Price Action in Day Trading by Dadas

Likewise, Dadas and I fully understand.

How you do it and keep your sanity when at extreme is commendable and the inordinate amount of time you dedicate to answering each and every post. You surely have an extremely patient and understanding family especially spouse and never miss that!!!

I will post as I go along finishing reading.

I have an idea how you may be able to guide newcomers with directions one step at a time as I am sure they are frustrated reading all the posts and in return they drive you nuts and then it gets personal.

More on that later.

Sam

Thus, I must answer your last post, just as well.

It does not take me all that time, or maybe I don't feel it as much time?
It is about practise, as well, and simply doing it as it goes!

Keeping sanity at extreme situations gets easier on every next go.
It takes time, just as all the other things.
The more you do it, the easier it becomes.

Controling the heartbeat, controling your thoughts, holding on to your certainty that you can do it.

One Trader once said that his emotions must stay in the other room, when he is Trading.

You must think all the time, especially in extreme situations panic does not help.


BTW. Thinking is also something one must practise a lot!

Well Said and here is the humble side of Dadas if one can see thru'. Forget the flare ups!

holding on to your certainty that you can do it.

BTW. Thinking is also something one must practise a lot! - Ah, That One differentiates all of us - The ability to THINK!!


Sam

and @ christianfx

Thank you. I was been very superficial. Infact i have read all the post , but i have understand only the first two post. My problem is the language. My english is very bad . I'll try to translate and then to study.
I would like to undenstand this way of trading because it seem very rational.
Thanks again

Question to Dadas:

Post : 48

Q1. Then continue, watch the Price Action, see the trend.
Be greedy? Close at every CSCZ : u mean at 1.3577 (the upper shadow corresponding price of the candle)?

and Open again at PTECZ: u mean what? Its a zone as colored on the example, tell the price u r referring to on that example pls!

Q2. Trading the whole D1 Candle, we might find the D1 on MN (Tf 43200) background very informative:

What is Tf43200 in the above example?



Post : 51
That brown Zone at the top. Is it not the CSCZ of the MN Candle?
Of course it is! Could we have entered Short even earlier? Yes, we could have!
How much does it take to believe what we see?
The risk has been calculated. It has, already been taken into account, after all!

But how? In terms of time frame or price? I do not see any relation, may be I am not so smart! But I am stucked here and can not move to next page unless clear!

I have read all the posts (post 60) upto this page 3 so far and if u clear me, I will move to post 61 and so on...

I am sorry that I have started reading this thread line by line lately and thus have question from page 3 out of the 139 pages of your thread!

I mean exactly what I posted.
You are reffering to what is ancient history to me.
You are stuck on values, get unstuck.
I don't care about Price Values, I care about Price Levels as show by CSCZ and PTECZ, ca., about, more or less, whatever.
I care about what I see, the picture, not any specific Price Levels.
Study the construction of the Zone Candle, again if you must, in order to understand.
PTECZ = Potential Trend Ending Consolidation Zone as described in earlier post and everywhere in this thread.

MN (Tf 43200) oh, Tf = Timeframe (basic kindergarden)

Again, get unstuck, see the picture.
How do you calculate your Risk?
I do not teach how you should manage your Risk.
I just give a few suggestions, like maybe SL just 2-3 Pips above the CSCZ for Short in that example?

You have got to work some on freeing your mind from limitations that only exist in your mind.

@ Red Herring,

You know what?

Instead of asking all those questions and being nowhere again,
it would be far more constructive for you to find any similar looking
pattern on any chart and just mimick the exact situation.

Use the Custom_Zone_Candle.mq4 and do the exact same thing.

Maybe, your answers would then pop up instantly and in an extremely more effective way!

Not to mention, that in this case you have got all the data and you could get the same picture,
or at least a very similar one.

Dear Dadas,
Greeting from me.I am new to your concept though i used PA learn some in the forex factory. And also SAM but I think in this current thread you are clearly describe everything that need to know about PA and your plus your concept is great no matter who likes or not.But i just read couple of page and I find attachment tools you provided but PDF is ok so where is the FX NVATC indicator?
I do not find out ....... The tpl is ok..


Please reply.
Regards.

Red Herring - I am going to help you with your post about post #48. But first go for a walk, take a deep breath and not in the same frame of mind that you are in.

You are looking for very precise answers and there is none. The best answer is getting as close as one can. With time you will get better in fine tuning your entries/exits with the least amount of emotions!

This post (#48) is about different ways and not the ONLY Way! I can only look at the charts and explain as I do not trade Forex and use MT4. To me it really doesn't matter although Dadas has all these templates readily available for use.

