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Price Action in Day Trading by Dadas

  • #541
  • Edited 3:44am Apr 7, 2013 3:26am | Edited 3:44am
Balance = 0 in more detail

Some people say they understand the Market in a diffrent way.
I say, there is nothing to understand!
Either you know the facts, or you are just imagining!

Where do our Pips come from?
Have you ever heard the term "Liquidity Provider"?

First - there is You, the Trader.
You get your deals from your Broker.
Your Broker gets their deals from the Liquidity Provider.

No matter if the Broker is actually Dealing from their Desk,
Straight Thorugh Processing Your Orders,
or just providing the Electronic Connection Network.

Your Pips come from the Liquidity Provider, whomever they may be.

What happens when you Enter Short?
You Sell - DD Broker Buys from You - DD Broker must Sell this to the LP - LP must Sell higher.
You want to Sell to the Broker - He must know that he can Sell this higher to the LP.

But, you must Close your Trade - so, you must Buy back.
You Buy - DD Broker Sells to You - DD Broker must Buy this from the LP - LP must Buy cheaper.
You want to Buy from the Broker - He must know that he can Buy this cheaper from the LP.

Eliminate the DD Broker:
You Sell - LP must Sell higher. (or Buy lower from you)
You Buy - LP must Buy cheaper. (or Sell higher to you)

See, the LP is not shooting blindfolded!
They already are one step forward!

They know where the price is going, because they have all the Pending Orders.
They know how much they can Sell for, how much they can Buy for!

Balance is 0.

And, there is nothing else to understand.

When you are Selling - you are Buying. (you must close the trade)
When you are Buying - you are Selling. (you must close the trade)

The Price is going Down not because there are Sellers (Bears),
but because there are those, who have declared their contract to Buy down there.

The Price is going Up not because there are Buyers (Bulls),
but because there are those, who have declared their contract to Sell up there.

And, the story repeats itself in perpetual motion.

Bulls & Bears is just a story, one description of Price Action.

And, those are the facts.

There is nothing more.

The rest is just imagination of the uninformed.

You can either be the Trader who Profits from this knowledge,
or you can be the Liquidity Provider.

Every SL is Liquidity Provider's extra Liquidity.
Or, your DD Broker's happy face!
Trade the facts, not opinions.
  • #542
  • Apr 7, 2013 4:54am Apr 7, 2013 4:54am
Quoting ejiexe
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.
You have Thanked me, enough.

Now, stop thanking, and start doing!

I Thank You for supporting me!
Trade the facts, not opinions.
  • #543
  • Apr 7, 2013 4:59am Apr 7, 2013 4:59am
Quoting Jasper Ng
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!
Great, welcome on board!

It is time to change Believing into Knowing!

Active, means Practise, also Sharing,
Adding Energy to your ideas by sharing with others who,
by supporting your ideas, give even more creative energy back to you!
Trade the facts, not opinions.
  • #544
  • Apr 7, 2013 5:52am Apr 7, 2013 5:52am
Quoting Dadas
Balance = 0 in more detail Some people say they understand the Market in a diffrent way. I say, there is nothing to understand! Either you know the facts, or you are just imagining! Where do our Pips come from? Have you ever heard the term "Liquidity Provider"? First - there is You, the Trader. You get your deals from your Broker. Your Broker gets their deals from the Liquidity Provider. No matter if the Broker is actually Dealing from their Desk, Straight Thorugh Processing Your Orders, or just providing the Electronic Connection Network. Your...
This is an eye opener,thanks for your great work all the way.By the way sir,I'm more comfortable with the original idea of drawing right-angle to determine PTECZ and CSCZ,it makes it easy for me to get breakouts and end of a trend.Pls kindly comment on my attached chart.
Attached Image (click to enlarge)
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If you dont stand for something,you 'll fall for anything.
  • #545
  • Apr 7, 2013 7:04am Apr 7, 2013 7:04am
Some people need automatic tools, some prefer to do it themselves.
Whatever works best for you, it is the right way!
Attached Image (click to enlarge)
Click to Enlarge Name: chfjpy-h1-fxsalt-ltd-2.png Size: 60 KB


What you name CSCZ on your chart is PTECZ .

