boxes are a mental note if price moves back down these would be key retracement areas. More so 100% of XA and 1.618 of BA.

Hi 10pips…

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.

Try this one download

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.

Edit:
TP 0.8710
SL 0.8988
Roughly 4:1 R/R
Both key support and resistance levels.

Reedit:
Stopped out I should have known better then to trade a already failed butterfly. Lesson learned don’t be ****y.

:57:


Hi 10pips…

Excellent download link… thanks again… will try and learn…:slight_smile:

Good job 10Pips GL!

G

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 $$