Price Action in Day Trading by Dadas

Also fxblinkers:

Guys, I am writing about this all the time.

What is your strategy?

If you do not know what you are trading, you will never know when to enter.

Are you trading the D1 trends?
Are you trading the H4 trends?
Are you trading the H1 trends?
Are you trading the M30 trends?
Are you trading the M15 trends?
Are you trading the M5 trends?
Are you trading the M1 trends - scalping?

Of course it depends on the Tf.

There are trends everywhere, on every Tf.
The higher the Tf, the larger the trend.

If you can not decide which trends you want to trade, you will never know.

If you want to take 20 - 80 or more Pips, you will not enter Short for 10 Pips.

There is Trend, and there is retrace, always.

If the retrace is good enough for you, take it.

On GOLD Trends can be thousands of Pips.
Retraces can be 300 - 500 Pips long.
Both are well worth taking.

On EURUSD Trends are much shorter, retraces, too.

Sometimes the Trend goes wild.
Then, retraces get bigger, too.

You must understand the workings of the Candle from the largest one to the smallest one.

What is the MN Candle built of.
What is the W1 Candle built of.
What is the D1 Candle built of.
What is the H4 Candle built of.
What is the H1 Candle built of.
What is the M30 Candle built of.
What is the M15 Candle built of.
What is the M5 Candle built of.
What is the M1 Candle built of.

I am posting and showing this.

Understand, you will get it.

Then, be consistent - trade your strategy only!

The scenario is what you see!

If you are trading the H4 PTECZ, then you only look for entry on M5.
You do not judge the Trend by M5, unless you want to scalp.

You must know your strategy.

You must know what you are trading.

Candlestick bar to be accurate, minimum TF should be at least M5 or M15. Using of Weekly & Monthly candle bar are overkilled.

I am gonna get a Noble Prize for patience, here:

Again: 3-4 April, 2013
CHFJPY H4:

The trend is Bearish - correct?

The last PTECZ is H4 Candle_Index 11

PTECZ - Potential Trend Ending Consolidation Zone - is that CLEAR?

M5:

Since 3 April price is bouncing of a floor, retracing higher and higher,
the H4 is actually a Consolidation in itself, it is the PTECZ, there are Bullish Breakouts!

And you are telling me that the scenario on M5 is different?

What you are seeing with your biased eyes is different.
It is what you want to see not the facts on the chart.



Trust the Big Guys, trust they know what they are doing better than you!
Instead of looking at them as someone who wants to take your SL,
see them as your signals providers!

Back to H4 for reconfirmation:

Attached Image (click to enlarge)

Exactly! LOL.
Thanks for clarifying that. I see now that I had the chart zoomed too far in.
EP

About the indicator:

If you are getting too many diamonds for some reason, just
open Objects List by RMC on chart, Ctrl+A and button Delete.

This way you will clean up the old stuff that gets in the way.

This is a general problem with such indicators.
It is an MT4 issue that can not be solved.

Enlightning strikes again!

Can you make the Custom Zone Candle with Index in a way that we can see the PTECZ in the future. When we use the pause function, in lets say 5M TF, we can see it back but when new 5 min candles appear, the PTECZ is not there anymore.

Wow, do you know what you are asking?

Where do I get the future data from?

There is no future time on the charts, and no future, data as well!

If I could do that, I would be the dictator!

And when the PTECZ is paused, the indicator does not redraw. Because it is Paused.

If the refference Index has not changed, you can unpause and pause again, so
the PTECZ gets redrawn. Otherwise, you must change the Index accordingly.

Or, just draw manually extension rectangles.,,That is for the moment.

I have been thinking about this problem, I will try to solve it somehow.

Custom_Zone_Candle_with_Index.mq4
UPDATE UPDATE UPDATE UPDATE UPDATE

New:
Custom_Zone_Candle_Offset = 10
By changing this parameter you can extend the Zone Candle to the right.

Files on previous posts, NOT updated.

You will not get bored, here!

I am really really sorry for the chart I posted. I have removed it already. I won't post such a chart again in future.

However, I want to ask for a little clarification from Master because I don't want to offend my MASTER.

1. Refer to post 469 & 474. Is that a prediction as well? If it is a prediction as well, I am really sorry too. I won't post such a chart again in future.
2. Refer to post 474. Is that a prediction or a show off? If it is a prediction I am equally sorry and I won't post such again. If it is a show off I am also sorry I won't post such a chart again because I personally don't like show off.
3. Are we not prediction what the market is going to do by reading the chart and use PTECZ in our favour?

Like I said, I am learning serious from this thread. I am reading it for the second time now. All the credit of those charts goes to DADAS. He might I have made me to see chart in a way that ......... I am indeed very greatful to him.

I have been part of different thread before in the past and I know how it was ended by rubishing the started all because people where frustrated at the end wanting people to proof the method is working. That is why I am showing my live trade and not only trade result. I was actually expecting people to ask questions so I can give back to people what other have impacted in me too. I am still a newbies who has learnt in a hard way before.

ALL MY FAMILIES SAY THANK YOU TO DADAS

No, we are not predicting.
We are looking for Potential Trend Ending Consolidation Zones.

We do not know and we are not even trying to know what the price will do when
and if it reaches the PTECZ. We watch Price Action and Enter in the direction
the Price is tending to go. We act upon symptoms and Probability on the
basis of observation, not mathematics.

