Harmonic Trading and my ABCDE pattern

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iwantu2brich

Member
73 0
Hi! I want to share with you my ideas about Harmonic Trading and my new ABCDE pattern. New because I discover it myself, doing my 5 years research and lot of trading. I am from Poland, so I don't guarantee good English, but I do my best. I want to share with you this pattern, because in my opinion and experience in live, the very best things is for free, and I expect from you good questions about Harmonic Trading (XABCD, 1:1, abcd). So I hope, this will be a good experience for clarification your and my systems and strategies.

So... This pattern began forming in my mind when I have many questions to myself and market, for example:

1.What is XABCD pattern?
2.What is minimum and maximum relationship between ab and cd in XABCD?

This questions and many others, lead me to seeking for answer, on charts. So I do my research in literature first and I found that in all sources I found, that it (specific question no 2) wasn't so much information. Only Kane Jim spoke about abcd, and in all his opinion available for my (only have his website, don't have, his books), he tell about:

61,8 ab = cd
78,6 ab = cd
88,6 ab = cd

So I just wander, why it is so... That lead me to search on charts another variation, but it was surprise what I found and that was something like that:





Another words: When cd is less than ab specific when cd is less than 61,8 ab (56,4 or 50 or 44,7 or 38,2 or even 23,6). Trend is still valid (uptrend in chart), even when point E is below point C.
This pattern help me a lot, to determine trend and when I hold already opened position and this pattern occur, I still hold my positions. Remember I still doing research and this ratios is only beginning. Do your research and tell me what you think!

Best trading 2 you!
 

timaru69

Active member
227 5
Hi! I want to share with you my ideas about Harmonic Trading and my new ABCDE pattern. New because I discover it myself, doing my 5 years research and lot of trading. I am from Poland, so I don't guarantee good English, but I do my best. I want to share with you this pattern, because in my opinion and experience in live, the very best things is for free, and I expect from you good questions about Harmonic Trading (XABCD, 1:1, abcd). So I hope, this will be a good experience for clarification your and my systems and strategies.

So... This pattern began forming in my mind when I have many questions to myself and market, for example:

1.What is XABCD pattern?
2.What is minimum and maximum relationship between ab and cd in XABCD?

This questions and many others, lead me to seeking for answer, on charts. So I do my research in literature first and I found that in all sources I found, that it (specific question no 2) wasn't so much information. Only Kane Jim spoke about abcd, and in all his opinion available for my (only have his website, don't have, his books), he tell about:

61,8 ab = cd
78,6 ab = cd
88,6 ab = cd

So I just wander, why it is so... That lead me to search on charts another variation, but it was surprise what I found and that was something like that:





Another words: When cd is less than ab specific when cd is less than 61,8 ab (56,4 or 50 or 44,7 or 38,2 or even 23,6). Trend is still valid (uptrend in chart), even when point E is below point C.
This pattern help me a lot, to determine trend and when I hold already opened position and this pattern occur, I still hold my positions. Remember I still doing research and this ratios is only beginning. Do your research and tell me what you think!

Best trading 2 you!
Similar to a Gartley 222 except D should be lower than B. If you look closely there is also a Butterfly pattern within the CDE pattern

All good in hindsight
 
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iwantu2brich

Member
73 0
Good enough but if you think it works, why are you making it public?
Becouse it have not different, when Pesavento publicate his patterns, market still exist today, nothing is change! Isn't true? Besides I don't know why so many traders feel insecure about. I want a good discussion, not, why or when!
 
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timaru69

Active member
227 5
Becouse it have not different, when Pesavento publicate his patterns, market still exist today, nothing is change! Isn't true? Besides I don't know why so many traders feel insecure about. I want a good discussion, not, why or when!
Ok I'll bite

At waht point do you enter a trade and what criteria?
Do you have a profit target and stop loss? If so how are these defined.

I was once interested in these patterns but have moved on, hard to use them in isolation, and like I said they always look good after the fact. Harder to do when trading off the right hnd side of the chart.

