Price Action in Day Trading by Dadas

Trading the M1 charts is wonderful, because it opens up so many possibilities!
There are opportunities everywhere, and I don't mean scalping!
What's even more important, the M1 charts allow you to enter at a really tight Stop Loss, thus risking very little.
And, you can really see how to optimally trail your Stop Loss.
Everything becomes so much more clear!
Just switch to Bar Chart, zoom out to maximum, and zoom in 1 time.
Forget the Candlesticks! Concentrate on Market/Price structure and Trend!

!!! Happy Easter Everybody !!!

I feel like it's time to do some reassuming, perhaps putting things in order!
I hope you remember the PTECZ and you know how to find it.

So, in trading the charts what we are looking for is Signals suggesting the Trade Direction or Trend.
We all agree that there are the Good Signals and the False Signals, generally speaking.
We also agree that our mind gets biased easily and gets stuck on a context, often causing Losses.
The Candlestick and the Bar charts can be presented with so called Trend Colors, Bullish or Bearish.
However, we already know that these colors mean very little and more often than not cause confusion and/or bias.
Thus, the biggest problem any Trader can have is the Bias-Factor.

Following this lead, we can set all Candlesticks or Bars to only one color and try to Trade the Chart Structures,
or we can write an indicator to plot the Bars or Candlesticks in our own predefined ways, or colors.

As mentioned above, we are looking for Signals, thus let's define our Signals:
1. The PTECZ or InsideBar pattern: the closed Bar is fully contained inside the HL levels of the preceding Bar,
2. The Engulfing or OutsideBar pattern: the closed Bar HL fully Engulfs the preceding Bar,
3. Trend: two points form a Trend - High to Lower High form a Bearish Trend, Low to Higher Low form a Bullish Trend,
4. Price Position: above or below the Entry Zone Pivot Line.

Now comes the part where we must eliminate the Bias-Factor!
So, let's find those Signal patterns on the chart assigning colors, say: Crimson and Gray (each pattern is built of 2 Bars),
without introducing any directional Signal color patterns.

How are we going to determine the direction? By Trend.
Thus, we need some tool to help us determine the Trend.
One possibility is to use the Dadas_True_Trend_Indi_v3.4.mq4.
However, this very good indicator still can introduce the Bias-Factor!

Because our goal is to eliminate the Bias-Factor as far as possible,
we need to determine the Trend in some more local, more precise way.
In order to achieve this task, we need to use our brains more actively and apply a Script tool.
We will apply the new Dadas_Trade_Zones_Script.mq4 tool
on the InsideBar following the Crimson Signal Bar,
and on the Bar preceding the Crimson Signal OutsideBar!!!

Now, we know that we are using two Signal Patterns:
1. The InsideBar pattern: the closed Bar is fully contained inside the HL levels of the preceding Bar,
2. The OutsideBar pattern: the closed Bar HL fully Engulfs the preceding Bar.
Thus, we will get two different applications of the Dadas_Trade_Zones_Script.mq4 tool.

1. The InsideBar pattern:

2. The OutsideBar pattern:

The InsideBar Pattern produces two Trendlines:
Red - Bearish Trendline and Blue - Bullish Trendline.

The OutsideBar Pattern produces only one Trendline:
Red - Bearish Trendline or Blue - Bullish Trendline.

Then, we can trade the Trendlines ie. switching to the M1 chart:
1. The InsideBar pattern:

2. The OutsideBar pattern:


One more tool is the new Dadas_Trade_Zones_Label_Indi.mq4 tool.
This tool works in combination with the Dadas_Trade_Zones_Script.mq4 tool.
It reads the Price of the Trade Zone Pivot Line and returns a Label with the Trade Direction Signal,
depending on the actual Bid Level in relation to the Trade Zone Pivot Line Price.

In order to delete the Dadas_Trade_Zone, the Trendlines and the Label,
you can simply drag&drop the Dadas_Trade_Zones_Script.mq4 onto the right blank area of the chart.
The Trendlines can be deleted manually by doubleclick and RMC.

The Dadas_HL_Bar_Candles.mq4 attached here, is not the same as the one previously posted in this thread!

For this system you can use my template:

The Indicators:



And the Script:

I can not attach the Symbol_Period.mq4 indicator,
because this post already contains the max allowed attachments,
but you can find it in this thread.

Comment:

Please, re-read the post, because of some technical changes due to fixes!!!

Sorry guys, but I just figured out the fixes to the above mentioned problems.
So, attached the fixed versions:


Now, you can delete the objects by simply drag&drop the script onto the right blank area of the chart.
It was a time issue. The new MT4 has time data on the blank area, so it was still creating the objects.
Now, I programmed a workaround this problem.

