Stop jumping in and out of the Market without understanding Magnitude. You are just throwing valuable money away by doing that. And, I know you New Traders are doing it because I did it for years before learning better.
Patience.
Patience.
Some say, "Oh no! No! No! No! Its going down! Its going down! Get out! Get out! Get out now while you are only 17 pips down! It looks nasty! It looks nasty! Oh, my gawd! Its gonna hurt! I can't take it anymore! You've gotta get out, now!!!"
No. I will not get out now while I'm only 17 pips down. Why? Where is EURAUD going to go from here? If I were a larger Trader, I'd be using this staging event to build an even bigger position into the Long side:
No. I will not get out now while I'm only 17 pips down. Why? Where is EURAUD going to go from here? If I were a larger Trader, I'd be using this staging event to build an even bigger position into the Long side:
While the emotional Traders are reaching for their Shorts, we will examine the new RoR that just emerged on the M30:
A new 7.7 pip M30 RoR emerges below and inside the original higher level M30 RoR that I used to set-up this trade. Hmmmm. What does that tell you about "Price Action?" Think about it this way, if the Market were staging a broad downside move, would it stage smaller encapsulated RoR events without also making significant Lower Lows in the same Time Frame?
Answer? No.
So, then. If this business gives you only three (3) possible outcomes (Long, Short and Flat/Horizontal) and the Market removes one of them or fails to engage one of them, how many options do you have remaining?
Answer: Two (2).
If Short has been (temporarily) taken away, that leaves Long and Flat. Question: Can my Long trade get hurt of the market remains Flat?
Answer: No.
Question: Can my Long trade get hurt of the market goes Long?
Answer: No.
Question: Can I get hurt of the Market decides to reintroduce a broader Short move?
Answer: Yes.
Those questions ONLY relate to Direction. However, as stated above this business is predicated on:
Timing
Direction
Magnitude
Probability
So, how many others pieces of information do I have at my disposal other than Direction? Answer: Timing, Magnitude and Probability. Of those three, which is the most important? Answer: Without a doubt, Magnitude. Has D1 Magnitude been mostly exhausted to the downside this session? Answer: Yes. Is there another kind or type of Magnitude lurking out there that increases the Probability for a successful trade outcome? Answer: Oh, indeed, yes.
We'll get into that later.
A new 7.7 pip M30 RoR emerges below and inside the original higher level M30 RoR that I used to set-up this trade. Hmmmm. What does that tell you about "Price Action?" Think about it this way, if the Market were staging a broad downside move, would it stage smaller encapsulated RoR events without also making significant Lower Lows in the same Time Frame?
Answer? No.
So, then. If this business gives you only three (3) possible outcomes (Long, Short and Flat/Horizontal) and the Market removes one of them or fails to engage one of them, how many options do you have remaining?
Answer: Two (2).
If Short has been (temporarily) taken away, that leaves Long and Flat. Question: Can my Long trade get hurt of the market remains Flat?
Answer: No.
Question: Can my Long trade get hurt of the market goes Long?
Answer: No.
Question: Can I get hurt of the Market decides to reintroduce a broader Short move?
Answer: Yes.
Those questions ONLY relate to Direction. However, as stated above this business is predicated on:
Timing
Direction
Magnitude
Probability
So, how many others pieces of information do I have at my disposal other than Direction? Answer: Timing, Magnitude and Probability. Of those three, which is the most important? Answer: Without a doubt, Magnitude. Has D1 Magnitude been mostly exhausted to the downside this session? Answer: Yes. Is there another kind or type of Magnitude lurking out there that increases the Probability for a successful trade outcome? Answer: Oh, indeed, yes.
We'll get into that later.
Back to this naked chart. Look closely. Are you prepared to get Short here?
The naked chart with just price data forces you to contemplate those things that matter the most in Trading:
Timing
Direction
Magnitude
Probability
Get those four concepts under your belt, Newb. They will serve you well into the future of your trading career. It is these four things that provide you with the knowledge (barring a nuclear strike in Iran, or some other major catastrophe that upsets the markets) necessary to approach trading with confidence. And, who does not want you to be confident in your trading. That's right. Your Bucket Shop Market Maker who takes the other side against you.
So, I did not take the bait on the Short break of the M30 RoR and now you fully understand why.
This is called: Trading.
