The Equilibrium, a key to success!

Thanks for sharing! Nice video!

Hello Damade,

First of all, welcome to our blog and thank you for your nice compliment. I wanted to point out a trading system that is completely detached from standard indicators, market analysis and news. To learn and to internalize this is much harder and more complicated than using an indicator. Some traders want to have it simple and straightforward. Unfortunately, this market is not exactly easy and every one of us has felt this several times. But who deals with supply Demand and Equilibrium, sooner or later succeed. It's just a matter of time, as in life. In addition to the Equilibrium there are current topics in various areas in this blog. I would be glad if you can implement some ideas for you and I look forward to an exchange with you. Have fun and much success.

best regards

Hello Bionics,

I have read through most of your thread and have gained quite a bit of knowledge from your methodology. Mine has always been to trade from the edge and never in the middle - this seems to be what you do too. I have a question - do you ever build your POC points around whole numbers? For me, whole numbers are almost magical in the way they form support and resistance. This morning I caught a GBPUSD long off of the 1.30 when it whipped down to it. I would like to hear your take on them in relation to POC and equilibrium.

Not sure if I am doing this picture upload correctly, as I am new to posting here.



Regards

[quote=macadamia18;11274803]Hello Bionics, I have read through most of your thread and have gained quite a bit of knowledge from your methodology.



GBPUSD


Hello macadamia18, hello dear traders,

I'm glad that this blog gives you valuable information. As you correctly say, I act the Equilibrium differently than in the so-called textbook is, although unfortunately there are little concrete information over the equilibrium.. However, basically every trader defines his resistance zones differently.

My resistance zones are never based on even or odd numbers, which I completely neglect. But you're absolutely right, people usually think in even numbers, so many traders try to simplify things by simply rounding to the next, integer number.

Unfortunately, no general derivation can be made to reliably determine reversal points. But the likelihood is high that an even number could cause a reversal. Keeping an eye on that might well give some benefits, but the big players know that and often chase us small traders into the stop.
I'm rarely on GBPUSD because England is an unpredictable factor to me, but that's an individual matter of opinion.



Let's take a closer look at the monthly chart of the GPBUSD. In the upper left arrow down we see a very strong downward trend (point 1). The downtrend weakened somewhat and strengthened again (point 2). Below PUNKT 2, there was a strong uptrend that goes right up to this point where the strong downtrend has started. Thereafter the price went back to the middle resistance level. Now we are at a critical point. The blue arrow pointing to the right shows exactly the line of resistance. If this resistance line is broken, it continues down. Below point 2 there is again a strong demand market which could push up the price.



In the weekly chart you can see this course again a little closer. The increase from the mean resistance line to the upper resistance line lasted 30 weeks and was pushed back to the mean resistance line within 15 weeks. This was due to the strong supply market, which started on the upper resistance line.



In the daily chart you can easily identify the mean resistance line based on past price movements.



In 4 hours Chart we see how strong the supply market is compared to the demand market. The red line of resistance could be broken, but there is again a strong supply market for the blue line.

For me, the strong uptrend or downtrend is a deciding factor as they are breaking a strong line of resistance right now. This line of resistance will become important again at a later date. That's what it's all about finding out to identify interesting reversal points.

I wish you a nice weekend

best regards

Determine resistance lines


Hello dear traders,

On 19 July at 19:00 CET, the M30 Chart saw a strong uptrend of 70 pip. (Point 1) As already mentioned, this candle broke up some strong invisible resistance lines.



I have drawn these resistance lines once at point A, B, C, D, E. Now please pay attention to these points only once.
Point A was a special case for me, but one would have to go back in the past therefore I would not go into that here. Since my marked point E was not touched, we deal only once with the points B, C, D.

After the price went up high, you could expect a small pullback. No one can predict how this pullback will work. Precisely for this reason, the resistance levels B, C, D were a decisive criterion for me.

First, the course go down to point C and was pushed up again. On the second run down, the course came the second time to resistance C and was pushed up again. There the resistance line A came into play.
On the next run down, resistance D became active, pushing the course up again. A further downtrend stopped the third time in the resistance line C. The resistance line B show that the course could move further up.

So a little tip. These strong upward or downward candles break through invisible resistance lines. We must identify and draw these invisible resistance lines. This works in almost all time units. If we combine these time units wisely, we will see that there are matches.
These matches have a strong meaning.

The resistance lines running through a strong upward candle are identified only by the upper wicks of previous candles. The resistance lines that run through a strong downwards candle are identified only by the lower wicks of previous candles. It does not matter whether it is a bullish or a bearish candle.

Decisive is also always the previous course, the offer zone the demand zone as well as the Equilibrium which are in this zone. In truth, it's much more complicated, I just tried once to show you how to start with simple means. Over time you get out which zones you have to draw in order to determine the concrete resistance lines.

