Steve Croft - The Mind of a Trader podcasts

Join Steve Croft on The Mind of a Trader podcast series, as he discusses the motivations and psychology behind a trader -> http://www.tradingmetro.com/mind-of-a-trader/

When you start with Forex trading you read mainly about the trading strategies, technical analysis, entries and indicators.
With time you understand that trading (profitable trading) is not about it at all.
When you reach certain level you read mainly about trading psychology. Recommended to listen "The mind of a trader"

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harmonic trading blog list

If you use Harmonic Hrading some good ideas may come by checking from time to time the following blogs -> Harmonic trading BLOGs


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Trading Test - prepared by trading GURU

Since it's Saturday and we assume you browse thru different trading forums looking for a Graal or new ideas to improve your trading, this may be a good link to visit: Tharp trader test

"Uncover the strengths and challenges that affect your trading profitability every day".

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exceptionally good trading week

This was exceptionally good trading week. 12 trades, all winners.
EURUSD, AUDUSD only. Less is more.

Still valid, if you are interested to join: http://forexharmonictrading.blogspot.com/2012/04/harmonic-trading-chatroom-join-us.html

Just hope one day we will be able to do this: Forex best trading results: 5 days 10160%

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failed Gartley pattern - another scenario

Another example of failing harmonic Gartley pattern. Common scenario. 
Minimum point B price level was reached, but this is not what we usually expect when trading Gartley. We count for strong impuls (Elliott wave 3) to follow.
Here after reaching point B market continued to drop:

EURGBP - failed Gartley bullish

EURUSD - failed Gartley bullish

HINT: Take part in this poll, it should help you to understand better this scenario and understand which point is really key to increase the Gartley pattern success ratio Gartley pattern quiz - how to increase Gartley pattern success ratio

Related Posts:
  harmonic traders take loss when pattern fails 
  failed harmonic patterns by AMPmonitor  
  failed harmonic Gartley pattern

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failed harmonic gartley patterns

Sometimes when you are stopped out just by couple of pips you start thinking if placing your StopLoss for Gartley pattern at X point level is really smart way. Yes, you should be thinking on it.

Related Posts:
harmonic traders take loss when pattern fails
failed harmonic patterns by AMPmonitor
Gartley pattern - location & pivot point confirmation
Gartley pattern trading entry techniques
failed Gartley pattern - another scenario
support resistance line confirmation for Gartley
harmonic trading success ratio

AB=CD price and time in Gartley pattern

best harmonic trading pattern - Gartley

Harmonic Trading with supply demand zones
forex harmonic trading Gartley bullish
Gartley bearish pattern EURUSD M5
All about harmonic Gartley pattern trading


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Harmonic Trading CHATROOM - join us

Harmonics Trading Chatroom was created more than a year ago and is considered great value tool and success in our TradingArsenal Community.
We learnt a lot from each other but also some good friendships were created.

We decided to open our TradingArsenal Chatroom for new participants. Anyone interested please drop a message to TRADINGARSENAL skype account with couple of lines info regarding your trading experience.


See you! Read more...

classic running correction - 121 pattern

Classic running correction - 121 pattern on EURUSD today

Related Posts:


All about the 121 pattern trading
Geometric 121 pattern - location is the key
121 pattern (running correction) proceeds the impulse
121 pattern confirmed by the daily pivot point
harmonic trading 121 pattern bearish
harmonic trading forex 121 bullish pattern GBPCHF M30
121 bearish GBPJPY M30

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support resistance line confirmation for Gartley

Support resistance line confirming the Gartley pattern entry

Trendlines: the simplest, no lagging confirmation method, for all harmonic pattern trading:

At TradingArsenal we build the Harmonic Trading Confirmations Knowledge Base. For more about Gartley pattern confirmations visit -> Gartley pattern confirmation methods

Related Posts:
Gartley pattern - location & pivot point confirmation
Gartley pattern trading entry techniques
failed Gartley pattern - another scenario
harmonic trading success ratio

AB=CD price and time in Gartley pattern

best harmonic trading pattern - Gartley

Harmonic Trading with supply demand zones
forex harmonic trading Gartley bullish
Gartley bearish pattern EURUSD M5
All about harmonic Gartley pattern trading

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Fundamental News and harmonic trading

For several reasons (to be explained other day) I ignore the fundamental news. I do not believe that following them can impact in significantly positive way my trading results. Maybe I am mistaken and this will change with time, but for the time being i am fine with this approach.