The naked chart with just price data forces you to contemplate those things that matter the most in Trading:
Timing
Direction
Magnitude
Probability
Get those four concepts under your belt, Newb. They will serve you well into the future of your trading career. It is these four things that provide you with the knowledge (barring a nuclear strike in Iran, or some other major catastrophe that upsets the markets) necessary to approach trading with confidence. And, who does not want you to be confident in your trading. That's right. Your Bucket Shop Market Maker who takes the other side against you.
So, I did not take the bait on the Short break of the M30 RoR and now you fully understand why.
This is called: Trading.
M30:
The key here is the follow through the Market provides for the break above the latest (most recent) M30 RoR Upper Level, in juxtaposition, comparison and contrast to the previous M30 RoR Lower Levels. When the Market challenged the previous Lower Levels of the RoR, it did so timidly. In contrast, when it challenges the current Upper Levels of the RoR, it does for forcefully.
This behavior is suggestive and there is a reason why it cannot be hidden by those feigning a Short move. It is because I am using "real price." I'm using the Close Price of each bar. The real price at which everyone participating in the market agreed upon as being the "Last." That's an inherent psychological level. This is predominantly why I prefer a Line Chart whenever I'm doing Manual Directional Trading.
From -17 pips in draw to now 1 Pip in net profit.
Yoda, would approve.
The key here is the follow through the Market provides for the break above the latest (most recent) M30 RoR Upper Level, in juxtaposition, comparison and contrast to the previous M30 RoR Lower Levels. When the Market challenged the previous Lower Levels of the RoR, it did so timidly. In contrast, when it challenges the current Upper Levels of the RoR, it does for forcefully.
This behavior is suggestive and there is a reason why it cannot be hidden by those feigning a Short move. It is because I am using "real price." I'm using the Close Price of each bar. The real price at which everyone participating in the market agreed upon as being the "Last." That's an inherent psychological level. This is predominantly why I prefer a Line Chart whenever I'm doing Manual Directional Trading.
From -17 pips in draw to now 1 Pip in net profit.
Yoda, would approve.
M30:
This initiates a different side of the trade now. Now comes the Profit Management routine. Patience brought this back to above BE. Profit Management takes it to the next level:
There will be a retracing of this initial break above BE. That will come as a direct result of an aspect of D1 Magnitude that I have not yet discussed. One step at a time. As a Newb, it was important that you saw the result of being patient as a Trader and relying on what you know to be true. Your Skill, is truth. Your Knowledge, is truth. Your Wisdom, is truth. You will develop over time and you will come to rely on this more than your Emotions.
Kill your Emotions while trading. You have plenty of time and places in your life to be Emotional. Trading is not the time nor the place. A lack of patience is one of the most underrated psychological tools that negatively impacts far too many Traders.
Put patience on your side and then trust what you know. What you know is what you have researched and studied and found to be truthful about the market.
This initiates a different side of the trade now. Now comes the Profit Management routine. Patience brought this back to above BE. Profit Management takes it to the next level:
There will be a retracing of this initial break above BE. That will come as a direct result of an aspect of D1 Magnitude that I have not yet discussed. One step at a time. As a Newb, it was important that you saw the result of being patient as a Trader and relying on what you know to be true. Your Skill, is truth. Your Knowledge, is truth. Your Wisdom, is truth. You will develop over time and you will come to rely on this more than your Emotions.
Kill your Emotions while trading. You have plenty of time and places in your life to be Emotional. Trading is not the time nor the place. A lack of patience is one of the most underrated psychological tools that negatively impacts far too many Traders.
Put patience on your side and then trust what you know. What you know is what you have researched and studied and found to be truthful about the market.
Now, here is the context for Holding the Long:
The new D1 trading session has just begun. Focus only on the D1 Time Frame on the Panel. Under OmegaWave TAC/SAC Target you will note that 92 additional pips in D1 Magnitude (Daily Range) with only 12% of that range having been fulfilled thus far. You will note that TCDi7 Long Target is projecting 104 additional pips to the upside with only 22% of its projection having been fulfilled. However, you will note something else extremely important here. DistinctVega Leading Long Target is projecting 59 pips at 0% fulfillment thus far and 69 Trailing Long pips also with 0% fulfillment thus far. In addition, GMMA for D1 shows 33% Density Magnitude (a different kind of Magnitude designed expressly for the GMMA Indicator). It also shows some Positive Slope greater than Negative Slope and Micro TCD to the Long side that is starting to overcome Micro TCD to the Short side. Lastly, the D1 RPD Profile has rotated Long.