That is why my recommendation to work without indicators, as these indicators only distract. The art is to determine and mark these resistance zones in the pure chart image. Start with the simple variant, as I described it. If you have done that 1,000 times you can see which zones are relevant and which zones are not interesting.

I hope I could give you some tips and information try it yourself now. And before you act: Whenever you are sure that the price goes up or down, you will be wrong.

I have not been acting for years for what I see but only for my determined resistance zones. Whoever acts according to what he sees in the movements of the candles sees losing more money than he wins.

Have a nice week

best regards

One month ago...


Hello dear traders,

a month ago I posted the following information.



As we can see, the price has not yet reached the crucial demand zone, which gives it the necessary push for a turnaround. After the course had worked in the past few days, again and again a bit up, he was pressed down again and again strongly.

Therefore, I believe that Zone 5 is still a strong resistance. The blue zone is in my focus for a possible trend reversal. However, that does not mean it will happen as well. If one draws with the help of the Equilibrium zones, one has possible trend turns in the focus. Based on the subordinate time units, you can determine additional zones. This gradually brings you closer to the actual resistance zones, increasing your chances of getting more hits.



As I suspected, demand has been limited. Although the price rose slightly, it was repeatedly rejected. Actually, it looks like the price is going to have to go down a bit (into my red zone) to attract buyers again.

This zone is in the range of 1,148 to 1,146. This can be seen very well on the weekly and monthly charts. We have seen a strong uptrend on 21.06.18, this lowest point so far gave rise to the assumption of another upward trend. But the two purple resistance zones were just too strong and pushed the course down. The red zone must be thought of as a strong magnet. The course is attracted to the red zone, in the red zone there is neutrality = Equilibrium. If the course breaks through the zone, the price could go down sharply. But it is possible that many buyers are coming to the market in this zone and are catapulting the price upwards.

Nevertheless, we recognize a great equilibrium, that is, a momentary uncertainty. We are still in an upward trend in the monthly chart and a pullback is currently taking place. However, every trader sees this differently, depending on which chart image is used.

So we wait for the clear turnaround upwards. But we still need some brave buyers for that.

I wish you a great weekend

best regards

ESMA in force since yesterday





Hello dear traders,

since yesterday the 1st of August the ESMA regulations have been implemented, once for the next 3 months. Then you will see if the terms are extended or not.
The restrictions on the traders are significant, especially the stopout rules are outrageous, which led me a few months ago to open another trader account in Australia. IC Markets is an ECN broker, has a fair fee system and fast execution times. Nevertheless, my European broker made an interesting offer 7 weeks ago. I could get a professional account that could never go down. This has led me to make the application for professional trader and since 5 weeks I have now 2 professional trader accounts without risk. Of course, I will keep the account in Australia.

To qualify as a professional trader, you must meet at least two or more of the following criteria.

1.In the past four quarters, it has been proven that leveraged financial derivatives have traded in significant sizes.

2. You must own a portfolio of financial instruments in excess of € 500,000.

3.Man must have been proven to have worked for at least one year in a relevant position in the financial industry requiring knowledge of trading in derivative securities.

It is not easy for many to meet these criteria, I recommend applying for a professional trader at least to try. The fact that your account can never go down despite a lever of 400 is more than fair. When I think of the Franken shock, a very reassuring feeling.
The trader community among European brokers will be considerably thinner. Most traders can only trade the EURUSD with a leverage of 1:30 instead of previously 1: 300 or 1: 400. To achieve the same position size, these traders now have to spend 10-13 times more capital. That will not be possible for many. Many will resort to so-called island brokers, whose business practices are sometimes very questionable.

It is possible that the ESMA provisions could be rejected in 3 months, but from today's point of view this is not to be expected.
As a small trader then only the move to Australia remains in order to make the leap to becoming a professional trader in Europe in the next 2 years. At the latest then it will be forbidden the European traders to open accounts abroad. That's been the case in America for a long time.

However, the risk of additional payment is great when carelessly handling high levers. To avoid that you only have two options. To open a professional account or to start small. After 95% of traders lose their money, the state intervenes regulatively: It is becoming increasingly difficult to lose hard-earned money.
No matter what position you are in, you always have to try to make the most of it.

I wish you much success

best regards

Hello dear traders,



As expected a few weeks ago, the price is still down in the medium term. The overall trend is still bullish and we are still in the pullback. At the moment we are at point 1. The next starting point could be point 2 and then 3 or immediately to point 3. At point 3 there is a strong supply market which could bring the price up again. (Point 4). That could be the end of the pullback and I could move the overall trend towards 1.30.
It will be exciting, we wait.

best regards

How did I start...

