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Price Action in Day Trading by Dadas

  • #1,421
  • Apr 27, 2013 3:03am Apr 27, 2013 3:03am
Lets take a closer look at EUR/JPY H4 chart.

If you are new to trading don't try trading below H4 until you gain some experience everything you need to know is in the higher TFs.

I can remember reading James16 thread (which is one of the most popular on FF) and he said the same thing but I wanted more action so was determined to crack the lower TFs well, after a long and winding road, and about three years of experience I'm back to where I started and feeling a lot more comfortable with trading from the D1 and H4 charts.

Yesterday I was trading M5 charts, it takes so much concentration, I'd be burned out with in a month if I did that all the time. At the end of the day it's what you feel comfortable with but to begin with stick with the higher TFs it's a lot less stressful checking charts every four hours and having time to see things develop then to be concentrating so hard you get a headache like I did yesterday.
Attached Image (click to enlarge)
Click to Enlarge Name: 27th Apr 13 EUR:JPY H4 Chart .png Size: 182 KB
  • #1,422
  • Apr 27, 2013 4:24am Apr 27, 2013 4:24am
Quoting kbp
... but still don't get the rule at this step: {quote} Do you mean the entry against the retrace direction or with the retrace direction?
Quoting kbp
... I've attached current EJ and my drawing of H1 consolidation zone. H1: {image} M15: lower TF {image} H4: higher TF {image} On lower TF, i.e. M15, price is currently retracing back to consolidation zone On higher TF, i.e. H4, looks like price start to consolidate, but more like a H&S pattern So what do we do now? Entry with the M15 retrace i.e. short, or Entry against the M15 i.e. long? Thanks in advanced.
stevepatt has shown you the right way to do it, from the top, from MN.

You need to know what is happening on the bigger scale, larger Timeframe,
and narrow it down to your trading Timeframe - then Enter from a small Timeframe.

So, from MN to H4, or from MN to H1, or from MN to M30. Enter from M15 or M5 or M1.

stevepatt has done most of the explanation for me, but I will add:

EURJPY
We know that 4, April 2013 BOJ took action to weaken the Yen, so EURJPY started going up.
The D1 Trend was very strong until 11, April 2013.
I marked the top or ceiling of this Trend with the TBCZ.
The Doji 2 D1 Candels before was signal that Trend is ending. This is a PTECZ.

We see that there was a retrace or correction down but counterred with a PTECZ.
Then, Price went up, again, but did not make a new High, bounced off in the TBCZ area.
This was the information for the Local Bearish Trend.

Then, Price continued going Down, but was always pushed back up - the long Wicks or Shadows.
And, finally, Friday 26 the Price went Down into the lower PTECZ, did not make a new Low,
on my charts D1 will Close on Sunday 28 when Market Opens.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpydaily.png Size: 62 KB

Now, we continue on H4:
Keeping in mind the D1 lower PTECZ we optimise the other PTECZs on the H4 chart.
There is a H4 PTECZ where the D1 TBCZ was.
And we find the PTECZs along the previous Bearish Trend,
because we are dealing with a Bearish Trend, now.
We get this picture:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh4.png Size: 60 KB

We can delete the D1 PTECZ now, because we have the picture of Price Action.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh4_01.png Size: 59 KB

Now, we continue on H1:
We mark the most current H1 PTECZs.
We see 3 important H1 PTECZ areas:
1. The Upper H1 PTECZ where the best Short Entry for Friday was,
(the Price Broke Down from H4 PTECZ, hesitated - formed H1 PTECZ
and Broke Down the H1 PTECZ, thus Short on retrace back up)
2. The Middle H1 PTECZ where the Price continued Down inside it,
Broke Down from it and retraced back up to it,
3. The Lower H1 PTECZ which turned out to be the Stop for Friday,
Price Broke Up from this PTECZ, but reacted at the Middle H1 PTECZ.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh1.png Size: 65 KB

This completes the Day Trader's context for the given Day - Friday 26, April 2013.

We got our General Recent Situation orientation from D1.
We got our Trend orientation by narrowing down on H4.
We got Entry Levels orientation from H1.
We could Enter from any chart, even the H1 if you know how to read the current Candle.
Of course, seeing the Short Entry on M5 lets us make an Early Entry:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpym5.png Size: 63 KB


I know, you are asking:
So what do we do now?
Entry with the M15 retrace i.e. short, or Entry against the M15 i.e. long?

Now, we switch to higher Tf to see the Global situation:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpydaily_global_look.png Size: 62 KB

We mark the recent H4 PTECZ:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh4_ptecz_recent.png Size: 58 KB

Check this picture Globally, same as the previous H1 PTECZ Globally,
and now check the M15 you are asking:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpym15.png Size: 59 KB


What do I see:
I see a Break Up, Engulfing Candle on M15 and M30.
But it is not there on H1 and H4!!!
Could this be an Early signal for Long?