Now, I don't expect you to understand all of this. That's not the point and no this is NOT for sale. I'm not a seller of trading systems. I don't do that. There is plenty of that nonsense online. So, for the record, please don't ask. The answer is no and always has been no. However, I wanted you to see why holding the Long position even when it dropped below the initial M30 RoR Lower Level which should have triggered a Short trade based on my initial comments in the opening thread. This is why.
This entire Panel is showing a lot of support for the Short side. However, this is a Momentum Panel and it is showing an accurate representation of how EURAUD got here. However, since I am the designer and architect of this system, I can see the rotation to the upside taking place before it happens. The question is, whether or not there will be enough upside rotation in the Panel to support continuing with the Long trade. But, that is NOT why I posted this thread. I did not post here to do Digital Trading. I'm simply going inside the decision making process as the designer of this system to help you understand Magnitude and its awesome Potential.
I cannot get into ANY details of this system. I will not show this Panel again here. I will now go back to the raw chart to finish up this thread.
The new D1 trading session has just begun. Focus only on the D1 Time Frame on the Panel. Under OmegaWave TAC/SAC Target you will note that 92 additional pips in D1 Magnitude (Daily Range) with only 12% of that range having been fulfilled thus far. You will note that TCDi7 Long Target is projecting 104 additional pips to the upside with only 22% of its projection having been fulfilled. However, you will note something else extremely important here. DistinctVega Leading Long Target is projecting 59 pips at 0% fulfillment thus far and 69 Trailing Long pips also with 0% fulfillment thus far. In addition, GMMA for D1 shows 33% Density Magnitude (a different kind of Magnitude designed expressly for the GMMA Indicator). It also shows some Positive Slope greater than Negative Slope and Micro TCD to the Long side that is starting to overcome Micro TCD to the Short side. Lastly, the D1 RPD Profile has rotated Long.
Now, I don't expect you to understand all of this. That's not the point and no this is NOT for sale. I'm not a seller of trading systems. I don't do that. There is plenty of that nonsense online. So, for the record, please don't ask. The answer is no and always has been no. However, I wanted you to see why holding the Long position even when it dropped below the initial M30 RoR Lower Level which should have triggered a Short trade based on my initial comments in the opening thread. This is why.
This entire Panel is showing a lot of support for the Short side. However, this is a Momentum Panel and it is showing an accurate representation of how EURAUD got here. However, since I am the designer and architect of this system, I can see the rotation to the upside taking place before it happens. The question is, whether or not there will be enough upside rotation in the Panel to support continuing with the Long trade. But, that is NOT why I posted this thread. I did not post here to do Digital Trading. I'm simply going inside the decision making process as the designer of this system to help you understand Magnitude and its awesome Potential.
I cannot get into ANY details of this system. I will not show this Panel again here. I will now go back to the raw chart to finish up this thread.
Now, back to black. M30 black. Ok, M30 has just produced a new RoR seen here:
A bigger RoR of 24 pips now emerges. As a Newb Trader, you should see how these RoRs develop naturally in the market. You should also see that they give glues as to the future development of Price Action. This is a temporal RoR because the current M30 bar has not yet closed. You need three (3) data points to produce the RoR. You need two (2) previous Closes that create the Range and you need the current Close to be inside that Range.
The theory here is not rocket science. No market with a 100+ pip D1 range projection can tolerate sitting inside a relatively narrow RoR. In this case, the newest RoR for M30 is 24 pips. At the very same time, this 24 Pip RoR establishes in print what your Risk would be when you enter Long or Short on the break of its Upper and/or Lower Levels. This should be clear at this point. You enter the trade from WITHIN the RoR or upon the break of the RoR's Upper and/or Lower Level - depending on the expected and projected Magnitude of a bar higher than the time frame being used to trigger the trade. In this case, I'm using M30 as the triggering mechanism and D1 as the ammunition (D1 Magnitude).
I now know that D1 Magnitude is somewhere near 97+ plus pips remaining. I know that its initial upside potential is somewhere near 60 pips and I know that the Rotational Inertial (not a concept I'm going to get into here but it was shown in the GMMA System Module) is pending an upside move in the D1 time frame (a move that could come now or later).
