Price Action in Day Trading by Dadas

Dadas,

Are the files posted on the first page no longer working? I've tried to plot them onto my charts but they don't seem to work! Any help appreciated, thanks in advance.

This is a known issue, it has been happening since the begining and I can't help it.
Try using a different browser. This has worked for others.

OK, pipsane, so what's your issue here?

Where is the trade?
Where is your analysis?
Why did you get stopped?
Where did you Enter?
Which direction?
Why there?
Why this SL and not another?
Where was your target?

Where is your plan?

What you have posted is just the obvious.
We always look for an opportunity to Trade Long or Short or both.
That's what trading is about.

If I were to be planning out a Short On Retrace, I would look at this:

This picture tells me that it is not right.
TP is "out of range" and Price is braking up the Entry Zone.
So, I see a W1 BO Long - which means it is an important Support/Resistance Break Out Level.
That's where I would be looking for a Short.

Now, looking for a Long Entry I get this picture:

What's wrong with this picture?
Well, potentially Price did go up at this Level in history.
But, the W1 BO Long is in the way as Resistance, still.
And that's about as much as I would count on, here, to the W1 BO Long Line.
If that is good for you, it's Long on nearest retrace to the Red Line.

To be more precise:

So, the Price can always go Down or Up.
If Trend is Bullish, it is more likely to go Up.
If you've got the BO Lines, just look if Price is Breaking them and in which direction.

Does that mean you will never make mistakes?
Of course you will make mistakes!
But, that's where the Risk/Rerward Math helps you.

So, let's analyze the EURUSD situation on Friday from M15 perspective:

Before the Bullish Break Out:

1. W1 BO Long Resistance,
2. Price went Down from that Level and got stopped at that Level,
3. No signs of Bullish Srength, signs of Bearish Engulfing Candles,
4. Daily Range still good for Pips,
5. TP Level at proper PTECZ Level with even more Potential room.
From this perspective conclusion is simple: Go Short!
Obviously, the Market decided to do the opposite, so we get SL.

After the Bullish Break Out:

1. W1 BO Long now becomes Support,
2. Price Breaks historical M15 BO Long,
3. Sign of Bullish Srength,
4. Daily Range still good for Pips,
5. TP Level above PTECZ Level, so we should not count on that many Pips.
However, the Bullish Break Out has set conditions for a Long Entry.
The only drawdown for Day Traders is the late hour on Friday.

Now, let's analyze that from H4 perspective:

During this month Price has reached the Floor and bounced Up.
Price Broke Out the first W1 BO Long with 2 strong Bullish H4 Candles signifying Bullish strength.
Price Broke Out next W1 BO Long, however with less strength, and consolidated at this Level.
Bearish counter attacks still weaker than the Bullish pressure.

Conclusion:
Trading Short is much more risky than Trading Long.
Thus the direction is: Long On Retrace (LOR).

Pipsane, trying to look proffesional can not fool us, here.
Your "good advice" means nothing if you can't support it with a reasonable explanation.

And, your "analysis" is just a bunch of unsupported opinions.

"Price can go Up from here, but if not then it can go down from there."
Anybody can say that and it means exactly that - it means nothing.

where I can down load , murrey dadas math .

I very much hope this great thread is going to continue . I want to learn more from DADAS

Hi Dadas,

Use your indicator before, I want to ask one question about your indicator. I see you have build one function is that when you use M30 chart, you could draw the H4 bar pattern based on that M30 chart.

I have search this function indicator in internet but no result. Would you like to share only this function indicator or if you could tell me the proper name for this indicator, that will be helpful.

Thanks a lot!

Yes, attached please find the original version and my own remake.

In the m-Candles_ZoneCandle_Style.mq4 I have added a little function to Plot Open/Close Lines
of 3 specified Tf Candles back according to TfBar (the Tf you want the Candles from) and Start.

I use them without plotting the ZoneCandles themselves by NumberOfBar=0 (then you get just the lines).

I use Start 2 (plots from Candle Index #2 back), so I get the Lines ie. from H4 Candle 4, 3, and 2.
The lines are visible only on Tf's lower than TfBar.

Thanks a lot Dadas, really helpful!

So, guys, we have travelled a long way since March 2013.
Seems so not long ago, yet, seems likes eons away.

I know the answers, now.

Is Profitable Trading possible? Yes, it is.

What is the secret?
It is our Ego, and only our Ego!

Do you understand what it means to completely give in and forget the Ego?
Most probably you don't, even if you think you do.

