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Price Action in Day Trading by Dadas

  • #3,421
  • Feb 6, 2014 4:38am Feb 6, 2014 4:38am
Quoting wongpasar
{quote} hello.. master dadas.. sorry.. maybe im little out of your thread topic.. but im little interested with your idea about using candle indi from sonic R system.. about money being controlled by small bigboys.. what happened to them.. did you find it wasn't good idea afterall?? im learning about orderflow-darkstar method nowadays.. so.. your idea about those candle indi little bug me.. because maybe i can develop my analysis by defining market bias with your idea.. thanks.. sorry for bring up an old stories.. wish best for you
Hello wongpasar!
Nice to meet you!

You are right, your questions are a bit outdated.
This thread has become quite dead recently, so I am not updating.

Actually, what I am trading now is somewhat different from the stage you are talking about.
Because I am a Daytrader, thus I am constantly trying to optimise my trading during my trading hours.
But this short statement doesn't really picture what I am doing.
I am trying to syncronise myself with the flow of the market using only GOLD as my trading instrument.
So, my goal is to be a sort of Swing Trader, following the actual Market Swings in D1 context.

I am using the PTECZ concept plus a few of my own indicators and some others modyfied by me.

But, this is difficult to explain in just this post.
Actually, it would require a new thread.

Anyway, I wish you good luck with applying my ideas to your strategy!
They say that only about 3% of people are able to construct a good strategy from scratch, on their own.
But, on the other hand, if you want to use someone elses's strategy, you must also understand it thoroughly.
I say, don't give up!
No matter how long it takes, how many tries and remakes to your strategy you make, keep on keeping on!
Until you finally get your own, working, unique strategy!
Trade the facts, not opinions.
  • #3,422
  • Feb 6, 2014 12:09pm Feb 6, 2014 12:09pm
It wasn't so easy to figure out the Market on GOLD for today, my time.
Mainly because the Bull Trend is at the Top, at Resistance PTECZ, so
the Market is now struggling which way to go next.

At such Swing Transition moments Market goes up and down in a Range.
But, the Range on GOLD is ca. 160 Pips, so a nice nugget for the Daytrader!

What are, then, our objectives?
We have to figure out the direction to go.
We have to figure out the best Entry Levels.
We have to know when to Exit.

And, most of all, we have to know how the Market works!!!

I made 3 trades, today.
Attached Image (click to enlarge)
Click to Enlarge Name: gold-h1-admiral-markets-as.png Size: 158 KB

Attached Image (click to enlarge)
Click to Enlarge Name: gold-m15-admiral-markets-as.png Size: 100 KB

The first trade got SL-ed at Profit while trailing the SL.
The second trade was Entered @ my ideal Entry Level by Buy Limit,
but I closed it manually because of too many Overbought signals.
However, Take Profit was at a good level and would have been closed.
The third trade was Entered also by Buy Limit at pre-defined level.
I closed it manually for a number of reasons: time and D1 Resistance, mainly.
Attached Image (click to enlarge)
Click to Enlarge Name: gold-d1-admiral-markets-as.png Size: 106 KB

The D1 chart clearly shows that there is some tricky Resistance which
Price doesn't want to Break in the Daily Candle context, the fourth day in the row.
So, there wasn't much sense in holding the trade, though I was only risking BE.

As for "How?" and "Why?" questions, I can only give you a course in trading my method.
Trade the facts, not opinions.
  • #3,423
  • Feb 6, 2014 10:08pm Feb 6, 2014 10:08pm
Nice thread!
Subscribed!

However, may I know if your method can apply to commodity like crude palm oil trade (CPO) which volatility is not as much as in forex?
  • #3,424
  • Edited 2:45am Feb 7, 2014 2:35am | Edited 2:45am
Quoting nsn14
Nice thread! Subscribed! However, may I know if your method can apply to commodity like crude palm oil trade (CPO) which volatility is not as much as in forex?
Technical analysis and reading Price Action requires charts with data.
It doesn't matter if the charts are 1 minute or 1 month, as long as there is enough data to relate to.
Otherwise, an Engulfing Candle or Significant Break Out Candle is always that which it is.

