Price Action in Day Trading by Dadas | Page 182 | Forex Factory

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Price Action in Day Trading by Dadas

  • #3,621
  • May 16, 2014 1:47am May 16, 2014 1:47am
Let me break down how I trade DAX30 M5 charts:

The Goldenrod Vertical Line is the Frankfurt session open time.
The LimeGreen Vertical Line is plus 1 hour.
This is where I first start looking for an Entry setup.
So, when I start, I see something like this:
Attached Image

I do this:
Attached Image

The Risk (SL) for a Long there is only about 10-15 Pips, max.
I should Enter the Long, if I were a machine.
But, in reality, I might just be looking at another instrument,
or doing whatever else, and when I see the setup, I am late.
So, when I see this:
Attached Image

I should sit on my hands and just wait until I see smth like this:
Attached Image

There is a Pinbar rejection and an InsideBar.
This is a signal that Bulls are losing strength, there is no room for objectivity or not.
I don't know, maybe some Traders need only this much to Risk a Short.
Others will still wait for this:
Attached Image

This should be the last call for a Short Entry with SL max 30 Pips,
but I would probably Risk not more than 20 Pips initially, in this situation.
After seeing the following, you sit on your hands, again:
Attached Image

And, you follow the Local Trend until you see this:
Attached Image

This is reason to Close the Short Entry.
This is reason to Risk Long at max 30 Pips SL.

And, you continue like this till you've had enough.

Now, you can see my mistakes more clearly.
For various reasons, I was never there to see the very best Entry moment,
but still I tried to get on the train when it was moving.

However, because I am minimizing my SL (Risk), using safety gear,
my injuries aren't big and I quickly recover!

So, again, we are not machines, we are not always there at the right moment,
we have urges to take a trade, because Price is now moving stronger than before,
and we think that it might move 100 Pips more in just a few seconds.
Sometimes it does that, but most often not!

And, again, when you are using safety gear and letting your Profits recover your Losses plus Reward,
you are on the right path, you will be Profiting in the end result!

It is just that I want to get injured less frequently, that's all!
Trade the facts, not opinions.
  • #3,622
  • May 16, 2014 2:37am May 16, 2014 2:37am
Now, let's break down what happened on GOLD.
I trade GOLD and other relatively big spread, large movers on H1/H4 charts.

This trade was really simple:
Attached Image

Low Risk, high Reward Potential, there wasn't much to think about!

Next trade:
Attached Image

Now, what happened here, it was late, when Market slows down.
I saw Short potential, but my strategy only allows to hold overnight in very clear situations.
It's a bit harder to get in precisely keeping 30 Pips SL max on GOLD, but not impossible.
I, ultimately closed that trade, but that was actually a very good Short Entry overnight.

So, the next day I saw that Price was going South!
Attached Image

And, the urge started working!
I thought that that was the move and entered.
I entered Short at the Bottom, which is against my own rules.
Thus, 30 Pips SL was not enough, and it took me out.
The next Short was still too early, but I decided to Risk a bit more, 35 Pips, the Goldenrod Line.
It was taken upon PA: Bullish Rejection Pin + InsideBar + earlier Bearish SBOC + Highs.
This time it worked!

That's all, no phylosophy, only trading and managing!
Trade the facts, not opinions.
  • #3,623
  • May 16, 2014 7:02am May 16, 2014 7:02am
DAX30, today:
Attached Image (click to enlarge)
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I was busy posting, so I missed some opportunities,
then I got a little idea for an indi helper and programmed some.

My first Short was a proper one, with small SL.
Some fat guy went for my SL, LOL!

Anyway, I repeated Short at the top with a quicker reaction.
Then, I trailed it aggressively, thus it took me out at half-level.