1. Ok - Zone Candle - Any candle has a body and shadows (wicks) at either end. It is the shadows relatively speaking are important as that is consolidation. So now you have regions body and wicks and color it any way you want. In this chart it is white (body) and brown as the wicks at the opposite ends. The Zone candle is just a representation of a bigger time frame and it could be a Month, Week... A Day shows action of yesterday to put in to context action today - DONE!!! No complications (keep the brain rested).

2. The very first chart EURUSD D1. It is D1 Chart. There is the Zone candle in the background. Just read the picture simplistically as you can and then delve in to the details with time (you may be able to and it is individual dependent). This is what you observe - the first red candle at the top in the brown area. It simply means some one tried to sell (no action to even consider on this red one!!). If you do then you could become a roadkill if you just see to the left side of it - ramp up. There are also some red candles in the upswing and you know what happened to them and I do not need to tell you that!

So now you are reading and we are at the red candle at the top. This red candle is just of interest because it is in the shadow of a higher TF candle. That's it - Don't read any further in to it!

3. Now this very red candle that we started right at the top in the brown area turns out to be PTECZ. So now I am getting interested as there is the Platform I am looking for to enable me to start thinking further - that's it and I watch. This PTECZ is relatively very small in range and could just be noise in the continuation of the previous upswing - I do not know anything other than that at this point in time and keep all options open!! - NO BIAS, ONES Interpretations as this way or that way as they both are equally wrong or correct (an oxymoron) and egoistical. Do not make something when it doesn't exist!!

However, a FINE POINT - ignore if you do not get it - The green candle before this red, had a reasonable long upper shadow - a relatively small body doji in the candlestick parlor - don't get hung up with these descriptions. Just note and keep at the back of your mind. You want to gather as many clues to support your hypothesis!!)

4. The next candle is a big red down breaking the brown area in to the white area. So we have first signs of what you thought may be happening. That's it and relax. If you do not get it - move on as you first get grasp of the elephant and then you can study the tail.

5. Now after the first big red candle, you wait. The next candle is green. Here some went long and they could have been right. But you say I have no clue as it is some where in the middle of the highway and see no platform, even though you are noticing clues. Sit and observe!!! That cannot be difficult at all

6. As it turns out, now this green candle is a PTECZ and a PLATFORM!. Now you are marking your spots. So draw the box around this candle and extend it to the right which is unknown and will become known with time (as the right side of the chart is always unknown in real time). So what we have now is a red candle at the top (first PTECZ), followed by a strong red candle and now a second PTECZ (green candle). Hmm you say - I smell something and that is your first accomplishment. Those who are fine tuned may enter in this area and know the stop loss where it should be to be the safest and let the trade play out. The stop loss is individual dependent. However, many do not have that luxury with wide stop loss. So what do you do? Do nothing

The next RED candle also turns out to be a PTECZ (PTECZ within a PTECZ!!) It is not worth asking which is the correct one as both are right. Ignore one and track the other. You see PTECZ is a range and an area where it is trying to consolidate and it could be one candle or several candles in the range.

So we now have one big red and 3 PTECZ's. The story is now getting clearer and clearer if not obvious- Done!!! You can trade if you like and can do in the following two alternatives:

The first enter on break below the PTECZ Low or as high as you can within the PTECZ. Don't look for precise candles/answers to enter as there is none and with experience you will make better entries. Do not sweat on it - understand the idea. But you don't have to if unsure.

The second alternative is WAIT. You have the PTECZ drawn to the right of the chart when in real time the candles do not exist. The train is likely, typically (not guaranteed) to return (retrace) to the platform (PTECZ) in the future.

In this case it did with that red Doji candle rejected with some oomph when it retraced into this PTECZ and provides another ENTRY point again. Do not look for exact entry points as there is no such thing - you can only do the best and sometimes you may be perfectly right. Being in the neighborhood is good enough because what will follow is to salivate or bigger moves - so why be penny wise smart and dollar wise foolish. You see what stop loss you can afford and let go the trade. Llet it play out giving some wiggle room. Don't get scared and have the confidence when making the trade. Else do nothing and wait and see for next platform if it is made available as a PTECZ.

The next candle was again a big red one down.

7. Now observe closely - this RED doji as it turns out is the Fourth PTECZ. Vow another platform to be interested in boarding the train (opportunities after opportunities!!!). Do the same process draw the PTECZ and extend to the right. Enter when breaking the low of this PTECZ or wait to see if it will return in the future albeit at less profits compared to earlier entries. And what happened it did!

8. The next big red candle after that - its upper wick flashed in to the doji PTECZ and rejected in earnest. So another entry point.

This is the picture you should be able to read as the case may be with your TF. In this case since it was D1, you could lower the TF to break it down further to fine tune the PTECZ's and that is what the message is in this post with examples.

