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Price Action in Day Trading by Dadas

  • #1,081
  • Apr 18, 2013 7:43am Apr 18, 2013 7:43am
Quoting Dadas
For zarach: Zone Candle D1 trading strategy Let's suppose we are at historical D1 Candle Index 134. The Day is just about to close. I find the corresponding D1 historical candle Index 162. I plot this Zone Candle with Custom_Zone_Candle_with_Index.mq4: {image} The idea is to Enter at the beginning of the just opened D1. Then, go to bed, go to work, whatever, and come back for the results at the end of the D1 Candle, and decide if Exit or Stay. It is a good idea to mark the Start of Day Line with the vertical line tool. In picture I marked Day Beginning,...


I am confused as to how you are using the zone candle to enter trades. Can you give an example of where you enter and how?
  • #1,082
  • Apr 18, 2013 8:42am Apr 18, 2013 8:42am
Quoting Bookman
I am confused as to how you are using the zone candle to enter trades. Can you give an example of where you enter and how?
The example is the one You quote.
Read Price Action on the picture that the Zone Candle makes.

Trading the D1 Candle is simple, you read the probable trend,
Enter at the very end of D1 Candle or at the very begining of new D1 Candle.
Set TP & SL, and that is all.

There is nothing more to it!

Then, you go to bed, go to work, the whole day is yours.
You spend whatever you need on trading (ie. analysis and Exit - Enter), 10 minutes, 30 minutes, 1 hour.
Trade the facts, not opinions.
  • #1,083
  • Apr 18, 2013 8:59am Apr 18, 2013 8:59am
Quoting Dadas
The example is the one You quote. Read Price Action on the picture that the Zone Candle makes. Trading the D1 Candle is simple, you read the probable trend, Enter at the very end of D1 Candle or at the very begining of new D1 Candle. Set TP & SL, and that is all. There is nothing more to it! Then, you go to bed, go to work, the whole day is yours. You spend whatever you need on trading (ie. analysis and Exit - Enter), 10 minutes, 30 minutes, 1 hour.
Lots of things I'm not understanding about the zone candle. Where do you get the numbers 134 and 162? Why are you choosing to compare these 2 candles? Why not choose the candle 3 candles before 134 for instance? To enter the trade are you looking for the intraday candles to fall into the candle body area of candle 162 and then react back up? Then entering on the open of the next daily candle?
  • #1,084
  • Apr 18, 2013 9:07am Apr 18, 2013 9:07am
Dadas,

could you please advise how to deal with this chart where H4 zones sit on top of each other? I highlighted only the last (top) one which is where the price is sitting right now. Shall we ignore them?

I'm waiting for the price to leave and retest this zone from underneath to go short. This would be a good R:R trade.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 4 KB
  • #1,085
  • Apr 18, 2013 9:42am Apr 18, 2013 9:42am
Quoting Bookman
Lots of things I'm not understanding about the zone candle. Where do you get the numbers 134 and 162? Why are you choosing to compare these 2 candles? Why not choose the candle 3 candles before 134 for instance? To enter the trade are you looking for the intraday candles to fall into the candle body area of candle 162 and then react back up? Then entering on the open of the next daily candle?
Again, you did not read the thread!
Each Candle has its own Index number. Current Candle is Index = 0.

How do you suppose you can understand, if you do not read the whole thread?
Custom_Zone_Candle_with_Index.mq4
So, you can read the Index and plot which Candle you want.

Why I chose that one?
This is why!
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy-d1-fxsalt-ltd.png Size: 64 KB

Because it fits best!

Why not the third one back?
Yes, it could do, if I could not find a better one!
Even the very Candle 134 could do an hour or less before the end of day!

I read Price Action, as presented from post#1 on.
Whichever is more probable on the basis of the pictures I see.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy-d1-fxsalt-ltd-2.png Size: 65 KB

To put it in simple words, it is the PTECZ principle,
even if you do not plot any PTECZ, you just see it!

It does not come easy or in two weeks time!
Trade the facts, not opinions.
  • #1,086
  • Apr 18, 2013 9:59am Apr 18, 2013 9:59am
Quoting Dadas
Again, you did not read the thread! Each Candle has its own Index number. Current Candle is Index = 0. How do you suppose you can understand, if you do not read the whole thread? Custom_Zone_Candle_with_Index.mq4 So, you can read the Index and plot which Candle you want. Why I chose that one? This is why! {image} Because it fits best! Why not the third one back? Yes, it could do, if I could not find a better one! Even the very Candle 134 could do an hour or less before the end of day! I read Price Action, as presented from post#1 on. Whichever is...
So if i understand correctly:

First you spotted the strong upmove and then you found the zone which best fitted to where the price reacted. Whats the point of that?
Anyone could find a reason to go long after the strong move occured. One by one you repeat that nobody reads your thread from beginning but to be honest there are no real time examples, just justification of old moves with usage of PTECZ. I dont have problem with reasonable analysis on historical price action but you are curve-fitting left side of the chart only to show how good PTECZ is.
  • #1,087
  • Apr 18, 2013 10:00am Apr 18, 2013 10:00am
Quoting phi1ipp
Dadas, could you please advise how to deal with this chart where H4 zones sit on top of each other? I highlighted only the last (top) one which is where the price is sitting right now. Shall we ignore them? I'm waiting for the price to leave and retest this zone from underneath to go short. This would be a good R:R trade. {image}
Did you study my analysis of the example you posted the day before yesterday, I think?
It was post#1018 - Gosh this is fast!
http://www.forexfactory.com/showthre...82#post6612282

The PTECZ you are interested in, is the first one.
The one which Potentially Ends the Bearish Trend.
The one you plotted is Potentialy Ending the Bullish Candle, which was a smaller Trend.

Thus, which trend are you interested in?
If it is the H4 General Trend, then that is what you are interested in.
Obviously, there was some Bullish Pips to take from this PTECZ on M5.

In this situation, if you are trading in Longer Terms, and you are not interested in the smaller Pips,
I would look for a PTECZ on D1, W1.
Trade the facts, not opinions.
  • #1,088
  • Apr 18, 2013 10:07am Apr 18, 2013 10:07am
Quoting markup
So if i understand correctly: First you spotted the strong upmove and then you found the zone which best fitted to where the price reacted. Whats the point of that? Anyone could find a reason to go long after the strong move occured. One by one you repeat that nobody reads your thread from beginning but to be honest there are no real time examples, just justification of old moves with usage of PTECZ. I dont have problem with reasonable analysis on historical price action but you are curve-fitting left side of the chart only to show how good PTECZ...
Yes, there are examples of real trades, not only mine.

Yes, I repeat, because people are asking questions they would not have asked,
had they read the whole thread.

Yes, you can test the method in real time, and then tell everybody if you can use it or not!

Yes, you can produce your own evidence without asking for evidence that means nothing!

Yes, you can prove to yourself how good the PTECZ is or not.

Otherwise, I have no reason whatsoever to prove anything!

I am not selling the PTECZ.

You got it for free!

PS.
I do understand the curve-fitting issue you are talking about.
Quantitative trading is based on this idea.
Statistics and Probability in the mathematical equation.
I hate mathematics.

My mind processes 400 billion bits of information per second.
I'd rather trust my mind, then my Ego!
Trade the facts, not opinions.
  • #1,089
  • Apr 18, 2013 10:10am Apr 18, 2013 10:10am
Quoting Dadas
Did you study my analysis of the example you posted the day before yesterday, I think? It was post#1018 - Gosh this is fast! http://www.forexfactory.com/showthre...82#post6612282 The PTECZ you are interested in, is the first one. The one which Potentially Ends the Bearish Trend. The one you plotted is Potentialy Ending the Bullish Candle, which was a smaller Trend. Thus, which trend are you interested in? If it is the H4 General Trend, then that is what you are interested in. Obviously, there was some Bullish Pips to take from...
I guess I need to do another round of reading and thinking. I supposed the method isn't so simple as it may seem so here is a confirmation from you Thank you! I went for re-reading.
  • #1,090
  • Apr 18, 2013 11:04am Apr 18, 2013 11:04am
Quoting Dadas
Again, you did not read the thread! Each Candle has its own Index number. Current Candle is Index = 0. How do you suppose you can understand, if you do not read the whole thread? Custom_Zone_Candle_with_Index.mq4 So, you can read the Index and plot which Candle you want. Why I chose that one? This is why! {image} Because it fits best! Why not the third one back? Yes, it could do, if I could not find a better one! Even the very Candle 134 could do an hour or less before the end of day! I read Price Action, as presented from post#1 on. Whichever is...
I'm confused as to what intraday elements of PA are telling you to buy there. I have attached your chart with my questions.
Attached Image (click to enlarge)
Click to Enlarge Name: attachment.png Size: 42 KB
  • #1,091
  • Apr 18, 2013 11:05am Apr 18, 2013 11:05am
Quoting markup
So if i understand correctly: First you spotted the strong upmove and then you found the zone which best fitted to where the price reacted. Whats the point of that? Anyone could find a reason to go long after the strong move occured.
I could do the same with the right side earased!
Try it on the MT4 Strategy Tester,
or better and quicker, Simple Forex Tester, if you can get it.

