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Price Action in Day Trading by Dadas

  • #621
  • Apr 9, 2013 3:25am Apr 9, 2013 3:25am
Quoting smikester
None of your trendlines are correct! But the third one from the left is the closest. Here is a chart with the correct trend line. Regards. {image}
Oh, Master of trendlines, THANK YOU!

No, that is not the correct trendline, either.

The correct trendline should start where the trend Began and end where the trend Ended.

Thus, on the H1 we can tell where the trend Began, so we have the starting point.
So far, the correct trendline for this particular trend looks like this:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h1-fxsalt-ltd.png Size: 72 KB


However, we do not have the End point, because we do not know if the Bullish trend has ended or not.

That is why trendlines are only helpful if someone can not see trend on chart, itself.
They are useless for determining trend End/Beginning.

Inside the bigger trend there were other local Bullish trends:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h1-fxsalt-ltd-2.png Size: 72 KB


And Bearish trends, as well:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h1-fxsalt-ltd-3.png Size: 73 KB


Thank You, again, smikester!
Trade the facts, not opinions.
  • #622
  • Apr 9, 2013 3:41am Apr 9, 2013 3:41am
And, BTW:

That is, exactly my point.

The actual trend line for a given trend can only be plotted after the fact.
Only, when the trend has completed the whole cycle.
We never know if the plotted trendline in the given time is already the final one, or not.

That is why there is NO CORRECT TRENDLINE!

That is why trendlines are useless to find trend End - reversal of trend!

Price Action is much, much more reliable!

Of course, nothing in Forex is certain!
Trade the facts, not opinions.
  • #623
  • Apr 9, 2013 3:48am Apr 9, 2013 3:48am
Quoting parsfx
PRACTICE: EurJpy {image} switch m15 and buy after engulfing candle {image}
Good,

Now see the other side, too:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy-h1-fxsalt-ltd.png Size: 57 KB
Trade the facts, not opinions.
  • #624
  • Apr 9, 2013 4:30am Apr 9, 2013 4:30am
Hi Dadas,
Thanks for teaching price action. Managed to read through the whole thread in 2 weeks. Read 2 -3 times for the first 10 pages to get the understanding the concept of PTECZ, TBCZ and CSCZ. Sometimes very difficult to figure out your charts for the time frame, currency pair, and custom zone candle time frame background. Need time to figure them out. If you can named it on the chart it will be very helpful.

Also I have a problem on your custom zone candle with index. Can't use it on MT platform from my regular broker FXprimus. It didn't show anything when I plot into the platform. When I change the input parameter or change the time frame, the platform just shut down. However, it is perfectly OK when I use it in demo MT4 platform from Amada. If you can help to fix it it will be nice. If not it is OK and I can use manual or visual to identify the Zone.

Attached is my chart from yesterday. Please comment if I make error.

Thanks and regards
Attached Image (click to enlarge)
Click to Enlarge Name: PPA_EU.png Size: 59 KB
  • #625
  • Apr 9, 2013 4:33am Apr 9, 2013 4:33am
The much more precise tool for detrmining trendlines is the Andrews' Pitchfork.
However, using AP requires a much deeper understanding of the AP tool.
It requires not just taking the stadard online instruction, but the understanding of the principle.

AP is based on the median price value.
The median is the middle, the avarage of 2 points.

This allows us to plot AP with great precision:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h1-fxsalt-ltd.png Size: 74 KB


However, this is, still only a helping aid.
Not the decisive aid!
Trade the facts, not opinions.
  • #626
  • Apr 9, 2013 4:50am Apr 9, 2013 4:50am
Quoting Tradertpl
Managed to read through the whole thread in 2 weeks. Read 2 -3 times for the first 10 pages to get the understanding the concept of PTECZ, TBCZ and CSCZ.}
Others should take as example!
This is the proper way to do it!
Read as many times as you must to understand!

Quoting Tradertpl
Sometimes very difficult to figure out your charts for the time frame, currency pair, and custom zone candle time frame background. Need time to figure them out. If you can named it on the chart it will be very helpful.
The charts in the first posts do not have descrption of instrument, because they illustrate the idea.
The idea is the same for every instrument!

Most of the rest charts have description in the upper left corner!
I also often write in the post itself the pair and Tf I am analysing.

So, look closely!

Quoting Tradertpl
Also I have a problem on your custom zone candle with index. Can't use it on MT platform from my regular broker FXprimus. It didn't show anything when I plot into the platform. When I change the input parameter or change the time frame, the platform just shut down. However, it is perfectly OK when I use it in demo MT4 platform from Amada. If you can help to fix it it will be nice. If not it is OK and I can use manual or visual to identify the Zone.
I must download the platform and see.
I do not see any reason for this, unless your broker has some plugin to block using third party programmes?

