Price Action Observations

PYRAMIDING.

time frames: 30mins or H1 tf if setup is DAILY...if setups is weekly, use H4 to pyramid.

I DONT LOOK FOR TL to confluence during pyramiding...all i need is S/R levels...I ONLY PYRAMID into existing setups.

the entry methodologies for pyramiding is 15-5 entry method, 1/2 retracement entry method, standard hector 3sma entry method. which ever one shows up.

TP = THE ORIGINAL tp of the DAILY OR WEEKLY.

B.E = 2 times 1/2 retracement entry method.

that is pretty much everything, in a nutshell. my technical analysis playbook. of course, criticisms and analysis are welcome.

technical analysis has a high noise to signal ratio. the constant hammer in my mind is: how do i reduce the noise of a technical system?

For every technical pattern system, among other things, there is the setup and there is the entry. How do we reduce the noise at setup and at entry?

Reducing all technical analysis to S/R and TL helped significantly with this. My main setup interest is that there should be confluence of TL and S/R...and how do i reduce noise of that TL and S/R confluence? Note that reducing all technical analysis to TL and S/R was a major breakthrough for me to begin with....still...we can have multiple TLs...and S/Rs....How do i narrow down the candidates?

using daily, weekly line chart helps smooth out the noise in deciding which s/r level to use. the trade off with that is you miss some trades...which is fine...i will rather miss a trade than loss in a trade...after i have decided to use the line chart to weed out noise in determining S/R levels on daily or weekly...my attention then turns to TL....when there are soo many solid TLs...which one should i take? since i am interested in H4 and above for TL...the use of channels or wedges or wolfe structure(if you like) on H4 helps eliminates noise by imposing order.

Of course, the closer or tighter the confluence, the better.

Once i have sorted out the setup situation, the question is: how do i squeeze maximum r/r?...the only answer my brain can come up with is that lower and lower and lower time frames need to be used for entry....my critical interest are ways to refine entry on 5mins and 1mins time frame to amplify maximum gain from r/r, while significantly reducing noise.

Once again, i turned to ways of structuring or ordering price behaviour, only this time, i apply it to lower time frames...the one that i have now is channels...or wedges or wolfe wave(if you want to call it that.). The approach is clearly delineated here as 15-5 entry method.

Naturally, i am ever interested in other methods of structuring out the noise from 5mins or 1mins or 15 seconds time frame to perfect precision entry. I think that is the secret to this: reducing technical analysis to her core elements, and finding ways to structure the noise of price action on lower and lower time frames.

regards,

--skynet

Awesome shit. Give me some time to digest this information.

d

Hi guys,
Thank you for great posts I really love it!!Thanks for you time share you knowledge and experience.
To Skynet:
Thank you for superb explanation your methods/systems.I have Q.You said you combine your trading with TA+FA.Could you post some example how combine this?What web site would you recommend for learn basic of FA?I am honest I read only your posts in this Darren thread so you probably have some posts where you explain all this process already.Anyway I will read you posts and I am sure I will find some interesting stuff.You are sound like very experienced trader and once again thanks for you time to share here.

To Darren,
I am yours big fan a few months but only lurking b/c didn't have too much time but time is change so I will study your posts and WMD's deeper.I actually present on WMD site on one week free trial and really love it but about that I will send you pm.
Darren I have a few Q:
1.you are using daily opening price=6 am UK time .Will is using daily opening range(6-7am)Why you don't use it as well?(open price 6am is from P.C.thread well at least he talk about it)
2.Monthly open price is for you from 6 am first day of the month?
3.Could you say what most important points draw TL's are?(I know you done a few times in WMD thread I will go again all thru).Will is master draw TL's and also trading them.Well what was yours learning process?Could you recommend in this subject some points how to start?

I think is that site for now).If I mark some charts is better to post in Wmd thread or in yours?I understand you open this thread more about do some experiments,symmetry etc.so if you don't like I will post in Will thread.
Also you another thread is great as well.

Thanks again guys.
All the best.

Hi Red Pirate. I am little over the forum thing, so I may not post much. However, I will answer questions, so ask away any time.

Regarding fundamental analysis, that is certainly the domain of Skynet. Here is some information he provided me when I asked the same question.

Here was something Skynet wrote a while ago.

