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Price Action in Day Trading by Dadas

  • #1,621
  • May 3, 2013 7:37am May 3, 2013 7:37am
All right, thanks. So PTECZ within PTECZ is what to look for.
  • #1,622
  • May 3, 2013 7:54am May 3, 2013 7:54am
Today is The News Day,
so, I said to myself to hold up and not trade.
But, I looked at the EURUSD and thought how I could see the direction for the News Hour.

And my 2 Zone Candles Method came in with great help:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusddaily.png Size: 63 KB

Look at the upper brown Resistance Zone Level in history!
Consider yesterday's Strong Bearish D1 Candle.

Yes, the move was very quick with the usual false Bulls signal,
but knowing what we know, there was a big chance for Short on News!
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm5.png Size: 59 KB


Plus, watching H4 with the strong rejection:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdh4.png Size: 70 KB
Trade the facts, not opinions.
  • #1,623
  • May 3, 2013 8:00am May 3, 2013 8:00am
Quoting Christianfx
All right, thanks. So PTECZ within PTECZ is what to look for.
Every PTECZ is the same, has the same meaning.
It is the Potential Trend Ending Consolidation Zone.

It is always information about the Potential Ending of the Trend behind the PTECZ.

1 Candle is also a Trend!

And there is the Break Candle.

Combined, the whole picture, the whole story!
Trade the facts, not opinions.
  • #1,624
  • May 3, 2013 8:18am May 3, 2013 8:18am
And, the PTECZ is the PTE Consolidation Zone!

A series of Smaller Consolidation Zones inside a Bigger Consolidation Zone!

How more obvious can it get?!
Trade the facts, not opinions.
  • #1,625
  • May 3, 2013 10:02am May 3, 2013 10:02am
Quoting Dadas
{quote} Very good Christianfx! I will show you how I see it with the PTECZ! {image} 1. Strong rejection at Support - Trend up, 2. Continuation of Trend up - Price rejected at Resistance PTECZ Zone, 3. Closes as PTECZ - Potential Bullish Trend End, 4. Bulls test new high, rejected at top, again, 5. Another PTECZ - Bears show they are there, 6. Bears try down, but not strong enough, 7. PTECZ - Bulls don't give up, but look weak now, 8. Bulls try once again, but get rejected even lower, 9. PTECZ - the Consolidation is clear, now,...
you are a good man mr. dadas. no one spend time to teach his knowledge. as you do. at least congratulation for this.
  • #1,626
  • May 3, 2013 10:22am May 3, 2013 10:22am
Thank You P.Action !
Stay with us and take what you consider valuable and useful!

I took a Trade after all, today.
Maybe the Entry wasn't perfect, but I got +20Pips.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm5_trade.png Size: 64 KB
Trade the facts, not opinions.
  • #1,627
  • May 3, 2013 10:26am May 3, 2013 10:26am
Quoting Dadas
Today is The News Day, so, I said to myself to hold up and not trade. But, I looked at the EURUSD and thought how I could see the direction for the News Hour. And my 2 Zone Candles Method came in with great help: {image} Look at the upper brown Resistance Zone Level in history! Consider yesterday's Strong Bearish D1 Candle. Yes, the move was very quick with the usual false Bulls signal, but knowing what we know, there was a big chance for Short on News! {image} Plus, watching H4 with the strong rejection: {image}
Hi Dadas,
When you put your charts without candle index and without any indication, i don't understand where they come from.
Regards
  • #1,628
  • Edited 10:51am May 3, 2013 10:37am | Edited 10:51am
Quoting mosah
{quote} Hi Dadas, When you put your charts without candle index and without any indication, i don't understand where they come from. Regards
Those are the Zone Candles.
H4 Index 0 and 1.

I posted about this method earlier.

Zone Candle 1:
Custom_Zone_Candle_Tf = 240;
Custom_Zone_Candle_Index = 0;

Zone Candle 2:
Custom_Zone_Candle_Tf = 240;
Custom_Zone_Candle_Index = 1;

This is Price Action in Action.

