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Price Action in Day Trading by Dadas

  • #3,121
  • Sep 21, 2013 9:43am Sep 21, 2013 9:43am
Quoting Dadas
Besides, who places any Buy Order just under the Resistance Trend Line, when logicaly, the probability of going further Up is very small? P.Action, you answer this question for yourself! {image}

Okey.

simple logic


Draw TL, Look Trend, check your position(where is TLs). wait for candle close, Enter your buy or sell stop order previous candle high or low, enter your TP target as BODY_ATR indicator mentioned.


i try this. i havent use body_atr yet. so i should try and after that i can speak.
  • #3,122
  • Sep 21, 2013 9:52am Sep 21, 2013 9:52am
Now, let's comment on the second situation from P.Action's example:
Candles 1,2,3,4,5, where 1 is the Trend Candle for Buy Stop:
Attached Image (click to enlarge)
Click to Enlarge Name: audcadh4_ex3.png Size: 35 KB

Once again, the secret word is "THINK".
Obviously, taking the average of the last 5 Candles is a mistake, here,
because Candle 5 is clearly out of the context!!!
So, what you need to do is take the Body_ATR of the last 4 or even 3,
because of the Consolidation.
And, that's the only thing you can count on, because that is the Volatility!

No indicator can think for you!
You have got to do the thinking yourself!

Body_ATR(3) = 10 Pips.
Body_ATR(4) = 13 Pips.
The Buy Stop takes that TP just on the Candle 0.
Trade the facts, not opinions.
  • #3,123
  • Sep 21, 2013 10:04am Sep 21, 2013 10:04am
Quoting Dadas
Now, let's comment on the second situation from P.Action's example: Candles 1,2,3,4,5, where 1 is the Trend Candle for Buy Stop: {image} Once again, the secret word is "THINK". Obviously, taking the average of the last 5 Candles is a mistake, here, because Candle 5 is clearly out of the context!!! So, what you need to do is take the Body_ATR of the last 4 or even 3, because of the Consolidation. And, that's the only thing you can count on, because that is the Volatility! No indicator can think for you! You have got to do the thinking yourself!...
Actually, the Body_ATR Lines on the right help you do the thinking,
because they clearly set the context for you to see the limits.
Trade the facts, not opinions.
  • #3,124
  • Sep 21, 2013 10:21am Sep 21, 2013 10:21am
So, 2 adjustments to Body_ATR_Levels.mq4 .

Introducing 2 useful input parameters:
1. Line_Left_Offset - extends the Lines by number of Candles to the left (think Candle Index),
2. Label_Offset - helps adjust visibility of the Body_ATR(X) Label due to zoom issues.
Attached Image (click to enlarge)
Click to Enlarge Name: audcadh4_ex4.png Size: 39 KB
Attached File(s)
File Type: mq4 Body_ATR_Levels.mq4   8 KB | 441 downloads
File Type: ex4 Body_ATR_Levels.ex4   7 KB | 382 downloads
Trade the facts, not opinions.
  • #3,125
  • Sep 21, 2013 12:28pm Sep 21, 2013 12:28pm
Quoting Dadas
Now, let's comment on the second situation from P.Action's example: Candles 1,2,3,4,5, where 1 is the Trend Candle for Buy Stop: {image} Once again, the secret word is "THINK". Obviously, taking the average of the last 5 Candles is a mistake, here, because Candle 5 is clearly out of the context!!! So, what you need to do is take the Body_ATR of the last 4 or even 3, because of the Consolidation. And, that's the only thing you can count on, because that is the Volatility! No indicator can think for you! You have got to do the thinking yourself!...
Yes you are right. number5 must be out of the calculation. there is 2 options in that situation once body atr period must be set 4 or waiting for 1 candle close and body atr'period must be same condition(5 candle period)


but first option is more logical because if new candle is a part of consolidation body atr(4) and body atr(5) will be same.