Let's post some live examples
 

shadowninja

Legendary member
5,524 642
Not really an area I know much about but I stumbled across butterfly patterns last night, which may be relevant. (Prefer to keep it ultra simple, myself.)
 

iwantu2brich

Member
73 0
"Similar to a Gartley 222 except D should be lower than B. If you look closely there is also a Butterfly pattern within the BCD pattern. All good in hindsight"

timaru69 -You misunderstood concept, and please, for God's sake, don't copy unnecessary my posts, edit please, your post for better clarity. It is not similar. It is different logic in it.

"If you look closely there is also a Butterfly pattern within the BCD pattern" Good observation, but it is for another discussion. Better when you look closely and see Butterfly pattern inside CDE!
 

timaru69

Active member
227 5
Hi

Sorry I stand corrected , you are correct , Butterfly is in the CDE not BCD as I said, rushed my earlier post.

Cheers
T
 

iwantu2brich

Member
73 0
Hi

Sorry I stand corrected , you are correct , Butterfly is in the CDE not BCD as I said, rushed my earlier post.

Cheers
T
Thanks for your cooperation. Yes it is truly good, but not perfect Butterfly, and for those who asking when is entry point, this is one piece of the puzzle to answer. Any trade who is in my trading plan, I consider in greater picture, always! So this was an opportunity for entry, of course when you merge it with XABCD concept(in this case)!
 

iwantu2brich

Member
73 0
Not really an area I know much about but I stumbled across butterfly patterns last night, which may be relevant. (Prefer to keep it ultra simple, myself.)
I told you, it is not finish yet. Give advantage about it, because anyone who are willing to use imagination will develop entry for him or herself! Some people take simple MA and develop system based on my pattern, some merge with another knowledge, like XABCD, some just don't, and that's fine!

Harmonic Trading is simple, but complex, you have to understand, it is not complicated! In it complexity you have simple structures, but you have to study years to fully understand concept! It is not a just trading system, it is strategy, you cant put it to computer and expect to have profit compare to human knowledge! Manny people, like this unending story about Harmonic Trading, so I invite those who want to be successful in this profession! And my pattern is only an excuse, symbol, for good discussion! (this is a full answer why, I give to public this pattern)
 
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JahDave

Experienced member
1,563 28
Hmmmm, looks like Elliott Wave patterns to me. Just another way to define them!
I agree. I trade by elliott wave every day and I think this is the section of chart shown here only expanded. Even R.N. Elliott himself said that the basis of Elliott Wave Theory was Fibonacci retracements and projections, which this system seams to be based on as well.
 

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forexkunta

Established member
818 24
Just call it what it is, a triangle.

Have a look at post #8 http://www.trade2win.com/boards/forex-strategies-systems/91508-desperately-seeking-good-daily-trading-system.html
Might make more sense. But bear in mind that this was defined back in the 1930's. Everyone else is just trying to put their stamp on R N Elliott's discovery.

I agree. I trade by elliott wave every day and I think this is the section of chart shown here only expanded. Even R.N. Elliott himself said that the basis of Elliott Wave Theory was Fibonacci retracements and projections, which this system seams to be based on as well.
 

iwantu2brich

Member
73 0
Good enough but if you think it works, why are you making it public?
Are you see this? I public this pattern, and people still misunderstand concept, think this is Eliott Pattern. But I will don't convince anyone to see like I see this! I observe this, even with XABCD subject, there is very little people who understand Harmonic Trading. Very interesting psychologically, this is true that you observe reality only how you set yourself and this is perception!
 

forexkunta

Established member
818 24
Fortunately, that is all this amounts to, is EW patterns. No matter how you slice it and dice it. It is ok for us to disagree on this forum. You are the one that opened it for discussion. But that is ok. I will leave the thread to you.
Regards


. So I hope, this will be a good experience for clarification your and my systems and strategies.
 
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