I've talked about Probability as being something you need to understand and implement in your own trading. This was an example of having a tool for that. Probability is seen in the stacking of individual tools and their output to paint a picture of what the future should look like. Not using merely one tool, but stacking the historical projections from a number of tools to give a "Probability" for market behavior. Again, not rocket science here.
Now, put the Panel out of your mind and just focus on the naked truth about the M30 chart. Notice how the Market responds to the RoR and decide what to do accordingly, knowing full well that D1 Magnitude which we now know to be more than 90+ pips needs to expand. If D1 Magnitude fails to expand, then the EURAUD fails to be the EURAUD and become untradeable. That would require that the EURAUD suddenly compress its normative price behavior and go against years of D1 price data that says, it will expand beyond the 24 pip RoR (in this case). I know that my entry was back during a previous 5.8 pip RoR, but again, I did that because I knew there would be downward inflection and I wanted to teach the lesson of Patience.
A bigger RoR of 24 pips now emerges. As a Newb Trader, you should see how these RoRs develop naturally in the market. You should also see that they give glues as to the future development of Price Action. This is a temporal RoR because the current M30 bar has not yet closed. You need three (3) data points to produce the RoR. You need two (2) previous Closes that create the Range and you need the current Close to be inside that Range.
The theory here is not rocket science. No market with a 100+ pip D1 range projection can tolerate sitting inside a relatively narrow RoR. In this case, the newest RoR for M30 is 24 pips. At the very same time, this 24 Pip RoR establishes in print what your Risk would be when you enter Long or Short on the break of its Upper and/or Lower Levels. This should be clear at this point. You enter the trade from WITHIN the RoR or upon the break of the RoR's Upper and/or Lower Level - depending on the expected and projected Magnitude of a bar higher than the time frame being used to trigger the trade. In this case, I'm using M30 as the triggering mechanism and D1 as the ammunition (D1 Magnitude).
I now know that D1 Magnitude is somewhere near 97+ plus pips remaining. I know that its initial upside potential is somewhere near 60 pips and I know that the Rotational Inertial (not a concept I'm going to get into here but it was shown in the GMMA System Module) is pending an upside move in the D1 time frame (a move that could come now or later).
I've talked about Probability as being something you need to understand and implement in your own trading. This was an example of having a tool for that. Probability is seen in the stacking of individual tools and their output to paint a picture of what the future should look like. Not using merely one tool, but stacking the historical projections from a number of tools to give a "Probability" for market behavior. Again, not rocket science here.
Now, put the Panel out of your mind and just focus on the naked truth about the M30 chart. Notice how the Market responds to the RoR and decide what to do accordingly, knowing full well that D1 Magnitude which we now know to be more than 90+ pips needs to expand. If D1 Magnitude fails to expand, then the EURAUD fails to be the EURAUD and become untradeable. That would require that the EURAUD suddenly compress its normative price behavior and go against years of D1 price data that says, it will expand beyond the 24 pip RoR (in this case). I know that my entry was back during a previous 5.8 pip RoR, but again, I did that because I knew there would be downward inflection and I wanted to teach the lesson of Patience.
There are no Targets being used here. There is no Stop, I am the Stop. This is about showing you how to become more reliant on empirical evidence (researched data showing you Magnitude) than emotional turmoil merely because the Market does not immediately move in your favor on a trade. This is also about learning how to use Momentum to your advantage between RoR Levels and why those RoR Levels exist.
This is a very basic example of how the Newb Trader can indeed use a simple naked chart with nothing but price data to make successful trades. No fancy indicators. No fancy systems. Not even a moving average. Just price and skill. The Newb Trader needs to develop these skills. The Newb Trader needs to get very comfortable with the Rawness of the Market and learn how to get into sync with its natural Magnitude and becoming familiar with how that Magnitude needs to unfold in order for the Market to remain "The Market."
The Newb Trader also needs to exercise uncommon Patience while trading. You cannot survive in this business without demonstrating Patience. Might as well get on-board with that idea now, so it can pay you dividends in your future trading.
So, what do I do next? Answer: Nothing. I sit tight, be patient and allow D1 Magnitude to unfold into those Long side Magnitudes that I know exist. That's somewhere between 60 to 90 pips or so. I don't need all of it for a solid day of trading. I don't need to be greedy. I just want to capture enough pips to keep my capital growing each day. That's it. I don't have any other duty or responsibility as a Trader other than consistently growing my capital. And, it does not take every single pip in the universe to accomplish that goal on a daily basis.
