Price Action in Day Trading by Dadas

Yep i'm in on this one.

Keen to learn here guys - BIG thanks to OP Dadas!

Don't worry i'll read the first post 10 times.

haha - good luck to all,

Ezi.

Welcome Ezi!

Not the first post!
All of them, minimum 10 times!

EURUSD trade
reasons to take:
+ break out of consolidation
+ with the trend
+ no close obstacles on the way

Trades closed on Wednesday:

Trades already closed today:

Reasons for Entry Long at begining of yesterday (London quotes):
1. Trading Platform on Consolidation Candle.

Reasons for not Entering any Trade yesterday:
1. Trend Candle.

Today, waiting for day to close.
If Trade Platform on possible PTECZ forms, then look for Entry.

Another option - Go Long by Market from Green dotted BuyStop_Line while Price drops below it.
For this option, look for entry on H4 or H1.

GBPNZD trade
Reasons to take:
+ consolidation
+ in the main trend direction
+ TP level is before major obstacles

AUDCAD - an example of a poor planned trade

reasons to take
+ consolidation
+ in the direction of the trend

mistakes
- had to put order at least 2*spread
- big area of consolidation right above

20 Pips on EURUSD is good for me!

Plus some more on USDCHF.

I had a bad night, had to get up a lot - bad food combination before going to bed...
Got up very late, there were just a few potential Entries and news hour was close.
Managed to take a couple of quickies:

And another relatively quick one:


PS. The Entries were based on the study of D1 and H4,
thus on lower Tfs they may not look as optimal,
and they were not meant to be precise.

All my Entries are now like that, either by D1 or H4, not lower.
I don't care about "precision" any more.
It is just a great big BS and waste of your psychic-energy.

The goal is PROFIT!

Next goal reached.

And, my EURUSD 20Pips.
This one always gives me a hard time.

And, the one that came last, today.

That trade stalled and is showing some signs of further consolidation/reverse

For illustration of the principles I present in this thread,
I have plotted in study mode the EURUSD Price Action
from Friday, that was yesterday, inside my Trading Day:

As you can see, the news hour produced a clear "anomally"
in the otherwise even flow of Price.

I suppose, many Traders got their Shorts SL-ed, cause
they placed their SL's on or just above the Gray dotted line,
which is also the Daily Open Price Level - by the rule, of course.

This picture shows the study of Thursday:

What you can see is that reasonably you can take 3-5 Trades per day on EURUSD at 9 Pips each.
That is by Trading the M15 chart.
You could make 1 mistake, so 2-3-4 Wins to 1 Loss.
If you followed my rules and always waited for Candle to Close, you probably wouldn't make any mistakes.

This is PTECZ Trading!
This is not anything different or new.
This is PTECZ Trading!

You must only make the Entry and Target settings individually for every instrument.

EURUSD study for Long Term Traders

My suggestion for Long Term Traders or Swing Traders
would be a Weekly context, generally speaking.

The first thing you've got to know are your S/R Levels by historical W1, D1 PTECZ.
Always ask yourself why Price is stopping where it is stopping, like now.
Search for the historical PTECZ's suggesting Consolidation Levels.

I have estimated that the structure od the EURUSD allows to get 100 Pips Profit
in a relatively safe way, per week or sometimes a bit longer.

The way to go about it is to set your Trading Platforms by the Friday and/or Monday Candle/s.
Always take into account the S/R PTECZ Zones, however, never treat them as the rule!!!
Then, decide on the more probable direction for the Week, or the next number of days.
Close your Trades, either by TP, or by Price Action.

Always be very careful when near S/R PTECZ's!!!

There are lots of other instruments on your MT4!!!
Look for the best opportunity, skip the ones you don't like!

EURUSD study not only for Long Term Traders

The situations which give Traders the most doubts are the ones hilighted in Aqua color:

That is when we don't know what the Trend really is.
The answer is Price Action, IOW, the ability to read the chart.

When there is a strong Trend/Engufing Candle, and the Retrace doesn't even reach half way back,
then it is far more likely that the Price will continue in the direction of the Trend/Engulfing Candle.
Thus, in the case of the first area from the bottom, it would be unwise to look for a Short Entry.
We would watch PA day-by-day and after Monday Candle is closed, look for possibilities to go Long.
The plotted Trade Platform would then give us the opportunity in 3 ways:
1. Buy Stop while Price is below BuyStop_Line,
2. Buy Limit while Price is above BuyStop_Line,
3. Long by Market Order at most preferrable lowest Price.

How to take the Profit?
That depends on your ways.
The best way is to watch Price Action and S/R Levels.
That will also influence how long you are going to hold the Trade.

Otherwise, you might decide to always Close your Trade at the best Price on Friday.

The second area from the bottom looks more difficult in terms of Entering the Market.
There are many reasons for looking for a Short Entry.
Remember, the rule is always to wait for the Candle to Close.
Thus, you should not make any decisions seeing that Price is Consolidating inside PTECZ.
Thursady Closes below SellStop_Line - that was the Day Trader's Short Trade.
For the Long Term/Swing Trader, this is still too weak, cause the day closes still inside
the previous Bullish Trend Candle, so it's best to put the decisions off until Friday/Monday Close.

Now, we have got to understand what the Market is doing, where Price is at.
We have got to be aware of the S/R levels that Price is at, and why there is this uncertainty.
Probably the wisest way to go would be not to take any more Long Trades, no matter how tempted!

The area at the top shows the transition or Swing.
We can see that it is not a definite Swing.
There is a strong pull down, another test Up, higher then before, and only then the real Swing.
The Wednesday Candle is the PTECZ:

So, even though, seemingly there is an opportunity every week, actually there isn't!
There are only Day Trading opportunities.
Long Term/Swing Trading opportunities may take 2-3-4 weeks to actually evolve.

As Traders, we must be patient and really aware of what's going on.
We must wait out the right setup!
Or, we can look for the right set up on other instruments.

In conclusion, it adds up to being aware, knowing what one is doing,
understanding the language of the chart and being absolutely mind clear, not blurred by emotions.
Making decisions without any emotional/egoistic strings attached.

Thank you Master for your words of wisdom!

Its been great to study recent enhancements to trading the Pteczs.
Have created an index to track the key posts and been practicing with the HiLo bar script.
Not sure how others delete and cleanup old scripts and wanted to ask about it.
Instead I did some searching and have created a script which may be useful.
Just drag the script to the candle that needs to be deleted.
Hope its ok!