There is one aspect about news that is important for me. News increase volatility.

It’s important to know the time of News release if you trade affected currency pair. During News time market becomes volatile and I want to benefit from this volatility, or at least be prepared (and not loose). The strength of this volatility depends on the surprise factor brought by news.

Forex Factory provides the nice and useful calendar http://www.forexfactory.com/calendar.php where news are classified according to the importance: High, Medium, Low.

Pity, sometimes I am focused too much on the chart and forget the News. I am sure I am not the only one J

For this purpose it’s good to use a News indicator. You can get one here -> News indicator

We also add the News functionality into AMPmonitor. We just design the presentation layout, so if you have any good idea or suggestion visit this thread and share your thinking -> Adding news info to AMPmonitor

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harmonic traders take loss when pattern fails

My biggest losers always happened when the pattern failed, but i did not want to admit it :-(
With harmonic trading small SL and big TP potential you can take several loses in a row. One profitable trade will cover the loses.


"A loss never bothers me after I take it. I forget it overnight. But being wrong - not taking the loss - that is what does damage to the pocketbook and to the soul."
Jesse Livermore

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how to master harmonic trading

Note: This is first version of this post. It will be modified and extended with time.

- How to master harmonic trading?
- Simplify!

From the big harmonic patterns collection (Gartley, Bat, Butterfly, Crab, 121, 3Drives, etc):
1. pickup 1 pattern only - my suggestion would be Gartley: important basics on the Gartley pattern
2. pickup only 1 version of it - let's say Bullish
3. ignore all other patterns, forget them, and learn to spot on the charts the one you selected
4. ignore Fibo measurements, ignore building clusters from price and time relationships, just choose patterns that look good for the eyes (your eyes)
5. master the pattern identification process, learn how the profitable patterns look and behave, learn how they fail

... when you are done with it, let me know, you are in half way :-)


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harmonic trading success ratio

People often ask about the harmonic trading success ratio...
Some time ago we have written couple of lines on the Gartley pattern success ratio: Gartley pattern 70-80% success ratio , so you can have my opinion on this topic :-)

Some minutes ago we had a chat with friend on the success ratio of his system (seems to be very good one btw), so it was also an opportunity to check mine. Here it is, success ratio (4 months period) trading manually harmonics with reasonable but not strict (yet) money management rules.

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my forex mentor told me - and it works

My forex mentor once told me: "It's not important when and where you enter, it's important what you do after".
His approach was to ignore the entry and focus on trade management process, having clear, objective rules to move SL, move to BE, close the trade or revert the position.

My approach as wannabe harmonic trader was always different. I was always looking for a perfect entry, so to be able to enter with the lowest possible risk, the lowest SL and higher profit potentials.

I struggled to understand my mentor's words for a long time. Finally found my forex Grail by applying both approaches, combined.

Why i am saying this now...
Yesterday I put this info http://harmonicstube.blogspot.com/2012/04/audusd-121-pattern.html about Long opportunity on AUDUSD 121 pattern.

Pattern failed, no doubts. Serveral traders decided to trade the pattern. Each of us ended up with very different results, some lost $$$, some won $$$. Anyway, couple of us ended up with equity like this and/or similar to this:

Conclusion: Trade management and money management rules are key in harmonic trading.

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harmonic butterfly bullish on Gold H4

Harmonic butterfly bullish on Gold H4

HINT: Note the beauty (for the human eye) of the pattern. Note also, the time of AB swing is equal to time of CD swing. When i see such beauty i easily ignore the fact that D point did not reach any Fibonacci cluster(PRZ). Harmonic pattern must look good to the eye, that's what counts (at least for me).

