Harmonic Analysis - page 349
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Could you share your main strategy with me?
You told you me engage in the dragon patterns. I wonder how profitable it is.Of course. At first, look for Double Tops/Bottoms (typically intraday), that means the price is retested at a certain price level, maybe double. So the old trend is over, a bit sideway market and a new trend begins, very often an impulse wave follows. It also can be that a Triple Top/Bottom can be formed first. That pattern is quiet rife and I estimate that around 90-95% of Dragons are successful. The targets are nice, mostly the full retracement to the head (2.TP), often to the 3.TP and a few where the impulse rushed trough as there were no end.
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A bit to read: http://strategy4forex.com/trading-on...ne-dragon.html
EURJPY seems to stay in his channel. When the bar/day closes above the channel half line and Wolfe wave line 1-3 as shown in the pic, the TP is the upper channel line.
I do not understand anything of this, never got into this stuff, but it does have good names, like diamands, wolve waves, butterflies and who knows what exquisite thingies more ...
Hmm, this stuff gives you an edge where and to which point the price will most likely go, for FXers very important. I never tried BO, but I'm sure, there it can also be helpful to know where the possible reversals are. Or do you trade only in trends? And when you try to understand Elliot waves, you better know all these patterns and literally mutants of them. And if you find a Diamond, you'll of course be happy as a nerd.
Hmm, this stuff gives you an edge where and to which point the price will most likely go, for FXers very important. I never tried BO, but I'm sure, there it can also be helpful to know where the possible reversals are. Or do you trade only in trends? And when you try to understand Elliot waves, you better know all these patterns and literally mutants of them. And if you find a Diamond, you'll of course be happy as a nerd.
I trade in mini trends of 3 bars, 3 bars on M1, 3 bars on M5, 3 bars on M15 ...and I'm always eager to learn, even crazy things like this, so I will start reading this thread when I have time.
Do you draw all these patterns your self ?
For chart patterns there is nothing, but I think with a bit practice, you're better than every indicator could be. The harmonic patterns needs some more practice and a table with the Fibo ratios and where they occure most often. So Elliot waves and harmonic patterns goes hand in hand - have you one, have you the other. On M1 they are as well of course, but you must Elliot wave have in feeling. There you need quicker PA recognizion. But you have to read and try a lot a first (as always, you know it
Of course. At first, look for Double Tops/Bottoms (typically intraday), that means the price is retested at a certain price level, maybe double. So the old trend is over, a bit sideway market and a new trend begins, very often an impulse wave follows. It also can be that a Triple Top/Bottom can be formed first. That pattern is quiet rife and I estimate that around 90-95% of Dragons are successful. The targets are nice, mostly the full retracement to the head (2.TP), often to the 3.TP and a few where the impulse rushed trough as there were no end.
[ATTACH=CONFIG]temp_196388_1454920709696_747[/ATTACH]
A bit to read: http://strategy4forex.com/trading-on...ne-dragon.html
Thank you for showing and explaining your strategy. By looking at your stuff, you must be a profitable trader as you stated the dragon pattern has 90-95% winning probability. However, this is not for everyone. You have to master it to grab 90-95% of winning potential. I think I like the concept of the dragon pattern because it seems to respect market structure. Maybe I will try that out to increase my profits.
To the Diamonds: While trying some of Ms new stuff, whether it also works in the old days (what it does), I saw some Diamonds. First one on EURSEK and I have to say, they must have had a lot of fun to build this pattern. You need two or three failed H&S in a row, so what else as a fun pattern is it?
Very interesting theory!! It reminds me of Gann grid strategy. I will look into this diamond pattern
EURJPY seems to stay in his channel. When the bar/day closes above the channel half line and Wolfe wave line 1-3 as shown in the pic, the TP is the upper channel line.
EURJPY is clearly bearish.
Looks good for Harmonics and Elliots with the Butterfly being ready on EURJPY H4 and trend looks exhausted, but it can still go a bit down what is still consolidation at wave 5. On the lower dashed line a Crab would appear, but then the Butterfly would be no more. We have to wait for the impulse wave up. What do you mean?