Added PTECZs from MN to D1 or H4 for Stop Levels,
this is one of the best tools when you have the ability, already.

Zone Candle Index = 1 shows last Candle Zones.
Zone Candle Index = 0 is dynamic, shows current Candle forming Zones.

Look at the charts:
Last Candle Custom_Zone_Candle_Bckg = false
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdh4_zones.png Size: 71 KB

Last Candle Custom_Zone_Candle_Bckg = true
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdh4_zones2.png Size: 71 KB
Trade the facts, not opinions.
  • #1,629
  • May 3, 2013 11:27am May 3, 2013 11:27am
Quoting Dadas
{quote} In my trade, today on GBPJPY Long, I entered at Bottom of H4 PTECZ which was 56 Pips wide. But, I was hoping for the Price to Break the PTECZ at the Top, then it would go higher, much higher. The Price did not want to Break the Top of H4 PTECZ, was always slowed down, pushed back when near the Top of the PTECZ. Then there was a M30 Doji PTECZ and Price Broke Down, so I waited for retrace Up to Close my Long at the Top of PTECZ. I could go Short at Top of PTECZ, but Price was slow, so I did not. More clear: If Candle is going Up strong, Bulish...

Got it Dadas, most innovative to me was to learn : "not to buy when the price is going up" I will remember it in my trades. Thanks for your reply.
  • #1,630
  • May 3, 2013 11:32am May 3, 2013 11:32am
Quoting Dadas
{quote} Those are the Zone Candles. H4 Index 0 and 1. I posted about this method earlier. Zone Candle 1: Custom_Zone_Candle_Tf = 240; Custom_Zone_Candle_Index = 0; Zone Candle 2: Custom_Zone_Candle_Tf = 240; Custom_Zone_Candle_Index = 1; This is Price Action in Action. Added PTECZs from MN to D1 or H4 for Stop Levels, this is one of the best tools when you have the ability, already. Zone Candle Index = 1 shows last Candle Zones. Zone Candle Index = 0 is dynamic, shows current Candle forming Zones. Look at the charts: Last Candle Custom_Zone_Candle_Bckg...
Thanks Dadas and have a good weekend.
  • #1,631
  • May 3, 2013 12:03pm May 3, 2013 12:03pm
Quoting Dadas
@Red Herring, Maybe you can see this better on M5 closeup. Only, I did not use M5, I used only M30. This comes with time and practise. You see this on M30 Price Action in Action, somehow! {image}
So once I find those candles you are pointing, should I go for "buy" if the expected reverse trend after that candle is going up?
  • #1,632
  • May 3, 2013 12:36pm May 3, 2013 12:36pm
Quoting Red Herring
{quote} So once I find those candles you are pointing, should I go for "buy" if the expected reverse trend after that candle is going up?
Man, you are late.
That was 20 pages back!

That is my Trade on the chart I showed you.

A real Trade, not some imaginary do it like this!

I am not pointing any Candles on that chart!

This is how MT4 shows your closed Trades if you want it!
Trade the facts, not opinions.
  • #1,633
  • Edited 1:32pm May 3, 2013 1:13pm | Edited 1:32pm
Quoting Red Herring
{quote} Got it Dadas, most innovative to me was to learn : "not to buy when the price is going up" I will remember it in my trades. Thanks for your reply.
I do not understand where you get your general conclusions from.
I am posting in English.
You do speak English in Toronto, Canada.
I've been there, I had no problems communicating in English.

Look at the above Trade: Post# 1,626

You have got to read Price Action, read the signs, the signals.
PTECZs, TBCZs, CSCZs are the "territorial signs", like Zones where the Price can Potentially react.

You have got to watch Price Action in and around those Zones.
You have got to learn to read Price Action.

Your conclusion means nothing!

Price Action is what tells you the tendency.

If you are reading a book, you understand the plot, you can enjoy the book.

If you do not know Chinese, you will not be able to read a book in Chinese.
You will not be able to understand anything, just look at strange symbols
which mean nothing to you.