However, one of the most important points is to know the Market we are trading.

I have no clue what the characteristics of trading Crude Palm Oil Market are.

There is another very important factor to consider, and it is the reason why each of us is Trading or Investing.
IOW, what are you after and what are you about?

Some people are using financial instruments to generate a better return per annum than they can get in their bank.
They are Investing for longer terms, so they are not looking for volatility.

Others want to make money, so they are Trading and looking for volatility.

Anyway, you must know what you want and apply the right strategy for your plan.
Trade the facts, not opinions.
  • #3,425
  • Feb 15, 2014 5:58am Feb 15, 2014 5:58am
Once, somebody in this thread was very annoyed with me,
because I said that most of the time Price consolidates,
and he said that any experienced trader would say that I was wrong,
because Price Trends...

Well, let me show how Price works on this example:
Attached Image (click to enlarge)
Click to Enlarge Name: gold-m15-admiral-markets-as.png Size: 67 KB

The wider lines with Labels are the D1 Open Prices.
The thinner lines without Labels are the H1 Open Prices of Friday.
The dotted vertical lines represent hour 00:00.
The Broker time (Chart time) is GMT+2.

So, how many Trends can a Daytrader get, here?

Looking from 2014-02-14, 00:00 GMT+2:
1. First assumption is that there was a Bull Trend, in general the last days.
2. We are looking for signals in relation to the Daily Open Price (DOP).
3. We get a Significant Break Out Candle (SBOC) in Bull direction, Close above DOP.
But, Price has not broken the Consolidation Zone!
We can Risk the Long now, or wait for confirmation, until the next SBOC.
If we wait for that SBOC, we must Enter immediately at its Close!
The Trend lasts for 45 minutes (3 candles)! Then Price consolidates!

Now, OK, if we have enough knowledge, experience and know the Market,
have a good strategy and good tools, we might be holding our Long.

But, if someone knows very little, and believe me, even 5 years trading may not be enough,
this person might not know what to do and should Exit the Trade and wait for next signal.

I hope that you can see where the next SBOC happens,
and that Trend is then only 15 minutes before Price consolidates again.
So, we must wait for the next SBOC, and the next Trend which Broke the next DOP.

And, practically, that's all for that day!
We can see that even though there was still some potential later,
the Price was consolidating and taking Risk was very dangerous.
Trading this Range required shifting to a smaller Timeframe, even 1 minute.
Possible? Yes!
Difficult? Yes!
Requires big experience.

Requires the trader to know where to Exit the Trade!

Hope this little example provides you with some extra useful learning material!
Trade the facts, not opinions.
  • #3,426
  • Feb 15, 2014 6:46am Feb 15, 2014 6:46am
This EURUSD example clearly shows why trading is so tricky these days:
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m15-admiral-markets-as.png Size: 64 KB

There was one M15 SBOC from the initial consolidation on Friday.
Practically, there was only 1 trade, Long on Retrace back to the DOP.

Other then that, trading was only possible from M5 or M1 level.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m5-admiral-markets-as.png Size: 75 KB
Trade the facts, not opinions.
  • #3,427
  • Feb 15, 2014 5:58pm Feb 15, 2014 5:58pm
hi

oh you have to be a master to trade gold???????so difficult you can lose your shirt easy if you do not know what you are doing anywhere DADAS nice to see your comment .
thanks again
  • #3,428
  • Feb 16, 2014 3:10am Feb 16, 2014 3:10am
Quoting ellenbrook
hi oh you have to be a master to trade gold???????so difficult you can lose your shirt easy if you do not know what you are doing anywhere DADAS nice to see your comment . thanks again
Dear ellenbrook!

