Price Action in Day Trading by Dadas

Ddas I wonder why you not select this?!

NOT A PTECZ!

On M5 not a PTECZ.

Following, Don Corleone is aiming at ca. 200 Pips:


This requiers a different analisys, a larger view:
We look at W1 and locate the historical Support PTECZ which fits to the current levels.
Then, we locate the historical Resistance PTECZ which fits to the current levels.
Then, we could locate a lower historical Support PTECZ which fits to the current levels.
In the picture that we see, I would rather look for Resistance, but we do not know.


Next, switch lower to D1 and optimize the PTECZ, find the relative D1 PTECZ:

This picture with Price Action already tells me there is a Break Up from the D1 levels.
There is a Bullish Trend going, though it is weaker now.

What reasons do I have to look for Shorts of 200 Pips, at this situation?

I look at H4:

I, still do not see any reasons for Short of 200 Pips.

I look at H1:

Price Action on H1 tells me that Bears are now attacking,
there are two Bearish Break Downs from Bullish Candles, but No PTECZ!
The current Candle does not count.
The diamond under the current Candle means nothing.

I look at M30:

Price Action confirms that Bears are counter-attacking.
There are a lot of small PTECZs close to each other.
The Price is Consolidating, but the tendency is still Up!

I do not look on lower Tf, because M30 is enough, and I see PTECZs on M30:

And Price Action is showing that Price is Consolidating strongly.

But, I still do not know which way the Price will go next.
I must be patient and watch Price Action.

From larger Tfs there are more reasons for Bulls than for Bears.
But no trend confirmation here!

This is how you must do it!

If you are doing it just by one Zone Candle on one Tf,
then you are trading this Zone Candle, the area inside the Zone Candle.

You can do that, if you understand what you are doing.

If you want 200 Pips, you must find the area,
or the Zone Candle with the 200 Pips inside it!
And trade inside it: Short from Top, Long from Bottom.

Hope you understand?

Smikester, as well.

If Eu/j continues to rise, any reference to the chart of Ej until 2010 have in the past. What should be this time? The the past is important for Long-term Trade!

Maybe, some of you have got confused?

First, there is the Zone Candle idea.
Any Candle on the chart can be represented as a Zone Candle.

Second, there is the PTECZ idea.
The PTECZ is a specific Candle, the Candle which rejects or opposes
the main trend Candle, so that is in opposite direction, but is shorter
than the trend Candle.
Sometimes, it can be the same lenght or just a little longer (the indi can not show these),
and sometimes it can be just the Doji Candle or a type of Doji (the indi may not show all of these).
We can use the Zone Candle to plot PTECZ, as well.

So, there are three styles of trading:
1. The PTECZ Style - which uses the PTECZ only - from PTECZ to PTECZ.
(post #583 and other earlier examples)
2. The Zone Candle Style - which can be done from Support to Resistance or the other way.
(explained at the beginning of thread, an example will follow)
3. The combined Zone Candle + PTECZ style.

Yes, you must master this in order to be able to use it!

There is no one-click-good-for-all-nosweat-method!

Work, and you will achieve.

Expect others to give you some ready to use Holy Grail, you will get nowhere!

Hi Dadas,
I have a question please regarding your EJ H1 chart. Why Candle index 11 or 2am GMT is not PTECZ?
Is it because it does not show consolidation zone from lower TF's?
It is opposite candle after trend candle.

thanks

The Zone Candle Style Trading example #1
MN chart trading:

1. Indentify the historical Candle representing the current levels.
Plot the Zone Candle by Candle_Index as described earlier:

Pip Potential = ca. 790 Pips

2. Switch to M30:

Enter Long at Bottom.
Watch PA.

The Zone Candle Style Trading example #2
W1 chart trading:

1. Indentify the historical Candle representing the current levels.
Plot the Zone Candle by Candle_Index as described earlier:

Pip Potential = ca. 300 Pips

2. Switch to M30:

Enter Long at Bottom.
Watch PA.

The Zone Candle Style Trading example #3
D1 chart trading:

1. Indentify the historical Candle representing the current levels.
Plot the Zone Candle by Candle_Index as described earlier:

Pip Potential = ca. 145 Pips

2. Switch to M15:

Enter Long at Bottom.
Watch PA.
Maybe, Short at Top?

The Zone Candle Style Trading example #4
H4 chart trading:

1. Indentify the historical Candle representing the current levels.
Plot the Zone Candle by Candle_Index as described earlier:


Pip Potential = ca. 35-40 Pips

2. Switch to M5:

Enter Long at Bottom.
Watch PA.
Maybe, Short at Top?

The Zone Candle Style Trading example #5
H1 chart trading:

1. Indentify the historical Candle representing the current levels.
Plot the Zone Candle by Candle_Index as described earlier:

Pip Potential = ca. 20-35 Pips

2. Switch to M5:

Enter Long at Bottom.
Watch PA.
Maybe, Short at Top?

Now, combine that with the PTECZ
to show you the actual Potential Trend Ending Consolidation Zone!

How extreme do you want to get?

M30 chart trading?
M15 chart trading?
M5 chart trading?

Can you get more extreme?

Do you have 0 spread and 0.1 Pip?

Your chart, please.
Time passes, index change, I do not know what you see.

If it is what I think, look, it is not a PTECZ!
It is longer than the previous Bullish Candle.
It is not a sign of Consolidation.
It is clear Bears over Bulls break down.

It is exactly what you are seeing with Price Action, Bears counterring Bulls.

Signal for trend change, signal, not confirmation.
Trend is still Up.

Thanks for your education. ! keep it up. i like all your examples and I am studying it thoroughly !

hi dadas and all

i still need to reread again in order to fully understand everything..dadas would you kindly explain about the range.. for today audusd range is more than previous monday.. im quite confuse about this range thing on how its work..

cheers

that's it.
thanks dadas

This I still consider a PTECZ, but it is not possible to programme this type of exclusion.

The Daily Range is just extra information.
It is not something you must stick to as for sure.
You must observe the Daily Range for some longer time to see how it is working.

What is typical for a given instrument in the given time.
What is not typical.

This is information only!

You can not make decisions on Daily Range!
Only to help your decisions.
If Daily Range is already high, it is risky to go in the direction.

But, if the trend is going strong and denying all Daily Ranges, then DR does not matter.

You must be flexible, there are no fixed rules for Daily Range.

Look at this EURUSD example today, now:

I have identified an H4 Zone Candle with potential levels.

Look at DR, it is typical, not small, not big.
After the big trend, it usually gets slower.
Seeing the S/R levels, I am careful about Long, because DR is already high.

Look at the hour and sessions.
NY guys haven't made any action on the session opening.
Maybe they still will?

But, at the time of the retrace to the Support Zone, DR was still on the low side.
Seeing the action, there was good potential, still, so Long was good.

Dear master,
I think its time to update the 1st post, to take care of all the new nuances that have developed in the thread. that way less repetitive questions will come and also less confusion. Just know we do appreciative your devotion to us all.