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  • #21
  • Jan 11, 2023 12:33pm Jan 11, 2023 12:33pm
Here goes the first chart markup. There are 3 valid zones here, but I've drawn 4. Can you tell which one is not a good zone? Read the rules if uncertain.

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  • #22
  • Jan 11, 2023 12:35pm Jan 11, 2023 12:35pm
I;m observing that but don;t know how will play out
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Money moves the market, not an indicator.
  • #23
  • Jan 11, 2023 12:39pm Jan 11, 2023 12:39pm
Another entry. Notice how I am flexible with the zone drawing. Because you want to ideally catch the 'meat' of the consolidation which is painted by the candle bodies. Wicks are nothing but transitory we do not care for those. Focus on the bodies prior to the move. Usually this is indicative with the prior bullish/bearish candle, but in situations like this where consolidation is clear then use the bodies of the group of candles.

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  • #24
  • Jan 11, 2023 12:41pm Jan 11, 2023 12:41pm
Quoting andoseg2
I;m observing that but don;t know how will play out {image}
Keep observing. And re-post the chart with your zones drawn. Remember to capture the meat of the candles in the consolidation. Price action has made a higher high breaking previous LH, hence this could be an opportunity to get into a trend reversal. Beware, though, you're on m5 which is a small timeframe. I recommend this strategy on m30 or H1 as price movements are more clear.
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  • #25
  • Jan 11, 2023 12:45pm Jan 11, 2023 12:45pm
Here is a trade in the making:

On H1:

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You can enter now since price has entered into our zone. I usually place limit orders. However, if you wanted to be more precise, drop down to the m5/m15 and look for bearish Supply zones breaking structure. These will yield the highest r:r for those traders who are more advanced. I recommend starting out with just h1 entries for now.
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  • #26
  • Jan 11, 2023 1:03pm Jan 11, 2023 1:03pm
Just got a fleshy chop here on 1m lel
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Money moves the market, not an indicator.
  • #27
  • Jan 11, 2023 1:07pm Jan 11, 2023 1:07pm
Quoting andoseg2
I;m observing that but don;t know how will play out {image}
And I think a new opportunity is created if a breakout upside will take place
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Money moves the market, not an indicator.
  • #28
  • Jan 11, 2023 1:07pm Jan 11, 2023 1:07pm
Quoting tiestobob
Here goes the first chart markup. There are 3 valid zones here, but I've drawn 4. Can you tell which one is not a good zone? Read the rules if uncertain. {image}
First one is bad. Price came to it very fast. That's why that zone didn't worked. Last one was not touched. So I guess others are ok.

Let me know if I'm right.
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  • #29
  • Jan 11, 2023 1:13pm Jan 11, 2023 1:13pm
Quoting SilentFather
{quote} First one is bad. Price came to it very fast. That's why that zone didn't worked. Last one was not touched. So I guess it's ok. Let me know if I'm right.
Correct! Good work. The best zones are created when price "runs away" from where it is sitting, and then decides to dip back in. Those zones work the best. For example,

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  • #30
  • Jan 11, 2023 1:13pm Jan 11, 2023 1:13pm
Quoting tiestobob
Here goes the first chart markup. There are 3 valid zones here, but I've drawn 4. Can you tell which one is not a good zone? Read the rules if uncertain. {image}
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Money moves the market, not an indicator.
  • #31
  • Jan 11, 2023 1:15pm Jan 11, 2023 1:15pm
Quoting tiestobob
{quote} Correct! Good work. The best zones are created when price "runs away" from where it is sitting, and then decides to dip back in. Those zones work the best. For example, {image}
I think one need much training of his eye to recognize with ease these filters.
Money moves the market, not an indicator.
  • #32
  • Jan 11, 2023 1:28pm Jan 11, 2023 1:28pm
Quoting andoseg2
{quote} I think one need much training of his eye to recognize with ease these filters.
Yes, it takes practice. You will not capture 100%, that is for sure. However, in this game you need to keep moving and keep your risk in check. The best way is to have a strict money management. I do not risk more than 1% per trade, no matter how good the setup is. on GBPCAD alone, the reward is 15x over 2 months. So if I risked 1%, I am up 15% over 2 months which is great!
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  • #33
  • Jan 11, 2023 1:44pm Jan 11, 2023 1:44pm
Quoting tiestobob
Line 1: If bullish, the open of the nearest bearish candle. If bearish, the close of the nearest bullish candle.
Can you confirm that it's not the other way round (meaning close of the bearish / open of the bullish candle)?

Edit: ok, forget this - I was looking at more prolonged regions..
  • #34
  • Jan 11, 2023 1:51pm Jan 11, 2023 1:51pm
Quoting Go5
{quote} Can you confirm that it's not the other way round (meaning close of the bearish / open of the bullish candle)?
Good catch. Apologies - it should be the OPEN price in both situations. So if Bullish, open of the last bearish candle, and If Bearish, the open of the last bullish candle.
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  • #35
  • Jan 11, 2023 1:53pm Jan 11, 2023 1:53pm
Quoting tiestobob
{quote} Correct! Good work. The best zones are created when price "runs away" from where it is sitting, and then decides to dip back in. Those zones work the best. For example, {image}
Hi just quick question regarding this example. Isn't it too much time/currently more than 3 days/ to come back to the zone to be valid trade as you stated here"
3. We do not want too much time aka candles to pass before price returns to the zone. Based on your H4 and how long the entry is, that's a superbly long time for price to respect. My opinion on the forex market is that we want fresh and relatively new entries, not entries spaced out weeks apart and not so 'fresh' price returns. "
What is ideal time for you to be correct entry? Thanks for clarification.
  • #36
  • Jan 11, 2023 1:53pm Jan 11, 2023 1:53pm
Here is an ideal chart setup:

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Notice how the consolidation is only one bearish candle, but the bodies line up with previous bullish candles to paint the perfect consolidation. TP is the most recent high. SL below the low of the consolidation.
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  • #37
  • Jan 11, 2023 1:58pm Jan 11, 2023 1:58pm
Quoting teapeak
{quote} Hi just quick question regarding this example. Isn't it too much time/currently more than 3 days/ to come back to the zone to be valid trade as you stated here" 3. We do not want too much time aka candles to pass before price returns to the zone. Based on your H4 and how long the entry is, that's a superbly long time for price to respect. My opinion on the forex market is that we want fresh and relatively new entries, not entries spaced out weeks apart and not so 'fresh' price returns. " What is ideal time for you to be correct entry? Thanks...
Hi, thanks for question. In that example, I wanted to show the zone only. Maybe a bad example. But yes you are correct - that would be too much time if price came into it anyway. I wouldn't take it.

A good rule of thumb is that you want price to come back after at least 10-12 candles later, and not like 3-4 candles.
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  • #38
  • Jan 11, 2023 2:02pm Jan 11, 2023 2:02pm
Quoting tiestobob
{quote} Hi, thanks for question. In that example, I wanted to show the zone only. Maybe a bad example. But yes you are correct - that would be too much time if price came into it anyway. I wouldn't take it. A good rule of thumb is that you want price to come back after at least 10-12 candles later, and not like 3-4 candles.
Thanks all clear
  • #39
  • Jan 11, 2023 2:03pm Jan 11, 2023 2:03pm
Another example. Notice the short consolidation before the violent move up. And notice the dip into it from afar as if it is seeking the liquidity and then jumping back to where it needs to go.
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  • #40
  • Jan 11, 2023 2:11pm Jan 11, 2023 2:11pm
One more example:

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