Trading GOLD is no different than trading any other instrument.
In fact, GOLD behaves very technically and is easier to trade than EURUSD, for example.
You can only "lose your shirt" if you are stupid and trade without Stop Loss and without a Strategy,
or you insist that Market does what you want it to do and you learn nothing from your errors.
You can only "lose your shirt" if you can't accept Loss.

If you keep on getting SL, it only means that you are Entering wrong and your strategy is no good.
If you are Entering wrong, it means that you don't know how to recognise the most probable Price direction.
If you can't recognise the most probable Price direction, it means that you can't read the signals.
If you can't read the signals, it means you can't read Price Action and you can't do proper analysis.
If you can't follow the rules of a good strategy, it means you have psychological problems - so you can't trade.

The only reason why trading any instrument could be difficult is when your Broker offers a Spread which makes
the specific instrument practically untradeable because of volatility to spread ratio.

GOLD averages around 150 - 180 and more Pips per day, so the typical Spread of 3-5 Pips is still good to trade.
On ECN/STP Brokers the Spread can be as low as 0.1 Pip on GOLD, variable.

So, ellenbrook, stop telling stories and sit on your arse until you get what trading is about!
Trade the facts, not opinions.
  • #3,429
  • Feb 16, 2014 3:53am Feb 16, 2014 3:53am
HI SIR
my apology sir i never mean to say wrong story i meet many and have POLISH friends never ever did abused me i was just saying sir if you do not know what we are doing we can lost money trading gold i never say bad about you sir then in such case will never ever put any comment anymore i did try to be nice and fair but my input did upset you????????? maybe you did have a very bad day?
let me clear i do not at 75 years old yet sit on my arse and will never reply such insulted to someone i do not know so i know you are going to blocked me
well do so it will make you happy So, ellenbrook, stop telling stories and sit on your arse until you get what trading is about! how would you fill if you where 75 years old and try to learn trading to occupied your time and someone will reply such insulted how would you react ,i did have the impression POLISH peoples was very polite my friends are. you where saying you do help peoples or want to learn your system ?i do that why i am here but your comment about me are over the top not knowing me at all.
was nice to meet you sir have a very nice weekend
  • #3,430
  • Feb 16, 2014 4:07am Feb 16, 2014 4:07am
Quoting ellenbrook
HI SIR my apology sir i never mean to say wrong story i meet many and have POLISH friends never ever did abused me i was just saying sir if you do not know what we are doing we can lost money trading gold i never say bad about you sir then in such case will never ever put any comment anymore i did try to be nice and fair but my input did upset you????????? maybe you did have a very bad day? let me clear i do not at 75 years old yet sit on my arse and will never reply such insulted to someone i do not know so i know you are going to blocked me well...
ellenbrook,

I am 54 and I started learning Forex trading at age 51.
For many people I am old for learning how to trade, especially for the young angry wolves.
You, Sir are closer to my parents age.
My mother is 76 and my father is 79 this year.

I am very, very far from trying to insult anybody.

The truth may be hard to accept, but most people of your age are too old to learn how to trade in the modern way,
unless they already have a great deal of experience in business, trading and computers.

If you are still "young" and willing to take the challenge, that is good!

But "you can't teach an old dog new tricks" - unless you prove this to be wrong!

The sheer fact that you feel abused by my reply to you, shows to me that trading will be very difficult for you.
Can you accept a kick in your arse from a "youngster"?
Trade the facts, not opinions.
  • #3,431
  • Feb 16, 2014 4:39am Feb 16, 2014 4:39am
HI SIR


thanks for your reply let the fact speak for them self i have been trading for 5 years never ever blown up in account yet i am not looking to make a million? only to make extra $$$$$ a week so far i managed to make 100 pips a week profit or i am very happy but after found your site or make sense and very impressed and willing to learn it to make my trading easier ? years ago didn't speak English at all or write English at all i am not perfect but going okay all in the brain? so if i decided to learn nothing will stop me at all i have all day free to me so that his not a problem .
i am sure and certain will learn it your way.
thanks for your input
have a nice day sir.
  • #3,432
  • Mar 1, 2014 2:18am Mar 1, 2014 2:18am
Well, Guys, I feel like sharing my latest outcomes with you.
Just as a precaution.
I know, everyone must learn on their own mistakes, but
just maybe I can save someone the pain.