Also, the Label now works as it should.

I replaced them in the post above, as well.

There is just one important change!!!
Apply the Dadas_Trade_Zones_Script.mq4 to the InsideBar,
or the Candle preceding the OutsideBar for best results!!!

IOW: Apply to PTECZ and TBCZ!!!

URGENT UPDATE!!!

Because of the Holidays, I wasn't able to check the Dadas_Trade_Zones_Label_Indi.mq4
in action, and now it turned out it wasn't working properly, the label wasn't showing.
I fixed that.
I can't edit the previous posts any more, so you must download this version, here:

I'm asking you guys, to test these new tools with me!
Please post your results!!!
It seems to me this should work damn well on PTECZ and TBCZ!

Hi Dada,

I dot see Red and other candles as you shown in earlier chart. I only can see green candle. I am using FXDD MT4 platform

A picture like the one below is the best setup.
A triange forms from the H4 InsideBar.
Now, we must wait for the Price to BO in a direction,
which means, it must Break one of the Trendlines.

That's because you are not reading my posts.
I wrote that you need the latest Dadas_HL_Bar_Candles.mq4 indicator.
It is attached in the post before: http://www.forexfactory.com/showthre...14#post7416114
And, you need to be sure to apply the attached template to get the right settings.
If you are using your old template, you will get the old settings.

I am using all you indicator and template from your above specified link only. But still all my candles coming green. I am not getting any other candle colour.

If you don't see the above, you are not using the right indicators.
You need to see exactly those parameters in the indicator parameters window.

Besides, there might be other problems with you, like I don't know where you saved the new indicators?
If you are on Windows7 up and on the latest MT4 built 600 up, you save to ...\MQL4\Indicators file.

Plus, if you want to use a template, you can't rename the indicators.
When you download a file with the same name as another existing file
directly to the folder where the old file is, your computer doesn't overwrite the old file,
but saves the new file with a modified name like: Dadas_HL_Bar_Candles(1).mq4.
Obviously, the template doesn't have this file name, so it applies the old file.

This is how this works best:
There is a Signal Candle followed by an InsideBar.
You think it's a Short, but you watch PA around the Red Trendline.

For better view, you switch to lower Tf:

First Target is most likely the Blue Trendline.
Of course, then there is the ADR.

OK, so, about the Dadas_Trade_Zones_Label_Indi.mq4,
it is not meant for you to obey it's indications,
because that would be a stupid thing to do.

Obviously, as with any other Trade Direction Signal indicator
there is always the one time it indicates the good Entry,
and all the other times when it indicates something else.

It is always about watching Price Action around certain important moments.
In this case, around the Trendlines and the Entry Zone.

So, I have tweaked the Dadas_Trade_Zones_Label_Indi.mq4
so that you can choose your trading style and your own messages:

Please remember to choose only one Type of Entry as true, while the other Type of Entry to false.
Otherwise, your results may not be proper.

your system is one of the best I saw last time, congratulations!

I'm also like PA I'm make some money with S/R or ZL but this? Is better that all! you dont need see candles to make money

you are done big work, and now this make profit to you. Well done!

Hereby, I present the combined picture of my genius and stupidity:

OK, all in all it is profit, but WTF did I make all those little trades for???
Just proof that in a consolidation we get tons of ideas, so we shouldn't touch anything!!!
Yet, it was so simple!!!
Follow the trend which started on that SBOC Candle!

Thus, I present to you an alternative tool to the Dadas_Trade_Zones_Script.mq4 :

It works just like the Dadas_Trade_Zones_Script.mq4 in terms of Trendlines.
It has one added function, the Lead_Zone_Candle_Tf, thus you define your Lead_Tf ie. 60 (H1).

Now, you can be on the M5, for example, and drop the Dadas_Lead_Zone_Script.mq4 on your chosen M5 Candle,
best to choose the SBOC, and in addition to the Trendline(s) and Entry Zone, you will get the Lead_Zone with Fibo Levels!

It co-operates with the Dadas_Trade_Zones_Label_Indi.mq4 just the same way!

What you do with it, is completely up to you!

Live Long and Prosper!

Please, re-download, c/z I forgot the Pivot_Line, which is important, here!

I have a question, my pulpit looks like this, I added your tpl file and all of yours indi
and I wonder I make this good becouse I all the time have my mt4 screen like this,
all the time speaks dont trade, I dont have any entries on 5 pairs all the day, this is normal? or I must upload something more?
thanks for your help

ok I forgot the script add to chart now is good, forget my question

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