The below is an image and explanaition of my ATM, Currently I am not using moving averages or any indicators in that family. Simply S/R lines and the Harmonic Beat lines available in the ATM_DSRBeats indicator below. ||| ATM_DSRBeats is an indicator that shows horizontal lines spaced at fractions of a "Harmonic Beat" of 60 pips. It is defaulted to show the HB lines above and below today's open. I place this on my one hour and below charts. In intraday trading i will look for correlations between these HB lines and TA areas of previous S/R for a heads up on possible TP/Consolidation/Reversal areas. Here is some further clarification on how i incorporate this "Harmonic Beat" theory into my trading style: Placing the DSRBeats on a 15 min GbpUsd chart I am looking for certain price action/activity about the HB lines...
See the tag of HB-60 line at 1.9597 ?... This for me would have been a heads up as a possible reversal signal. Then i would have waited for the confirmation, which in this case came after two bear candles, preceded and engulfed by a Bullish Engulfing candle that closed around the HB-30 line. If i had traded this (and i did not due to needing some sleeeeeeeeep!), i would have taken a buy after the break above the HB-30 line. HB lines are not an indicator/model unto themself See how the G/U price action stalled around the HB+15 line? This was after a 75pip run up, and the cable will often pause at 75 or 90 pips and then make it's decision to continue to complete 2 HB (120 pips) or retrace to a fraction of a beat. . . In our case after several tags at that area price fell back down to the HB-45 line/area approximately 60 pips from where it was playing with the upper HB+15 line? One possible short entry at this point in the day might have been after the price closed below the day's open indicated by the solid yellow line. This is what i'm looking for. Then what did the price do? It went from the HB-45 area up 30 pips (half a beat) to the HB-15 area, stalled, and is currently going south again and just stalled as i type at the HB-45 line. One recomendation would be to download and place the ATM_DOBRO indicator which can be used for Harmonic Beats for backtesting. Simply change the "baseline" to the day's open you wish to backtest and see how your TA and SR might have played about the HB lines. Two complementary indicators are the Trend Line Audio Alerts below; now we can set our trend lines and then come to the chart and observe if the break of those TLs also coincide with S/R and H/B areas. This, in my style, assists me in building confidence when entering/exiting a trade. ||| ATM_TLineAudioFallingAlert is an alert set on a trend line that will trigger an audio file, and/or email when price breaches the trend line while faling. Be sure to also grab my nice audio file for this indicator here: falling-price-alert (tip: right click and "Save Target As", then place inside the sounds directory of your mt4. ||| ATM_TLineAudioRisingAlert is an alert set on a trend line that will trigger an audio file, and/or email when price breaches the trend line while rising. Be sure to also grab my nice audio file for this indicator here: rising-price-alert (see above tip for use). Free to download and use :-)
Happy trading!
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