The blue Zone on your chart is not an H1 PTECZ.

It is part of D1 PTECZ, but that you must find on D1 not H1.

This is a Breakout Candle!
Trade the facts, not opinions.
  • #546
  • Apr 7, 2013 9:37am Apr 7, 2013 9:37am
You know what, Guys?

The PTECZ Diamond indicator function in the
Custom_Zone_Candle_with_Index.mq4
is more fantastic then I though it would be!

I am looking and studying it at PTECZ_Candle_Tf = 0
so I can see the PTECZs on every Tf, and what I see
is something really unbelievable.

It actually shows Consolidation Zones and Trend.

Study it closely, how price follows the PTECZ,
and when the next PTECZ is opposite direction,
so the trend turns around.

It looks very, very promising to me!
Trade the facts, not opinions.
  • #547
  • Apr 7, 2013 9:55am Apr 7, 2013 9:55am
chfjpy
Attached Image (click to enlarge)
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Attached Image (click to enlarge)
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Trade the facts, not opinions.
  • #548
  • Apr 7, 2013 11:07am Apr 7, 2013 11:07am
Hello everyone I found this thread interesting because it fill my missing part of trading and take trades.

I make backtesting and have question. Dadas can you tell me for 1.april EU pair there was bullish trend H1 candle 15gmt..next candle was with long wick mark with up arrow. Do you consider this candle as PTECZ or next mark as down. I prefer second!

Attached Image


In the second picture is same situation but M15 and I marked second H1 as PTECZ. Will you go short on marked candle which nice retrace back in the zone or you wait or retrace? Few candels on there was retrace and then berish candle totaly outside zones.

Attached Image


Sandi
  • #549
  • Apr 7, 2013 11:35am Apr 7, 2013 11:35am
Quoting kolesar007
Hello everyone I found this thread interesting because it fill my missing part of trading and take trades. I make backtesting and have question. Dadas can you tell me for 1.april EU pair there was bullish trend H1 candle 15gmt..next candle was with long wick mark with up arrow. Do you consider this candle as PTECZ or next mark as down. I prefer second! {image} In the second picture is same situation but M15 and I marked second H1 as PTECZ. Will you go short on marked candle which nice retrace back in the zone or you wait or retrace? Few candels...
You are correct about the PTECZ.
PTECZ is the reversal Candle to the trend Candle.
So, yes, it is the second Candle, the one you prefer.

If you had been in Long trade, you should look for close when you see PTECZ.
On your M15 PTECZ was earlier.

I see the indicator did not show, because PTECZ_Candle_BarsBack = 500.
Change to PTECZ_Candle_BarsBack = 600 or more.
When you are backtesting, you need to change this number when indications finish, to a larger number.

Would I have gone Short there?

Probably not.
First, because of late hour.
Second, because of Pip potential.

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m15-fxsalt-ltd.png Size: 67 KB
Trade the facts, not opinions.
  • #550
  • Apr 7, 2013 12:03pm Apr 7, 2013 12:03pm
Quoting Dadas
You know what, Guys? The PTECZ Diamond indicator function in the Custom_Zone_Candle_with_Index.mq4 is more fantastic then I though it would be! I am looking and studying it at PTECZ_Candle_Tf = 0 so I can see the PTECZs on every Tf, and what I see is something really unbelievable. It actually shows Consolidation Zones and Trend. Study it closely, how price follows the PTECZ, and when the next PTECZ is opposite direction, so the trend turns around. It looks very, very promising to me!
Thats true Dadas,i replaced the former one with the updated one you posted yesterday,its awesome! I'm on my second reading of the thread trying to get where you explained something about INDEX NUMBER,pls how do i read it?I noticed it reduces as candles are moving up,more lights pls.Also i attached a chart showing two important PTECZs,pls tell me if i'm correct.
Attached Image (click to enlarge)
Click to Enlarge Name: au.png Size: 20 KB
If you dont stand for something,you 'll fall for anything.
  • #551
  • Apr 7, 2013 12:14pm Apr 7, 2013 12:14pm
Thanks for all right answers .. joke. I have same toughts .
Can you tell me do you have chart in GMT+1?

