Price Action in Day Trading by Dadas

And, that's your homework.
It starts during the weekend.
It continues every trading day!

Do it, always, you will lessen your risk to minimum possible.
Forget to do it just once, and you're in big trouble!

For Long Term Trading:

Estimated Pip Potential: +150 Pips

You have some unusual pairs there.
Doubt that many brokers would even have the Hungarian Florint or the Czech Koruna.
Can see a definite pattern though, most of them, like the Aud are trading the lower band against the USD.

I've been thinking on Philipp's EURUSD Short Entry for Long Term Trading,
because as you can see, he Entered on a classic SD pattern, yet he was
nearly SL'ed and thus he has been under a lot of psychological stress and uncertainty.

This is a good case to study because many Traders experience similar situations, very often.
Many times they Lose or Close their Trades not having enough confidence in the situation.

So, having my tools, I decided to take another look at this Trade:

First, I plotted the W1 PTECZ's (Green Zones).
Next, I plotted the Between Week Trend Lines.

This gave me the first answer - Price was still in general Up Trend, on Consolidation.
Price didn't decisively Break the Up Trend Line.
Now, we can see the Down Trend Line.

Naturally, before this week Ended we couldn't see the current W1 PTECZ, but
we could find a historical PTECZ at this level during the week when D1 PA suggested it.

So, the conclusion is that Philipp did the right thing, it was a good Entry, very Early Entry.
However, without W1 Trend confirmation, but then, he would've had to wait for W1 Break Out.

Now, we can see the obvious level where Price might have a problem if it goes Down.
It is the S/R Level marked by the 2 Dash Lines.
This Level is about 150 Pips away from current Price, thus it is the proper Target confirmed by the Body_ATR.
And, Custom_Range_Stats, as well, for the fact.

Is there any guarantee that Price will reach this Level in the following Week or two?
Of course not!
However, we have done our best to read the situation and that is the best we can do!

"Consistent, repetative action upon similar Market conditions
confirmed with the help of a checklist is the whole secret to success in any trading.
Not being able to make up ones mind is a guarantee for failure!
All the rest is just plain BS talk for the ones who can't make up their mind."

My own comment to one of the videos on youtube.

Hi, Dadas, I tried very hard to follow your thread, and tried to do the same practice as you did at the weekends. Just found that the Body_ATRs are all different from each pairs. I don;t know if I missed sth or I haven't understood the method. How do you define those ATR numbers? Could you please explain the procedure in detail? Thanks.

I had the exact same problem and had to exit with small loss.
Was looking to see if it was possibe to detect change in PA on the 1M.
Your analysis gives a much better clarity.
Applied the technique today, very small tp and got 4 consecutive wins!
I did use !M to look for good entry.
Price is now unable to break away from the 1.3500 BRN.

ena816 & EaglePip,

I can clearly see what stage you guys are at.
Don't worry, it will come, just needs a lot of chart-hours practise and thinking.

Obviously, I see that you are still very emotional and thus can't see clearly.
I'm talking about Price Action on the chart.

Any ATR or ADR is only informational.
How many times must I repeat that?
It is not written anywhere that Price must hit that Level just then.

Of course you must always think and readjust the Body_ATR(X) number,
c/z Volatility of the Market changes a lot.
You can see Volatility by the lenght of High to Low of Candles or by the length of the Candle Bodies.

If you want to be more successful, use Body_ATR(1) and make very quick Entries and Exits.
But, it's never as simple as that, c/z after a very Big Move, the Volatility might suddenly fall.

You must be aware of what you are looking at on the chart.
And, you must see the context - Market has a certain structure, sort of cycles.
You can't just input ie. 6 and want it to always be working!

For the same reason people lose by using MA indicators c/z they think some default inputs must work.


They don't get the idea that everything changes and unless you can adapt to the changes, you will lose.

Look at this GOLD example:

The green rectangles show you some cycles.
But, inside those cycles there are other ones, the Consolidation Period.
So, if you want to take Body_ATR of the Big Candles during the Consolidation Period, how do you expect that???
You can only do that during the next Trend Candle.

During the Consolidation Period all you have is what the Market gives you,
max the Body_ATR of the longest Candle of that Consolidation Period.

