Price Action in Day Trading by Dadas

Don't know what happened.
This one should have dayshift in variables input.

Dadas,
I can do more things done now with this indicator. I am really happy that you did this for us. Any traders will find this indi very invaluable.

Thank you and have a happy holiday!

4x4x

Examining Daily chart @ candle 7

Examining 15 min chart in candle 7 and 6 Zoomed in. This tasks took me to do 20 seconds only!!!!

Just get rid of those trend lines - You do not need them!
Why do you want something to show you what you can already see?
Those lines just make it more difficult to see.
They cover the graph, itself.
And, they will never show you the coming trend, just the one, you can already see.

why am I so dependent on them?
here is w/out trendlines.
much cleaner alright!

New, modified version of Custom_Zone_Candle.mq4.

Now: Custom_Zone_Candle_with_Index.mq4

A perfect Price Action back-study tool.

1. Open a larger Timeframe chart (ie. D1),
2. Put the cursor on a dot below the chosen Candle and read the Index (ie. Candle_Index = 146).
3. Input Custom_Zone_Candle_Tf = 1440 for D1,
4. Input Custom_Zone_Candle_Index = 146 for Candle number 146,
5. Click OK and you can switch to a lower Timeframe to study Price Action.

Also, introducing 3 CZC_Time_Lines!
If, Show_CZC_Time_Lines = true, you will get 3 vertical lines showing:
1. The Open Time of your chosen Custom_Zone_Candle_Tf,
2. The Close Time of your chosen Custom_Zone_Candle_Tf,
3. The Next Close Time of your chosen Custom_Zone_Candle_Tf.

Thus, when studying Price Action on historical Candles, you will be able
to study the application of the Zone Candle to the next Candle, which is
like the current Candle in formation.

Example:
Custom_Zone_Candle_Tf = 1440 for D1 Zone Candle,
Custom_Zone_Candle_Index = 3 for the fourth D1 Candle back (the current Candle is 0),
We see 3 vertical lines on the H1 chart showing:
1. Beginning of D1 Candle of Index = 3,
2. End of D1 Candle of Index = 3,
3. End of D1 Candle of Index = 2.


Enjoy!

Now, If anybody still can not see the difference between bias and letting go,
letting information reach your consious mind,
what has happened yesterday and today is a perfect example.

Yesterday, forexforex had an idea how to use the Zone Candle for back-study and learning Price Action.
He asked for some improvements, upgrades to the Custom_Zone_Candle.mq4.

For a moment, my Ego resisted, then I let go, I let the information forexforex was sending me
reach my consious mind and work with it. This fact has resulted in the new version,
the Custom_Zone_Candle_with_Index.mq4, to which I added vertical Time Lines simulating
real time trading.

Just with a few clicks and no time at all, I have discovered the even greater potential of this tool
in the process of learning and strategy building.

Just look at this potential scalping strategy:
EURUSD M1 chart on the M30 Custom Zone Candle


The only thing that you need is a good M1 chart.
If your broker provides you with a very poor M1 chart, no problem.
You do not have to change your broker, you can, though.
All you need is a demo account with a broker, who provides a good M1 chart!
You can make entry decisions from the good chart, just open and close trades with your broker.

Then, we can help ourselves with the PTECZ:


Of course, for this kind of scalping you need very low spreads.
Spread of 1 Pip or less is necessary for scalping.

Wow, wow, wow, wow!

I am truely amazed with my own tool!

Just follow this:

D1 on D1 Custom_Zone_Candle_Tf 1440
Custom_Zone_Candle_Index 48


Custom_Zone_Candle_Index 46


Custom_Zone_Candle_Index 43


Custom_Zone_Candle_Index 37


Custom_Zone_Candle_Index 32


Go on, check for yourself!

D1 on D1
Custom_Zone_Candle_Tf 1440
Custom_Zone_Candle_Index 4

A wonderful Easter Time Conclusion has just come to me:

The Biased Mind Crucifies Itself and tries to Crucify others.

The Free Mind Resurrects Itself and Resurrects others.

It is living creation!

This Time, Let us celebrate Ressurection!

You see, Guys, the thruth is
that everything you have ever read or heard about Forex Trading is true.

When someone wrote: "two red Candles in a row, Sell, two Green Candles in a row, Buy",
they were telling the truth.
When someone wrote: "If Short does not work, reverse", they were telling the truth.

Someone else said: "I tried those methods, they don't work, I only lose money!",
they were telling the truth.

The conclusion - the method is wrong!

What a stupid conclusion, a biased one!

The method worked for the first guys, because they saw something.
The same method did not work for other guys, because they did not see the same thing.

You can trade any method, any indicator or just plain charts, as long as you see the right thing.
As long as you have the right management.
As long as you have the right set of mind, the open attitude!

Most of you can, probably, already see that Moving Average Indicators are very lagging.
When they show trend, the train is well on its way, often reaching the end station.

But, if someone has a method that works with these Indicators, if someone can
make Profit over Loss and has the right attitude, they can do it! Why not?

People are afraid of change.
They rather stick to something that works, even if it is not so good, but works,
than try and find something new, try to develop, evolve, get better.

As long as they do not try to pull the open-minded people back to their level,

I say "Live and let others Live, their way!"

