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Price Action in Day Trading by Dadas

  • #3,161
  • Sep 25, 2013 3:53am Sep 25, 2013 3:53am
If you want a better picture, use this script to plot your PTECZ,
or any other Candle, for that fact.
It adds the Close Price Line to the PTECZ Rectangle.

Study Price Action in regards to the Rectangle and the Close Line.
Attached File(s)
File Type: mq4 111_Draw_HLBAR_CLine_Zone.mq4   3 KB | 420 downloads
File Type: ex4 111_Draw_HLBAR_CLine_Zone.ex4   3 KB | 347 downloads
Trade the facts, not opinions.
  • #3,162
  • Sep 25, 2013 4:35am Sep 25, 2013 4:35am
Quoting EaglePip
{quote} 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
Funny thing, EaglePip, I read that post you are posting here.
Obviuosly, that guy was very confused before he "understood", so were you.

If anyone ever said "go short because of Support", that means this person hasn't got a clue!

Support is just Support - a Potential Demand Zone or otherwise the Supply Zone if Price breaks down.
So, if Support becomes Resistance, then it becomes Supply.
If Support proves to be Support, then it is Demand.

There is no Demand or Supply unless the Market proves it to be one of them!

Every Support is Potential Support, thus Potential Demand.
Every Resistance is Potential Resistance, thus Potential Supply.

There are no definite Zones on the chart that Price must obey!

So, this is just the begining of your "understanding".

What is a Demand Zone?
A Zone where there are enough Sellers to satisfy the Demand of the Buyers.

What is a Supply Zone?
A Zone where there are enough Buyers to satisfy the Supply of the Sellers.

But it only becomes the Zone if the Market confirms that, not sooner.

Understand this, and you are on the good way!
Trade the facts, not opinions.
  • #3,163
  • Sep 25, 2013 5:23am Sep 25, 2013 5:23am
Quoting Dadas
{quote} Funny thing, EaglePip, I read that post you are posting here. Obviuosly, that guy was very confused before he "understood", so were you. If anyone ever said "go short because of Support", that means this person hasn't got a clue! Support is just Support - a Potential Demand Zone or otherwise the Supply Zone if Price breaks down. So, if Support becomes Resistance, then it becomes Supply. If Support proves to be Support, then it is Demand. There is no Demand or Supply unless the Market proves it to be one of them! Every Support is Potential...
Another thing is the issue if the "trader" understands trading at all.

You can Sell Short or Buy Long.
You can Sell Long or Buy Short.
You can Sell or Buy.

It seems to me that an excruciating number of the "traders" don't have a clue what the difference is.
So, they are unable to use the tools they have been provided with.

"Trading" without the proper education is like trying to disarm a land-mine knowing only that it is a land-mine.

All I can say, is good luck, cause you're going to need it!

PS. In real Trading, those options are just the tip of the iceberg.
There are many, many other types of Orders, only they are not available on the MT4.
Trade the facts, not opinions.
  • #3,164
  • Sep 25, 2013 6:16am Sep 25, 2013 6:16am
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh4.png Size: 37 KB

Now, you can watch M5, cause you know your way.
So, you need the train which is going your way!
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm5.png Size: 28 KB
Trade the facts, not opinions.
  • #3,165
  • Sep 25, 2013 7:37am Sep 25, 2013 7:37am
And, I got SL on this one, but the question now is why?
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm5_sl.png Size: 27 KB

The answer:
Because the Sell Stop got triggered too early.
Because I didn't adjust my Sell Stop.
After seeing the M5 situation, I should have waited for M5 Candle to Close below the Blue Line.
Thus, I should have readjusted the Sell Stop Lower, and then acted according to PA.
Trade the facts, not opinions.
  • #3,166
  • Sep 25, 2013 8:09am Sep 25, 2013 8:09am
Now, another thing I didn't do today was my Instrument Scan.
I didn't look over all the instruments to seek out the best Potential Trades.
Why? Because of a headache, the weather conditions...
Yes, those things can influence our Trading ability!

Were there good Potentials? Yes!
Just some examples:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdh4.png Size: 37 KB

D1 PTECZ & H4 PTECZ + PA.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh4.png Size: 36 KB

A beautiful D1/H4 PTECZ combination with PA! (Long)

However, the Market lives on!
Trade the facts, not opinions.
  • #3,167
  • Sep 25, 2013 8:32am Sep 25, 2013 8:32am
So, is that Resistance or maybe Support?
We still have no answer.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh4_sr.png Size: 37 KB

Yet, notice that going with the direction of the Trend Candle would have given us TP.
So, this is to prove that if you put your TP where others put their SL, you are the winner!
I had put my SL where everybody does, so I got what I asked for.
Trade the facts, not opinions.
  • #3,168
  • Sep 25, 2013 8:53am Sep 25, 2013 8:53am
You see, we forgot about the previous D1 PTECZ:
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh4.png Size: 39 KB

That would have prevented the Sell Stop from being too high and thus from getting triggerred.
Trade the facts, not opinions.
  • #3,169
  • Sep 25, 2013 9:03am Sep 25, 2013 9:03am
And, having done the womework properly, in the first place,
there would have been very little room for a mistake.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh4.png Size: 38 KB