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AB=CD price and time in Gartley pattern

We had Gartley pattern on EURGBP today.
It's another good example that shows (at least for us) that it's Price x Time that counts in harmonic patterns and not only Price itself.

more on this concept here -> http://tradingarsenal.com/gartley-pattern/200-ideal-tradeable-gartley-pattern.html#post814



Related Posts:
Gartley pattern - location & pivot point confirmation
Gartley pattern trading entry techniques
failed Gartley pattern - another scenario
support resistance line confirmation for Gartley
harmonic trading success ratio

best harmonic trading pattern - Gartley

Harmonic Trading with supply demand zones
forex harmonic trading Gartley bullish
Gartley bearish pattern EURUSD M5
All about harmonic Gartley pattern trading

Read more...

bat bullish on forex USDJPY M5

Bat bullish on forex USDJPY M5.

HINT: Some people ask how often harmonic patterns appear and on which timeframes. Visit www.AMPmonitor.com, register for free trial access and see yourself that you have beautiful harmonic opportunity every day, usually on serveral timeframes.

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harmonic pattern point D and pivot point

Pay attention when the point D from harmonic pattern comes close to pivot point. Price may (and often happens) does not respect the harmonic / market geometry, and reaches the pivot level. Knowing the location of nearest pivot points (daily, weekly, monthly) may help you in defining possible price behavior at point D. You may want in such cases skip the trade or extend the StopLoss.

See example from USDJPY where 121 bearish pattern failed, but price respected nicely the monthly pivot point.

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forex best trading results: 5days 10160%

To read about couple of different forex live account trading records our TradingArsenal friend did check here -> http://tradingarsenal.com/trading-journals/108-forex-real-account-6.html

This is the info he agreed to share regarding his trading methods to achieve this last record:

"1. all is done manually, no EA, MT4 platform

2. all was done on EURUSD only (this week, but sometimes he trades other instruments as well, depends what is moving on the given day)
3. there were equity curves from last days so you could see the progress on the account
4. he trades with very big leverage, less than 100pips to bankruptcy
5. adds to the winners
6. sometimes keeps the position for some minutes, sometimes over several nights
7. has perfect entries (very well timed) confirmed by "experience" (as he says). I asked if it's based on Gann, but he says these are proprietary timing techniques (and are much better).
8. he uses market geometry, cycles, moving averages, MACD
9. he says that type of trading is very stressful and for sure not for everyone
10. he says that following the same trading method he would not be able to make such % returns starting from 10k initial capital. Main issue is psyche. His psyche behaves differently with each 5k earned, and it always impacts the trading results. For bigger accounts he uses different methods."

Please note also that he has many years of trading experience and presented results were done with very high risk per each trade. It's just to show the possibilities that Forex market gives. I personally do not believe that this trading style can work in long term. My personal preference is to always control the risk (per trade/per day) and smooth equity curve growth. ...well, each of us has different goals :-) Focus on yours!

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best forex trading system

Question: What is best trading system for Forex market?
Answer: No idea. No idea if something like 'best trading system' exists. I think that Everyone must find HIS/HER OWN SYSTEM, one that fits best to the psyche and conditions we want to trade in.


Studding markets for several years already i found out that Harmonic Trading is the best forex trading method for me. Why? Because it works! Because it allows to enter with small risk and aim for big rewards, because it can be traded on any market instrument, any timeframe. Because it can be combined with many different money management techniques.


Here are the equity curves from 1 live forex account from 3 first months this year (2012, till now). Harmonic trading with proper Money Management RULEZZZZ.

forex live account equity curve January 2012

forex live account equity curve February 2012

 forex live account equity curve February 2012

To read more about my approach to harmonic trading you can check this thread -> http://tradingarsenal.com/trading-journals/108-forex-real-account-7.html#post2175

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best harmonic trading pattern - Gartley

H.M.Gartley presented the Gartley pattern in 1935, in his book "Profits in the Stock Market". He claims that he studdied the pattern over 30 years and this pattern was profitable in 7 out of 10 cases.

Visit http://tradegartleypattern.blogspot.com/ This blog is completly dedicated to trading of the Gartley pattern, covers the theoretical and practical details of the Gartley pattern, together with confirmation methods that can be used to increase the success ratio.
On the TradingArsenal Forum we research even further the Gartley pattern, check Gartley pattern thread.