As you can see, I Broke Even.
Trade the facts, not opinions.
  • #3,624
  • May 19, 2014 6:12am May 19, 2014 6:12am
Attached Image (click to enlarge)
Click to Enlarge Name: goldm15.png Size: 33 KB

There is more than 2 trades here.
Due to testing of my EA.
Trade the facts, not opinions.
  • #3,625
  • Edited 11:49am May 19, 2014 11:32am | Edited 11:49am
This is my first, perfect human-machine co-operation trade:
Attached Image (click to enlarge)
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I told the EA through my Indicator about my Entry, SL, and TP parametrs.
I told the EA through my Script where to Enter and which direction.
The EA executed the trade, perfectly.
I helped a little by pushing SL even tighter.
I helped more by dragging TP to a more realistic level.
The EA closed half after crossing the preset distance.
The EA moved SL to BE.
Then, we both waited until Price took TP level.
Trade the facts, not opinions.
  • #3,626
  • May 20, 2014 7:39am May 20, 2014 7:39am
Sometimes this happens:
Attached Image (click to enlarge)
Click to Enlarge Name: goldm15.png Size: 32 KB

My first Short Entry was fairly good, but the SL was too tight for the Market.
The second Entry was fine, and it worked.
However, the second half of the trade went BE.

This situation made me think about my Entry approach.
I am using a script to tell my EA where to Enter and which direction.
Until this trade, I was dropping the script on a certain candle, usually a SBOC.
Starting now, I am using the "first check SL" approach.
Thus, I will be placing my script not on any candle, but on the SL Price!

So, I will first look at where my SL should be, then drop the script there.
If Price retraces back into the Entry Zone, the trade will be triggered.
If not, there will be no trade.

Of course, I have modified my scripts accordingly!
Trade the facts, not opinions.
  • #3,627
  • May 20, 2014 12:43pm May 20, 2014 12:43pm
Indices are more reliable, at least for me.
I can trade at smaller risk and get a decent reward.
Attached Image (click to enlarge)
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Trade the facts, not opinions.
  • #3,628
  • May 24, 2014 4:42pm May 24, 2014 4:42pm
Quoting Dadas
{quote} Of course, we are trading historical quotations, not the real bank quotations. I once had the same idea, I had so many indicators on my chart, that the chart was practically impossible to read, thus useless. OK, enough, we will only be repeating ourselves from this point on. Thank You.
Greetings to all forum members, many thanks to the creator DADAS of the theme for job in teaching beginners to read your interesting scientific debate about the trades, and the question immediately arises, what is the depth of history on which we trade, banks can still deceive us, and we're wasting our time ?
  • #3,629
  • May 24, 2014 8:15pm May 24, 2014 8:15pm
Quoting Dadas
The further we take it, the better it gets! First, D1 chart, Custom_Zone_Candle_Tf = 1440 PTECZ_Candle_Tf = 1440 We identify the PTECZ as Index 7 - because it was the Ending PTECZ of Bearish trend! Custom_Zone_Candle_Index = 7 Pause_Custom_Zone_Candle = false {image} We switch to H1 being at the time as in post above. We follow the steps from post above.
Hello, Dadas
Thank you very much for this job
When we switch to a small TF we must change option of Custom_Zone_Candle_Tf=1440 to a smaller or NO?

Regards
  • #3,630
  • Edited 1:31am May 25, 2014 1:14am | Edited 1:31am
Quoting safrash
{quote} Greetings to all forum members, many thanks to the creator DADAS of the theme for job in teaching beginners to read your interesting scientific debate about the trades, and the question immediately arises, what is the depth of history on which we trade, banks can still deceive us, and we're wasting our time ?
Nobody is deceiving us, only providing us with the data they can provide us with.
We can only trade that data which we see on our charts provided by our broker.
If your broker is cheating you and you can prove it, change your broker.
There are so many brokers to choose from, these days.
However, don't blame your broker or bank for your losses, if you simply aren't doing the right things,
if you are not following the rules of Money and Risk Management,
which are the most important rules in any kind of business!

Besides, today, good brokers provide you with thoughrough education and
livetrading sessions where they teach you specific trading strategies, which
they perform on real live accounts, and you can follow their results.

Quoting safrash
{quote}
When we switch to a small TF we must change option of Custom_Zone_Candle_Tf=1440 to a smaller or NO?
Your question tells me that you don't understand.
If you are trading the D1 CZC, why should you change CZC to a lower Tf?
CZC is your Support/Resistance background, your context of trading a lower Tf chart.
Trade the facts, not opinions.
  • #3,631
  • May 25, 2014 6:35am May 25, 2014 6:35am
Quoting Dadas
{quote} Nobody is deceiving us, only providing us with the data they can provide us with. We can only trade that data which we see on our charts provided by our broker. If your broker is cheating you and you can prove it, change your broker. There are so many brokers to choose from, these days. However, don't blame your broker or bank for your losses, if you simply aren't doing the right things, if you are not following the rules of Money and Risk Management, which are the most important rules in any kind of business! Besides, today, good brokers...