So, I sit tight and wait for Magnitude to come. You know you have reached a point of competence in your trading when trading itself becomes boring. The physical act of trading should be boring. It is not supposed to be exciting. It should be routine and boring. Growing capital in this business is not supposed to be an emotionally transient activity. Just get into the flow of the Market's Magnitude and let it happen naturally.
Rely on your researched data where you have studied Market Behavior. Haven't studied market behavior yet? Well, now would be a good time to start. Because it is observed Market Behavior that will give you the clues about what you should be doing next as a Trader.
This is a very basic example of how the Newb Trader can indeed use a simple naked chart with nothing but price data to make successful trades. No fancy indicators. No fancy systems. Not even a moving average. Just price and skill. The Newb Trader needs to develop these skills. The Newb Trader needs to get very comfortable with the Rawness of the Market and learn how to get into sync with its natural Magnitude and becoming familiar with how that Magnitude needs to unfold in order for the Market to remain "The Market."
The Newb Trader also needs to exercise uncommon Patience while trading. You cannot survive in this business without demonstrating Patience. Might as well get on-board with that idea now, so it can pay you dividends in your future trading.
So, what do I do next? Answer: Nothing. I sit tight, be patient and allow D1 Magnitude to unfold into those Long side Magnitudes that I know exist. That's somewhere between 60 to 90 pips or so. I don't need all of it for a solid day of trading. I don't need to be greedy. I just want to capture enough pips to keep my capital growing each day. That's it. I don't have any other duty or responsibility as a Trader other than consistently growing my capital. And, it does not take every single pip in the universe to accomplish that goal on a daily basis.
So, I sit tight and wait for Magnitude to come. You know you have reached a point of competence in your trading when trading itself becomes boring. The physical act of trading should be boring. It is not supposed to be exciting. It should be routine and boring. Growing capital in this business is not supposed to be an emotionally transient activity. Just get into the flow of the Market's Magnitude and let it happen naturally.
Rely on your researched data where you have studied Market Behavior. Haven't studied market behavior yet? Well, now would be a good time to start. Because it is observed Market Behavior that will give you the clues about what you should be doing next as a Trader.
Back to M30.
Market is threatening the Upper Level of the current 24 pip RoR from the inside of that Range and in-line with the current Long hold position:
What do I do about this? Answer: Nothing. What am I supposed to be doing now anyway?
So many Newb Traders cut themselves short here. "Oh, my gawd!" First it looked like it was going to be a run-away freight train against me. Now, I've got 10 pips profit - better take it before the Trading Gawds frown upon my position! I better exit with something! I can't get this wrong! I'm an emotional roller coaster!!!"
Stop. Breathe. Relax. This is the same M30 chart you were looking at a few hours ago when I began this thread. Nothing has changed and THAT is the salient point that I hope you get today. It is still just a simple RoR Breakout Trade with D1 Magnitude. So, question - Has D1 Magnitude Expired? Answer: No. Has the Previous D1 Bar somehow magically changed its full downward expansion exceeding its D1 Magnitude projection? Answer: No.
Ok, so now I will shift gears into a different kind of Magnitude called the TCD. Don't worry about googling it - I created it years ago. It was the second bespoke indicator I created back into the 90s. So, you won't find anyone else discussing it unless they learned it from me. Now, here is the crux of the Transequential Contigous Delta Indicator (TCDi7 on the Panel, though that is a more advanced version of the same concept):
Red Line is called the Short TCD. Green Line is called the Long TCD. The lines runs transversely from one contiguous D1 bar to another and they track the delta between D1 Highs and D1 Lows sequentially. Thus, I called the indicator the Transequential Contiguous Delta or TCD. Given the nature of its calculation it shows you that there is no market outside of its domain. In other words, the TCD Long represents ALL upward bias in the market between two (2) bars of data. The TCD Short represents ALL downward bias in the market between two (2) bars of data. Combined, they both represent ALL Market Behavior that was possible and to the absolute extent it was possible in ALL of the instruments History. Thus, there is literally no market outside the range or domain of TCD. This was one of the most important indicators I've ever created from scratch. It was also just 1 of a total of 117 bespoke indicators that I created from scratch over the course of many years going back to the 1990s. Enough of that.
