Trading based only on counting the candles

Hi everyone,

I am Viet, been a trader for a while. Thankfully, also profitable.

As a trader, I am always hungry for knowledge and seek for any piece of information that may contribute to, update and perfect my own trading method to the highest possible extent.

Recently, I have been introduced a new method of trading which I would like to describe below. The guy introduced the method to me only tells me "what to do" but he never shows me "why". In other words, he hides as much information as possible and just shows the surface of the method. I also have done so much research on google but I cannot find its details.

Hence, I am opening this new thread in case any other trader in the forum could helps. Thanks very much in advance.

He calls the method "price circle" or "price cycle"

Day trading:
He only uses min5 chart. Generally, he tells that the price shall go by phases.

Phase 1: From 21 GMT to 3 GMT
Phase 2: From 03 GMT to 7 GMT
Phase 3: From 07 GMT to 10 GMT
Phase 4: From 10 GMT to 13 GMT

In Phase 1, 2: The price goes up slightly (for ... pips), and then goes up strongly (for ... pips) before European session, and then goes down to the end of Phase 3 and then consolidation or slightly goes up in phase 4 . He will wait if in Phase 1 and 2, the price goes as what he expected (based on phase and pips), he will active sell order in the end of Phase 2.

(Same logic for buy order)

Swing trading:
Based on what he says, NO MATTER HOW MANY PIPS THAT THE PRICE HAS GONE WITH, IF THE PRICE HAVE GONE UP (OR DOWN) FOR A PERIOD OF TIME, IT TEND TO RETRACE WITH THE EQUIVALENT PERIOD OF TIME.

For example, in W timeframe, if he sees that the price has go up (or down) for 5 WEEKS, so, if the price reverse, he tend to anticipate that the price may go down (or up) for ABOUT 5 WEEKS, no matter how many pips. So he will drill to smaller time frame for best entry and hold his order for the same period, maybe 3 - 5 weeks.

For both methods above, he does not base on anything such as news, technical analysis, supply and demand, S&R and so on. He also emphasizes that these things means nothing to his trading method. The price has been pre-set and controlled by Market Makers and Big Boys.

As my trading also based on Market Makers and Big Boys' moves, i am very curious about what he said. Hoping to find another piece of the puzzles.

hi sounds good
can you tell me
what TEHRAN format time after convert Phase 1: From 09 GMT to 3 GMT ?
thank you

Do you mean:
21:00 GMT - 03:00 GMT
03:00 GMT - 07:00 GMT
?

Sorry for that, i mean 21GMT to 3GMT

Sorry for that, i means 21GMT - 3GMT as your understanding

Sounds like the Delta phenomenon as predicted by Wells Wilder. He was basically saying that the market uses mirrors of price versus time.

Yes, basically, the guy introduced the method also says that he only use "price and time" to predict the direction in the future. Supply & Demand, S&R, highs, lows, etc mean nothing to his trading method.

Thank you very much for the key words. I would keep googling for more information.

Just signed up and I was going to start a thread on a very similar topic (can't yet because of my membership status). I recently wanted to test the effects of using stop losses on a short-term trading strategy where entry points and directions are picked at random. I tested 1000 random minutes of the EURUSD in 2019.

What I found is that trailing stops make profitability for short-term trading more difficult under normal conditions (i.e., when no market catastrophes are occurring). Testing on 2019, I was able to create approximately a 0.7-0.8 pip gain per trade (before considering spreads and commissions, i.e., just enough to cancel them out) just by using the opposite of a trailing stop and building a larger position if losses occurred initially. In other words, rather than having a trailing stop that increases as a position gains, I'm essentially using a trailing take-profit.

There is always the risk of not being protected from a huge market movement (maybe a separate stop loss could be used that only triggers to avoid serious catastrophes), but being able to effectively eliminate spread costs right off the bat is huge for anyone trying to trade on a short term basis.

The other implication of this is that the FX market (or at least the EURUSD) is definitely mean reverting over short term horizons. A simple strategy might be to look for abnormally large movements and gradually build a position, but I'm interested to hear any other ideas of how to take advantage of this.

One other thing people might be interested in is the Hurst exponent, which attempts to measure the degree to which an instrument trends or mean reverts. I haven't explored it in depth, but determining the Hurst for a given time frame could reveal whether a trend-based or mean-reverting strategy is appropriate.

https://en.wikipedia.org/wiki/Hurst_exponent

You don't need to google it - just backtest it
Do you see it often?

in wich currency pair he was trading? i mean which pair you would suggest to trade following this method