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Price is Everything Chat Room

  • #2,061
  • May 2, 2012 10:41pm May 2, 2012 10:41pm
GBPJPY in H4, H1, M5 and M1.
M5 shows the bullish PB reversal area and M1 shows the BIG drop in detail.

IF, a few questions for you if you don't mind:

1) You mentioned abt being extra cautious when there is a bull flag just below supply zone. In this case, it worked out fine, but what, in your opinion helped this to work out in this situation?

2) When bar closes above the supply zone but comes back down to the zone shortly, wld you short it given the right PA?

3) Your definition of bullish/bearish engulfing doesn't mean the bar has to cover previous bar entire body plus high & low. It only has to engulf previous high (for bullish) or previous low (for bearish). Is my understanding correct?

4)In M1, that was a rising wedge not CP, did i get that right?

And if you have some time to get back to me on this wld be great
http://www.forexfactory.com/showthread.php?p=5628402#post5628402

Sorry for the super long post, these questions just came up to me as I'm doing the homework
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  • #2,062
  • May 2, 2012 11:06pm May 2, 2012 11:06pm
Quoting Tyoon
Here is some of my thoughts on this chart in regards to the freshness of the zones. Went through my thinking of most zones from left to right.

Hope it helps.

..
Priceless, thank you so much
  • #2,063
  • May 3, 2012 3:19am May 3, 2012 3:19am
Got inspired by Tyoon, any comments welcome

Next step seeing them in real-time AND MORE IMPORTANT ACT ON THEM.
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  • #2,064
  • May 3, 2012 3:34am May 3, 2012 3:34am
Quoting Fx7877
1) You mentioned abt being extra cautious when there is a bull flag just below supply zone. In this case, it worked out fine, but what, in your opinion helped this to work out in this situation?
Here's where your correlation knowledge comes into play.
At exactly the time that GJ dropped, UJ came to strong Supply with great history and dropped too.
UJ was leading the Yen pairs. (See attachment)

Quote
2) When bar closes above the supply zone but comes back down to the zone shortly, wld you short it given the right PA?
With an eye to the leading pair and this one, I'd ask myself my list of questions and decide upon a course of action. But I usually like to take the trade at the turning point rather than after it

Quote
3) Your definition of bullish/bearish engulfing doesn't mean the bar has to cover previous bar entire body plus high & low. It only has to engulf previous high (for bullish) or previous low (for bearish). Is my understanding correct?
Bars being engulfed can certainly be good clues, but for me, as you've correctly stated, an engulf of an high or low is the real deal

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4)In M1, that was a rising wedge not CP, did i get that right?
No. Each of the demands formed on the way up had been tested. It didn't matter that they weren't tested simply by wicks. The fact is, they were tested, taking out the buys. This was CP

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And if you have some time to get back to me on this wld be great
http://www.forexfactory.com/showthread.php?p=5628402#post5628402

I was really hoping someone would analyse this one and shed some light on it. If nobody does so by the weekend, I'll definitely answer it myself

Best

If
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  • #2,065
  • May 3, 2012 3:54am May 3, 2012 3:54am
Here is one I have done as a warm up to get my mind into gear for reading price.

Hope it is readable, FF has not resized it too small. Sorry if it is a little bit unreadable.

..
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  • #2,066
  • May 3, 2012 4:08am May 3, 2012 4:08am
Quoting Tyoon
Here is one I have done as a warm up to get my mind into gear for reading price.

Hope it is readable, FF has not resized it too small. Sorry if it is a little bit unreadable.

..
Just looking through it now

Don't forget to watch for clues in how price left the zones
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  • #2,067
  • May 3, 2012 4:12am May 3, 2012 4:12am
Quoting Ifmyante
Just looking through it now

Don't forget to watch for clues in how price left the zones
AHA! right, got that noted. Cheers mate, I'm building my 'spot list' of things I need to keep an eye open for when I look at a chart, CP and LQ need to be put in bold in that list.
  • #2,068
  • May 3, 2012 4:16am May 3, 2012 4:16am
Quoting Tyoon
AHA! right, got that noted. Cheers mate, I'm building my 'spot list' of things I need to keep an eye open for when I look at a chart, CP and LQ need to be put in bold in that list.
Absolutely - they're one of our best friends
  • #2,069
  • May 3, 2012 4:18am May 3, 2012 4:18am
Quoting Tyoon
AHA! right, got that noted. Cheers mate, I'm building my 'spot list' of things I need to keep an eye open for when I look at a chart, CP and LQ need to be put in bold in that list.
Hi guys, I know most of the abbreviations here, LQ doesn't ring a bell would you mind sharing what it means?

Thanks

Thomas
  • #2,070
  • May 3, 2012 4:20am May 3, 2012 4:20am
Quoting hometrading
Hi guys, I know most of the abbreviations here, LQ doesn't ring a bell would you mind sharing what it means?