6am UK
I used the 6am open before meeting Will. I learnt this from Peter Crown.
Will uses the 6am open to close. He also got the idea from Peter Crown.
I like a level, Will likes a range. It's your choice.
All it provides is a bias. Above is an up day, below is a down day.
Peter's idea - and it was backed by statistical proof - is this:
- To stop the bleeding, be long on up days, short on down days
Of course, that is only a guide, but the idea is that it is 'easier to swim with the current, not against it'.
I have looked at this in detail, so has Will and we both agree that there is something special about the 6am.
What we did is mark it off and observe how price reacts to and moves away from this candle. Try it.
Simple as that. If you want to know more, search for Peter Crown at FF and read.

Monthly Open.
Nothing to do with 6am candle.
Look at the monthly candle, get the candle opening price.
The retest of the monthly open generally provides a reaction.
To make a trade...... this is important.... all you need is a reaction.
However, you should only use this when there is confluence with something else.
Think of it as supporting data.
Naturally, above open the month is up, below the month is down.
- So idea as that same as the 6am for longer term position trading (as apposed to intra-day/intra-week)

Trend Lines
They are more art than science.
To trade with trend lines go to the source.
Wmd is 'the source' when it comes to trading with trend lines.
Earlier in this thread I think I mentioned some tips on TLs.

Where to ask questions.
It's up to you. However, no one else looks at this thread and to be honest, happy with that.
Last thing I need is to feel like I need to manage or baby site a thread.
However, questions will be answered.
Questions addressed to me in Will's thread will also be answered.

I am not sure where you are, but I know that this a hard journey, so much harder than any noobie can grasp, so if I can help, I will do my best to show you a (not the) way forward. But, this can only be done by answering questions, spoon feeding does not work in this profession.

d

Not even sure why... Chart just has that feel about it. Felt like posting it.

@Dazzdude

Why 6am UK time, and not 8am UK time when the London fx market opens?

I know, seems stupid doesn't it.

I have no answer beyond that it appears to work.
Of course, not every day. Some days you will see the 8am is better.
However, over the long haul, it's the 6am that takes the prize.

I have used the 8am, 7am and 6am.
It just seems to be the better candle.
All you can do it make the observation yourself.

d

Hey dazz, nice to see you posting again.

Not sure why you have lost interest in this thread, because it has brought forth some great information posted in the one thread, without a lot of meaningless posts in between. The exchanges between yourself and Skynet makes for a great read, must be one of the best kept secrets on FF!

You have a great ability to teach, something not necessarily common amongst great traders.

Keep up the good work.

No big deal, just want to get the reason behind the time mark.
Thanks!!! Big fan of the thread.

Thank you very much Darren.

Thanks. You have Skynet to thank for me coming back, would not be here otherwise.

d

I dont know about you, but i completely understand how dazz feels. thread management is a headache. I used to post a lot on the "trend trading all pairs" thread...i stopped...i simply PM shomari and 4rexx whenever i have anything to say to them. In fact, most of my posts consist of PMs between myself and other members on FF....i read something by somebody...i like it...i write a PM exchanging ideas with that person. the reasons are simple: actively posting/managing threads makes you miss trades. it just does. period. (2)through PM i avoid getting into silly and unnecessary arguments about nonsense with detractors. (#3) with PM, it is a highly focused discussion between myself and that person only. no distractions. In fact, hanover and i went so far as to go a binned thread (sl vs no sl) just to have discussions with each other...because the thread is binned, nobody can read or start silly arguments with us.... I like the peace and serenity of it. That place was originally on my mind for our discussion, dazz.

also, i just like having discussions with experienced, clever, smart people who can help me grow like dazz, wmd, sisse, roro53, saxon, hanover, 45 condor, shomari...etcetera....i dont want to be tied to a thread. these are the reasons why i never started my own thread.




of course, dazzdude does. he is very good. you should see the cogent way he summarizes/explains wmd trading techniques. splendid.

kokopelli,

Example of 6am candle. Levels marked in pink.
See how price respects it? Strange.... (not always, just often)
It is (one of) my points of reference.

Entry -> moving away yesterday's 6am candle.
Confirmation -> reaction from 6am candle.
Trade management -> today's 6am candle.
Where is price going -> back to 6am candle in the blue box.

Why... fucks know... just seems to do it often enough to be of advantage

Of course, it only a part of the picture, but it is important to me.

I hope that example helps.

d

and there you have it... to the very pip
(now now she will bounce back up)

And why right to the blue box?Because is source of the last buyers move(pole)?Need to add.more buy orders to move higher os if they find more buyers there then move higher if not price need to drop lower.No demand=price needs drop lower.

just to show, the bounce.

Red Pirate,

I showed an example for the 6am candle.

Here is an example for the monthly open.

d

Yep, supply and demand. I think you get the idea.
Zoom in to 1 minute and look at how price left that point.

Thank you I will do some backtest and also forward tests