Mistakes always hurt you.
Trade the facts, not opinions.
  • #3,170
  • Edited 10:52am Sep 25, 2013 10:14am | Edited 10:52am
Here is the Trade I planned out at night, after 1 a.m. my time,
when D1 Closed on my MT4 platform, which is London time.
I used the previous Big Trend Candle which was Body_ATR(16).
Attached Image (click to enlarge)
Click to Enlarge Name: goldh4.png Size: 35 KB

So, I closed 75% of the Trade at ca. +90 Pips.
The rest is floating and I'm going to trail it by M15.
Trade the facts, not opinions.
  • #3,171
  • Sep 25, 2013 11:06am Sep 25, 2013 11:06am
OK, so I got Trail Stop.
Attached Image (click to enlarge)
Click to Enlarge Name: goldh4.png Size: 35 KB

Still, I am absolutely satisfied!
Trade the facts, not opinions.
  • #3,172
  • Sep 25, 2013 11:20am Sep 25, 2013 11:20am
So, it's obvious to ask yourself: "What's holding the Price, here?"
A look at D1:
Attached Image (click to enlarge)
Click to Enlarge Name: golddaily.png Size: 38 KB

And find the H4 PTECZ at that level!
You've got the answer:
Attached Image (click to enlarge)
Click to Enlarge Name: goldh4.png Size: 35 KB
Trade the facts, not opinions.
  • #3,173
  • Sep 25, 2013 11:35am Sep 25, 2013 11:35am
So, you see, Guys, the Method does not change! It Evovles!

You, either do your homework properly and know what's going on,
or, otherwise, you're only guessing.
Trade the facts, not opinions.
  • #3,174
  • Sep 25, 2013 11:47am Sep 25, 2013 11:47am
And, thus, back to EaglePip:

What's Support, what's Resistance?
What's Supply, what's Demand?

Where are your Zones and what do they mean?

I hope you can start to understand, now?
Trade the facts, not opinions.
  • #3,175
  • Sep 25, 2013 3:48pm Sep 25, 2013 3:48pm
Can one be proud of +1 Pip?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm5.png Size: 26 KB

I am absolutely proud of this +1 Pip!
This is the closest Entry I could get by Sell Stop.
How did I do it?
By manually trailing the Sell Stop with the retracing Price.
Consider the time and what Market usually does on EURUSD at this time.
I consider this to be a test to any Trader.
If you can do this at this time and conditions with full awareness and knowing what you are doing,
well, you finish this sentence for yourself!
Trade the facts, not opinions.
  • #3,176
  • Sep 25, 2013 4:35pm Sep 25, 2013 4:35pm
Quoting Dadas
.......... I hope you can start to understand, now?
Yes! I see your point. Thanks for taking the time to present all the examples.
True. There are no definite Zones, and treating them all as Supply/Demand is a bit simplistic.
Will remember to henceforth look at them as Potential Zones.
Have to look closely again at your case studies.

PS. Is there a reason why all your candles are the same colour?
I find I need to reproduce my own charts with bullish/bearish candles to get a better understanding of what is going on.
  • #3,177
  • Sep 25, 2013 6:14pm Sep 25, 2013 6:14pm
Quoting EaglePip
Is there a reason why all your candles are the same colour? I find I need to reproduce my own charts with bullish/bearish candles to get a better understanding of what is going on.
Yes, there is a reason.
Though the Trend Candles are clear as far as color is concerned,
the other Candles, PTECZ and Churn Candles have started to introduce a certain confusion to my brain.

At a certain point I started seeing ie. some Green Candles as Bearish and started to think WTF?
My brain was receiving two contradicting pieces of data - Bearish & Color Green, and confusion...
As this was repeating more and more often, at first I thought that something was wrong with my mind.
But, I gave it more thought and figured out at which situations I was seeing the confusion or paradox.
It turned out that it was in the Consolidation Zones with my tools!

So, the only thing for me to do was to choose a uniform color for all Candles!
Only this way the confusion could be eliminated!

And, I now understand the guys who Trade one color Bar Charts!
Trade the facts, not opinions.
  • #3,178
  • Sep 25, 2013 7:27pm Sep 25, 2013 7:27pm
Its almost like you have arrived at Nirvana!
Will have to try that.
Thanks for the explanation.
dp
  • #3,179
  • Sep 26, 2013 3:28am Sep 26, 2013 3:28am
Quoting EaglePip
Its almost like you have arrived at Nirvana! Will have to try that. Thanks for the explanation. dp
Yeah, ultimately, colors are some kind of induced information.
And, we know that Trend is a relative term!

Heiken Ashi invented a variation of Candle charts which
show all Candles in a Trend in one Color, however if you
overlap Heiken Ashi over Candlesticks, you will see that they are different,
because they are calculated on some Average bases.

Then, it is not the real deal, and my tools would have no application.
Trade the facts, not opinions.
  • #3,180
  • Sep 26, 2013 4:17am Sep 26, 2013 4:17am
So, I am doing my instruments scan.
And, I found an opportunity, and got +8 Pips.
Attached Image (click to enlarge)
Click to Enlarge Name: audusdh4.png Size: 49 KB

Attached Image (click to enlarge)
Click to Enlarge Name: audusdm5.png Size: 38 KB
Trade the facts, not opinions.
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