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Price Action in Day Trading by Dadas

  • #81
  • Edited 6:05am Mar 21, 2013 5:29am | Edited 6:05am
Quoting Anusragger
Hi Dadas, great thread. Thanks for your time.

I'm a bit confused with your explanation in post 48. I know you it's post-factum but the zone candle that show on the chart is from the previous MN candle, right? But your chart is at march 19, so if i'm not mistaking the Zone Candle that is showing is that of february.

Now, the part where you're starting to look for a short entry is based on the Zone candle of february. When in fact you should be looking to trade of the january Zone candle. Is this correct?


Finally, we have someone who understands and sees - Yes you are right!

It is an example, if You can see this, You can see all the rest, where it was, actually valid.
Just move to the right.

And, please notice, that it is still true for the CSCZ.
Watching the price, you would have, still seen this on Price Action.

http://charts.mql5.com/1/185/eurusd-...salt-ltd-2.png
http://charts.mql5.com/1/185/eurusd-w1-fxsalt-ltd.png
More examples will follow.
Now, all I am doing is answering.
Trade the facts, not opinions.
  • #82
  • Mar 21, 2013 5:36am Mar 21, 2013 5:36am
Quoting Dadas
@DannyMania and others:

As I said before, everybody is welcome here.
As long as You stay on topic, discuss my method and post charts relevant to my method.

The GBP USD H1 on D1 Custom_Zone_Candle shows this:
http://charts.mql5.com/1/185/gbpusd-h1-fxsalt-ltd.png

The Daytrader should already be profiting with an early Long Entry, as the M5 picture shows.
http://charts.mql5.com/1/185/gbpusd-m5-fxsalt-ltd.png
And your reason for instigating a long on GBPUSD M5 are?
Please Do Not PM Me With Coding Enquiries
  • #83
  • Mar 21, 2013 5:37am Mar 21, 2013 5:37am
Yes, I see that, your post 3 and 4 are on a external server [http://www.fx-nvatc.comeze.com/charts_en_pliki/] which do not render unfortunately.

The rest of the charts that you posted are fine since they are uploaded and posted on the mql5.com server.

Thanks...

Quoting Dadas
Yes, they do show.
The charts for Understanding the chart article are on a different server.
If You experience a temporary error, please try again later.

Please, do not post multiple posts of the same contents.
Complexity is the Enemy of Execution...
  • #84
  • Mar 21, 2013 5:47am Mar 21, 2013 5:47am
Quoting Gumrai
And your reason for instigating a long on GBPUSD M5 are?
http://charts.mql5.com/1/185/gbpusd-m5-fxsalt-ltd-3.png

You either see it, or you don't.
Trade the facts, not opinions.
  • #85
  • Edited 6:12am Mar 21, 2013 5:55am | Edited 6:12am
Quoting Gumrai
Do you mind explaining where and why you would decide to enter short?
http://charts.mql5.com/1/185/eurusd-m5-fxsalt-ltd-2.png
2 -3 reasons should be enough, 5 reasons - how many do you need?
When you see the 5th reason, it is too late!

M30 reasons:
http://charts.mql5.com/1/185/eurusd-...salt-ltd-3.png

You ask Why?

Go back and read the basics again: charts, Price Action, please.
Trade the facts, not opinions.
  • #86
  • Mar 21, 2013 6:33am Mar 21, 2013 6:33am
nice thread Dadas... carry on soon u will have an army
  • #87
  • Mar 21, 2013 6:46am Mar 21, 2013 6:46am
second thing dadas your approach is objectife, you r teaching facts and not fancy terms of pattern at swing hights and lows , yes it is a diffirent approach from S/D but still same logic , so expect some jealousy mate
  • #88
  • Edited 7:36am Mar 21, 2013 7:35am | Edited 7:36am
Quoting Dadas
http://charts.mql5.com/1/185/gbpusd-m5-fxsalt-ltd-3.png

You either see it, or you don't.
What I see on your chart is a zone that you seem to apply some importance to. There have been many breakouts above and below this zone. You label a candle as an engulfing candle that clearly was not an engulfing candle.
Your chart explains nothing, just that a breakout from this zone worked eventually.
That will always be true, but unless you are actually able to spot when it is most likely to work, you have no edge.
So I ask you again, why do you think that taking a long from the umpteenth breakout of your important zone warranted opening a long position. Why would you not take all the other breakouts?