i dont know if i can explain or not. because of my pre intmediate english level
  • #3,126
  • Sep 21, 2013 3:50pm Sep 21, 2013 3:50pm
Quoting P.Action
{quote} Yes you are right. number5 must be out of the calculation. there is 2 options in that situation once body atr period must be set 4 or waiting for 1 candle close and body atr'period must be same condition(5 candle period) but first option is more logical because if new candle is a part of consolidation body atr(4) and body atr(5) will be same. i dont know if i can explain or not. because of my pre intmediate english level
I understand, however your second idea is strange, because
you must place the Buy Stop Order on Candle 1 Close not wait for the next Candle.

It works best when you see Price Action in Action and place Stop Orders
when you see the retrace (Wick) and Price returning in your direction.

So, it only takes 1 Tf to watch.
If you watch H4, then nothing lower!
If you watch H1, then nothing lower!

You can try M5, why not, only you will certainly only scalp very quickly!

You can do the same on any Tf, and you will see the truth if there is any potential at all.

And, you will understand why everything happened like it happened before.

Additionally, I was doing more accurate study on all my D1 charts setting Bars_For_ATR to 1.
So, the indi shows always the Average of the Closed Candle Body Lenght.
What I saw is amazing!
We might not be able to take the Big 180 degrees Trends by D1,
but we can actually make a money machine out of the small Pips!

So, we can then turn to H4 and catch the Trend as it continues.

I don't know why you can't see it?

I am, truely amazed at what I am discovering!
Trade the facts, not opinions.
  • #3,127
  • Edited 5:41pm Sep 21, 2013 5:31pm | Edited 5:41pm
Quoting Dadas
{quote} I understand, however your second idea is strange, because you must place the Buy Stop Order on Candle 1 Close not wait for the next Candle. It works best when you see Price Action in Action and place Stop Orders when you see the retrace (Wick) and Price returning in your direction. So, it only takes 1 Tf to watch. If you watch H4, then nothing lower! If you watch H1, then nothing lower! You can try M5, why not, only you will certainly only scalp very quickly! You can do the same on any Tf, and you will see the truth if there is any potential...
i drew my opinion

Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.09.22_01h36m09s_001_.jpg Size: 154 KB


Actually it is amazing!


but i think forex traders hope to create more comlex trading strategy because forex system designed as complex psychology.

most of trader feel themself better with too many indicator and too many new complicate trading method. but your last discovery seems so simple. i think simplicity is so good for me. you say you doubled your account in 16 days. if i can succeed like you i throw every other methods to the garbage. there is just one thing for me that try this method and see the result.
  • #3,128
  • Edited 5:25am Sep 22, 2013 5:12am | Edited 5:25am
Swing Weekly Trader's Hint

Body_ATR_Levels.mq4 provides very useful information for the Swing Weekly Trader.

The Swing Weekly Trader's goal is to Enter as soon as they recognise the Swing.
This can be done at least in 2 ways:
1. The more Risky and psychologically more challenging way by Entering only on S/R Zones like PTECZ,
2. The Safer and relaxed way by Entering on Trend Candles upon Body_ATR_Levels.mq4.

Another way would be the combination of the above 2 ways:
1. Recognise the D1 PTECZ,
2. Plot your Trend Lines between the Weeks,
3. Enter in the direction of the PTECZ Candle by Stop Pending Order @ Close Price of the PTECZ Candle,
4. Estimate TP by Body_ATR_Levels.mq4 from W1 chart, Body_ATR(1) or Body_ATR(2),
5. Place SL @ High or Low of the Retrace Candle or Wick.

This is the outline of the proposed strategy.

Now, comes the application of the strategy.

