A short while ago I started using Heiken ashi to identify the right X (in my opninion the most difficult part in harmonic trading). Had an idea as to where X might have started that i wanted to share with you. Cheers
I have noticed that I have been missing entries just by a few pips due to high x placement. Heiken ashi shows changes in momentum much better that regular candle sticks. for a while I have been testing this strategy. Namely to chose the first candle with opposing color as a start for my X to A. I don't yet have enough data yet to prove that it is always better, but I am missing way less entries. How do you think about it?
i must test it.if it works for you it's fine.how you place your stop loss?i use ATR for my stops.many times the price exceed the x point and then returns and hit my targets.i n this trade i had my entry @102.150 and my stop @102.338. i just stopped out before the price returns.that's ok the most of the time it works for me.so no problem with that.
yeah that is the thing, the risk does get higher, so i put my stop loss 10 pips above the previous high. I use the 3 hr chart to validate the entry (for trades i take on the daily chart). so I put my stop loss in this case at 102,6