Let PA tell us which way Price Breaks - Up or Down?

I do not know the answer to your question!
Nobody knows the answer to your question.
Only the Price will know! When it moves there.

Right now, the Price is Right in the Middle!
Trade the facts, not opinions.
  • #1,423
  • Apr 27, 2013 4:27am Apr 27, 2013 4:27am
Quoting stevepatt
.. but I wanted more action so was determined to crack the lower TFs well, after a long and winding road, and about three years of experience I'm back to where I started and feeling a lot more comfortable with trading from the D1 and H4 charts. Yesterday I was trading M5 charts, it takes so much concentration, I'd be burned out with in a month if I did that all the time. At the end of the day it's what you feel comfortable with but to begin with stick with the higher TFs it's a lot less stressful checking charts every four hours and having time...
You have touched the tip of the iceberg of what I am doing!
Trade the facts, not opinions.
  • #1,424
  • Apr 27, 2013 4:45am Apr 27, 2013 4:45am
Of course, you could have gone Long there, on Friday:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpym15_01.png Size: 60 KB

But, also Close it at the top, somewhere!
Trade the facts, not opinions.
  • #1,425
  • Edited 5:22am Apr 27, 2013 4:50am | Edited 5:22am
What I have just shown you, is what we should all be doing!
The Day Trader should be doing this every day, all the time!

Also, as the situation develops!

This is the goal!

I am practising to achieve this goal.

I can do this when not trading, as you can all see.

I still have problems doing this on the fly!

But, this is the clue to success!
Trade the facts, not opinions.
  • #1,426
  • Apr 27, 2013 4:57am Apr 27, 2013 4:57am
Thanks Dadas & stevepatt. I'll fire up chart & follow the above instructions to see if I can get the strategy. Look a bit complex to follow.
back... and more dangerous.
  • #1,427
  • Apr 27, 2013 5:05am Apr 27, 2013 5:05am
The secret, again, is the Ego!

When the Ego wants to be smarter than the PTECZ, that is where we lose!

When we only mark our PTECZs, we see the situation and we win!

Never try to be smarter than the PTECZ!
Trade the facts, not opinions.
  • #1,428
  • Apr 27, 2013 5:58am Apr 27, 2013 5:58am
Ok after trying here is the result of H4 (blue), H1 (light orange) and M15 (white at the bottom)
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpym15.png Size: 18 KB


1. So when we have that determined, what do we do? I mean, in general, not only for this chart. Do we aim for next edge of the consolidation area?

So for example this EJ chart:
price is bouncing off bottom of H4 consolidation area, so the first long target will be
127.96 (bottom of H1 consolidation area)
128.63 (top of H4 consolidation area)

2. I notice that when you draw the H4 consolidation area, you pick the most left consolidation/engulf candle instead of the recent consolidation / engulf candle, why is that?

Thanks in advanced.
back... and more dangerous.
  • #1,429
  • Apr 27, 2013 6:39am Apr 27, 2013 6:39am
Quoting stevepatt
Lets take a closer look at EUR/JPY H4 chart. If you are new to trading don't try trading below H4 until you gain some experience everything you need to know is in the higher TFs. I can remember reading James16 thread (which is one of the most popular on FF) and he said the same thing but I wanted more action so was determined to crack the lower TFs well, after a long and winding road, and about three years of experience I'm back to where I started and feeling a lot more comfortable with trading from the D1 and H4 charts. Yesterday I was trading...

You are great
Alway neat and clear analysis. I hope you have a copy of all your chart well stored? This is very good. However, your Lower Low mention on the chart is meant to be Lower High. I know you this is just a slip of writing because you know what you are saying there.
THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
  • #1,430
  • Edited 7:14am Apr 27, 2013 6:59am | Edited 7:14am
Quoting kbp
1. So when we have that determined, what do we do?
I mean, in general, not only for this chart.
Do we aim for next edge of the consolidation area?
So for example this EJ chart:
price is bouncing off bottom of H4 consolidation area,
so the first long target will be
127.96 (bottom of H1 consolidation area)
128.63 (top of H4 consolidation area)
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh4_tp_zones.png Size: 62 KB

Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh1_long_option.png Size: 63 KB

So, what do you need now?
If Price Breaks Up from H4 Green PTECZ, take Long on Retrace back to PTECZ.
Why do you need to assume a certain Price?

If you have enough reason to Enter Long on this Break Up from Blue H1 PTECZ,
you should look for Entry upon retrace to the Blue H1 PTECZ.