During the last 3 days I have been experiencing a very emotional
personal situation. Theoretically, nothing connected with trading.
What happened was almost unbelievable:
1. I lost 405 Pips over Wednesday, Thursday and Friday.
2. I had 11 Stop Losses, 6 consecutive Stop Losses, and only 4 Profits.
3. I made all the basic newbie mistakes, as though my Self was trying to commit financial scuicide.
I knew that I was trading very badly, but I couldn't stop!
I refused to do my checklist and plunged blindly into the fire!
It felt like some other being was controlling my mind and there was nothing I could do.

By the end of Friday, I finally got my reason back and decided to go over my checklist.
Everything became clear! Which resulted in one end-of-the-week Profitable Trade!
If I had only followed my own rules, strictly, the story would have been exactly opposite.

What doesn't kill you, makes you stronger, they say.
I realised a simple "Golden Rule" for Day Trading!

1. Find the origin of D1 Trend.
2. Follow this Trend until you see a reason for D1 Trend reversal.

Which, for the Daytader, means:
1. Enter only Long on a Bull Trend looking for Entries on local H1 retraces back down.
2. Enter only Short on a Bear Trend looking for Entries on local H1 retraces back up.

Of course, all the other Risk/Reward and Money Management rules apply!
Trade the facts, not opinions.
  • #3,433
  • Mar 1, 2014 1:30pm Mar 1, 2014 1:30pm
.
  • #3,434
  • Mar 2, 2014 4:07am Mar 2, 2014 4:07am
Hi Dadas,

I've been meaning to write to your thread for a while,

I would like to say that your PTECZ strategy/method has been invaluable to my trading strategy. It is remarkably simple, yet so powerful. I am really grateful to you for sharing your knowledge as well as your experiences including the recent painful learning experiences. You are very genuine and honest to do this. Thank you very much for starting this thread and posting all your knowledge as well as posting those wonderful indicators/tools.

My personal experience has come a long way since I was first introduced to the PTECZ concept. I now always plot the relevant Daily and Weekly PTECZ and use price action as well as some other indicators to determine trend, trend strength and usual entries and exits. My biggest challenge is psychological. The need to be right is still strong but recently I have been much more calm and calculating and I have seen better results.

I am glad you have gotten back on track and I hope lots of pips come to you soon.
"It's life, Jim, but not as we know it."
  • #3,435
  • Mar 2, 2014 7:30am Mar 2, 2014 7:30am
Quoting guymontag
Hi Dadas, I've been meaning to write to your thread for a while, I would like to say that your PTECZ strategy/method has been invaluable to my trading strategy. It is remarkably simple, yet so powerful. I am really grateful to you for sharing your knowledge as well as your experiences including the recent painful learning experiences. You are very genuine and honest to do this. Thank you very much for starting this thread and posting all your knowledge as well as posting those wonderful indicators/tools. My personal experience has come a long way...
Huge thanks for your words of support!

I think the best indicator ever would be the "My_Emotion_Attitude_Indicator.mq4"
with Automatic MT4 Shutdown mechanism if the indications are in the wrong direction!

Anyway, I did not destroy my account!
I did lose a lot, but I am still Up-and-Going!

And, I now can see even more!

Can anyone build an Automatic Expert Trader based on what I see?
The answer is: Yes, but only under the conditions that Spread = 0 and Execution is always immediate and without any Slippage!
So, practically, the answer is: No!

In the end, I say to everybody: Don't give up!
Let the losses be a lesson and an opportunity to upgrade yourself even more!
Don't hesitate to modify or even completely revise your previous strategy!