The same with the charts and the Price Action they show.

If you do not learn the chart language, you will understand nothing!
Trade the facts, not opinions.
  • #1,634
  • May 3, 2013 1:38pm May 3, 2013 1:38pm
Quoting Red Herring
{quote} So once I find those candles you are pointing, should I go for "buy" if the expected reverse trend after that candle is going up?
What do you mean by "the expected reverse trend after that candle is going up"???

Where does your expectation come from???
Trade the facts, not opinions.
  • #1,635
  • Edited May 4, 2013 3:44am May 3, 2013 5:06pm | Edited May 4, 2013 3:44am
Hello Dadas and all!

Finally I've finished reading the whole thread, the beginning twice. So, I decided to join and contribute to this thread.
I'm a newbie, trading for about 5 months, 2 last months I've been trading real, and my trading was mainly dependent on a couple of technical indicators. I didn't know what forces drive the market, so I busted almost 80% of my account hopefully, not much, about 100$
From the very beginning I was looking for something that could answer all of my doubts and answer and finally (I hope) found it
Now there's time to practise and make good habits.

Thank You Dadas and keep up the good work!

So, I'll start with some analisys. Only PTECZs. GBPUSD, MN-->H1, I didn't go to lower timeframes, as my chart might become illegible. Dadas, could you please check it ?

Monthly
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd mn.jpg Size: 70 KB


Weekly
Attached Image (click to enlarge)
Click to Enlarge Name: WEEKLY.jpg Size: 143 KB


Daily
Attached Image (click to enlarge)
Click to Enlarge Name: DAILY.jpg Size: 132 KB


H4
Attached Image (click to enlarge)
Click to Enlarge Name: H4.jpg Size: 97 KB



H1
Attached Image (click to enlarge)
Click to Enlarge Name: H1.jpg Size: 118 KB







Pozdrowienia z Krakowa!
Greetings from Cracow!
  • #1,636
  • May 3, 2013 9:54pm May 3, 2013 9:54pm
Quoting Dadas
{quote} What do you mean by "the expected reverse trend after that candle is going up"??? Where does your expectation come from???
Then what should I do finding those candle at PTECZ? I mean what is the next step? My expectation may come from price action as you have discussed in your first post in this thread...
  • #1,637
  • May 4, 2013 4:34am May 4, 2013 4:34am
Quoting Starzu
Hello Dadas and all! Finally I've finished reading the whole thread, the beginning twice. So, I decided to join and contribute to this thread. I'm a newbie, trading for about 5 months, 2 last months I've been trading real, and my trading was mainly dependent on a couple of technical indicators. I didn't know what forces drive the market, so I busted almost 80% of my account hopefully, not much, about 100$ From the very beginning I was looking for something that could answer all of my doubts and answer and finally (I hope) found it Now...
Hello Starzu and Welcome!

All your PTECZs are correct!
From the point of plotting PTECZs, it seems you have the understanding of what the PTECZ is.

Now, comes the trading style factor.

For your trading, you need those PTECZs which are Potentially relevant to your Trading style.

For Day Trading:
We should look for historical PTECZs relevant to the current Price Levels.
The PTECZs at higher or lower levels would be relevant for Long Term Trading.
So, the current Price Action on GBPUSD MN suggests this picture:
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdmonthly.png Size: 46 KB

Then, switch to W1 and you see that the Green MN PTECZ is just where it should be,
and does not need to be optimised. Though, you could move the Low PTECZ Level higher
to the next W1 PTECZ on the Bullish Local Trend (marked with a darker green line).
The Crimson MN PTECZ should be optimised to the relevant W1 Bullish Trend PTECZ at the same level.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdweekly.png Size: 44 KB

The W1 picture shows you the situation very clearly.
There was a W1 Break Up Candle in the MN PTECZ which started the Bullish Trend.
And, the Trend has been on for 8 weeks, now.
But, this is information for us, Day Traders, about the Big Trend.

