Price Action in Day Trading by Dadas

So, I took a trade, today.

The Entry wasn't so bad, but it was just before it struck me (post above).
The ideal Entry was actually where indicated by the white Price Arrow (1334.33).
My Exit looks very good - according to the Market requirement.

Thus, when I saw the setup, I couldn't resist but Enter a Short.

I closed, because I am tired of waitng, now.
And, actually this is a setup for closing the Short.

And so, my final conclusion is that my method is the best, for me!
I understand fully, now, how some guys can trade M1 charts risking little against much.
I also understand that this kind of M1 trading requires to be ready to take 10+ loses in the row.
That's not my way!

This is my way!

And it works!

Which PTECZ is the right PTECZ?
The historical Swing or Pivot PTECZ!

Though, I didn't trade GOLD, today.
I went along with some fundamentals on USDJPY.

Yes, the Entry was bad, I didn't wait.
And I closed manually because of Average Ranges.
I made +36 Pips which covered my previous loss and gave +13 Pips Profit.

I also traded egzotic EURNZD, today.
Because I saw an opportunity.

The spread worried me, but Range was OK.
Closed, because of Friday and other chart related issues.

Since nobody is sharing their results, I reckon nobody is following,
and nobody really wants to learn trading together with me.

Anyway, because this thread is a good storage place for my information
and my progresses for anybody to refference in the future, I will
continue posting my most recent thoughts and realisations, as long as I have them.

My most recent "drama" moment has lead me towards an even deeper understanding
of the way the Market works and much bigger certainty in my trading.

Ultimately it is really simple, and I wonder what it is about our psyche that blocks this?

Nevertheless, here is the picture I want to show you:

1. Clearly this Candle is a Significant Break Out Candle (SBOC), or a Bullish Trend Candle.
Just after this Candle we see a Potential Trend Ending Candle (PTECZ).
And, we see that the Price movement in the direction of the SBOC has stalled, consolidated.
Now, considerring that we don't know which way the Price will continue, because nobody knows that,
we still can find the Break Out (BO) and/or Pivot Line (PL) for the continuation of the Bullish Trend.
The Green Solid Line (BO) and the Dark Khaki Dash Line (PL).

Now, comes the question what the Trader wants to do?
In my opinion, scalping the retrace movement is not worth the hassle and nerves!
We cannot and should not expect the Trend to go Bearish until it breaks at least the Solid Red Line.

Thus, we can watch any other timeframe chart, M5, M1 to get the earliest BO Long Entry.
Once the Price is on the move, we can try to find the historical PTECZ level where the Trend is most likely to stall.
Or, we can simply follow the H1 Candles, like shown in the picture, and we came to 2.

2. This is another Bullish Trend Candle, and a very strong one.
Thus, the Close of this Candle becomes the new Bullish BO Level,
and the Open of the next Candle becomes the Bullish PL Level.

Someone might, now, ask me why not Enter Long at this moment, because the Trend is strong?
Well, now is the moment the Trader must know something about how this Market works.
About the session hours, about Supply/Demand, about Liquidity...
The following hours show exactly what I am saying, here.
Anyway, we can follow the same chart procedure plotting the Trend Candle or SBOC Zones and Lines.

3. And, we come to the end of the week, Friday.
The Market Opened with a Gap, IOW, we must complete the missing part of the Bearish Candle.
But, even if we don't do that, we know that the Open Level of the Candle following the SBOC
is the Bearish PL, in this case, the Dark Khaki Dash Line at 4.

4. So, we now have the 2 PL Lines, Bullish and Bearish, about 15 Pips.
If any Sydney-Tokyo session Trader is thinking of trading this area, they must do it on M5 or M1,
keeping in mind that they are only going for about 10 Pips.
Otherwise, the only reasonable thing to do is wait for a SBOC out of that Zone.
Which, in this case turned out to be Bearish.

Now, having this story on our charts, we know a lot.
We know that the Bigger Trend is Bullish, until BO of Zone 1.
We know that the Local Trend is Bearish Retrace (Correction).
We know where to look for Bullish Signals, if they occur.

Anyway, we can see the story!
It is up to you to decide what's worth a Trade and what isn't!
If it's worth waiting out the proper Entry, or Entering scout Trades and getting frustrated with Stop Losses?

http://www.forexfactory.com/attachme...1&d=1394371948

- Could you please share this drawing tools!
- Thank you very much!

Dadas_Fibo_Trade_Layout_Script.mq4 I already shared.
111_Draw_Custom_Zone_Candle.mq4 script I already shared.

The more advanced Dadas_Entry_Zones_Script.mq4 includes functions
which are way too dangerous for newbies, thus I will not share it.

IOW, you already should have all the tools you need, if you had followed/read this thread from the begining.

Hey I didn´t even realize something´s going on here. I didn´t receive any mails that new replys have been sent.

Drama, yes I hear you. I had some issues here as well recently. I got over-confident and started to get sloppy. Once the market did go against me it did it in grand style, as usual. If you make a mistake for some reason the market seems to hit you with full force.