Now, when I said that there was "another" Magnitude component that I knew existed and that it gave me the confidence to Hold that Long position that initially looked like it was going to be ripped to shreds, well, TCD is that Magnitude. It operates inside its own world and is separate from OmegaWave (which is similar to something you might understand as ATR).
If you note in this TCD Concept pic the TCD Long (green line) had a lot more to give and that current TCD Short had already extended itself from yesterday's D1 into today's new D1 trading session. This is called the Delta Effect of TCDs. If you go back into history, you find that the market creates these TCDs, retracts from them and then creates a vacuum where one of these TCDs has not yet expanded into its historical pattern. I knew the TCD Short had exhausted itself from the last D1 session and predicated upon the location of my Long entry AND the time of day I entered that position, I knew the TCD Long contained a high degree of probability for expansion.
That expansion is now underway in the EURAUD and that provided the fuel for my Long trade using the M30 RoR as the trigger.
This is what call Delta Based Trading and it is different from basic Moving Average Based Trading or Profile Based Trading. I created Delta Trading Concepts because I could use the deltas (the distances between the end points of both the TCD Long and TCD Short) in calculations, formulas and both indicator logic as well as system logic.
This thread is NOT for discussing these ideas further. However, I promised to explain the "other" Magnitude that I was relying upon in my trading decision and now you now what the was.
Market is threatening the Upper Level of the current 24 pip RoR from the inside of that Range and in-line with the current Long hold position:
What do I do about this? Answer: Nothing. What am I supposed to be doing now anyway?
So many Newb Traders cut themselves short here. "Oh, my gawd!" First it looked like it was going to be a run-away freight train against me. Now, I've got 10 pips profit - better take it before the Trading Gawds frown upon my position! I better exit with something! I can't get this wrong! I'm an emotional roller coaster!!!"
Stop. Breathe. Relax. This is the same M30 chart you were looking at a few hours ago when I began this thread. Nothing has changed and THAT is the salient point that I hope you get today. It is still just a simple RoR Breakout Trade with D1 Magnitude. So, question - Has D1 Magnitude Expired? Answer: No. Has the Previous D1 Bar somehow magically changed its full downward expansion exceeding its D1 Magnitude projection? Answer: No.
Ok, so now I will shift gears into a different kind of Magnitude called the TCD. Don't worry about googling it - I created it years ago. It was the second bespoke indicator I created back into the 90s. So, you won't find anyone else discussing it unless they learned it from me. Now, here is the crux of the Transequential Contigous Delta Indicator (TCDi7 on the Panel, though that is a more advanced version of the same concept):
Red Line is called the Short TCD. Green Line is called the Long TCD. The lines runs transversely from one contiguous D1 bar to another and they track the delta between D1 Highs and D1 Lows sequentially. Thus, I called the indicator the Transequential Contiguous Delta or TCD. Given the nature of its calculation it shows you that there is no market outside of its domain. In other words, the TCD Long represents ALL upward bias in the market between two (2) bars of data. The TCD Short represents ALL downward bias in the market between two (2) bars of data. Combined, they both represent ALL Market Behavior that was possible and to the absolute extent it was possible in ALL of the instruments History. Thus, there is literally no market outside the range or domain of TCD. This was one of the most important indicators I've ever created from scratch. It was also just 1 of a total of 117 bespoke indicators that I created from scratch over the course of many years going back to the 1990s. Enough of that.
Now, when I said that there was "another" Magnitude component that I knew existed and that it gave me the confidence to Hold that Long position that initially looked like it was going to be ripped to shreds, well, TCD is that Magnitude. It operates inside its own world and is separate from OmegaWave (which is similar to something you might understand as ATR).
If you note in this TCD Concept pic the TCD Long (green line) had a lot more to give and that current TCD Short had already extended itself from yesterday's D1 into today's new D1 trading session. This is called the Delta Effect of TCDs. If you go back into history, you find that the market creates these TCDs, retracts from them and then creates a vacuum where one of these TCDs has not yet expanded into its historical pattern. I knew the TCD Short had exhausted itself from the last D1 session and predicated upon the location of my Long entry AND the time of day I entered that position, I knew the TCD Long contained a high degree of probability for expansion.
That expansion is now underway in the EURAUD and that provided the fuel for my Long trade using the M30 RoR as the trigger.
