Price Action in Day Trading by Dadas

It's not my problem that you don't take your Profits!

I didn't say this is a rule and you must take 100% of ATR...

You had Profit, you didn't take it.

I am not giving you Nobrain methods - Nobrain methods don't work.

Only intelligent Trading works!

Besides, Price did go above 99.05, so your TP should have been taken.

You have Body_ATR(5), so 5 candles should be the minimum to wait, if TP is not hit and Price is going good.

Please show me the Trade on the chart, take it from history and put it on the chart, so I can see what you did.

A Trade I just took by the Body_ATR method:

This one was from M15.

Now, let's do it the right way:

H4 has closed as Trend Candle.
There is a retrace going, so I set a Sell Stop.
Initially TP is @ 27 Pips, conservatively.

+5 Pips secured, and waiting.

+13 Pips secured:

Manual Close @ +22 Pips due to M5 PTECZ just before TP.

Now, after the next 4 hours I repeated my style.
The only thing, I freaked out too soon.
Nonetheless, another proof of the effectivity of this method.


That is, if you know what you are doing!

Anybody knows why I went Long?

I think Historical PTECZ right and a large candle! You went so long...

Regards.

Hi Dadas,

I think you have PTECZ after down Trend candle. This mean swing style

Correct me if I'm wrong.

+11 pips GU: Buy stop @ H1, manual closed due to M5 PTECZ and next candle reject from top

Maybe it turned out to be Swing style, hehe...
PTECZ - correct, and Price Action on PTECZ and on Current H4,
which I can not show you right now, though you can see it on M5.

+33 Pips when I wasn't even looking!
Set it up, went away from computer, came back and that's it.

Just out of curiosity, let's see what M5 says:

The reason you went long can be seen very clearly on the Mn chart and also W1!

It was quite funny yesterday, got an email from another forum.
The analysis was: "Cautiously Bullish" on EURUSD 1H,. support at Fib.. trendline..100 and 200 SMA.
Anyone who looked at the Weekly chart would get the real picture!

Why´s that EaglePip? Am I just don´t get it right now or why is that the reason he was long here? Aren´t we at resistance on those time frames? Can you explain, please?

Looking at the PA the bands highlight areas where price has reversed. On the weekly, it has been rangebound since 2011!
It is now just approaching the upper band and based on bullish/bearish candles, we could see a reversal, but would depend on lower tf candles.
Anyway, that's how I see it!

Late reply from Europe here. Still here tonight. Also, I like that this thread is throwing out new ideas every now and then. I didn´t pay too much attention to this method until the day before yesterday to be precise.

I mean yeah, cleary EaglePip is right the MN and WK are up, however price is hitting resistance on both time frames. So, is that the proper way to explain why Dadas went long here? Maybe because the TP was very close to the entry?

Furthermore, I have to say in all honesty and I think many can agree on this. In the recent past when I became better in trading and began to understand I very rarely had a loosing trade. Really! My hit rate was almost perfect. And that´s where this new idea comes into play. Often times price comes back and takes one out even tough there has been a profit before. Interestinlgy, I somehow came across this issue before. People always say, well you got to enter on the smaller time frames. But, for example can we actually enter on a 5min chart and expect price to reach a 1h target?

Is that also part of your thinking Dadas? Did you realise that. You enter on the time frame you are seeing the set up? THe smaller time frames are just for illustration purposes?

Quite often I would read that it was important to look at certain price levels as supply/demand and not as support/resistance, but the reason was never explained clearly.
When I finally understood the difference it really changed the way I looked at price action.
I found this post most helpful:
http://www.forexfactory.com/showthre...18#post4979718

Christianfx,

There is a lot of truth in your words.
Ultimately, though, you still can Enter from small Tf's, but it never worked the way I wanted it to work, until this new evolution.
The secret is what I told P.Action - THINK!

Of course, if you study ATR of M5, you can not expect the Price to reach your H1 goal, or you can.
How? By knowing your Market Volatility, or at least the most probable Volatility (ATR).

Again, I will repeat - THINK!!!

You can not just set your Body_ATR to 6 Candles and expect it to tell you the truth about the Market, always!
Voilatility changes during the Day, during the Week, etc.
My best way to judge Volatility is by the last Trend Candle, so you must always count and adjust the Body_ATR(X).

This is today's first example:
I Entered on Market a little above the Entry Line.


About my Long Entry I asked why, I posted my answer:
It was only by PA on just Closed H4 PTECZ
and PA on the current H4 Candle which I could see by watching PA in Action on H4.
That you can only see by watching it or later by comparing with M5 for example.

I never looked at W1 or MN.

So, it all ends up to knowing the truth, the real Potential Volatility and expect not more than that, or even 0.7 of that.

Because, ultimately, it's not about struggling to take 90% of a large Trend, but about consistent Profit!
Thus, you can do this method on H1, but be reasonable about the ATR.
If you can, use M5 to Close the Trade before it gets the chance to get down to 0 or SL.
Use M5 to Trail your SL, like in my first example from yesterday also.

And, if you get the right picture on H1, you can then Enter from M5, knowing which way and where to you are going.

PS. The above Trade was counter Trend and only part of the retrace.
So, if I hadn't figured out the true Volatility, I wouldn't be able to close the Profit like that.
I would be waitng to see, maybe 20 Pips, and either SL-ed or waited a long time.

One more thing:

Watching PA on M5 Candles as history or watching PA of the current Candle Close Price (Bid) is the same thing!

People have a lot of problems with watching PA of the current Candle Close Price (Bid).
They say that it doesn't tell them anything.
But, the Current Price Line (Bid), moves the same way on every Tf.
The Action or Movie of the Action is showing what is happening on lower Tf's.
So, if one can see that on the H4 current Candle Bid Action, he/she can see what's happening on M5.
No need to switch and switch, and switch.

But, on M5, you can see the Action more clearly, Candle by Candle.
The trick is to know what is happening Globaly and where the Train is going.