Price Action in Day Trading by Dadas

Just, please, dapsy, don't trade real money until you know for sure that you are doing the right things!
Even if it must take another 3 years of demo trading!

Cool tool this new indi of mine!

Now, scalping becomes fun!

eheheh his APRIL FOUL?????????????????

Sorry, but I am too serious to bother with such stupid things.
I didn't even notice it was 1st of April.

This is the trading algorythm:

1. Go to your Master_Trend_Tf chart and define the current trend by last Closed Candlestick or Bar;
2. If trend Bear, trade Short at Top, if trend Bull, trade Long at Bottom;
3. Go to your Trading_Tf chart and define the Risk_Entry_Zone from the SL to Risk_Points;
   1. Define how much money you are willing to lose today, or whatever period and translate to Points;
   2. Define where you should put SL on the chart, according to PA;
   3. Plot a rectangle Zone from SL Level the width of your calculated Points.

4. Enter only when Price is inside your Risk_Entry_Zone;
5. When price reaches 1:1 Initial_Riskrofit, move SL to BE;
6. When price reaches 1:2 Initial_Riskrofit, move SL to 1:1 Profit;
7. When price reaches 1:3 Initial_Riskrofit, move SL to 1:2 Profit;
8. Continue until trade closes.

Don't use TP!


Always try to minimise your Risk!
Always Risk only as much as you can spend without regret!
Never worry that you lost 1-2-3 trades!
Always take good care that your Reward is bigger than your Risk!

Stop trying to predict anything, stop wishing, just TRADE!

To make life easier, just drop this script at where the SL should be:

Input your Risk_Points in Points! Not Pips!

PS. This script plots a rectangle from WindowPriceOnDropped(), so you just drop it at the Price Level, not a Candlestick!

These trades are not exactly done by the above algorythm,
mainly because they are scalping the M1, where there isn't
enough room for all those procedures, but, risking 8 Pips against 24...,
well, that says it all! Yes, it is possible to trade the M1 charts
under some conditions, low spread, good volatility, and
most of all, the trader's ability to act on signals!

I assume you have trend indicator set to M5 and you sclap the ranges (extensions) and the breakouts of those ranges.

Any good trades today on FX pairs?

Great work by the way Keep it up!

You are correct!
But, I pay more attention to the trend lines as they appear and ganeral PA.
The extensions give me extra information, but I always assume they mean very little.
IOW, I now trade instead of creating philosophies!

Nothing on pairs, since I was waiting for signals which didn't appear.
Or, it was too late when they appeared.

So, IOW, I identified trend and was waiting for signals to enter.
But, today was a no-trend day. Perhaps consolidations before swing?

GOLD made a decent move, but in the other direction.
I didn't enter anything, because I didn't see signals for Shorts.

Do you only use price action signals (break of highs and lows)?

My main issue is filtering higher TF-s, but your trend indicator has helped a lot in that, however even on higher TFs there are short trends that are more choppy, so still difficult sometimes to filter out the bad pairs:S

The signal is only one: SBOC (Significant Break Out Candle).
Otherwise called Engulfing, or Outside Bar - notice the "Bar" (High to Low).

The rest is trading!!!
Risking less than you profit!!!

When are you going to understand this simple fact???

All the rest is useless philosophy!

You don't need to filter anything, c/z one pair will be choppy at one time and trendy at another.
There are no "good" or "bad" pairs other than Spread vs. Volatility issues.

Your job is to filter out the best opportunity when it happens, and Risk little against more Profit!
That's all!

PS. About the SBOC, I use it on higher Tf's to identify trend and as Entry signals.
I hope you know what a Trend Candle/Bar is?

On M1 I can't see any SBOC soon enough to react, c/z when it happens, that's my move!
I trade the general PA market structures which you can see on the charts!

Look at this:

In each Entry you can risk the minimum your broker allows.
Naturally, the first entry is always the best.

You can create philosophies, see SHS or whatever.
But, all you need is trend signal and R/R.

See, just trade:

Lost 2 Pips, gained 5 Pips = 3 Pips Profit.
I know, this second trade was not waited out, but I got what I wanted - min. 2 times my loss.