Like most beginners, many years ago, like a madman, I repeatedly tried new indicators and discarded them again. A system that I managed for the first time and won the first significant amounts, I would like to introduce you today. The basis for this was an M5 chart. There were 3 Moving Average. A fast MA simple 8 in the hourly chart (green) and a slow MA simple 39 in the hourly chart (red). A third exponential MA 8 in the M5 chart (white) for early detection rounded off the matter.



Here is an example in the current EURUSD chart.
We see here just under two weeks at a glance. If the green line was above the red line I basically just bought and if the red line was above the green line I basically only sold.

Let's start at point 1. The green line breaks through the red line. From that time on, only selling came into question. Shortly before point 2, the green line came up to the red line. At point 2, the green line broke the red line. Now I waited for the price to return to the red line to enter with a buy order.

You see 2 red and 2 green horizontal lines in the chart. These showed me from when the course went up or down. Let's take a look at the upper red line. Interestingly, at point 1,3,5, and 7, it worked well. However, you can not always rely on it.

Now, when I got into point 2, I let the track go. At some point I set my stop to zero, so I could not lose anymore. Fortunately, the price was up now. As the price went over the top red line, I was a little more cautious and put my stop on the underlying green line. The course continued upwards. Now the green MA was the deciding factor to exit. As soon as the green line was broken, I waited until the uptrend returned to the green line. There I am then out.



Here you can see very nicely how the MA 8 in the M5 chart signaled the approaching downtrend. At point 1, the Ma pushes through the slow-moving green line. At point 2 the downtrend is confirmed. Then I let the course down and waited until he returned to the red line. The point 3 was then the entry down. From point 4, I would have become a little more cautious and would have sought a good exit.

Of course, this is one way to trade, the downside for me: you just get in late into the market and also out too late. In addition, the risk is significantly higher than trading in supply zones and demand zones in Equilibrium. As I have developed into a scalper over time, longer trading periods (overnight or over the weekend) are taboo for me.

Even if one should not act with MA, this compilation of indicators for beginners has a small advantage. You can quickly see in which areas you should not buy or sell.
Nevertheless, I generally advise against acting with standard indicators. These run after the market and are just too slow. But everyone starts once and we all made a lot of mistakes in the beginning. As a beginner one does not always listen to the experienced traders, one prefers to make his own experiences.

Trades without indicators is like riding bareback. It is really hard and takes a long time until the first successes occur. But when you master it, a lot becomes easier. Do not be dictated by indicators when to buy or sell. Any trader with his knowledge can do that 10 times better. Start trusting yourself, this is the first step to become a professional trader.

I wish you every success in the first ride without a saddle

best regards

Sir thank you for sharing your system is there any way that you can share your TLP with us please ...your help cooporation and coordination will be hignly appriciated

[quote=HumbleLearne;11334999]Sir thank you for sharing your system


Hello HumbleLearne,

Thank you for your compliment and your request. I like to share my experiences, which I have made myself in the many years.

Unfortunately, some experiences have not been quite as successful, but these experiences have helped to move forward. Therefore, I also post the experiences that helped me in the short term.

From today's perspective, I can recommend the MA strategy only conditionally. This strategy is much easier to identify than supply and demand. Demand zones and supply areas are still the most lucrative type of trade for me.

So if you take an intermediate step with other systems, you should identify the supply and demand zones in parallel.

How to identify these zones is described in detail on page 1 of this blog. I wish you much success.

Of course, I will regularly publish more information about the Equilibrium, especially since I have now completed the Oracle Certified Professional, Java SE 8 Programmer in addition to my daily trading with over 95%. This is a very interesting experience, especially when it comes to analyzing the bases of calculation of different auxiliary indicators and generating own auxiliary indicators.

This saves time, because even as a full-time retailer, you do not want to sit in front of the monitors all day long. I wish you a successful week.

best regards

[quote=Bionics;11336670][quote=HumbleLearne;11334999]I have now completed the Oracle Certified Professional, Java SE 8 Programmer
May I ask, with this cert meaning you are able to develop you own EA? It is good to know programming as you will be able to keep what is you hard work.

[quote=okshop;11336680]


Hello Okshop,

Basically, I was at Java to get to know the basics of a programming language closer. The MetaTrader indicators are programmed in mq4 or mq5, a completely different programming language. But you can see many parallels that make translating easier.

If you master Java or C ++, that does not mean that you can program indicators. But it's a start. It was important for me to better understand the calculation principles of some indicators.

Basically, I do not open or close a trade baden on the statement of an indicator. But many help indicators help enormously and simplify the overview. This saves time to simplify certain processes. But it takes a lot of time and patience.

So I'm not interested in developing my own indicators for entry or exit, but auxiliary indicators that simplify my daily routine as Scalper. I have already shared some of these Top indicators from very capable programmers here at FF in some of my blogs.

