The truth of Price Action and Ranges

OK,

There was a post before this but the mods deleted it so if you feel that somthing is missing... it may well be. I cut and pasted a bit of info from the net and it had a link in it to hell I have no idea where but thats a BIG no no. So I have been warrned.

Anyway I found the W D Gann said that what has been will happen again.
So I measure the last swing and expect the next to do the same.

I use a 150 tick chart from IG Markets as it gives a better feel to the chart, if you don't have a 150tick use a 5min.

I dont try and pick highs and lows, I am looking to see IF the high is at a logical place and if so I will be happy to take the next signal short.
I just use these ranges / swings as a road map so I have an idea what to expect price action to do.

I dont try and take every move, remember it the first on the bus that gets the longest ride.


This will not be a long tread... I am here to show you something which I use and I thought it might be useful to others. It does not work 100%... only 85% of the time if you belive that market run 15% of the time.

I'm not here to tell you how to trade... work it out.

I don't use any indicators and never will again.. yes been there done that. I will not answer a question.. if indicators are even mentioned.

What I am going to explain is not a holy grail but a road map so you can start to relax while trading... Price action will no longer surprise.

You will learn to hang on to your trades and expect targets to be meet.
You will understand why price has stopped at this or that level.
You will know when not to enter a trade.

You will not find entries, exits or money mangment stuff.

Is it releivent in the real world... good question.. we all know that to profit in forex you need to control your losses and maximise your profits. Entering a trade with a 20pip stop and try to bank 10 pips is the fastest way to the poor house.

Pick your trades with care... remeber that the first on the bus gets the longest ride. I use price action to enter and exit.. what this tool does is gives me confidence to take a trade. Often I can tell when not to take a trade if it is running in to an area where trouble lies ahaed.

The market will do what it wants not what you expect it to do.
Please remeber this... top and bottom piciking is a fools game.

Like trend lines, monthly fiviots and fip numbers that stop price these price pridictions are nothing more than just that... a guide.. a line in the sand that might, could and will be broken.

Like everything it takes time and effort to get it right and if you learn to use them the right way your trading will improve.

Often when there seems to be a high or low that is not 50% or 100% etc it will be an average of both 50% and 100%... and some times add 50% of that range in to the mix.

Also ranges wil often repeat..

Very interesting. You measure last swing and expect to be the same, I measure average last 10 swings and next expect the same. Pretty similar staff so far. Very interesting. I look forward for your explanations of your trading

What an effort... trying to post a picture..
Anyway first chart up..

Lets explain.

take the high 958 and the low 941 and new high 960 and expect 50% or 100% etc... what we hade was an average of both at 947 low was 947.

Next take high 960, low 941.. this is the last swing long... calculate from the new low 947 and we get 100% at 966 high was 967.

Remember use the biggest swing you can... and use the smaller one to help confirm a high or low..

Also this is not new... been working for as long as human nature works, I need not explain any more.

Next chart.... 967 high.. take the targets and average them... 976+962/2 = 969 high 967.

As I said... good to give you confidence that a high MAY have formed... take the break short maybe after a double top.

Dont need to say much more the charts explain it all.

Hello Duke900!

I like your trading idea,
but i dont have tick charts. Its not it possible to do it with1M?

And some more...

Notice the large swing and the smaller swings give the great highs and lows!!

This is the last chart.. Euro to the end of trading.

Thanks for the reply.. yes nothing new here... just thought it might be of interest

Hi,

I have a mini account with IG just for the tick chart, but if not use a 5min. A 1min will kill you. the 150 is reasonbly close to 5min.

Now lets talk about when this all falls to bits, as we all know nothing works all the time.

I will not exit a trade just because I have a 50% or 100%... I go on alert yes... I always wait for PA to tell me what to do.

All this goes out the window when we get a runner and thats what pays the bills. Your targets are left for dust.

I am a follower of the Feb/FX "The System II (Yes with irony system" becasue it gives me all the trading tools to best use these targets and the whole idea is to get runners.

Then you have to read the PA and descide what to do when these levels are hit. Its hard work doing this live... and I often don't do all the swings and regrest it often.

As I said if you try and trade every swing that I have shown you will be dead soon enough.... just watch PA and when it lines up get on.

I am carful taking a break in to 50% or 100% zones as this will often be a fake out.

It seems to be great but I do not understand anything to all your chart numbers.

Thanks for sharing with us Duke900

Forgot the best bit...

When you are in a trade and it start to retrace... work out where it MIGHT stop and place your stop above or below this level.

When the market retraces and you know the important levels there is no surprise... your expecting it to come back so no stress.

Like reading a road map.

well thats all fokes not much left to say.

Hey duke, i really keen to know that how you trade base on the theory you mentioned above. to be honest, i really dont understand how you get those figures like 50% and 100%. mind share with me more? thanks =)

I might not have explained it very clearly.

when you have a swing long.. A-B which might be 43 pips.. then we have a retracment to point C. I add 43 pips to this price that = 100%.

Same short..

Hope that helps

THISE IS CORECT?

the 50 and the 100 give the same number

is it ok?

what the advategs in thise it give almot evry swing avg number close to the 0.78 fib

is it allways like thise?

u add c has 50 fib or u add the origenal b c swing for the culcultion of the avg
and use it leter for the next swing retresment?

Duke900,
Very interesting numbers which seems to tie in with the swings. I think I understand the explanation on this post but there is still some confusion on some numbers like the one on post #3 where you have this formula on the left side of the sample chart:
947
50%952+100%943/2=947.

Could you please tell me how you get that number 952?

Thanks in advance for any response.
Harry