Hope this sheads more light, but really guys, start using your brains!
Nobody told me what I am telling you. I figured that out by myself.

PS. The Body_ATR on the above image was not adjusted, so don't pay attention to this one.

And now, presenting, the latest upgrade to my method:

What's the upgrade?
Heiken-Ahsi chart!

Having my tools, including the plotting scripts, all I must do now,
is learn to identify the PTECZ on the Heiken-Ashi Candles, which is not a problem, at all.

Of course, my Body_ATR_Levels.mq4 is far more advanced than the simple version.

I am not telling anyone to change your charts to Heiken-Ashi.
I am only showing you my evolution.

Oh, and BTW, I am officially allowing Heiken-Ashi charts on this thread.

So, now, using the Heiken-Ashi Candles life becomes even more simple.
One must only adjust to/understand the way these Candles are plotted.
They don't exactly represent Price Levels, thus a Price Line is very useful.

So, using the Daily Range Lines from Daily_Range_Stats,
or the Custom Range Lines from Custom_Range_Stats,
we identify the PTECZ Zones for our Ceiling and Floor.

Using Body_ATR_Levels we can figure out the safe Pip Potential for our TP.

Also, using Body_ATR_Levels functions we can see the Last Close Price and the
STOPLEVELS - if your Broker has min distance for TP, SL, and Stop/Limit Orders.

This we can use to Open our Orders no matter if on high Tf or low Tf.

The Heiken-Ashi charts will help a lot in holding the Trade until we get what we are after.

Of course, as always, we must let the Market take us along with it.

Following on that one, here is the current situation on GOLD:

You see that a cycle has completed.
Thus, expecting the Big Pips now, would be unreasonable, though possible.
To be on the safe side, if you're looking for a Trade, you should be doing max Body_ATR(5).

Thanks for explanation on points to be considered when deciding X value in Body_ATR(X).
Must admit it was on the chart, but had not used it. Was focussed more on entering in the right direction.

Beginning to get a better understanding in use of Daily_Range_Stats and the 111_Draw_HILO_Zone and Draw_Shadow scripts.
Wondered why the DR_Quadrant_High line was not being drawn and spent a while to understand it better.
Found the problem was an extra "DR_" in the Object Create line:
ObjectCreate("DR_Quadrant_High",OBJ_TREND,0,0,0);

Using HA in combination with PTeCz should make it much easier to spot price reversals. Have found that 1M tf helps in a similar way.

Following up, still, there was a pending Buy Stop.

It got triggerred when I wasn't looking and went opposite direction.
Basically, I didn't want it to get triggerred just then, but if it happens, I don't panic.
I manage my Trade instead of asking the Market to take my money.

Thus, when a new setup appeared, I doubled the Lots in the same direction.
It was very, very late, though, so I set the TP's at a total Profit Level.

As you can see, the Price went all the way up where I initially had planned.

Anyway, the total result was still good Profit.

Today, since on GOLD I didn't get the chance to Short on the previous H4 Close,
I have to wait for my current H4 to close in order to see if I can go Long.

So, having some time, I decided to have a look if I can find a Trade on EURUSD by Body_ATR(2) on Tf = 60.
And, there was an opportunity on H1 Candle Close to follow up on a Short on Retrace:

Because Body_ATR showed ca. 9 Pips, I closed part of the Trade @ +10 Pips.
The other part is still floating with SL moved to just a little Profit.

That trick just never works for me.
I guess it's better for me to Close the whole Trade instead of playing around.

I ventured out for 20 Pips.
Went Long by Buy Stop - everything worked fine.
When at +10 Pips, I put SL at +1 Pips.
That's all I got, oh well...

So, the conclusions are clear, clear as they can be!
Every time you use a tight SL, that's what you are going to get!
Maybe, by chance, once in a while you will get lucky and take some more Pips.

The only way to Profit is to Take the Profit when it's there, even if it's just 10% of the Trend.
Even if you only use your intuition which tells you to Close now!

And, learn to manage your Trades instead of allowing SL to take care of your money!

Ask any Big Bank Trader or serious Hedge Fund Trader if they are using Stop Loss?
They will only laugh at the idea!

With the right setup and the right set of mind, I guess any time is good for a Trade:

+15 Pips at this hour is great for me!