The Trend and signals and PA are on the left side, not the right side.
Trade the facts, not opinions.
  • #1,092
  • Apr 18, 2013 11:20am Apr 18, 2013 11:20am
Dadas,

I think I've got the idea. Let me share my analysis for you to comment.

NZDUSD, MN
Trend is up, we're stalled in historical bullish zone right now and the last spike in price just bounced off an upper border of this zone
Attached Image


W
Trend is up, we just broke up off the historical bullish zone and retested it. There is plenty of room for going up to MN border as a possible TP - 276 pips
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 7 KB


D
We are looking here to find an entry to go long. It seems that according to the rules we need to do that after a close of the candle that bounced off W-zone. Indicated with a price mark and an arrow. And the stop could be at MN-zone top or D-zone above.
Attached Image


Your comments are very much appreciated. Thank you!
  • #1,093
  • Apr 18, 2013 11:23am Apr 18, 2013 11:23am
Oh, I found a mistake in my W-zone determination. Here is the right one zone. So we are just waiting right now... The price doesn't leave the zone yet.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 8 KB
  • #1,094
  • Apr 18, 2013 11:25am Apr 18, 2013 11:25am
I doesn't look good for bulls to me. There is too much supply entering the market ATM. Zones are not everything, momentum is another important factor an current momentum favours downside continuation imo. I know this thread is not about that but NZ central bank is ready to intervene in the markets if Kiwi gets to strong + any selloff in equities might push it a lot lower. Its safer to wait for first signs of stronger demand entering on the D1 chart before loading any longs in this market.

All the best

http://screencast.com/t/ds9pZX1h9k
  • #1,095
  • Apr 18, 2013 11:46am Apr 18, 2013 11:46am
Quoting Dadas
I could do the same with the right side earased! Try it on the MT4 Strategy Tester, or better and quicker, Simple Forex Tester, if you can get it. The Trend and signals and PA are on the left side, not the right side.
How can I test this strategy with MT4 strategy tester?
  • #1,096
  • Apr 18, 2013 11:50am Apr 18, 2013 11:50am
Quoting phi1ipp
Dadas, I think I've got the idea. Let me share my analysis for you to comment. NZDUSD, MN Trend is up, we're stalled in historical bullish zone right now and the last spike in price just bounced off an upper border of this zone {image} W Trend is up, we just broke up off the historical bullish zone and retested it. There is plenty of room for going up to MN border as a possible TP - 276 pips {image} D We are looking here to find an entry to go long. It seems that according to the rules we need to do that after a close of the candle that bounced...
My first comment is that you are complicating your own life!
Why choose another of these strange currencies with relatively short history
and nothing strong to relate to?

Not to mention that my picture is quite different, and I have no PTECZ on the left.

But, nevertheless.
Price Action, Philip, Price Action.

Markup is right.
Just look at the Bearish Candle with a PTECZ just after it on D1.
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd-d1-fxsalt-ltd.png Size: 77 KB

Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd-w1-fxsalt-ltd.png Size: 76 KB


I see room down, just as Markup says.

You see, it is Price Action that decides in the end.

PS.
The week ends tomorrow.
You are going to have a W1 PTECZ, most probably.

And, the spike you talk about at the top.
That is also a Bears signal.
Trade the facts, not opinions.
  • #1,097
  • Apr 18, 2013 11:53am Apr 18, 2013 11:53am
Quoting markup
I doesn't look good for bulls to me. There is too much supply entering the market ATM. Zones are not everything, momentum is another important factor an current momentum favours downside continuation imo. I know this thread is not about that but NZ central bank is ready to intervene in the markets if Kiwi gets to strong + any selloff in equities might push it a lot lower. Its safer to wait for first signs of stronger demand entering on the D1 chart before loading any longs in this market. All the best http://screencast.com/t/ds9pZX1h9k...
markup,

I do not mind the fundamentals!
Anything to extra support PA is just great!

Only, as you see, PA already knows this!
Trade the facts, not opinions.
  • #1,098
  • Apr 18, 2013 12:13pm Apr 18, 2013 12:13pm
Quoting Bookman
I'm confused as to what intraday elements of PA are telling you to buy there. I have attached your chart with my questions. {image}
This is my answer:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy-h1-fxsalt-ltd.png Size: 73 KB


PS.
That is also called momentum.
Trade the facts, not opinions.
  • #1,099
  • Apr 18, 2013 12:49pm Apr 18, 2013 12:49pm
The Long in the above D1 Candle strategy becomes even clearer when we apply the PTECZ:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy-h1-fxsalt-ltd-2.png Size: 66 KB

We have a double Break UP from PTECZs on Bearish Trends.
Trade the facts, not opinions.
  • #1,100
  • Apr 18, 2013 12:52pm Apr 18, 2013 12:52pm
Have I defended myself, again?
Trade the facts, not opinions.
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