HINT: Strongly recommended to start with only 1 trading harmonic pattern - the Gartley pattern. Master it and get profitable fast.

Related Posts:
Gartley pattern - location & pivot point confirmation
Gartley pattern trading entry techniques
failed Gartley pattern - another scenario
support resistance line confirmation for Gartley
harmonic trading success ratio

AB=CD price and time in Gartley pattern

Harmonic Trading with supply demand zones

forex harmonic trading Gartley bullish
Gartley bearish pattern EURUSD M5
All about harmonic Gartley pattern trading

Read more...

failed harmonic patterns by AMPmonitor

AMPmonitor functionality thread on the TradingArsenal Forum explains the idea behind AMPmonitor emerging, completed, live, running and invalidated patterns.

What are the invalidated (also called failed) patterns? These are the patterns that hit the StopLoss price level before reaching any of TakeProfit levels (TP1 or TP2).

Following examples present invalidated/failed patterns:

HINT: With experience person may trade failed harmonic patterns by reverting the position on the StopLoss price level or looking for even better entry in the opposite direction than suggested by the harmonic pattern. However, do not even think about this idea, till you master the book-like harmonic trading.

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Harmonic Trading with supply demand zones

In the last 2 posts ( Will Busby supply and demand simplified and Sam Seiden's supply demand zones ) you could find information about the Supply/Demand method. This video presents how this can be applied together with Harmonic Trading.

If you find any other good sources of information regarding the supply/demand concepts (not necessary combined with harmonic trading) please pass in the Comment section.



Related Posts:
Sam Seiden's supply demand zones 

Will Busby supply and demand simplified

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Will Busby supply and demand simplified

Love teaching from Sam Seiden regarding supply and demand methodology, but just have seen a video "Multiple Time-Frame Supply and Demand Simplified" by Will Busby (from http://www.purefinancialacademy.com/) and want to honestly recommend it.

TITLE: Multiple Time-Frame Supply and Demand Simplified

SPEAKER: Will Busby

COMPANY: Pure Financial Academy

Join Will Busby, CEO and co-founder of Pure Financial Academy, as he introduces how you can combine methods of supply and demand with the structure of price action.

This live webcast will also review how reading pure price action can simplify and add probability to your trading. Attendees will learn what supply and demand looks like on a price chart and why you may no longer need lagging indicators to map out your trades. Featured topics include:

• What is Supply and Demand
• How to locate Supply and Demand on a price chart
• Choosing the best time frame to suit your personality
• Difference between Trend vs Counter Trend levels

HINT: Supply/demand method works great with harmonic trading. Both together allow to fine tune the entry.

BTW 1: Video presents cool indicator for NinjaTrader that shows supply/demand levels on multi timeframes:

Guess this is what we should aim to create as a part of our newest TradingArsenal project


Related Posts:
Sam Seiden's supply demand zones 

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Sam Seiden's supply demand zones

If you studied Sam Seiden's materials and probability enhancers you will know that "Strong arrival usually means strong departure at the level."
Take a look at 121 bearish pattern on EURGBP H4. See the last

candle on H4 timeframe, see how price reached the level.

EURGBP H1 supply demand level:

We run a project at TradingArsenal to build a Supply Demand indicator  based on Sam Seiden's supply demand rules. Details here -> Supply Demand indicator project


Related Posts:

-> Will Busby supply and demand simplified

 

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harmonic trading price behavior at D point

Observe how price reaches D point (scenario 1):

Now observe how price reaches D point (scenario 2):

Can you see the difference?

Can you make a conclusion out of it?

HINT: See the following video: Harmonic Trading - gaps and wide range bars

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TradingArsenal YouTube Channel

See our TradingArsenal videos and click Subscribe if you like them and want to see the comming ones.