If you have reason for Short, then you should Enter Short on Retrace to the Dark Red H1 PTECZ.

If you have no reason for Short or Long, wait for Break from H4 PTECZ.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh1_long_option_2.png Size: 59 KB

We are not going to tell you which way you should go!
You must see this from Price Action.
Price Action is the basis for everything!
Quoting kbp
2. I notice that when you draw the H4 consolidation area, you pick the most left consolidation/engulf candle instead of the recent consolidation / engulf candle, why is that? Thanks in advanced.
I chose the PTECZ which best fits to the Potential Stop at current Price Level
on previous identical direction Trend.
Trade the facts, not opinions.
  • #1,431
  • Apr 27, 2013 7:25am Apr 27, 2013 7:25am
As for Long Targets, look for PTECZs on previous Bullish Trend.
Consider the ADR for your pair.
Check if there are any PTECZs at ADR Levels on previous Bullish Trend.
You have got your Targets!
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh1_stops.png Size: 63 KB


Only, you do not know any certain Prices.
You have got your Zones.
Be reasonable, either set TP or watch PA.
Set TP reasonably, not greedily!

You can get more Pips by watching PA and looking out for new PTECZs.
Trade the facts, not opinions.
  • #1,432
  • Apr 27, 2013 7:32am Apr 27, 2013 7:32am
Quoting Dadas
What I have just shown you, is what we should all be doing! The Day Trader should be doing this every day, all the time! Also, as the situation develops! This is the goal! I am practising to achieve this goal. I can do this when not trading, as you can all see. I still have problems doing this on the fly! But, this is the clue to success!
That is the problem of many traders.

Even if you are 90% sure of a direction after confirmation by PA, you may still be scared to pull the trigger and that is the greatest sin in forex.

You as a person don't know the worth of TBCZ and PTECZ. You will soon be surprise on what people will be doing with it.
THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
  • #1,433
  • Apr 27, 2013 7:41am Apr 27, 2013 7:41am
Quoting Dadas
The secret, again, is the Ego! When the Ego wants to be smarter than the PTECZ, that is where we lose! When we only mark our PTECZs, we see the situation and we win! Never try to be smarter than the PTECZ!
I will print and stick to the wall. 100% agreed.

All my looses now is trying to be smarter than PTECZ or assumption before candle closes.

If we follow PTECZ to the core and go with the global position I can assure guys that we may not record any looses in a month. The worse will be BreakEven.
THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
  • #1,434
  • Apr 27, 2013 7:46am Apr 27, 2013 7:46am
@ejiexe

When you notice that some has made an error in their analysis,
you are invited to point it out in the same polite way that you do!

However, you have no right to tell people if they are doing
their analysis correct or not!

You have not presented one analysis done anywhere close to what stevepatt is doing.

It is stevepatt who has the right to tell you if you are doing it correct!
If you happen to post your full analysis in our way!

So, if you do post your analysis I will let stevepatt judge the corectness!

Not to mention your stubborn attitude with the MA on your chart,
which is against the posting chart rules on this thread!
Trade the facts, not opinions.
  • #1,435
  • Apr 27, 2013 8:13am Apr 27, 2013 8:13am
Quoting ejiexe
{quote} That is the problem of many traders. Even if you are 90% sure of a direction after confirmation by PA, you may still be scared to pull the trigger and that is the greatest sin in forex. You as a person don't know the worth of TBCZ and PTECZ. You will soon be surprise on what people will be doing with it.
I do know the worth of my realizations!
CSCZ, TBCZ, PTECZ and the Zone Candle.
I will not be surprised, just satisfied!

I do not have a problem with pulling the trigger.
You felt it on yourself, yesterday!

I have a problem with not being able to give up and rest!

I do a lot of things, including answering to posts.

Thus, I get tired, brain tired, brain washed.
I do not see things clearly, I insist rather than just follow the PTECZ.

I have a problem with opening trades when there is no good reason,
just because I must open a trade or two.

But, that is my problem!
Trade the facts, not opinions.
  • #1,436
  • Apr 27, 2013 8:38am Apr 27, 2013 8:38am
Quoting Dadas
@ejiexe When you notice that some has made an error in their analysis, you are invited to point it out in the same polite way that you do! However, you have no right to tell people if they are doing their analysis correct or not! You have not presented one analysis done anywhere close to what stevepatt is doing. It is stevepatt who has the right to tell you if you are doing it correct! If you happen to post your full analysis in our way! So, if you do post your analysis I will let stevepatt judge the corectness! Not to mention your stubborn attitude...
I am happy you know I am polite in my approach but you should also learn to be polite in your manner of approach as well.