Switching to D1, you still do not need to change anything, because the picture is clear!
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusddaily.png Size: 42 KB

Only, this context is still not the Day Traders context.
This is the picture for trading in Terms of a number of days, even a week.

As Day Traders, we want to know what could happen next.
We are interested in only 1 D1 Candle and Trading inside that D1 Candle.
So, you now have some Crimson W1 PTECZ which proves to be Resistance.
The Green Support W1 PTECZ is over 300 Pips away from current Price Level.
It is unlikely that we will see such a strong move in 1 day, though, who knows!

That is what the Daily Range information is for, on your chart.
You can see that anything between 60 - 200 Pips has been possible the last 2 weeks.
To be on the reasonable side, you should estimate 60 - 100 Pips Daily Range.
And you should look for historical PTECZs somewhere in that distance of Pips (up & down).

So, is there a D1 PTECZ anywhere around 100 Pips below current Price Level? Yes.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusddaily_01.png Size: 42 KB

And, we see that the Price has Consolidated between the PTECZs.
This is important information. It is: WATCH OUT! BE CAREFUL!
We can see that for 3 days the Price has been rejected both from above and below.
Actually, this has been happening all the week.

We switch to H4 to see what we can Trade in the given Day:
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh4.png Size: 40 KB

We can readjust the D1 PTECZ precisely.
Now it is still Price Action reading the chart.
April 30 the direction was still Up.
We had the Crimson W1 PTECZ, so we could estimate the Pip Potential.
May 1 to May 2 there was Price rejection from the Top.
There was a Break Down H4 Candle May 1.
There was a retrace back up May 2, which Closed at Lower High than the previous High.
That was the Best moment to look for the Short Entry.

I highlighted the CSCZ area of those 2 Candles with a Khaki Rectangle.
Now we can switch directly to any other lower Tf, M15:
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm15.png Size: 39 KB

And we watch and read Price Action.
We Enter when we have enough signals for the Short.

This is an example of Day Trading at H4 Level PTECZs with the higher Tf S/R Levels.
The same way can be used to Trade any other Tf relatively to any other Tf.

I can not show all the possible examples in one post or one day!

You must create your own style and show me your examples to comment.
Trade the facts, not opinions.
  • #1,638
  • May 4, 2013 4:38am May 4, 2013 4:38am
Quoting Red Herring
{quote} Then what should I do finding those candle at PTECZ? I mean what is the next step? My expectation may come from price action as you have discussed in your first post in this thread...
Please, study the example just below your post, ie. Post# 1,637
Please, take any historical situation on your chart, do the analysis and
show me where you would like to Enter, which direction, and where you would Exit.
Please, add comments why.
Trade the facts, not opinions.
  • #1,639
  • May 4, 2013 5:57am May 4, 2013 5:57am
Quoting Dadas
{quote} I, really, do not understand where the problem comes from. I see all the charts on my two computers. Anyway, here are the 3 most important to my method: 1. CZCS - Candle Shadow Consolidation Zones {image} 2. TBCZ - Trend Begining Consolidation Zones {image} 3. PTECZ - Potential Trend Ending Consolidation Zones {image} You must try to look at the Zones as if the right side was not there, yet. A sort of time machine! Imagine you were watching it then!

Mr. Dadas. i write your zones definition which i understand. is there any logical mistakes?


Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.05.04_10h21m50s_006_.jpg Size: 140 KB

Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.05.04_10h32m46s_007_.jpg Size: 149 KB
  • #1,640
  • May 4, 2013 6:19am May 4, 2013 6:19am
Quoting P.Action
{quote} Mr. Dadas. i write your zones definition which i understand. is there any logical mistakes? {image} {image}
Everything makes logical sence!

"Potential", because when you see PTECZ, you do not see the next Candles!
So, you do not know if it is really the End or not.

Anyway, in my opinion it is always the End of some Local Trend, because
if the direction continues, it is the next Local Trend - in the same direction!

And, now you can play with different Tfs.
Trade the facts, not opinions.
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