The magical mystery tour of the divine markets
{quote} EURUSD SupDem D1 zone at top (I have it on but check if the zone is correct in my opinion and look for zones the indy didn't paint) The blue boxes represent consecutive H4 bull candles, pink are bear. (momentum, down in this case) By the way, it fell and keeps falling: {image}
Looking goodThe other thing: know where you'd want to be long from & determine if your price is too cheap to sell.
Market is always stuck in a range somewhere, you just need to find one big enough to trade.
The other thing - I'd want to see the basis for the formation of that supply you drew - those indys can be sketchy - needs to have fallen from there like a stone, pref smashing through some supply levels on the way down BAM but that along with the subsequent action you've drawn, looks like it's going down doesn't it?
Stale Wind bending time allows us to make sense of the market
Unfortunately, as Stale Wind is still based on broker bullshit bars it isn't 100%. H4 charts are just a quick shorthand to prevent thinking.
On H4 look for combinations, blocks of things make it easier for our tiny minds to comprehend.
On my EU charts, shows a clear failure of just relying on H4 charts: combined H4 longs had not been overcome on my charts - the last move up was only singular, which is where it unfortunately becomes art and not mechanical. It becomes apparent when dropping to H1 what is happening re broken demand.
It's all guessing - 'about here' is about as close as you can get.
What will make your call even more valid is a minimum of, say, 1 H4 bar closing up but price still remaining below your level. Because this tells you...what???
So you've got time to chill
No need to sit watching the screen because if price comes back within one H4 bar there's a good chance of what???
But you've now got pips in hand, worst that can possibly happen is you lose your initial R.
No caring
No FEAR
What will make your call even more valid is a minimum of, say, 1 H4 bar closing up but price still remaining below your level. Because this tells you...what???
So you've got time to chill
No need to sit watching the screen because if price comes back within one H4 bar there's a good chance of what???
But you've now got pips in hand, worst that can possibly happen is you lose your initial R.
No caring
No FEAR
I tend to not bothered with much below M15: that's more to see b/o zones for H1 and more likely to be when looking @ re-entry areas. Draw a line 'about here'.
Re: mechanical and combining bars, you can be mechanical up to a point.
If purely mechanical on my charts I'd have missed the EU move you traded: not a big deal.
This is not a precise day trading or scalping method with close stops and 95% probability of going bust, more like 75% but those are better odds aren't they?
Entries are 'about here' but of course, some things are observed to build a hypothesis.
Note I'm now starting to use big words to make myself appear knowledgeable.
This is one step further in my ploy to dupe some newbies.
The blocks, or b0110cks as I prefer to call them are a means of measuring momentum: variable rather than fixed rate sampling.
Bends Time With Stale Wind
Sometimes, when blocking H4 the results are different if price is not moving much. On the example chart my last green 'up' block does not exist on the H4 chart.
If you watch the H4 and price is in an area of potential supply or demand you may sometimes need to drop to H1 for a clearer picture........although sometimes it can confuse as much as clarify! But...if you have it wrong, your stop is where?
7 pips away...no, no, no, no, no.
I'm being serious for once.
In your example, H1 shows the break of 1 H1 demand zone (ok), then sharp momentum down (good) which pierces the next H1 demand zone too (2xH1 demand zones, hey that might be something of relevance), there's a reaction back to new supply with less momentum up than down - so price is going down.
The day chart:
3 factors saying the daily supply zone may be a good one
1. Amount travelled from the area,
2. How quickly it left the area: hmm, not that quickly on daily, check H4 but also LOOK at the run of daily bars straight down, no pause.
3. It went straight through the lower level before eventually returning to supply
All the above is just developing a shorthand for 'sell about here'.
Re: mechanical and combining bars, you can be mechanical up to a point.
If purely mechanical on my charts I'd have missed the EU move you traded: not a big deal.
This is not a precise day trading or scalping method with close stops and 95% probability of going bust, more like 75% but those are better odds aren't they?
Entries are 'about here' but of course, some things are observed to build a hypothesis.
Note I'm now starting to use big words to make myself appear knowledgeable.
This is one step further in my ploy to dupe some newbies.
The blocks, or b0110cks as I prefer to call them are a means of measuring momentum: variable rather than fixed rate sampling.
Bends Time With Stale Wind
Sometimes, when blocking H4 the results are different if price is not moving much. On the example chart my last green 'up' block does not exist on the H4 chart.
If you watch the H4 and price is in an area of potential supply or demand you may sometimes need to drop to H1 for a clearer picture........although sometimes it can confuse as much as clarify! But...if you have it wrong, your stop is where?
7 pips away...no, no, no, no, no.
I'm being serious for once.In your example, H1 shows the break of 1 H1 demand zone (ok), then sharp momentum down (good) which pierces the next H1 demand zone too (2xH1 demand zones, hey that might be something of relevance), there's a reaction back to new supply with less momentum up than down - so price is going down.
The day chart:
3 factors saying the daily supply zone may be a good one
1. Amount travelled from the area,
2. How quickly it left the area: hmm, not that quickly on daily, check H4 but also LOOK at the run of daily bars straight down, no pause.
3. It went straight through the lower level before eventually returning to supply
All the above is just developing a shorthand for 'sell about here'.
- #212
- Feb 12, 2014 8:13am Feb 12, 2014 8:13am
But...if you have it wrong, your stop is where? 7 pips away...no, no, no, no, no.
- #213
- Edited 8:45am Feb 12, 2014 8:32am | Edited 8:45am
{quote} Provided you have a hypothesis in place, the logical place for a stop-loss order would be at the opposite side of the supply/demand zone. If your hypothesis is correct, then the market shouldn't go there. If it goes there, then you've got something wrong. However, that's just another hypothesis. Maybe I've got something wrong. How do you put a stop order on a forum?