Despite the fact that I don't post my full analysis does'nt mean I don't know how to do it. There are 1000000 examples here I can alway refers to if I am not clear with anything. I don't need to ask. We are just repeating same thing day in day out.

However, I don't see any reason in drawing Weekly and MONTHLY PTECZ when price is 1000 pips away from it. Of what benefit is it to me in the current situation. Afterall, I draw it on daily basis.

I have chart shown here several time with analysis of HTF of the current situation and yet you keep repeating that I don't do full analysis.
The recent UJ chart you equally condem is a full analysis of the whole situation. Attached is the chart with the label.

If you don't want me too post in your thread again no problem. I am only been polite to say it is our thread. It is your thread and that is why you alway treaten to clean up. Clean up if you want to. If it is our thread you won't block my access without clearifying issues base on your personal believe. I was thought in my life as part of my background and upbringing to alway show respect to every human being and not to disrect them.

Remember at the begining I was posting live trade like stevepatt is doing now. stevepatt posted UJ trade with entry, stop loss and TP and we all see the result. Luba is also doing the same. For the fact that you invented something does'nt make you the master. That is why someone whose id I can't remember refer to your analysis as retroaction. I am not full of analysis but action.


Do you think it is everybody that find it easy to follow. If you want people to follow you, you have to be polite in your dealings. Afterall, nobody is paying anybody here. You equally share so as to learn from people.

What can you say about this chart. What full analysis do you want man? Do you want me to draw Monthly PTECZ that is 1000 pips away?
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpyh4.png Size: 73 KB
THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
  • #1,437
  • Apr 27, 2013 8:43am Apr 27, 2013 8:43am
Quoting ejiexe
{quote} You are great Alway neat and clear analysis. I hope you have a copy of all your chart well stored? This is very good. However, your Lower Low mention on the chart is meant to be Lower High. I know you this is just a slip of writing because you know what you are saying there.
stevepatt put the label where the new Lower High on Bears was.
I think stevepatt meant the New Lower Low of the current Price Level.
The Price is, now, Lower than the previous retrace Low.
However, still Higher than the D1 retrace scale.
Trade the facts, not opinions.
  • #1,438
  • Apr 27, 2013 8:45am Apr 27, 2013 8:45am
Quoting Dadas
{quote} I do know the worth of my realizations! CSCZ, TBCZ, PTECZ and the Zone Candle. I will not be surprised, just satisfied! I do not have a problem with pulling the trigger. You felt it on yourself, yesterday! I have a problem with not being able to give up and rest! I do a lot of things, including answering to posts. Thus, I get tired, brain tired, brain washed. I do not see things clearly, I insist rather than just follow the PTECZ. I have a problem with opening trades when there is no good reason, just because I must open a trade or two....
You are the type that only see from one angle. Why don't you alway see the meaning of the post before you respond? I know you are too personal but then I must alway respect you if not for everything but for what you have shared with us. I still thank you for that. Even if I am not going to post again in thread, I will alway promote it and still show respect for you.
I don't know how old you are but this behaviour of yours could not going a long with you in maintaining a good relationship.
THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
  • #1,439
  • Apr 27, 2013 8:50am Apr 27, 2013 8:50am
Quoting ejiexe
{quote} I am happy you know I am polite in my approach but you should also learn to be polite in your manner of approach as well. Despite the fact that I don't post my full analysis does'nt mean I don't know how to do it. There are 1000000 examples here I can alway refers to if I am not clear with anything. I don't need to ask. We are just repeating same thing day in day out. However, I don't see any reason in drawing Weekly and MONTHLY PTECZ when price is 1000 pips away from it. Of what benefit is it to me in the current situation. Afterall, I...
Yes, if you want to take my role, here, and judge how correct other people are,
then you must pass the test.

Do one like stevepatt!

Do one like I do!

Thank you for deleting that terrible MA!

I said it before: Polite has nothing to do with Forex Trading.

You were the first to call me "Master"!

Either go my way, or go your way!
Trade the facts, not opinions.
  • #1,440
  • Apr 27, 2013 8:53am Apr 27, 2013 8:53am
Quoting ejiexe
{quote} You are the type that only see from one angle. Why don't you alway see the meaning of the post before you respond? I know you are too personal but then I must alway respect you if not for everything but for what you have shared with us. I still thank you for that. Even if I am not going to post again in thread, I will alway promote it and still show respect for you. I don't know how old you are but this behaviour of yours could not going a long with you in maintaining a good relationship.
I am 53 years young!

I have 2 kids: daughter 27, son 15.

I have all the respect for You and even my adversaries.

I am raising your goal level.

You can see this, or continue fighting!
Trade the facts, not opinions.
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