Do not waste your time with entries such as exact values 1.3577,...... as that is what you are focused on and is self defeating. That is the ultimate goal but do not put the cart before the horse!!

This is all in one and importantly PA in PTECZ. Now practice and use it by drawing on the chart and be prepared to see the next day in real time - just observe and see how price stalls in these regions before the next move. Go with the Trend and not against until you are successful.

The other charts in the post are more of the same in LT to find and refine PTECZ's and entries. Remember the PTECZ is a candle and can be used as a zone candle too for entries and that is what Dadas showing in the next picture with the green bar at the upper wicks of the candle. He is showing you to think and not a cookbook recipe - the idea is to get as best an entry as one can so you can have a better stop loss.

Confidence will grow. Know one thing - in this business when you are correct, the joy you feel is immeasurable (you will undoubtedly experience it) as you have done with reasoning and thinking and not fly by the pants and get lucky as failure is right behind!!

The other refinements leave it for another day as it will get you frustrated and those may be miniscule compared to the big elephant explained to recognize. IT is not difficult at all!!!!

Hope this helps - Cheers!!

Jee, thiswas way longer than I though but if it helps your thought process, use it!

Sam

Thanks for your very helpful explanation. In the rush to Enlightenment, I overlooked the "ES" as I was just focussed on FX charts. Anyway, its all good now.

Oh Dadas,

But in my previous post I wanted to know not about tf, rather 43200! I do not know ant time frame called 43200! what these digits stand for? This is my last question of the ancient period (as per your reply)!

And if I find this thread late and it is suggested by you to read the whole thread (with which I agree) then I must ask you in ancient time's (page 3) questions and I think you are jumping somewhere from the Page 3 ! I will do what u just said (try to mimic...) so you can stay in peace that I am not going to ask you any more ancient questions! I have another option to ask those who have already understood what you are saying at page 3...

MN = 43200
W1 = 10080
D1 = 1440
H4 = 240
H1 = 60
M30 = 30
M15 = 15
M5 = 5
M1 = 1

If you wanted to use the Custom_Zone_Candle, you should have read this info, already?
Otherwise, your ability to use this tools is limited to only the default settings.

The fact that you see "MN" in the MT4 tools is just what you see.
Actually, there is no MN Timeframe, only 43200 minutes Timeframe.
When you are clicking the "MN" icon, you are sending data to the platform
to run the 43200 Timeframe plotting program.

Using my indicator-tools requires a little technical knowledge.
Using other indicators requires a whole lot of technical knowledge,
which people don't realise, most of the times, and that is another
big reason why they can't Profit from the "typical" indicators.


I hope you can really appreciate Sam's reply to your doubts!

He has just witnessed Enlightenment and look what he can do!

It is actual Forex Art, it is Candlestick Poetry.

I can read it again and again, every time the picture just produces in my mind!

Some people think Trading the Financial Markets is Technical.

Some people think Trading the Financial Markets is Fundamental.

We are just proving, that Trading the Financial Markets is Art, is Poetry, is Painting!

Sorry Dadas, I just read it and wanted to let u know that I got it but before u got me!!(lol...)
I am at my second home and thus not installed the custome zone candle the PC here I got! Will do this tomorrow or Monday...

Thanks

yeap dadas...
sry i`m not really fluent in english....
thx for your analysis on EURUSD.....
after show your chart.. i got an enlighment from my way hehe
i just saw a big map abit differently from yours..
after all i not a day trader that watch chart every minutes.....
will keep learning read chart from smaller tf from now on... for OP
after i zoom in smaller i think i can spot PETCZ now... hope so
thx btw

Dadas,
Awhile ago I had this thought that candlestick charts looked very much like a musical score -so you obviously hear the music and some of us are still tone deaf - like life really

I know.
Getting rid of your old habits is very difficult, or very easy.
It is your mental choice.
If you choose to get rid of your old habits, you just get rid of them.
If you choose that it is difficult, then it is difficult.

Actually, I had this idea, once, that provided the proper tools,
the Blind could Trade the charts just as well.

If we can't get a narrator to read the Candlesticks out loud,
some kind of Candlestick-pitch tone could do the job.

And, it wouldn't even be that difficult to write such an mq4 indicator,
it would just take a library of diffrent pitch tones in the Sounds folder of MT4.

Sam's bar by bar example analysis, has helped clarify the thinking and there is no longer the need to search for precise entries/exits, or work out a set procedure.
As the AUD is the local currency, it is of special interest so decided to check out the AUDUSD and noticed that the Monthly PTECZ may have an important clue to future moves.

This is clearer on the weekly with 1.05 ceiling and CP hovering above the monthly.

Daily action is totally confined to the LOWER weekly.

On the H4 its bouncing between .96 and .94

Even clearer on H1.

Finally the M5 with M15 PTECZs.