It's just a little help and as a professional trader you know how much time we sometimes spend each day. I have a lot of idea for auxiliary indicators that make life easier, I did not always want to burden others with it, so I started to deal with it.

But until I master that perfectly, years will pass. But I have enough time, so why not start now?

I wish you a perfect week.

best regards

WOW thats great Sir really happy to know that you have successfully compleated Oracle Certified Professional, Java SE 8 Programmer in addition to your daily trading with over 95% thats quit an achivement i real get motivated from people like you because of the kind of hardwork and dedication you guys have towards work i really wish you best of luck for your furture

The TLP that i was asking from you was for the chart that you have already posted above because its not that i cannot attach indicators to MT4 but since you are expert in the field in already done it will be much more easier for me for example i dont know how and where to exactly place the 2 horizontal red and geen lines that the reason i had asked your expert contribution

[quote=HumbleLearne;11337112]{quote}{quote} WOW thats great Sir really happy


Hello HumbleLearne,

Thank you for your congratulations, Java has been a real challenge of over 1,000 hours, I've never had anything to do with programming before, and I'm glad the basics are over now. The right work is only starting now.

To your question:

Only two indicators were installed in the chart, a normal MA in the M5 and a MA indicating the MA in the M5 on an hourly basis.

The green and red line was simply drawn where the MA crossed on an hourly basis. That was just an orientation for me then. In principle very simple and clear, only as already written very slow and therefore ineffective. Nevertheless, I have been able to record my first noteworthy profits.

I hope that answers your question, if you want to have the MA on an hourly basis I can send it to you, but only from Wednesday, since I'm still on vacation.

best regards

always its pleasing to come to your thread and see your topics both in long term targets n short term. another brilliant approach to see market differently. can you share this template?

100% agreed
my view monthly trends are up , no need to be panic , its retarce after a huge run . after this retrace it will again start its journey back up

Hello razaali,

Thank you very much for your kind words. Although I have not followed this system for years, it was nevertheless the start of a successful trade for me. I had a similar MTF MA many years ago as the "movingaverage_mtf", but here it seems to give a more recent MA "All time frame averages 1.4" (I can not provide any information about that because I'm not using it).

I hope this helps you further.

best regards

Hello razaali,

Consent also from my side, we agree



For about two months the EURUSD has been in a big equilibrium. (highlighted in yellow). That means a great deal of uncertainty. However, there was still no demand zone that was so strong to catapult the course up. Interestingly, between 1.16 and 1.10 there are three strong demand zones that could bring the price to 1.30. I calculate once with the top red zone and wait as the course in this zone reacts.

best regards

Pullback end?


Hello dear traders,

On the 7th of August I posted the following chart



The course goes down, was my assumption confirmed. I had drawn 4 resistance lines that were about 180 pip apart. The first resistance line was severely broken in the daily chart, however, this resistance line was effective.



At point 1 you can see how the red resistance line was broken in the daily chart. In the M30 things looked very different. As you can see at point 1, the strong downtrend has been trapped by the resistance and equilibrium has been created within that line. After that, the course broke through the red resistance line and returned to it. I recorded another resistance line in the M30 Chart. The course hit the resistance line for the first time at point A and only at point B did it continue down the course. You see how important it is to draw in the smaller time units its resistance lines. Let's take a look at the picture.



The resistance at point 1 was almost exactly to the point, then the course turns down. We have just analyzed the red resistance zone and the blue resistance zone has also rejected the course by 100 pip. That's no reason to celebrate. In the smaller time units, the resistance zones must now be kept in mind. This gives more clues as to whether the overall upward trend in the monthly chart will continue. To make statements like: If the price goes above 1.255 the uptrend is active again are absolute nonsense. The price is currently at 1.135, up to 1.255 it is still 1.200 pip. That would be a strong upward trend and you would only get in, if you had missed a lot.

Everyone knows that there are strong and weak resistance zones. The art consists of drawing in and then interpreting these resistance zones. No one can foresee the future. Although I succeed in drawing many resistance zones correctly and correctly interpret them, I am often wrong. Since I draw my resistance zones to the M5, I am able to set my stops to 4-5 Pip. These stops are slightly below my marked resistance zones. When my stop is triggered, I am very happy in almost all cases, because the course then runs strongly in the other direction. With a stop of 5 pip, a risk profit ratio of 6 is faster to achieve than if my stop is 20 pip. As a Scalper, my stay in the market is short-lived anyway. The longer I'm in the market, the more dangerous it is for me to give back part of my profits. But that is an individual matter of opinion.

The fact is, with the view of supply and demand, I have been able to increase my expetancy value above average and this value is for me the deciding factor for success. I have already written a detailed review. No trader knows where the journey is going, but one can often anticipate a part of the way through the Equilibrium.

I wish you much success.

best regards