Our brains process 400 billion bits of information per second.
Our Ego, the I, the conscious mind knows only 2000 bits per second.
Our brains are much, much, much smarter than our Egos, than the I who wants to know.

Let your brain do the work for you.
You just act upon what your brain is giving you, without Ego.

You can post charts with PTECZs that you see.

But do not predict that You want the price to go there!

What you did yesterday was against the teachings, against this way.

It was your Ego, again, trying to be smarter than the Price.

But, it was your choice.

Do post your charts, do post your trades!

Show off is good if it shows that somebody can do it!

It is an example for other people!

Prediction is BS - insisting that the price must go my direction is BS.

It is the main and only reason why people lose money in Forex Trading!

Understand that, or continue the way you have until you saw Dadas method!

For the moment, leave the answering part to me!

Do not try to go further, than you can go at the moment.

Everything is about your emotions.

You are a great Guy, but very emotional!

ejiexe

Even if the price does go up and reach your TP, it is still against this method.

You were not waiting for D1 PTECZ.

The way was to close at symptoms on Resistance M30 - M5 PTECZ,
and wait for what happens at Support H4 PTECZ.
Also looking if there is a new H4, H1 or M30 PTECZ.

So, as we can see, the price is, today,
already below the first historical H1 PTECZ,
and heading towards the next historical H1 PTECZ.

What will the price do next?
I do not know, I can not know, I will not know, until I see it on the chart!

When there is a PTECZ, a Price Consolidation, all I can do is watch Price Action,
and see what the Price is actually tending to do.

CHFJPY H4 chart on 6 D1 PTECZs:



Seeing is believing?

Thank You! Not only enlightening but also like a flash of lightning.

Thank you Master for sharing more light to my confussion.

I really appreciate it. How else can I thank you for teaching us to ensure we succeed.

Hi, I am a firm believer that price action is the best way to trade as it is the facts, nothing else.

I am in the midst reading through your post and thereafter I shall be active and learn more from you !

Thanks alot for this sharing . The world is better with people like you. Cheers!

This morning the idea is "Senses", thus:

Forex Trading & Senses

You may think: "Biology? Psychology? Magic? What is this Guy trying to tell me?"

Just facts, please try to follow:
We have 6 senses:

And the sense that we can not ilustrate:
INTUITION - The Sixth Sense

How does that apply to Forex Trading?
Touch - we can not use touch in modern Forex Trading.
Unless someone has translated charts to Brail and I do not know this?
In the old days there was teletext. This machine produced a perforated tape
(a paper tape with holes in patterns) which could be read like Brail
with the use of touch.
Smell - obviously, not the right sense to read charts.
Taste - Anybody would like to lick your screen and trade according to what it tastes like?
Hearing - If someone would be reading out Price Action in real time, and also
from a point back in history at the Trader's command, then why not?
However, there is no such service!
Sight - That is what we have, a picture in front of our eyes.
Sight is what we must use in order to read the charts, because graphs are pictures.
Intuition - This is a sense we can always use. It is the brain telling us what to do,
and what not to do. The brain processing 400 billion bits of information per second!

How do we learn?
Obviously, we learn through all of our senses, but the dominating senses are Sight & Hearing.
Sight & Hearing are the senses the human being has always relied on the most.

There are two types of people:
1. The Observer,
2. The Listener.

You can discover which type you are by asking yourself the simple question:
"Which type of information do I remeber quick? When I see or when I hear?"

How is this fact important to Forex Trading?
We must learn to read Price Action in order to understand what the Price is doing,
in order to be able to read the charts, in order to be able to make decisions
with higher probability of success.

The Listener has a bigger problem - tougher life in Forex.
It is difficult to find someone to read out loud as you watch.
That is why the Listeners have developed the descriptive Price Action.
You can read this way on Gumrai's thread "Trading Gold with PA".
The Listener must translate the Candlestick Picture Alphabet into words.
They must create a story in order to read it to themselves, even if not out loud.

The Observer already has all they need on the chart, they/we have the picture!
The picture says a thousand words. We have the Visual Price Action!
All we need is the little light to be able to interpret the picture in the correct way!
Then, we see, we see the facts on the chart without the need to create a written story!
We, still, could write the story the Price is plotting on the screen, and we often do.

How is Intuition important to Forex Trading?
Intuition is our most powerful tool ever!
However, our Ego blocks our ability to receive intuitive signals!
Our Ego, the Self, the I am, the Thinking, Assuming, Predicting, I want to know part of our being!
Intuition is our most powerful tool ever!
It requires to kill the Ego, kill the Self, kill the Thinking, Assuming, Predicting, I want to know part of our being!
It requires giving in, it requires following the facts from the chart without any bias whatsoever!

It does not matter which direction the Price goes.
It does not matter what the value of the Price is.
I do not have the slightest idea what is the right Price.
I do not have the slightest idea what is the lowest or highest Price.
I do not have the slightest idea which direction the Price will go next.
I do not need to know any of these things.
It is best for me when I do not know these things.

All I need to know is that Balance = 0 always.
All I need to know is that Price moves from Consolidation to Consolidation.
All I need to know is how these elements look as pictures on the chart.

All I need to do is Enter Short at Tops, Enter Long at Bottoms,
Exit Short at Bottoms, Exit Long at Tops.

Consolidation Zones show me the Tops and Bottoms.

PTECZ show me the Tops and Bottoms.