To illustrate this let's analyse the week before, PTECZ 1 and PTECZ 2.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusddaily.png Size: 38 KB

At PTECZ1 we could have seen the above picture, having the historical Floor PTECZ,
the Potential Historical Ceiling PTECZ, and 3 Trend Lines.
We did not have any Swing confirmation.
The Swing confirmation would have been the Closed D1 Candle of Monday.
That would have consumed ca. 75% of the Pip Potential, which is not good news.
So, in order to get more Pips, we need to Enter Earlier, we need to Risk going Buy Stop @ PTECZ1 Close Price.

Thus, at PTECZ2, we would have Risked Sell Stop @ PTECZ2 Close.
We would have SL-ed, but the previous Profit would have been over 3 times larger, which is good news!

Following, we wait for PTECZ3 and continue with the Stop Pending Order Trading Method.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusddaily1.png Size: 39 KB

If you looked closely, Friday was another PTECZ, after PTECZ2, which was a Bullish Candle.
Thus, sticking to the rules, we should have Closed the Short at the very End of the Day, before it had a chance to SL.
Trade the facts, not opinions.
  • #3,129
  • Sep 22, 2013 5:53am Sep 22, 2013 5:53am
OK, so that was history!
What about now, the present in relation to further action?

The present looks like this:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusddaily3.png Size: 37 KB

Friday looks like a PTECZ - we will see that when Markets Opens.
For us, here where we get Sunday Candles, we must wait that out, too.
Trend Lines and Ceiling suggest there is still some room Up.
Not Interesting for Swing Traders.

Thus, Swing Traders will have to wait until a better D1 PTECZ appears.
Trade the facts, not opinions.
  • #3,130
  • Sep 22, 2013 6:08am Sep 22, 2013 6:08am
So, for EURUSD, the following picture makes perfect sense:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusddaily4.png Size: 37 KB
Trade the facts, not opinions.
  • #3,131
  • Sep 22, 2013 6:37am Sep 22, 2013 6:37am
Any StyleTrader's Hint

If you want to get properly prepared for your Trading, let's say on Sunday or Monday,
just calculate the number of the Timeframe Candles in your Trading Style/Term,
and apply that number to Body_ATR_Levels.mq4.

Example:
Daily Traders might want to see the potential layout for the next week.
So, calculate the number of H4 Candles in 5 Days = 20 (4*5=20).
Apply Body_ATR(20) on Monday to the H4 chart.
Check that out with Trend Lines and historical Floor/Ceiling PTECZ.
Attached Image (click to enlarge)
Click to Enlarge Name: goldh4.png Size: 32 KB

If you still have any doubts, or saw something different without the PTECZ's,
I suggest you think again and start using the ideas in my thread!
Trade the facts, not opinions.
  • #3,132
  • Sep 22, 2013 7:02am Sep 22, 2013 7:02am
This is E/J Day chart based on PTECZ and body ATR , trade line.I use script that Mr.Dadas provided.Please comment my chart ....

And H4 too.

Regards all and happy trading.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: New Picture (4).jpg Size: 80 KB
Click to Enlarge Name: New Picture (5).jpg Size: 88 KB
  • #3,133
  • Edited 7:47am Sep 22, 2013 7:30am | Edited 7:47am
Quoting Ariful Mamun
This is E/J Day chart based on PTECZ and body ATR , trade line.I use script that Mr.Dadas provided.Please comment my chart .... And H4 too. Regards all and happy trading. {image} {image}
Ariful,

First, you don't understand the idea of Trend lines.
The MT4 default Period Separators for D1 are Monthly.
OK, you can use the Monthly Period for Trend Lines, if you like.
I use my own Custom_Period_Separators.mq4 so I can have the ones I want.