Thanks

Thomas
Hi mate

check the homework on post 1
  • #2,071
  • May 3, 2012 4:23am May 3, 2012 4:23am
Quoting Ifmyante
Here's where your correlation knowledge comes into play.
At exactly the time that GJ dropped, UJ came to strong Supply with great history and dropped too.
UJ was leading the Yen pairs. (See attachment)


With an eye to the leading pair and this one, I'd ask myself my list of questions and decide upon a course of action. But I usually like to take the trade at the turning point rather than after it


Bars being engulfed can certainly be good clues, but for me, as you've correctly stated, an engulf of an high or low is the real deal


No. Each...
Ah ha, now i know i gotta be checking out UJ b4 trading any Yen pairs. Thanks for the heads up! And you certainly cleared up my misconception abt CP needing to have wicks. CP need not have wicks as long as they have been tested

If,
Just a pt to clarify abt engulfing bar: your entry is upon completion of engulfing bar, not the break of the previous bar high/low?

Your guiding hand is much appreciated and big thanks for taking time to answer my question point by point.
  • #2,072
  • May 3, 2012 4:24am May 3, 2012 4:24am
Quoting Ifmyante
Hi mate

check the homework on post 1
Have we covered the reasons for LQ at all? ..I have a few ideas of why LQ occurs.
  • #2,073
  • May 3, 2012 4:33am May 3, 2012 4:33am
Quoting Fx7877

Just a pt to clarify abt engulfing bar: your entry is upon completion of engulfing bar, not the break of the previous bar high/low?
As you probably know by now, I don't wait for engulfs for entry
I know where price will turn. I never know for sure whether it will be a reversal or just a bounce, until the previous zone at least has been engulfed.
Remember, this not an hard and fast rule. What I expect from a trade depends on the answers to my checklist.

If I haven't mentally filled in my checklist, I'm not happy about taking the trade
  • #2,074
  • May 3, 2012 4:36am May 3, 2012 4:36am
Quoting Tyoon
Have we covered the reasons for LQ at all? ..I have a few ideas of why LQ occurs.
I don't believe we have, more than that to get in line with news levels or correlated moves, it must stop CPing and get its ass to the level on time
  • #2,075
  • May 3, 2012 4:50am May 3, 2012 4:50am
Quoting Ifmyante
I don't believe we have, more than that to get in line with news levels or correlated moves, it must stop CPing and get its ass to the level on time
LQ = Liquidity

Put it together after last post
  • #2,076
  • May 3, 2012 5:02am May 3, 2012 5:02am
Quoting Fx7877
If,
In relation to the chart & homework, may i ask if a SS zone is invalidated if the price bar cuts straight thru without respecting it?

Also, see my other question in the chart. Just wanted confirmation from experienced traders like you. Thanks
Hi Fx,

I am going to try to answer your questions, I have marked some charts...

Your first question was:
In relation to the chart & homework, may i ask if a SS zone is invalidated if the price bar cuts straight thru without respecting it?


My answer:

You must mean demand here, well, what I see is that the demand you talked about has already been consumed (tested) different times. Look at my 1st 4h chart . Here you can clearly see that this previous demand has been tested already, since there is no demand anymore price is free to fall. Therefore , this demand is not more valide, this zone now becomes supply.

Look at the second chart, this one is from a 15 min chart.
Like I said , the 4h demand zone has been consumed , but we could have expect the drop in price by looking at a lower TF. On this chart , we clearly see some compression.

Then your second question was:
Is this also a valid supply zone?

My answer:
Look at the 3rd chart for more info

Hope this helps,

Mel
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  • #2,077
  • May 3, 2012 5:05am May 3, 2012 5:05am
Interesting, seen that happen frequently. You only start realising this once you understand PA and S/D
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  • #2,078
  • May 3, 2012 5:17am May 3, 2012 5:17am
Quoting Ifmyante
I don't believe we have, more than that to get in line with news levels or correlated moves, it must stop CPing and get its ass to the level on time
I have a few ideas..

In order for price to go north (in example) CP clears the sellers. Then liquidity happens to:

1. the big boys have large amounts of sell order that need to get filled so they drop down into demand dump them on the buyers.
2. fill the orders left unfilled before north.
3. to seek the buying power/liquidity to drive the price higher.
4. to capture the sellers in the liquidity momentum drop (or as Seiden calls it 'novice gap') so the buyers have liquidity to go north.

This maybe wrong but could be on the right lines.

..
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  • #2,079
  • May 3, 2012 6:26am May 3, 2012 6:26am
Quoting Ifmyante
I was really hoping someone would analyse this one
Only really been able to do this since last HW. Not even sure i have the answer but let's see. I dont post many HW charts cos i'm really lost in watching it happen and trying to plot it all out on my pairs, but i am doing the HW... non stop tbh.

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Mr If - please let me know if i see this right or if i've lead us up the garden path.
  • #2,080
  • May 3, 2012 6:37am May 3, 2012 6:37am
Quoting beebolbod
Only really been able to do this since last HW. Not even sure i have the answer but let's see. I dont post many HW charts cos i'm really lost in watching it happen and trying to plot it all out on my pairs, but i am doing the HW... non stop tbh.
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