Price Action in Day Trading by Dadas

A hypothesis:

hi every body and thanks dadas for nice thread
what happen in eurusd after big bearish move? tf are h4 in pic

Well, remember, we are not predicting, we are watching Price Action.
H4 on W1 Zone Candle:


Yes, we have a PTECZ, we must watch what the Price is doing in the PTECZ and watch Daily Range for DayTrading.

Also, this is the Easter Week, so the end of the week might be very quiet.

PS.
Well, not everybody in this World is Christian or Catholic, but Christmas and Easter are the biggest Holidays.

About Moving Averages:
My method does not assume the help of any Moving Averages, nor any Indicators based on MAs.
However, I know that some people will still be tempted to use Moving Averages.

So, I thought it would be good to post a hint, here:

Let us assume that you are using the 21 Exponential Moving Average of the Close value (21 EMA C).

Nice, so you put it on your H1 chart, let's say.

And you are happy, aren't you?

What do you see?

On your H1 chart you see the Exponential Moving Average of the Close value of the last 21 Candles.

Now, you switch the Timeframe, to find a precise entry, to M5, let's say.

What do you see?

On your M5 chart you see the Exponential Moving Average of the Close value of the last 21 Candles.

Is that the same picture as on the H1 chart?

No, it is not!

There are 12 M5 Candles in 1 H1 Candle!

Thus, if you want to see the same EMA C as on the H1 chart, you must put the 21x12=252 EMA C on the M5 chart.

So, you need to recalculate the appropriate EMA value for each of the Timeframes you want to see the given
refference EMA on. Then, put on the chart all the EMAs and only check the visualization box you want to see the given EMA.

GOLD:
H4 Closed, no PTECZ, got to wait another 4 hours.

EURUSD:
Are we on the move up?
Daily Range is low...

EURUSD

How many of you got SLed today?

I decided to Close the trade, because the price is undecided.
I will still be watching, wait for the H4 to Close.

euraud h1

another one: audusd in h1

EURUSD
Typical, now it is moving.
I thought the DR was too low, now it is not so low!

OK, you get the idea!

EURUSD
So, we have a PTECZ Cage,
the Price got stuck between the Support Zone
and the PTECZ which neglected the Bull counter attack on the Bearish surge.

EURUSD
We have a new H4 PTECZ Support.


GOLD
Like they say: It ain't over till it's over!
We have a new H4 PTECZ Support.

EURUSD
The Congestion or Consolidation is pretty wide.
And since the time, it should be enough for today.
Further direction of price depends where it breaks and then confirms.

Hey Dadas, i read your article from yesterday and there are some things that i get, some things that i do not. Problem is that i am a newbie and i just want to ask for an advice, maybe, from where i can start to learn?
I know all the easy things as what is pip, trend, candlestick, know major figure patterns, candlesticks patterns.

Start from the begining of the thread, go step by step.
Look at your charts and draw, copy what I post.
Then, find other such situations and analize them in the same way.
After some time, 2-3 months, depending how much time you spend learning,
start in real time demo.
Then, take anything from 8 months up, practising on demo.

When you are able to make profit over loss, consistently,
and you have your own strategy that you understand,
then you can start with real money.

Also, you can ask me questions by PM, but make them precise, not general.

gbpjpy tf: h1

OK, davidtrader, so we know that you can identify the PTECZs.
Show us, now what you can do with them, show us some demo trades.

hi dadas and thank u:

sell position in audusd notic that i inter later in this position

Market - Broker - Charts

The Forex Market is very volatile, these days, people say,
that is why we are losing money.

But, it is that volatility which enables us to make money
trading the Forex Market.

It is the change, the price movemewnt, the local trend
that we, the traders, want to exploit, and it does not
matter which direction the change goes.

Our basic trading tool is the MT4 platform, or the MT5 platform, or
another custom trading platform provided by the broker.
There are 3 types of brokers on the market, still:
1. The Dealing Desk broker (DD),
2. The Straight Through Processing broker (STP),
3. The Electronic Connection Network broker (ECN).

I will not discuss each type in detail, you can look that up in the net.

These days, brokers must be flexible, thus I say:
Know your broker!
Find out what the broker is actually offering.
Many brokers can offer all 3 options.

In short:
With the DD option, you get Requotes, often limited scalping,
sometimes EA disabling, fixed spreads, large spreads,
poor execution, often 4 decimal digit quotations, but, no commission, etc.

The STP and ECN options usually work on commission.
Every time you open a trade, a certain commission is deducted automatically.
Every time you close a trade, a certain commission is deducted automatically.
You get a changing spread, no requotes, very good and sometimes
excellent execution, 5 decimal digit quotations, well, practically actual market conditions.

These are very important issues.
With low spreads, sometimes as low as 0.1 Pip and 5 decimal quotations, the profit comes quicker.
Yes, the commission must be covered for first, so the price line must go a bit more above or below
the order open price.

What you see is what you get!
We are working with charts. We must see what is going on.
Below, just 3 examples of the M1 charts of 3 different brokers:






Well, true, the larger the Timeframe, the smaller the difference.
Anyway, you can try that out for yourself.
Open 3 different demo accounts, see how each type of broker works,
how the price behaves in each case, what you can see, what you can not.

This is experience!

There is also another issue.
Basically, there are two different chart types:
1. the New York session quotations,
2. the London session quotations.

H4 and D1 candles will look different, because of the time zone difference.

Also, I have seen other brokers with very local time quotations.

If you are not satisfied with what your broker is providing, it is simple, change brokers!

If, for any reason, you do not want to change brokers, you can do a trick and
use another brokers charts and only trigger the trades on your brokers trading platform.

Have you ever wondered WTF is that guy talking about when I can not see this on my charts?

Now, do you know why indicators work for some people and do not work for others?