Great thread again
  • #552
  • Apr 7, 2013 12:50pm Apr 7, 2013 12:50pm
Quoting kolesar007
Thanks for all right answers .. joke. I have same toughts . Can you tell me do you have chart in GMT+1? Great thread again
The charts I usually post are London -1 (at this time of year).
But charts can be somewhat different, even candles can be different,
depending on broker. If I must see what you see exactly, I need your platform.
But, I already have so many platforms, it is difficult with a new platform,
because I must copy all the important tools.
I have a lot of mess with the ones I already have.
Trade the facts, not opinions.
  • #553
  • Apr 7, 2013 12:57pm Apr 7, 2013 12:57pm
Quoting finaclefx
Thats true Dadas,i replaced the former one with the updated one you posted yesterday,its awesome! I'm on my second reading of the thread trying to get where you explained something about INDEX NUMBER,pls how do i read it?I noticed it reduces as candles are moving up,more lights pls.Also i attached a chart showing two important PTECZs,pls tell me if i'm correct. {image}
Current Candlestick on the chart is Index = 0.
Then they go up to the left.
When new Candlestick is complete, the index changes by +1.
So, that is why the Pause function, because if you want a PTECZ to stay,
you must Pause the indicator PTECZ plotting function.

Just place the cursor over the dot or the diamond and hold for a moment.
You will see the Candle_Index = x.

About the PTECZs, you are correct, but you have two more on the way down.
They also mark some potentially important levels.
They are the levels where the Bulls were rejected.
They may be important if Price goes up.

If Price goes down, these levels are not the ones we need.
Trade the facts, not opinions.
  • #554
  • Apr 7, 2013 1:22pm Apr 7, 2013 1:22pm
Quoting kolesar007
Thanks for all right answers .. joke. I have same toughts . Can you tell me do you have chart in GMT+1? Great thread again
Is this chart good for you?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-h1-dom-maklerski-banku.png Size: 59 KB
Trade the facts, not opinions.
  • #555
  • Apr 7, 2013 1:38pm Apr 7, 2013 1:38pm
Quoting Dadas
The charts I usually post are London -1 (at this time of year). But charts can be somewhat different, even candles can be different, depending on broker. If I must see what you see exactly, I need your platform. But, I already have so many platforms, it is difficult with a new platform, because I must copy all the important tools. I have a lot of mess with the ones I already have.
Ask this because I see in the past in the thread that you show charts with day candle closed around London. Is that right? Because it is important when we have Day candle as Zone Candle.
  • #556
  • Apr 7, 2013 1:53pm Apr 7, 2013 1:53pm
Quoting kolesar007
Ask this because I see in the past in the thread that you show charts with day candle closed around London. Is that right? Because it is important when we have Day candle as Zone Candle.
I have London charts,
I have NY charts,
I have Warsaw charts,
I have this London - 1 charts.

It is not important.
It is important that you see the real thing!

You can look at other chart and only Open/Close Trades on your broker charts.

I use the best I have found, because they show the real market or as close as possible.

They show more than other brokers.

I have compared other ECN charts which they said they were real market.

So far, the ones I most often post are the best!
Trade the facts, not opinions.
  • #557
  • Apr 7, 2013 2:51pm Apr 7, 2013 2:51pm
Quoting Dadas
{image}
CHFJPY
Attached Image (click to enlarge)
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THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
  • #558
  • Apr 7, 2013 4:25pm Apr 7, 2013 4:25pm
Attached Image (click to enlarge)
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Trade the facts, not opinions.
  • #559
  • Apr 7, 2013 4:41pm Apr 7, 2013 4:41pm
I know , but I had to scalp something before going to bed!
Attached Image (click to enlarge)
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Trade the facts, not opinions.
  • #560
  • Apr 7, 2013 5:34pm Apr 7, 2013 5:34pm
Nice way to start the week.
Attached Image (click to enlarge)
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THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
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