Anyway, I mean yes, you can use those lines and trade within them, on the other hand why make it so difficult (for me it is at the moment). What´s the difference between the BO Line and the PL Line? Is that not one and the same line?

To me it all comes down to were you draw in the lines. Of course we can´t just trade them anywhere, we need to find the right place. But then doesen´t become the lines useless? What´s the rason? Look at 1. Supply has been removed, once price comes back to where the move began it´s free to rise.

Look at the gap. Once demand have been removed price is free to fall back to 1.

One could have gone short here, because there´s a lot of air here. However, I am always looking at the bigger picture to determine direction.

I feel I am just about there!
Still making "mistakes", but getting closer.

First trade on EURJPY:

Entry - not optimal! Should have been in the Green zone.
Closed because of Price Action and I needed to concentrate on another trade.

Hey, good to hear from you!

Well, I have my way.
You can look at it the way you do, but I am aiming at perfection, or almost.
The Market can't hit you with full force if you follow some good rules with SL.
True, my drama was because I just had "scuicidal" feelings and just opened trades.
I had 11 SL's in one day! Why? Because despite my emotions, I kept on doing stupid entries.
2-3 SL's are information that we should stop trading for that day!

Are lines useless? Only if you don't know what PA tells you about where you plot them.
For me BO is any level which Price Breaks.
PL is a level where historically Price played around and then went in one direction or the other.
The Close Price isn't always equal to the Open Price of the next Candle on the charts.

You know, ultimwtely what you say "there is air" also means nothing, because we don't know if Price will go there or not.
Everything we do is only to help us make the best decision at the best moment.
As you will see, that is what my Lines and Zones are doing.
They are damn precise most of the time.

Unfortunately, I am still not that precise, but I am working on it!

Here is the evidence for my words:

My first Entry wasn't best, but it was good.
But, then I started getting ideas.
Thus, you see what happened.
However, my Trade Layout proved to be correct, once again.

Anyway, considerring the 6 Pips from EURJPY, I am still in Profit for today.

PS.
The second Entry was a risky one.
It was just before the news time.
I assumed the Market would be, at least, retesting the bottoms.

It didn't work. That's the risk of trading.

PPS.
IOW, the best course of action was to Close the first trade in the highlighted area.

Then watch PA and make new decisions.

Generally, that is what I did, only not well enough.
I was late on closing the first trade.
I was overinterpreting the second trade.

Consider what's happening now on GOLD.

How are we supposed to figure out which way to Trade, now?
Well, Price must either BO up, or otherwise Short on retrace.
Nobody can tell us which direction Price will go next.
We can only wait and watch PA for the best choice of action.

OK, so now what?

Short on retrace?
If the retrace back up ends with lower High.

However, Long is still possible.
Because the last H1 Trend Open is still far below.

Yes, of course you´re right. Let me replace the word useless. If the lines help you or anyone else do it, yes. As long as you where to draw them/the right places of course they work. I just looked at Gold myself. I did not trade it however, I have some (yes, lines) drawn in there as well. I would have gone long from there as well. I´m just saying I don´t need them, I don´t call them BO/PA lines. It´s just where demand came into the market (in the case of Gold). Would I go short on Gold now? All I can say it depends on the time frame you´d like to trade. I stoped using only one time frame, I look at them all from the monthly down to the one I want to trade with. I personally would not go short on Gold today. I see strong demand coming in. I´d wait for a retrace and go long. It´s not the time to go short here for mme.

Cool, I figured it out my way.

Though, Supply/Demand are pretty ambiguous terms.
I mean, how can anyone really tell if there is more Supply or more Demand?
It really takes just 1 Big Player to move the Price in the opposite direction.
I am now more inclined to think in terms of Liquidity.
In order for any trend to start, or IOW, in order for any stronger movement to take place
there must be enough Liquidity. Those "Liquidity creating" moves are more reliable signals.

This is visible on this chart.
Bulls tried to go up, but there wasn't enough Liquidity, so it had to be created.
Now, there is the question if there already is enough Liquidity to go up?

So, look at this.
Wasn't the Dadas_Fibo_Trade_Layout_Script.mq4 right?

Just this simple rule:
SBOC, Price stalls, Enter.

So, no matter how this trade turns out in the end,
I must already say that this Entry was bad!
It was not waited out, again.

I know how this works, why I am making these mistakes.
I posted a video about this somewhere in this thread.
It is about brain waves in the state of "panic".
Not that I am panicing in any way, but it seems that my brain is not functioning clearly in action.

The solution is to bring the brain waves to a regular pattern.
Then, I will be able to think clearly and do the right things instead of assuming.
I already have the list of the proper actions while figuring out the trade direction,
but it seems my brain wanders away and then the mistakes come.

The first step has already been made, I have realised the mechanism.
Now, I need to work hard on this matter.
I need to push myself even harder!

Anyhow, now is the time to make decisions.

As you can see, my SL held, so now a quick analysis.
Seems like there is a new Support Zone.
Thus, I move my SL a little higher, to 25 Pips.
Thus, my TP must be at 50 Pips.

And that's all I can do, now.
Go to bed and check the trade tommorow.