14 Year Old Forex Trader's Lessons

lol i slept..

i have been going time again from the m5 to the minute chart, and i see that dojis ARE NOT moments of indecision. yet they are turning points. let me try still with the volume indicator..

honestly i just found this out, and lets use the better volume indicator without the use of its colors i already get confused there!

well most people see the bullish engulfing candlestick formation and they would buy. WRONG. first of all i wouldnt take into consideration almost any candlestick formation if it is out of supply or demand.

here is the doji test of volume and demand

i realize this is back-charting, but im trying to go onto something here...

see how volume died out? less interest in demand and therefore the 'engulfing' is a fake, and its a bull trap

here is what happens when price accumulates and creates a demand zone for buyers. how does it work? buyers wanna buy there duh at that time, but what happened really?

chart attached

what im coming to is that the professional money is ready to buy while some are selling into demand creating the conflict in the doji stick

did u know that wicks indicate supply and demand too? here is an example: its a pin head but not a pinbar. why does it have a wick? because m1 candles have been closing down, while the m5 is still with a wick. price probably closed in m1 with that high, then gradually moves differently. becoming a pin. now how do we know where to take the short? i will try and discover something without the use of volume indicators or any of that kind.

what i alrady found in many times long time ago, is that if a candle's closing price is higher than previous high, obviously bulls are winning. vice versa with bears. yet that dont seem enough still YET.

here is what i think is the 'real engulfing pattern'

example: m5 chart is showing a sort of casual engulfing pattern, and i marked it with a vertical line and red vertical line as to where price made it there. then i had two orange lines to show range between prices in m5 and we see what really happened in m1.

the real engulfing theoretically. still researching..

its when a previous nearby closing price becomes the open of that candle and is rejected to go lower aka the wick.

take a look:

"i will not take a trade demand zone too wide. "
its not AT ALL.

m5 chart it does seem too wide.
m5 and m1 comparison with the 'engulfing' pattern.
from now on i name it 'open break hold' pattern or in short OBH.

im not talking classic here. do you know that the open and low of bull candles ARE support? and the high and open prices of bear candles are RESITSTANCE?

bears and bulls try to keep themselves 'positive' away from the open and create the resistance or support away from their open.

here is examples of OBH patterns in many many many examples. m1 is the coolest though..

m1 is easiest. first just watch price. u see demand or supply, mark it, then look for OBH's there.

so basically maybe we cant get the first wave, we wanna get on that retracement and blow it home on the third. i think obh's might work. btw i believe these are usable only once. i also believe with supply and demand, fresh newer ones are more reliable.

i say try find obh patterns with confirmation of ur indicators if u wish, or with other whatevers u trade with. its about the unusual ones. u take ones too obvious, then it aint an OBH.and make sure if u are buying a bullish OBH, make sure supply is far enough and no bearish possible obh is in play as well.

ill try use simple EW to determine best entries. and maybe cycles.

more obh patterns.



what is the key? watch the true momentum, and wait. patience pays off.

i gotta go pray now and eat, and just wana share what i found just by looking at the dance

Almost every day I see different type of charts of your, trying to find the best for you? Good to see that, your evolving.

OBH with a torrent of supply demand + Gann + some chart patterns.
gotta practice more.

notice my lines are drawn from a POINT not because price is there AFTER, but BEFORE!!!! and i draw there!

trendline drawing has been too casual sometimes.

here is where i am so far

and did u know u can notice divergence with lines?

not only with macd?
and more precise?

take a look at some examples

i have no time to explain yet. maybe tommoroow

I hate weekends.I cant work.
I need to work
Grrgrlgglg...

You call this work? More like a hobby for me. Work is something where you actually produce something, here we mostly steal from each other, trying to be smarter then someone else and get their lunch money. Lovely game, gives meaning to life.

im 'working'


i love goldman he can always counter anyone's statement

For supply demand fans and lovers - Try to use correlation to your advantage! If USDX is in demand, and eurusd is in supply eurjpy is in supply, focus on one chart then trade. try it on backtest!

I didnt call hobby something that gives you money to live

We all define things differently and that's all right, just shared my thoughts.

one of my most respected members of the crew: Sir!

"at ease, son"

hehee


goldman always shares and RESPECTS thoughts.

cool huh? yes