Quote from Marsupilami:
I try to spot confluence of several harmonic retracement and projection levels...however, done manually during the trading session, it can interfere with trading and will let you miss trades.
Hey, Marsupilami.
Indeed. Manually, I don't even thing - no - I know it is not possible. Too many charts, too ratio intersections and too many different patterns to focus on at once. Can't be done from the human limitation standpoint and that's why I'm building the search prototype.
I won't be specifically looking for any pattern that anyone has defined yet. The search engine won't, for example, look for Gartley, while ignoring Bats. Or, look for 5-0, while ignoring Butterflies. In fact, the key to the search won't be in any specific finding, it will be in the density probability of harmonic ratios/patterns that ultimate lead to a range of price behavior that I can quantify (measure) and wrap trade logic around.
In addition to the *free form* ratio or pattern search, the other key will be in the linking of those ratios and patterns across multiple time-frames. If anyone has done this before, they most certainly have not talked about it publicly.
So, in theory, I *should* find and/or discover new ratios and possibly, new harmonic patterns, that could flow from one dimension of time, to another. One thing I absolutely know for certain is the timing sequence for the emergence of patterns.
Part of my primary theory is that *ALL* larger scale harmonic patterns
do not start out that way. So, I'll be applying something *like* a spatio-temporal ripple effect gauge, because I need to measure the total gross effect of the ripple. I'm also working on a research tool that will work something like Doppler, to see if I can simply "sit in the market" and "hear" the harmonic frequency changes as price "passes by." (kinda sorta like that)
If I am successful, I should be able to pinpoint, or at least closely approximate, where the large harmonic pattern (the one you trade) was started, to within a few minutes. And, if I can do anything that even remotely approximates that, I should also be able to build a Harmonic Pattern Tracker, that actually follows "young harmonies" through their
life cycle until they reach the age of maturity and are ripe for producing highly predictive trades.
One of the research keys that makes this possible, is the ability to create custom bar time-frames, down to the second. Not that I'll need to go that far, but having the ability to do the research inside the standard bar formats, is critical - in fact, mandatory.
So, the analogy is simple: Think about a somewhat still pond filled with water (though not a perfect analogy, as the market is constantly volatile). Drop the proverbial pebble in the pond and you get instant wave behavior. If you track back through the larger radians at the perimeter of the ripple effect, take measurements of the distance, amplitude and speed of each ripple going in the opposite direction, you should be able to mark the epicenter of the gross effect. (something like that, not exactly)
So, I've been thinking of these harmonic patterns in much the same way, where the ripples are very easy to see with the naked eye (Ripples = Fibonacci Ratios of common Harmonic Patterns), but to my knowledge, no one has looked at the
distance, amplitude and speed between the ripples[/b] to see if there are any ratio similarities that connect that ripples themselves.
If those ratio similarities do exist, then they should produce a Ratio Field Event Horizon, or what I will call the RFEH Frequency. It would be *that* frequency that I would need to "tune into" in order to produce the relative Harmonic Pattern Tracker.
Think of how Radar/Transponder systems work. Take an aircraft up to altitude and turn on its transponder to the ATC designated four digit code and ATC will be able to not only track that aircraft, but ATC will also get altitude information as well, if the aircraft is squawking Mode-C. So, essentially what I'd be trying to do is, place a transponder inside of every harmonic pattern headed my way, so that I can get early warning information about the nature of the pattern. Its speed, size, shape, resonance frequency (ratio synergies) and most of all, its general ETA.
Of course, I cannot physically place these things into the market, but those are the net effect results of essentially what the Harmonic Engine will simulate for me, if it works. Anyway, that's the long and short summary of what I'm trying to do.
What are you using now to trade Harmonic Patterns, other than manual interpretations?