If you can humbly listen out the lowest of the youtube videos, the most "unproffessional" looking forex trading videos,
and get something valuable out of it without any bias whatsoever, then you are there.

Yes, trading is easy, if you can actually stop thinking that you know anything about it.
Yes, trading is easy, if you just follow a set of rules that make up a definite strategy.
Yes, trading is easy if you accept Loss and always follow the SL Risk/Reward rule.
Yes, trading is easy if you always wait out your Take Profit Level.

The math has to work, then. There is no other way.

Trading is only about the psychology and the Ego.

If you add the understanding of the Market, Trend, Consolidation, you need nothing more.

How many cycles does one need to get there?

I suppose that is very individual.

Is it possible to write an indicator that can show you how to trade?
Yes, it is. And, it is a very simple one, too.

Do you need an indicator with some strange signals?
No, you don't.

All you can use is an indicator which plots out your potential Trade.
Then, you can either take the Trade or not, the choice is yours.
You can Trade by the rule of the Math, taking every potential Trade and letting the math work,
or you can add your understanding of Trend and Consolidation to take only the more probable Trades.

I am sharing with you what could be the simplest most effective indicator ever created.
Or, the case might be that someone has already created something like this before? I don't know.



It is an indicator.
It plots out the potential Break Out Trade.

It will plot out only one trade.
This trade will stay on the chart until you have deleted it.

To delete the plotted lines you can use the handy script:



The idea is very simple. The indicator checks if the closed Candle of the opened chart Tf
is a Break Out Candle or an Engulfing Candle and then plots out a potential Trade.

You input the parametrs:
Text_Color - obvious;
BO_Quotient - how much bigger the Body of the BO Candle should be from the Body of the preceding Candle;
RR - your preffered Risk/Reward Ratio;
Study_Mode = true if you want to study the indicator on historical data (default= false);
Study_Shift - the index number of the historical BO Candle you want to check out the Trade plotting on.

To get the Index Number of any historical Candle you can use the handy script:


Just Drag&Drop it on the Candle you want.

This is the whole strategy in one single and simple indicator.

If you combine it with your understanding of the Market, it becomes the ultimate Success Tool.

Yes, if you think you need more explanation, do contact me on SKYPE!

After many years as a part time betfair trader i have moved onto Forex as one, it interested me more and two, i hope to be able to trade fulltime as a forex trader having mastered the physiological aspect of trading through many years as a betfair trader, removing emotion and just trading what i see and not what i think will happen. I have studied Forex for the last 12 months without trading live, but feel i am ready to start trading with a small live account, i believe i have all the bases covered to make this work that you mentioned except one as you can see below. I can follow the rules fine, but i do not have a good strategy yet with the rules to follow, that is all i am missing.

"Yes, trading is easy, if you can actually stop thinking that you know anything about it." PASS
"Yes, trading is easy, if you just follow a set of rules that make up a definite strategy." FAIL
"Yes, trading is easy if you accept Loss and always follow the SL Risk/Reward rule." PASS
"Yes, trading is easy if you always wait out your Take Profit Level." PASS

Hopefully i can work out how to use the indicators/strategy you mentioned and have kindly given above, i am fine with setting up charts but haven't ventured much into the indicators and how to use them. Any help with this would be great, i am using the GKFX Metatrader platform.

SniperNZ

It is simple.

There are 2 patterns (Significant Brake Out Candles) to look for, or rather the indi is looking for them:
1. The Engulfing Break Out Pattern,
2. The Second Candle in same Direction Pattern.
Of course, keeping in mind that the Engulfing Candle Body or the Second Candle Body >= BO_Quotient * Previous Candle Body..

Then, the Indi checks the previous Low or High for SL.
It is either the Low/High of the SBOC or of the preceding Candle.

Thus we get the SL - Red Line.

The Blue Line is the Close Value of the SBOC.

Next, the Goldenrod Dot Line is the Break Even Level, which is 1:1 of SL Level.
Thus, when Price reaches this Line we take the SL to Break Even.

The Goldenrod Solid Line is the Take Profit according to the input RR.

The indicator works on the Timeframe it is applied to.

But, since it won't plot another Trade unless all the existing lines have been deleted,
we can use it on H4 and when a potential Trade is plotted, we can go down to H1 or whatever.

The study mode is for learning how it works.

All the knowledge contained in my thread is just a great help to trade better.