It's the shift of thinking, reorganising the blocks in your head,
which make almost perfect entries possible.

Start NOT from looking at Profit, but, as I once said here, ask yourself how much you can Lose!
Thinking in terms of how the Price works, the Trend-Retrace cycles, first look for your Stop Loss
according to the ammount you have set as your Risk Capital.

That is the Risk_Entry_Zone.
The Dadas_True_Trend_Indi is greatly helpful in this case.

Let's say that our Trend_Tf tells us Price is Trending Bullish.
Thus, we want to Enter as Low as possible, so we can Risk only a little.
So, we want to catch the Swing of the Retrace Down,
where our Risk can actually be the minimal possible.
This is why we need a small Tf: M15, M5 or M1 depending on Spread/Volatility.

So, when we see a Bearish Retrace on M5 and our direction is Long,
we must wait for the Swing, when Price crosses the Bearish Local Trend.
Then, there will be an M5 Candle with the Lowest Low.
Subtract (move away down) 3 to 8 Pips, depending on Spread, and that's where your Stop Loss should be.
That is where you can plot the Risk_Entry_Zone.

When Price retraces back into that Zone, you can Enter, because your Risk is minimal.
If Price doesn't retrace back, you simply don't Risk, you don't Enter!

If you lose, because Price decided not to go Long there,
you lose only your minimal Risk you have already agreed in your head that you can lose.

What you do next, is totaly up to you.
You can say enough for the day, because you aren't willing to Risk more,
or you could stake another packet of cigarrettes (you will not smoke it!).

There is big chance that in this way, before you really start profiting, you won't need a smoke any more!

A live example is coming just now:

I made some mistakes on the first trade:
1. I assumed Long,
2. I entered without waiting for the retrace back to the Risk_Entry_Zone.
If I had waited for the retrace, I wouldn't have opened any Longs, c/z Price just went through the Zone.

Then, I looked at H4 and woke up to the Short!
This time I waited for the retrace, secured my Profit>Loss.
Now, the trade is floating in hope for more!

eheheh was joking thanks so much for the indicator DADAS
you are a genius

Please, I am not a genius.
The guys who write all those super complicated programs, they are genius.
I am, simply, devoted and one-way- oriented as far as trading is concerned.
I subscribe to the KISS rule - Keep it Simple Smart!

So, you have got yet another cool trend indicator, right?

However, what does it show you?
Only that which is already on the charts.
All indicators, no matter how complex, no matter how "predictive"
can only show that which is on the charts already.
The data must be already in your computer in order for any indicator to calculate whatever it is calculating.

There is no future data in your computer, nor on any computer.

The only thing we can do, which works, is find a PTECZ or another Consolidation Zone.
Consider the following example:

I have plotted a simple rectangle from High to Low of the last H4 Candle of the previous day.
That's the initial working Zone, a sort of PTECZ.
We don't know which way the Price will go.
There are 4 possible scenarios:
1. Price will Consolidate inside and around this Zone,
2. Price will go in one direction, then shift to the other direction,
3. Price will break and go UP,
4. Price will break and go Down.
Of course, Price can do all sorts of dance on the way!

What else can help us, is some kind of Average Range Indicator.

We are not predicting anything, we always consider all the possibilities.
But, we have something very important to relate to!

So, what can I do today?
Only this:

And wait until tommorrow and watch Price Action.

There is no need to complicate your trading any further.
There is no need to fill your head with all the theories!
Just use the simple rules of trading.

Lose what you can afford to lose, manage the Risk lessening it,
let the winning trades work for you in a smart way securing Profit!

Oh, and you must always take into consideration, that
no matter what you believe, there can always be such
a situation that the moment you open a trade, the Price
will suddenly go against you, and you won't even be able to set up a Stop Loss.

You must learn to react in such a situation immediately.

That is, if the broker allows you to close your trade at that moment.

Thanks anywhere for your input

I'm following this Price action system over 6 months and it's bit a good trading system. But you have to be good eyes for that. Anyway on new Meta Trader terminal required indicator not working. Can you help me to supply supported indicator for Meta Trader 4 build 625?