I wanted to post this chart as a reminder to myself and others of what not to do. I drew this ABCD pattern last week some time and then the pattern software picked it up later, but notice ho PA came down and tested the PRZ and the rocketed the he__ out of there. this is an example of a type 1 trade by Carney's definition. price comes in stabs the PRZ and leaves and never comes back. as a harmonic trader these trades are the nightmare for the system.
Why?
Because, you find yourself chasing the trade the entire time, and then you go from a 2:1, 3:1, or even 5:1 RR to a quick 1:1 or less RR just to have it retest the area to blow your stops out and move on up some more. I have done some significant damage to my account chasing these type of trades. So, this is a reminder to myself namely to DONT CHASE A TRADE. wait for the right set up. look for some consolidation or some indecision and then trade. Let the pair allow you to catch it, don't case it. The system works if I (or you if youre reading this) work it properly.
Also, if there is a lot of news swirling around wait for the market to clam back down. when there is a lot of news coming out because of XYZ event the markets act irrational will blow patterns, harmonics, S&R levels, Supply/Demand levels, and etc. out of the water.
The market acts irrationally in a rational manner, its a nightmare when the market acts irrational... irrationally.
to my future self, this is your past self and you got this. the system works and you know it works. if you doubt yourself go back thorough our past ideas and see how well it works. if you are losing alot of trades ask if the market is acting irrationally in a rational manner or is it acting irrationally in an irrational manner? are we forcing trades? are we chasing trades? if so stop, because if not that money lost will not be there for when the right trade presents itself AGAIN later in the future when the market is acting like its normal self.
If youre not me and you found this helpful great!
if youre not me and found this NOT helpful...okay... so what?! ;)
Happy Trading Future R.Guy and other traders!
Why?
Because, you find yourself chasing the trade the entire time, and then you go from a 2:1, 3:1, or even 5:1 RR to a quick 1:1 or less RR just to have it retest the area to blow your stops out and move on up some more. I have done some significant damage to my account chasing these type of trades. So, this is a reminder to myself namely to DONT CHASE A TRADE. wait for the right set up. look for some consolidation or some indecision and then trade. Let the pair allow you to catch it, don't case it. The system works if I (or you if youre reading this) work it properly.
Also, if there is a lot of news swirling around wait for the market to clam back down. when there is a lot of news coming out because of XYZ event the markets act irrational will blow patterns, harmonics, S&R levels, Supply/Demand levels, and etc. out of the water.
The market acts irrationally in a rational manner, its a nightmare when the market acts irrational... irrationally.
to my future self, this is your past self and you got this. the system works and you know it works. if you doubt yourself go back thorough our past ideas and see how well it works. if you are losing alot of trades ask if the market is acting irrationally in a rational manner or is it acting irrationally in an irrational manner? are we forcing trades? are we chasing trades? if so stop, because if not that money lost will not be there for when the right trade presents itself AGAIN later in the future when the market is acting like its normal self.
If youre not me and you found this helpful great!
if youre not me and found this NOT helpful...okay... so what?! ;)
Happy Trading Future R.Guy and other traders!