If you can recognise PTECZ, TBCZ, Break Out, and Trend, you will avoid Entering the Market in the wrong direction.

It doesn't mean that you won't lose from time to time, or Break Even, but it will happen much less often.

Anyway, even a brainless application of this strategy, considerring RR is 2 or more, simply must lead to success.
Only a brainless application requires us to be brainless in all of its aspects: SL, BE, and TP - always.

Dadas,

I had three successful trades today using your indicator , i worked out how to add it to my charts, the lines popped up on screen for my entry,SL and TP , i just set the trade as the lines told me, let it run and moved the SL to the gold dotted BE line when required, couldn't be simpler! , thankyou for that , everything i have learned and read points towards having a very simple system and just follow the rules and remove emotion. One thing i can't seem to work out is the "trade layout delete" , i select it and nothing happens, the lines still remain on screen, so im deleting them manually at the moment, am i doing that correctly ?.....also one other thing, should i be ticking the box for "allow DLL inputs" in the indicator.

Many thanks again, 3/3 for me today , it won't always be that way everyday i know, but that won't affect my mindset in the slightest.

SniperNZ

Dadas_BO_Trade_Layout_Delete.mq4 is a script, so it goes into:
Meta Trader/experts/scripts folder.

Then, when you want to delete the Line Set, you Drag&Drop it on the chart.

Sometimes the MT4 gets saved Objects from template, so it is good to clean up the chart from time to time by deleting all Objects.

I have a simple script (notice "SCRIPT" !!!) to quickly clean up the chart:


Also, if anyone is interested, I modified the indy a bit by introducing Delete_Last_Set.
If set to true, it will automatically delete the existing Set of Lines when next Candle Closes.
Or, delete the existing Set of Lines when in Study_Mode.
Weather and when a new Set of Lines will appear depends on the conditions.



PS. No, I don't use DLL's so it doesn't need to be checked.

And, the new modified Dadas_BO_Trade_Layout.mq4 requires also the modified

I really hope this thread will be continued. I am browsing the thread from the first page. Thanks a lot for Dadas' sharing.

Dadas_BO_Trade_Layout.mq4 update!

Meta Trader4/experts/indicators/
Meta Trader4/experts/indicators/
Meta Trader4/experts/scripts/
Meta Trader4/experts/scripts/
Meta Trader4/experts/scripts/
Meta Trader4/experts/scripts/

This new version allows to plot one Trade Layout per Timeframe.
So, we can ie. start from D1 to get the bigger picture:

1. Get Index of the Significant Break Out Candle - here Index = 3,
2. Use Dadas_BO_Trade_Layout_Delete.mq4 script to delete the existing Set of Lines,
3. In Dadas_BO_Trade_Layout.mq4 input Study_Mode = true; Study_Shift = 3.
We, now have the Longer Term picture of which direction Price is heading in, and
with our knowledge of how the Market works and consolidation, we can
judge if the Set of Lines on this picture makes sense, IOW, is it reasonably possible for
the Price to reach our BE and/or TP Lines.

We can, then, switch to H1 to get our Day Trading Trade Layout(s):

I prefer using my brain in opposition to the brainless approach, so:
1. Trend is Bullish, thus I am interested in Long On Retrace,
2. Get Index of the Significant Break Out Candle - here Index = 9,
3. Use Dadas_BO_Trade_Layout_Delete.mq4 script to delete the existing Set of Lines (will delete only those of this Tf),
4. In Dadas_BO_Trade_Layout.mq4 input Study_Mode = true; Study_Shift = 9.
We now have our Potential Trade Layout which we can execute in the brainless approach, or again,
use our knowledge and ability to read Price Action in order to decide if and when to Enter the Long Trade.

Price can Retrace more, so we can never be 100% certain that this is the Swing Zone, but
we have got our Trade Layout considerring the Risk/Reward ratio, so it is only up to us, now!

Ultimately, the decision is yours.
The SL Line doesn't have to be taken as a must.
You can place your Stop Loss a little Lower/Higher.
You can make your own rules about how to work with the BE and TP Lines.

In order for the math to work, the conditions must be similar, always.
So, you must Trade the given Tf, always.
If it is H1, then you can't jump to other Tf's because you don't see an opportunity on H1.
Especially not to higher Tf's, because you will get a wider SL, and the math will be spoiled if you get SL.

In the end, the decision is always yours.
You are the Trader, you decide what to do or not.

Consistent useage of the methods/strategies which work for you is the key to your success.

I have learned a lot from this guy . Thanks