Just, don't let yourself get stuck on your "same-old-shit"!
Even if life has to "beat the shit out of you"!
Trade the facts, not opinions.
  • #3,436
  • Mar 2, 2014 3:27pm Mar 2, 2014 3:27pm
Quoting jgadefelth
.
jgadefelth,

I have often written that it is not the strategy which "works"!
It is always the Trader who can either make the strategy work for this Trader,
or the Trader can mess up any strategy, no matter how good.

Psychology and emotions are the most decisive factors.

For many reasons I have also talked about, there is no way to make a strict mathematical formula.
Therefore, there is no 100% strict trading manual or set of rules to ensure success.

We can only make some rules for ourselves which will help us in better results,
based only on the simple calculation of Risk/Reward Ratio.

The ability to interpret the charts is most essential!
Nobody can teach you that!
Only hours, hours and more hours spent on teaching your own mind.
How long? I don't know. It is very individual.

And understanding how the Market works and the Market Flow!!!

The Trader's proffession is really a hard job while still learning.
Then, Trading becomes very boring, just repetition of the same procedures.
Of course, this requires very, very, very much self-discipline.

PS. This is what I have come up to after the last breakdown:
Attached Image (click to enlarge)
Click to Enlarge Name: goldh1.png Size: 99 KB

It is my analysis based on H4 PTECZ Levels.

Question is: Can you understand what you see on this chart?
Trade the facts, not opinions.
  • #3,437
  • Mar 4, 2014 1:21am Mar 4, 2014 1:21am
Quoting Dadas
{quote} jgadefelth, I have often written that it is not the strategy which "works"! It is always the Trader who can either make the strategy work for this Trader, or the Trader can mess up any strategy, no matter how good. Psychology and emotions are the most decisive factors. For many reasons I have also talked about, there is no way to make a strict mathematical formula. Therefore, there is no 100% strict trading manual or set of rules to ensure success. We can only make some rules for ourselves which will help us in better results, based only...

Thanks for your answear i erased my post or i tryed i was not sure if you would see it as if i was questing your method, i would not take the risk of being banned. To your question the answear is No i have no clue what it is on the picture can it be trades taken, i am new to your thread and i try to learn it in the first post that described your trading there are some pictures that you refer to but they dont work, is there someway for me to get those pictures ? So i can better understand and learn please ?


Best regards
  • #3,438
  • Mar 4, 2014 4:05am Mar 4, 2014 4:05am
Quoting jgadefelth
{quote} Thanks for your answear i erased my post or i tryed i was not sure if you would see it as if i was questing your method, i would not take the risk of being banned. To your question the answear is No i have no clue what it is on the picture can it be trades taken, i am new to your thread and i try to learn it in the first post that described your trading there are some pictures that you refer to but they dont work, is there someway for me to get those pictures ? So i can better understand and learn please ? Best regards
Yes, there is a problem with those pictures.
I know that changing the browser helps for some people.
Otherwise, here is the link to my web site with these images:
http://www.fx-nvatc.comeze.com/charts_en.html
Trade the facts, not opinions.
  • #3,439
  • Mar 4, 2014 6:39am Mar 4, 2014 6:39am
Attached Image (click to enlarge)
Click to Enlarge Name: gold-h1-admiral-markets-as.png Size: 56 KB

But, I guess, that was pretty obvious, wasn't it?
Trade the facts, not opinions.
  • #3,440
  • Mar 5, 2014 8:34am Mar 5, 2014 8:34am
The Final Ingredient

Something hit me hard, today!
You remember, I hope, what I told you about how the Market works?
About the Buyers and the Sellers, that there are always 2 sides of each transaction?
That is all true.

However, what is the single requirement for a Trend to start?
How valuable would this be to you, if you knew where a Trend would most likely begin?
How valuable would this be to you, if you knew where a Trend would most likely end?

It is all there, this information is there, on the chart!
No indicators are needed, just the plain chart!
And, it doesn't matter which Timeframe, it's there on every Timeframe, even M1.

Just think about it:
What is the single requirement for a Trend to start?

If you can aswer this question,
think what the Market must do in order to fullfill this requirement?
Trade the facts, not opinions.
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