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forex harmonic trading Gartley bullish

forex harmonic trading Gartley bullish on USDPLN

HINT: Harmonic trading success lies within confirmation methods applied. Check our TradingArsenal confirmations knowledge base -> Gartley pattern confirmations

Related Posts:
Gartley pattern - location & pivot point confirmation
Gartley pattern trading entry techniques
failed Gartley pattern - another scenario
support resistance line confirmation for Gartley
harmonic trading success ratio

AB=CD price and time in Gartley pattern

best harmonic trading pattern - Gartley

Harmonic Trading with supply demand zones
Gartley bearish pattern EURUSD M5
All about harmonic Gartley pattern trading

Read more...

harmonic trading Shark pattern

Harmonic trading Shark pattern on USDPLN H1.

HINT: If you are new to harmonic trading forget the new animals, inventions, forget Bat, Alternate Bat, Butterfly, Crab, 121, Shark, 3Drives, etc. Focus on just 1 harmonic pattern only and master it. Gartley pattern is the great start, forget the rest and your trading results will improve much faster.

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butterfly harmonic pattern EURUSD M5 cont

butterfly on EURUSD continuation from post -> http://forexharmonictrading.blogspot.com/2012/04/butterfly-harmonic-pattern-eurusd-m5.html

HINT: You were just lucky if you kept your position so looong. A.Take profit relatively fast, B.apply trailing stoploss policy or C.wait for the huge move that follows harmonic pattern. You have different options. Choose the one that applies best to your psyche. A is what I found best for me.

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butterfly harmonic pattern EURUSD M5

we had this EURUSD butterfly harmonic beauty today! Check our harmonic patterns recognition tool -> AMPmonitor and do not miss such opportunities.

more on AMPmonitor -> http://tradingarsenal.com/ampmonitor/

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harmonic trading 121 pattern bearish

harmonic trading 121 pattern bearish

Related Posts:


All about the 121 pattern trading
Geometric 121 pattern - location is the key
121 pattern (running correction) proceeds the impulse
121 pattern confirmed by the daily pivot point
classic running correction - 121 pattern
harmonic trading forex 121 bullish pattern GBPCHF M30
121 bearish GBPJPY M30




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harmonic trading butterfly bullish audusd M30

harmonic trading butterfly bullish AUDUSD M30

HINT: Trade Butterfly pattern only when located at the end of the current trend. Enter precisily with short Stoploss. Even if you catch SL couple of times, successful butterfly trade will give you huge profit that will cover many losing trades..

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harmonic Bat pattern GBPAUD

forex harmonic trading - Bat pattern GBPAUD

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harmonic trading confirmation techniques

Harmonic trading secret lies not in the pattern itself (not in its definition nor relations between swings) but in the confirmations techniques used. Different methods can be used here. Our suggested list of methods (ones that we consider very useful) can be found on the TradingArsenal forum:
- Trendlines
- Divergence

- Gartley pattern and Elliot Wave theory
- Combining different timeframes
- Volatility
- Defining Potential Reversal Zone for the Gartley pattern
- VSA (Volume Spread Analysis)
- Gartley pattern failure setups (Failed Gartley pattern)
- Cycles
- Band indicator
- Supply & Demand
- Reversal candlestick patterns
- Andrew Pitchfork
- Pivot Points
- Channel

For Gartley confirmation methods check -> Gartley pattern - table of content
For Bat confirmation methods check -> Bat pattern - table of content

note1 that not all threads are populated at this time, but we keep on inserting the content regularly.
note2 that content for butterfly, crab and 121 pattern confirmations is planned but not ready yet.

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AMPmonitor forex harmonic patterns recognition

AMP indicator has functionality to present pattern in advance (so called emerging pattern). Emerging pattern is very useful. Allows trader to prepare for the trade, apply his/her own confirmation techniques and decide if it's worth to trade the pattern.

From Emerging pattern changes to Completed. This means all swings within the pattern meet the pattern criteria. This is the moment to execute the trade.

Completed pattern can move into Running or Invalidated status. Running means that pattern is on the way to reach the Take Profit level (TP1 and/or TP2 are 2 default TP levels defined in AMPindicator / AMPmonitor). Invalidated status means that price hit the Stop Loss level.

Emerging 121 pattern:

Completed 121 pattern:

Running 121 pattern:

To read about AMPmonitor check --> http://tradingarsenal.com/ampmonitor/

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