FOREX Harmonic Trading

Thank you for visiting and Welcome to excellent way to learn about Harmonic Trading. This site will be updated regularly and will focus on presenting harmonic trading and harmonic patterns together with practical tips / tricks / hints to trade patterns like Gartley, Bat, Butterfly, Crab and 121 successfully. Lots of methods ilustrated with detailed exmaples. Your valuable comments will be added here or taken for further discussions on the TradingArsenal Forum . Note that from the TradingArsenal site you may download a test version of our korHarmonics - harmonic and price patterns recognition indicator (MT4 only). Examples are taken mainly from www.AMPmonitor.com - powerful web based platform that scans and alerts you on the price patterns and harmonic trading opportunities (check for more info on AMP indicator and AMPmonitor).

Sunday, April 29, 2012

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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Saturday, April 28, 2012

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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Friday, April 27, 2012

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

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

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Tuesday, April 24, 2012

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.

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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Wednesday, April 18, 2012

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...

Monday, April 16, 2012

classic running correction - 121 pattern

Classic running correction - 121 pattern on EURUSD today

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

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

Read more...

Friday, April 13, 2012

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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Wednesday, April 11, 2012

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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Tuesday, April 10, 2012

harmonic butterfly bullish on Gold H4

Harmonic butterfly bullish on Gold H4

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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...

Monday, April 9, 2012

bat bullish on forex USDJPY M5

Bat bullish on forex USDJPY M5.

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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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Sunday, April 8, 2012

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

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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