Quoting Tradertpl
Attached is my chart from yesterday. Please comment if I make error. Thanks and regards {image}
Your chart illustrates the work you have done!
Your work is now giving great results!

PS.
I see you are using the Daily Open lines, and probably the 50 Grid Lines.
Well, they do not bother me, I used to have those, too.
But, they do not mean a lot, really.
Just some extra information which can bias your vision.
Trade the facts, not opinions.
  • #627
  • Apr 9, 2013 5:05am Apr 9, 2013 5:05am
Quoting Dadas
Others should take as example! This is the proper way to do it! Read as many times as you must to understand! The charts in the first posts do not have descrption of instrument, because they illustrate the idea. The idea is the same for every instrument! Most of the rest charts have description in the upper left corner! I also often write in the post itself the pair and Tf I am analysing. So, look closely! I must download the platform and see. I do not see any reason for this, unless your broker has some plugin to block using third party...
Thanks
  • #628
  • Apr 9, 2013 5:18am Apr 9, 2013 5:18am
Plotting on 30M, CSCZ is yesterday's D1
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot3.png Size: 10 KB


on 5M, I was looking to buy from orange, green PTECZ and exit at the R of CSCZ
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot4.png Size: 10 KB


cca 20-25 pips, but I did not watch it closely enough, and it ran away after the obvious pinbars.
Dadas please can you comment on PTECZ's.

thanks
  • #629
  • Apr 9, 2013 5:23am Apr 9, 2013 5:23am
Quoting Tradertpl
Also I have a problem on your custom zone candle with index. Can't use it on MT platform from my regular broker FXprimus. It didn't show anything when I plot into the platform. When I change the input parameter or change the time frame, the platform just shut down.
I do not see a problem.
Attached Image (click to enlarge)
Click to Enlarge Name: fxprimus - metatrader 4 platform.png Size: 74 KB


Attached Image (click to enlarge)
Click to Enlarge Name: fxprimus - metatrader 4 platform01.png Size: 75 KB
Trade the facts, not opinions.
  • #630
  • Apr 9, 2013 5:36am Apr 9, 2013 5:36am
hi dadas.. im trying to understand your the zone candle style trading as stated on your post at 587 to 591..

1)
Attached Image (click to enlarge)
Click to Enlarge Name: Capture.PNG Size: 58 KB


i open the 4 hours chart as per above image.. the current candle were as label.

2)
Attached Image (click to enlarge)
Click to Enlarge Name: Capture1.PNG Size: 65 KB


im plotting the custom candle index indicator with input of timeframe for 4 hours and the index candle 211. there is 124 pips range between the upper and lower shadow.

3)
Attached Image (click to enlarge)
Click to Enlarge Name: Capture2.PNG Size: 56 KB


now i switch to m15 and there is a break upward from the shadow zone.

do i do it correctly for this kind of trading style?.. since there is a breakout upward from the lower shadow zone.. will look for buying oppurtunity when the price retrace..

your comment is kindly appreciated.. thank you
  • #631
  • Apr 9, 2013 5:45am Apr 9, 2013 5:45am
@Tradertpl
Post#624 "....Sometimes very difficult to figure out your charts for the time frame, currency pair, and custom zone candle time frame background. Need time to figure them out. If you can named it on the chart it will be very helpful."

Your are right, it's not easy to read charts. It's very difficult.
  • #632
  • Apr 9, 2013 6:01am Apr 9, 2013 6:01am
Quoting Pipanje
Plotting on 30M, CSCZ is yesterday's D1 {image} on 5M, I was looking to buy from orange, green PTECZ and exit at the R of CSCZ {image} cca 20-25 pips, but I did not watch it closely enough, and it ran away after the obvious pinbars. Dadas please can you comment on PTECZ's. thanks
Now, this already makes some sense!
You knew what you were targetting!
You knew where to look for entry!

H1 PTECZ look better:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h1-fxsalt-ltd-3.png Size: 66 KB


Now, if you considerred the M30 upper PTECZ:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m30-fxsalt-ltd.png Size: 62 KB


Then, from M5:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m5-fxsalt-ltd.png Size: 70 KB


However, there is another point to this situation:
It is counter trend!
It is retrace only!

Why?
Look again at H1, there is no Break Up or Engulfing Candle!
Not on M30, not on M15, not on M5.

Not on H4, but that did not Close on my chart, yet. Still 1 hour to go.