This is what call Delta Based Trading and it is different from basic Moving Average Based Trading or Profile Based Trading. I created Delta Trading Concepts because I could use the deltas (the distances between the end points of both the TCD Long and TCD Short) in calculations, formulas and both indicator logic as well as system logic.
This thread is NOT for discussing these ideas further. However, I promised to explain the "other" Magnitude that I was relying upon in my trading decision and now you now what the was.
Break of M30 24 Pip RoR:
"Oh, my Gawd!!!! The sky is falling the sky is falling!!! Let me out! Let me out! Let me out!"
This is a really good lesson for the Newb. Here we have a forceful break of the most recent M30 RoR that was 24 pip deep. This makes current draw down 25 pips. So, what should I do? Answer: Nothing. In fact, I'm going to now add to the existing Long position and then hold. Here we go:
Decision: Hold
"Oh, my Gawd!!!! The sky is falling the sky is falling!!! Let me out! Let me out! Let me out!"
This is a really good lesson for the Newb. Here we have a forceful break of the most recent M30 RoR that was 24 pip deep. This makes current draw down 25 pips. So, what should I do? Answer: Nothing. In fact, I'm going to now add to the existing Long position and then hold. Here we go:
Decision: Hold
New 46 Pip M30 RoR in a temporal phase (until this M30 bar closes) and a 15 pip delta between last session's D1 Low and current session's D1 Low:
So, let me get this straight. A 46 pip M30 RoR suddenly emerges like a bolt of lightening from the sky, creating a 15 pip differential between yesterday's Lowest Low and today's Lowest Low. Really? Is that all you got Market Makers? Sorry, that ain't enough to get me out of this TCD Long and all you Market Makers know it. You know what you are trying to do. You are trying to shake-out all the dumb money like a Money Tree. You are bleeding them dry as they whip into and out of the market like bees to honey - confused, scared and afraid to see you (Market Makers) dumping price like that.
Well, I've got news for you Market Maker. I ain't dumb money. Ergo, I just raised your bet with another Long entry 22 pips below the first.
Your move, Market Makers.
So, let me get this straight. A 46 pip M30 RoR suddenly emerges like a bolt of lightening from the sky, creating a 15 pip differential between yesterday's Lowest Low and today's Lowest Low. Really? Is that all you got Market Makers? Sorry, that ain't enough to get me out of this TCD Long and all you Market Makers know it. You know what you are trying to do. You are trying to shake-out all the dumb money like a Money Tree. You are bleeding them dry as they whip into and out of the market like bees to honey - confused, scared and afraid to see you (Market Makers) dumping price like that.
Well, I've got news for you Market Maker. I ain't dumb money. Ergo, I just raised your bet with another Long entry 22 pips below the first.
Your move, Market Makers.
So, while "consolidation" gets underway for this new D1 session, I've recap the basic idea here for the Newb Trader. Again, this is not advanced stuff. So, if you classify yourself as an Advanced Trader then you won't be served anything new here.
Newb Traders can classify this type of trade as an ABC Breakout Pattern of sorts. This is the scope of the basic concept is outline form:
The idea or goal here is to combine either the PEL or or PES with Magnitude on a larger Time Frame that has not yet been exhausted. A very simple and compact idea. There is nothing else to add to it. What makes it work would obviously be the expansion of Price into the available Magnitude of the larger Time Frame you have selected for yourself. The "Risk" in the trade is equal to the Range encompassing RoR. Simple.
As a Newb Trader, this will force patience to the surface and it will reduce your focus to locating available Magnitude to use as fuel for either the PEL or PES. Is is not hard or difficult to understand. You are simple using the existing anatomy of the Market and using it in your favor instead of having it used against you.
Newb Traders can classify this type of trade as an ABC Breakout Pattern of sorts. This is the scope of the basic concept is outline form:
The idea or goal here is to combine either the PEL or or PES with Magnitude on a larger Time Frame that has not yet been exhausted. A very simple and compact idea. There is nothing else to add to it. What makes it work would obviously be the expansion of Price into the available Magnitude of the larger Time Frame you have selected for yourself. The "Risk" in the trade is equal to the Range encompassing RoR. Simple.
As a Newb Trader, this will force patience to the surface and it will reduce your focus to locating available Magnitude to use as fuel for either the PEL or PES. Is is not hard or difficult to understand. You are simple using the existing anatomy of the Market and using it in your favor instead of having it used against you.