Price Attraction Points

Added new vid: Introducing trendy lines.

http://www.wmd4x.tumblr.com


Basic introduction to the subject. Next session will cover more detail on trade entry/exit. Tips n tricks.

Thank you, watching all with great interest !



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michael

Nice videos WMD...keep em coming

Anatomy of a nutty trade...

WMD excellent videos, I really like the trend lines but I do not trust them enough to use them in my trading. Sometimes I use channels but for the most part I'm very wary of TLs, I look forward to exploring the topic

Edited to include daily cable chart

I'd agree, Frankkn, TLs on their own are the least reliable tools I use for my analysis; but when you add them to S/R levels, big numbers and candlestick formations, they make a nice combination. My order of priority for technical analysis goes a little something like this:

 

1. S/R areas (hand-drawn...and by "areas", I mean not specific lines, but areas where price has bounced off in or around
2. Big Numbers
3. Candlestick formations (shooting stars, hammers, or other reversal candles). (Sure, waiting for a candlestick formation can get you in a little later than entering right on the strike of a S/R line, or a TL, but the added confirmation that a reversal is happening is usually worth the sacrifice.)
4. TLs and or channels.

Kind Regards,
NeoRio

Posted a couple of new vids on the blog showing some observations on price behaviour around trend lines.

A couple of potential setups. I am only interested in setups within a window of 48hrs. that is, the breakout and return to breakout must happen within 48hours or it is nil. i just think that 48hours is very fresh in traders mind.

AUD/NZD triggered:

trade progressed nicely. already moved SL to entry point(1.2554). B/E the trade at 1:1. chart attached:

B/E triggered.

@WMD

I like your unique approach to trading forex. It's not for me personally, but you obviously have a deep understanding of the market and price.

Quote:
"But does the trade (price) have a Reason why it must reach that exit price level? Are there points on a chart that act as Price Attraction Points?"

For me, a reason for entry and exit are basically one in the same. You feel price will stop moving in that particular direction and turn. Some might be taking profits, others might be taking a trade.

What we do know for sure is we don't know what is going to happen next in the market, so we take trades based on previous price patterns that have a high probability of one thing happening over another.

Price attraction point:

In my travels there seems to be 2 x prominent price attraction points based on pure price action.

1. Price inefficiencies - Similar to a sunday price gap that price tends to fill before continuing when price makes an overly one sided more in one direction, price likes to come back and retest either the last fractal past or the release point. (both not original thoughts or personal observations of mine, yet I do trade them)






This last one, There are 2 different ones pointed out in 2 colours. There is actually a 3rd, but you get the idea.

Like any system or strategy, this is not to be played on it own but in confluence with other factors. take time of day and ATR for example. If you have a large inefficient move in early London, and spends the rest of the day forming a head structure (head and shoulders, double top or other). We know that price has a low probability of making newer highs or lows after london close. Id the price is also stretched past its Average true range, maybe we have a counter trend scalp with the exit point the last fractal passed or the release point.

The hourly seems to be a good place to find these types of setups, with the Daily and Weekly less likely to fill in price immediately.

2. Highly liquid areas.

Also, this being a more obvious one, price seems to be drawn to price points of high liquidity where there are a large volume of orders. The easiest example of this would be a major S/R level or "the figure"(1.6600 GBPUSD for example). there tends to be a bit of a liquidity void as you approach these areas, so when as price seeks counter parties to make transactions with price tends to float to these areas to find either buyers or sellers to make a transaction.


Cheers

Ben

Sorry guys, I didn't actually check it before submitting. My apologies for any grammar and spelling errors.

Hi Neo,my ii_supdem indi is not working,my expert journal ask for import DLL,but still ,can not load to the chart,there iny thing I should do??
happy trading

I don't mean to intrude but I saw the thread title and was interested but it quickly fell into the same rehashed Support and Resistance methodology.
Anyhow, if that's ok I thought I would share an example of a Price Attraction Point (they do exist and have nothing to do with S&R)
There is no need to guess at what price / time high activity / liquidity can be found.
Note: the presence of a pin bar is a coincidence and has no meaning.