The idea of Trend Lines is to plot the Trend between the Period Separators.
So, I plot the Trend Lines from Week to Week, max 5 weeks back.
For EURJPY the Trend Lines are like this:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpydaily.png Size: 40 KB

With PTECZ:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpydaily_ptecz.png Size: 43 KB

With Body_ATR(5), for whole week:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpydaily_atr.png Size: 43 KB

And H4 with everything ready:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyh4_atr.png Size: 37 KB

Actually, the proper picture is this one, Low to Low:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpydaily1.png Size: 41 KB
Trade the facts, not opinions.
  • #3,134
  • Sep 22, 2013 7:53am Sep 22, 2013 7:53am
Ariful, First, you don't understand the idea of Trend lines. The MT4 default Period Separators for D1 are Monthly. OK, you can use the Monthly Period for Trend Lines, if you like. I use my own Custom_Period_Separators.mq4 so I can have the ones I want. The idea of Trend Lines is to plot the Trend between the Period Separators. So, I plot the Trend Lines from Week to Week, max 5 weeks back. For EURJPY the Trend Lines are like this:

Thanks Dadas.
I usually use A. Pitchfork so I have mistaken here and i know You are not allowed indicators.
But what about my drawing PTECZ is it ok? Am i wrong?
Regards.
  • #3,135
  • Sep 22, 2013 8:46am Sep 22, 2013 8:46am
Quoting Ariful Mamun
Thanks Dadas. I usually use A. Pitchfork so I have mistaken here and i know You are not allowed indicators. But what about my drawing PTECZ is it ok? Am i wrong? Regards.
Regarding PTECZ, you are not wrong.
All depends which PTECZ you are looking for.

I look for W1 and D1, sometimes H4, historical PTECZ for Floor and Ceiling Levels by ADR.

PS. I allow Andrews' Pitchfork.
Trade the facts, not opinions.
  • #3,136
  • Sep 22, 2013 9:53am Sep 22, 2013 9:53am
Quoting Dadas
{quote} Regarding PTECZ, you are not wrong. All depends which PTECZ you are looking for. I look for W1 and D1, sometimes H4, historical PTECZ for Floor and Ceiling Levels by ADR. PS. I allow Andrews' Pitchfork.

I draw weekly E/J Historical PTECZ. Please be comment.

Regards.
Attached Image (click to enlarge)
Click to Enlarge Name: New Picture (6).jpg Size: 86 KB
  • #3,137
  • Sep 22, 2013 10:59am Sep 22, 2013 10:59am
Quoting Ariful Mamun
{quote} I draw weekly E/J Historical PTECZ. Please be comment. Regards. {image}
Ariful, I said a 100 times that I hate repeating the most simple and basic things!

If Price is in Trend Up, you look for Ceiling PTECZ on historical Trend Up.
If Price is in Trend Down, you look for Floor PTECZ on historical Trend Down.

This is not Rocket Science, this is not Theory of Relativity, this is not Quantum Physics.
Trade the facts, not opinions.
  • #3,138
  • Sep 22, 2013 11:18am Sep 22, 2013 11:18am
@Ariful Mamun,

Price is now going Up - I marked the High with a horizontal line.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyweekly.png Size: 29 KB

Following this line into history I find the importatnt Resistance level:
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyweekly1.png Size: 31 KB

I find the most appropriate PTECZ on Trend Up:
I see two PTECZ Levels, here.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpyweekly2.png Size: 30 KB

When Trend Swings (Reverses), I do the same on Down Trend.
Trade the facts, not opinions.
  • #3,139
  • Edited 2:23am Sep 23, 2013 1:45am | Edited 2:23am
first try body atr

Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.09.23_09h44m15s_001_.jpg Size: 138 KB


After 30 minutes. we can see headshot

Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.09.23_10h22m17s_003_.jpg Size: 123 KB
  • #3,140
  • Sep 23, 2013 2:29am Sep 23, 2013 2:29am
Another one

Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.09.23_10h28m13s_004_.jpg Size: 132 KB


After 5 minutes. hit.

Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.09.23_10h34m01s_006_.jpg Size: 114 KB


after 10 minutes. TP was right decision

Attached Image (click to enlarge)
Click to Enlarge Name: Ashampoo_Snap_2013.09.23_10h36m53s_007_.jpg Size: 111 KB
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