So, the 20 Pips is actually risky scalping in this situation!
Trade the facts, not opinions.
  • #633
  • Apr 9, 2013 6:19am Apr 9, 2013 6:19am
Quoting scarcity
hi dadas.. im trying to understand your the zone candle style trading as stated on your post at 587 to 591.. 1) {image} i open the 4 hours chart as per above image.. the current candle were as label. 2){image} im plotting the custom candle index indicator with input of timeframe for 4 hours and the index candle 211. there is 124 pips range between the upper and lower shadow. 3){image} now i switch to m15 and there is a break upward from the shadow zone. do i do it correctly for this kind of trading style?.. since there is a breakout upward from...
Why did you choose that historical Candle?
Because you want the Price to go up?

Maybe, be more logical and look much nearer first?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h4-fxsalt-ltd.png Size: 68 KB


You have a good start point.
Then, if Price Breaks Up, you find the next levels:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h4-fxsalt-ltd-2.png Size: 68 KB


Now, switch to M5 and see what is cooking:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m5-fxsalt-ltd-2.png Size: 67 KB
Trade the facts, not opinions.
  • #634
  • Edited 6:41am Apr 9, 2013 6:28am | Edited 6:41am
You could make it shorter with D1.
This, I plotted yesterday:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-d1-fxsalt-ltd.png Size: 67 KB


Looks like this, today, M30:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m30-fxsalt-ltd-2.png Size: 61 KB


Just, be reasonable.

120 Pips Daily Range for EURUSD is not something you see everyday!
Especially, when there is 63 Pips on the counter, already.
Trade the facts, not opinions.
  • #635
  • Apr 9, 2013 6:34am Apr 9, 2013 6:34am
Quoting mosah
@Tradertpl Post#624 "....Sometimes very difficult to figure out your charts for the time frame, currency pair, and custom zone candle time frame background. Need time to figure them out. If you can named it on the chart it will be very helpful." Your are right, it's not easy to read charts. It's very difficult.
And that is the idea!

You must figure it out by yourself!

When you figure it out, that is when you will read the charts!
Trade the facts, not opinions.
  • #636
  • Apr 9, 2013 6:37am Apr 9, 2013 6:37am
Quoting Dadas
Why did you choose that historical Candle? Because you want the Price to go up? Maybe, be more logical and look much nearer first? {image} You have a good start point. Then, if Price Breaks Up, you find the next levels: {image} Now, switch to M5 and see what is cooking: {image}
thank you dadas.. i choose that historical candle since the price level was in the shadow.. my 4 hour candle is a bit different from yours..

sorry its my bad im not mentioning it was a gbpusd pair and your chart is for eurousd.. i been looking for the candle you use as zone candle but its not in my chart.. then i notice its a eurusd chart..
  • #637
  • Apr 9, 2013 6:46am Apr 9, 2013 6:46am
thanks dadas.. i think i got it..

use the earliest candle zone first..
  • #638
  • Apr 9, 2013 6:51am Apr 9, 2013 6:51am
Hi Dadas,
Please tell me what are the parameters of the "custom_zone_candle_with_index" in the post #633.
i want to duplicate the same charts on my platform.
Regards
  • #639
  • Edited 7:13am Apr 9, 2013 7:02am | Edited 7:13am
Quoting scarcity
thanks dadas.. i think i got it.. use the earliest candle zone first..
No, you did not get it, yet!

It is not about the earliest Zone Candle!

It is about understanding and using your mind and logic!

The historical Candle which best fits to all the factors!
It can be the Candle just next back, or very near, or very far.
It depends on where we are now!
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd-h4-fxsalt-ltd-2.png Size: 69 KB


Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd-m5-fxsalt-ltd.png Size: 66 KB


If you are working H4, then it may take more than 1-time a day to search, if
Price Breaks Up or Breaks Down.

You are looking for fixed rules, scarcity!
There are no fixed rules in Forex.

Use your mind!
Trade the facts, not opinions.
  • #640
  • Apr 9, 2013 7:10am Apr 9, 2013 7:10am
Quoting mosah
Hi Dadas, Please tell me what are the parameters of the "custom_zone_candle_with_index" in the post #633. i want to duplicate the same charts on my platform. Regards
On my chart the parameters were:

For the lower Zone Candle:
Show_Custom_Zone_Candle = true ,
Custom_Zone_Candle_Tf = 240 ,
Custom_Zone_Candle_Index = 12 , (now, H4 closed, so 13)

For the upper Zone Candle:
Show_Custom_Zone_Candle = true ,
Custom_Zone_Candle_Tf = 240 ,
Custom_Zone_Candle_Index = 105 , (now, H4 closed, so 106)

After plotting ZC - Pause_Custom_Zone_Candle = true.

Maybe that on your chart it will be different.
But, you should find it.
Trade the facts, not opinions.
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