OK, back to Trading,

I am discovering new possibilities:

1. The new Custom_Zone_Candle_with_Index.mq4
can be used as an advanced PTECZ indicator like this:
Custom_Zone_Candle_Tf 240
Custom_Zone_Candle_Index 60

We have an advanced PTECZ with its own Support and Resistance Zones!

Which would look like this on the M30 chart:

There is 20 Pips just inside the PTECZ!

Another recent example:
Custom_Zone_Candle_Tf 240
Custom_Zone_Candle_Index 14


Looking like this on the M30 chart:


2. The new Custom_Zone_Candle_with_Index.mq4
can be used as the Zone Candle Indicator, but not necessarily the previous Candle,
but to show thge important Zones of the Strong Trend Candle.
Like this:
Custom_Zone_Candle_Tf 240
Custom_Zone_Candle_Index 15


Custom_Zone_Candle_Tf 240
Custom_Zone_Candle_Index 26


Which on M30 looks like this:


For me, the picture says it all.

IMPORTANT:
In realtime trading we must remember the following:
Let's say we have a PTECZ on H4 highlighted by the new Custom_Zone_Candle_with_Index.mq4
When the current forming H4 Candle closes, the Index numer will change.
So, the new Custom_Zone_Candle_with_Index.mq4 will, now, be highlighting the next Candle.
We must input the new Index manually, if we still want to see the same PTECZ.

For this reason, I prefer to draw the PTECZ manually.

Nevertheless, if we remember this limitation, this can be a great tool.

Thanks forexforex for your great contribution!

But, why stop there?

Why not use Custom_Zone_Candle_with_Index.mq4
and Multi_Zone_Candle.mq4 with Candle Index?

Then, we can have several Zone Candles and/or PTECZ on a chart.
And, from different Timeframes, too:

Here, a D1 PTECZ by Multi_Zone_Candle.mq4,
an H4 PTECZ by Multi_Zone_Candle.mq4,
and another H4 PTECZ by Custom_Zone_Candle_with_Index.mq4:

By definition the second real body must engulf the prior real body (it need not engulf the shadows) after a definable trend. And be the
opposite color

Really, guys, I think you know what I mean.
It is clear on the charts I have posted.

It really does not matter how we call it, as long as we know what to look for.
As long, as we understand.

The scenario on the chart is very rarely by definition.

How many Engulfing Candles by definition have you seen on the charts?

Use Your head, your brain, your common sense!

Do not try to stick to this or that definition!

So, I will make it clear, once more, on the following image:


The truth is that you must see it, no matter what it is called.

If I wrote to English speakers, or other than Polish "chleb", only the ones who know Polish
would understand. Others would have to look the word up in a dictionary.

If I showed you this picture:

No words are needed.

The above, highlighted mini-Consolidation Zones had their beginning
at the Potential Trend Ending Consolidation Zone (PTECZ).
Watching the Bearish Trend on the left of the above H4 example,
Candle with Index 145 was the first PTECZ.
So, when it Closed, we were able to draw the Zone as on picture below:


If we were trading of the H4 chart, this PTECZ could be enough.
When we saw the Breakout Candle with Index 137, we could have waited
until the very last moment when Candle with Index 131 Closed, and entered Long just then.

However, at Candle with Index 143 there was another PTECZ with a Lower Low,
which was close to the previous Lowest Low:


Switching Timeframes to M30, we see the situation more clearly:


And, at M30 Candle with Index 1110 there is also a PTECZ:

Where Candle with Index 1066 is the Breakout Candle, and
Candle with Index 1058 is the Long Entry Candle.

Obviously, we should not make a decision based only on the PTECZ.
Especially that there was a strong Bearish Trend.
So, we check our Global Positioning, starting with the MN Zone Candle:

We would check on the MN chart that the MN Zone Candle was Bullish, strong.
We would see that the Price has dropped to the middle area of the Zone Candle,
which is a Potentially important area, sometimes called the ZL Level.
And, there were buyers at this level to the left.
All these are Potential Bullish reverse signals.

Now, that we know the Big Picture, we check what it looks like on the W1:

Not yet seeing the future, we could see that the distance to the W1 Support Zone
which is now Resistance is ca. 280 Pips.
So, even if this would turn out to be only a correction, a retrace, it is worth taking!

Now, we only check on D1 Zone Candle:

And the situation becomes however more clear!
We can see a number of different Long Entry options.
The M30 PTECZ for an early entry.
The D1 Support Zone for a later entry.

On the M30 close up we can see how, just at the end of the Bearish Trend the Bulls
tried Up, the Bears pushed down, but unable to make new lows.
Candle with Index 1066 was the drop that tipped the balance toward Bulls.


Believe me, there are people who would be looking at the M1 for an even earlier entry!

Great work Dadas! From what i have been seeing on the thread,nobody can run you down on your system,its great!One thing you should know is that if someone comes out with the most simplest profitable trading plan today,there is a tendency that some people 'll criticize such plan without even testing it while others with open mind benefit from it.For those guys calling for your head,i understand their conditions because i was once in their shoes-believing that to succeed in FX u have to be highly technical,then i never be a fan of simple strategies which eventually made/making me money.Those guys arent ready to move and more painful,they are preventing others from moving,its natural with some folks.Bottom line Dadas,more grease to your elbow!!!

Dadas
Thank you for your time, effort, posting,
I am learning here