Attached Image (click to enlarge)
Click to Enlarge Name: engulfing.PNG Size: 30 KB
Please Do Not PM Me With Coding Enquiries
  • #89
  • Mar 21, 2013 7:55am Mar 21, 2013 7:55am
Quoting Dadas
http://charts.mql5.com/1/185/eurusd-m5-fxsalt-ltd-2.png
2 -3 reasons should be enough, 5 reasons - how many do you need?
When you see the 5th reason, it is too late!

M30 reasons:
http://charts.mql5.com/1/185/eurusd-...salt-ltd-3.png

You ask Why?

Go back and read the basics again: charts, Price Action, please.
Pointing at candles does not explain anything. There has to be a reason for opening a position.
So far you have not talked about PA, well maybe you have, but you keep editing previous posts so who knows?
There has been no substance at all in your posts so far, they are meaningless.
We can all spot periods of congestion, that is easy. We can also easily see when price moves up or down from periods of congestion.
What you have done is pointed out periods of congestion and then shown how the break-out worked.
We can all do that when we can see what has happened.
What you should be showing people is the PA that led you to believe that a bullish or bearish breakout was likely to work out.
If you are just going to say "Can't you see it?" , how does that help anyone?
Give your reasons and you may raise your credibility above zero
Please Do Not PM Me With Coding Enquiries
  • #90
  • Mar 21, 2013 8:20am Mar 21, 2013 8:20am
Quoting extremerrage
second thing dadas your approach is objectife, you r teaching facts and not fancy terms of pattern at swing hights and lows , yes it is a diffirent approach from S/D but still same logic , so expect some jealousy mate
What other logic is the right logic if not the logic of the Market?

Yes, my approach is my own realization!
I did not read it anywhere.
I invented this approach on my own.
Trade the facts, not opinions.
  • #91
  • Mar 21, 2013 8:26am Mar 21, 2013 8:26am
Dadas,

I'm happy that you are running your own thread and not just cruising around FF for 16 hours a day contributing nothing, but quite content to diss another persons efforts. Especially when that person can't trade themselves and wouldn't know the difference between a breakout, and breakfast!

Anyway, I must make some comment about your comments regarding indicator trading, because you are not right in what you say. Let me address you point for point.



Quoting Dadas

People tend to look for something which, like traffic lights, will tell them
when to Go and when to Stop. They rely on indicators, and lose their money.
People lose money for many reasons. Not because they "rely" on indicators, but because they don't know how to read them. There is a difference

Quoting Dadas
The data is on the chart first, then it is processed by the written program.
That's true, but the indicator receives and processes the information in a millisecond.....especially on todays fast computers that we have. The time delay is almost immeasurable and certainly has zero affect on any trading.


Quoting Dadas
Indicators do not show green and red lights, even though the colors might be such.
Indicators only blink the yellow light, telling us that there is a potential moment.
If we do not know, because we can not see it directly on the chart, no
indicator will ever tell us this!
Well, candles, which themselves are indicators, can only show you that there is a potential moment. Whether it is a candle or a light, if makes no difference. The candle is drawn after the fact just as the green or red is, so it's a moot point.

You need to understand that trading with indicators is a valid, and profitable way to trade. I'm sure trading with candles and breakouts can be profitable too. Neither way is right or wrong, so please don't make assumptions that everyone who trades with indicators loses money and doesn't understand charts.

I understand charts very, very thoroughly, but I choose to trade with indicators because, imo, they are more reliable. In fact, I can trade profitably with no candles at all on my charts, just using indicators, and others who follow my thread do the same. Of course more precise exits are possible with candles on the charts, but the point is that it is not difficult to trade profitable with only indicators and no candles!!

So good luck with your thread, but please be open minded to other ideas and practices.
Doing what you like is Freedom. Liking what you do is Happiness.
  • #92
  • Edited 8:49am Mar 21, 2013 8:37am | Edited 8:49am
Quoting Gumrai
What I see on your chart is a zone that you seem to apply some importance to. There have been many breakouts above and below this zone. You label a candle as an engulfing candle that clearly was not an engulfing candle.
Your chart explains nothing, just that a breakout from this zone worked eventually.
That will always be true, but unless you are actually able to spot when it is most likely to work, you have no edge.
So I ask you again, why do you think that taking a long from the umpteenth breakout of your important zone warranted opening a long...
Look, we are discussing examples at this moment.
It is not possible for me to do a thorough analisys at this moment and to follow
an inside thread you are trying to force on me, here.
I can defend the Long and the Short.
I want to go on and continue step-by-step.
We will, eventually get at live analisys, but some guys, here are not as far
as you are, so be patient and do not try to mess up things.

Opening a Long or Short just on the basis of the M5 chart would be foolish, unless
one is scalping and targeting for 1-5 Pips, plus, if it turns out right.

I am not discussing, at this moment, a concrete TermTrading strategy, just showing
examples for people to get a grasp of what I am talking about.

If I continue answering everybody's questions and attacks, I will not be
able to move on, we are just wasting time, mine and yours.

Look at GBPUSD M30, H1, H4, see where the bounce off was.
http://charts.mql5.com/1/186/gbpusd-m30-fxsalt-ltd.png
It is an Engulfing Candle.
And the Lower Shadow is the Support Zone - CSCZ in my vision.
And this moment is the retrace to this Zone.
And what else do You want?
Trade the facts, not opinions.
  • #93
  • Mar 21, 2013 8:44am Mar 21, 2013 8:44am
Quoting realjumper
Dadas,
You need to understand that trading with indicators is a valid, and profitable way to trade.
So good luck with your thread, but please be open minded to other ideas and practices.
Thank You,

Please read all my posts carefully.
Look for phrases like "indicator strategies work for some people".

I fully agree with You, if You can read the charts, you can read the indicator, too.

If you can spare the time to study and try out my method, please do and compare
which method gives you earlier entries.

I am not asking anyone to believe me, I am saying - try for yourself and see for yourself.
I am only showing you my way, how to do it.
Trade the facts, not opinions.
  • #94
  • Mar 21, 2013 8:49am Mar 21, 2013 8:49am
Quoting Dadas
Thank You,

Please read all my posts carefully.
Look for phrases like "indicator strategies work for some people".

I fully agree with You, if You can read the charts, you can read the indicator, too.

If you can spare the time to study and try out my method, please do and compare
which method gives you earlier entries.

I am not asking anyone to believe me, I am saying - try for yourself and see for yourself.
I am only showing you my way, how to do it.
Well I won't clutter up your thread Dadas, but it's not about who gets the earliest entries, it's about getting reliable, consistent and most of all, profitable entries.

As I say, good luck with your thread.....at least you are putting in the effort to create something, not taking the easy route and just dissing everyone else's work
Doing what you like is Freedom. Liking what you do is Happiness.
  • #95
  • Mar 21, 2013 8:59am Mar 21, 2013 8:59am
Quoting Gumrai
If you are just going to say "Can't you see it?" , how does that help anyone?
Give your reasons and you may raise your credibility above zero
My credibility is Zero and does not count.
Your credibility is Zero, and does not count.

The credibility is Your Own Results for You and You alone.

If You do not see any value in my method, my vision, then the method is not for You.

No, my method is not for All the Hype Traders who Already Know It All.

No, my method is not for AF, Quantitative Traders, Price Action.

My method is for Everybody, Simple People,
It is a way of Visualizing Price Action which works for me.

If it works for me, there are other people in this World, like me.

And this method is for those people in the first place.

The rest can do whatever the rest wishes to do!
Trade the facts, not opinions.
  • #96
  • Mar 21, 2013 9:29am Mar 21, 2013 9:29am
Hi,

Thank you for your posts and your explanations. See some thread talking about Price Action but yours explain well what to do.

Is there any chance to modify your "custom zone indicator" to see what happen 2 days before or more?

example: i apply your indicator too see 2 days before, and i can whatch the entry and exit of yesterday.

Hope you understand what i say cause my english is very poor.

Anyway, please continue too explain your way.
Bottomless wonders spring from simple rules, which are repeated without end
  • #97
  • Edited 10:11am Mar 21, 2013 9:55am | Edited 10:11am
OK, since Gumrai insists, and we are wasting time,
I will show You my logic as to GBPUSD, today, in
the Daytrading context.

I will present two possibilities:
1. From the chart view, only.
2. From my own reality view.

1. The chart view:
A Daytrader opens the MT4 platform and sees this picture:
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh1_001.png Size: 41 KB

He sees a Bullish trend at the left end of the chart and a following Consolidation.
Inside this Consolidation he sees 2 evidently long H1 engulfing Bullish Candles.
And, after an attack downwards, a strong H1 engulfing Bullish,
another attack downward, the Long Pin, which ended as a Bullish Engulfing Candle.
There is no new Low, the Price goes Up and retraces with a Higher Low.
All Bullish Trend Signals.
And a hint, that it might continue, the last Candle.
He takes a brief look at the W1 chart:
http://charts.mql5.com/1/187/gbpusd-w1-fxsalt-ltd.png
He sees a strong opposing and engulfing W1 Candle, a signal of a Bullish Trend.
Now, remember, this is assuming we are starting at this moment.
The Price is telling him that it wants to go UP.
He is looking for a Long Entry.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm30_002.png Size: 43 KB

He either enters already, seeing the retrace, or waits a bit for some Bullish Candles
confirming that the retrace has actually closed there - the Low is Higher - Trend, and
enters Long on the second retrace.

He targets TP somewhere close to the top of the upper Shadow, ie. CSCZ.

I am editing, because I want to add something:
This is the Daytrading context, aiming for anything from 15 - 100 Pips, or more.
Daily Range is the clue here. You can see my DR_Stats indicator on the chart.
Trade the facts, not opinions.
  • #98
  • Mar 21, 2013 10:01am Mar 21, 2013 10:01am
Quoting limprobable
Hi,

Thank you for your posts and your explanations. See some thread talking about Price Action but yours explain well what to do.

Is there any chance to modify your "custom zone indicator" to see what happen 2 days before or more?

example: i apply your indicator too see 2 days before, and i can whatch the entry and exit of yesterday.

Hope you understand what i say cause my english is very poor.

Anyway, please continue too explain your way.
Fully understand.

Please, it is better for You to draw this for yourself with Rectangle.

This will give you better practise, than the automatic drawer.
Trade the facts, not opinions.
  • #99
  • Edited 1:41pm Mar 21, 2013 10:55am | Edited 1:41pm
2. My own reality view:
So, I get up and start the system.
It it ca. 9:30 GMT+1 = 8:30 GMT

I see this picture, where the Orange vertical dash line is:
http://charts.mql5.com/1/187/gbpusd-m30-fxsalt-ltd.png
So, either I make a quick Long entry, looking at Daily Range, or forget it.

I wait to see what happens at the top, drawing my PTECZs.
http://charts.mql5.com/1/187/gbpusd-...salt-ltd-3.png
Notice, the red Candle at the top of Engulfing character
The following short Candle is the PTECZ.

Having my upper PTECZ and the one lower, I crosshair the Short retrace is worth ca. 50 Pips.
I am a Daytrader, that is a lot of Pips for me.
I switch to M5 and look for Entry.
http://charts.mql5.com/1/187/gbpusd-m5-fxsalt-ltd.png
Trade the facts, not opinions.
  • #100
  • Mar 21, 2013 11:24am Mar 21, 2013 11:24am
Quoting realjumper
Well, but it's not about who gets the earliest entries, it's about getting reliable, consistent and most of all, profitable entries.
Well, it is, exactly, about what You want it to be about!
Early entries = more Pips = more Profit.

Reliable entries, are the ones You rely on.
No indicator shows reliable entries!
Even being able to read Price Action does not give anyone any reliable entries.
That is what SL and Hedge are for.
You can only see that there are more Long signals then Short signals, or the other way.
You can only act on the assumption, that Price is most likely to do this or that.
Understanding the Market, being able to read the chart, understanding Consolidation
gives You a head start, gives You something to lean on, gives You a point of support.

Consistent, is not about entries, it is about You!
Indicators do not show anything clearly or consistently predictable.

Profitable entries, are those which you take Profit from.
It has nothing to do with indicators.
It has everything to do with Your ability to read the price, Price Action.
Trade the facts, not opinions.
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