Do not judge strictly, I just started to learn your trading method and it appeals to me a lack of indicators, so soon follow intelligent questions.
  • #3,632
  • May 25, 2014 8:13am May 25, 2014 8:13am
Hello Dadas
I have began learn your theme and have questions


5. Watch for entry moments on the retrace to the zone.

Means price return to the zone and we enter in moment return or in moment exit from zone?
  • #3,633
  • May 25, 2014 9:00am May 25, 2014 9:00am
Don,t look pictures in post 5, please, upload
  • #3,634
  • May 25, 2014 9:02am May 25, 2014 9:02am
Quoting Dadas
{quote} If you are trading the D1 CZC, why should you change CZC to a lower Tf? CZC is your Support/Resistance background, your context of trading a lower Tf chart.
for good enter, ok have understood , I am reading all theme
  • #3,635
  • May 25, 2014 9:16am May 25, 2014 9:16am
Hi, Dadas
how to protect yourself from falling into a new Zone after Breakdown or Breakup?
Attached Image (click to enlarge)
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  • #3,636
  • May 25, 2014 1:03pm May 25, 2014 1:03pm
Quoting safrash
Hello Dadas I have began learn your theme and have questions 5. Watch for entry moments on the retrace to the zone. Means price return to the zone and we enter in moment return or in moment exit from zone?
You are looking for "truths" about this market.
There are no "truths".
We can never know what price will do in reality.
We can only speculate that there is a bigger chance price will go there or there.

If you enter Long at the potential bottom, your risk is minimal.
If you enter Short at the potential Top, your risk is minimal.
Your risk grows bigger the later you enter your trade.

Anyway, you can risk 50 Pips, if that is 2%, max 3% of your account, or
if you can afford to risk the ammount of money = 50 Pips.
This is Money and Risk Management.

Quoting safrash
how to protect yourself from falling into a new Zone after Breakdown or Breakup?
Stop Loss is your protection.
What other protection can you have?
What happens on the chart isn't anything you can have any influence on.

When price breaks the previous day Low, that's what has happened.
It means nothing else but exactly that it has broken down the last D1 Low.

The ability the trader must learn is to read Price Action by candles or by bars.
The price always works like that: Trend - Consolidation - Trend - Consolidation ... and so on.
How do you want to protect yourself???
If you were in a Short trade, you should be exiting it in this situation.
Attached Image (click to enlarge)
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The rest is up to Money and Risk Management.
Trade the facts, not opinions.
  • #3,637
  • May 25, 2014 1:09pm May 25, 2014 1:09pm
Quoting Dadas
{quote} You are looking for "truths" about this market. There are no "truths". We can never know what price will do in reality. We can only speculate that there is a bigger chance price will go there or there. If you enter Long at the potential bottom, your risk is minimal. If you enter Short at the potential Top, your risk is minimal. Your risk grows bigger the later you enter your trade. Anyway, you can risk 50 Pips, if that is 2%, max 3% of your account, or if you can afford to risk the ammount of money = 50 Pips. This is Money and Risk Management....
Thank you very much continue to study
  • #3,638
  • May 25, 2014 1:18pm May 25, 2014 1:18pm
Quoting safrash
{quote} Thank you very much continue to study
You must also gain a lot of experience on how price behaves and study many instruments.
Price tends to retest Low and High levels.
Sometimes it will make a new Low or High before it changes trend direction.
EURUSD is possibly the hardest instrument to trade, or one of the hardest,
because it is the Forex Pair which is traded the most in the world.
So, there is a lot of battle between the Bulls and the Bears on this pair.

Some things just won't help you much if you learn them or read about them.
They will only help you when you gain the ability by many years of experience.
Trade the facts, not opinions.
  • #3,639
  • May 25, 2014 1:25pm May 25, 2014 1:25pm
Quoting Dadas
{quote} They will only help you when you gain the ability by many years of experience.
Ok, I have some experience, I am trading now on real mini account, I've told like your method without imdicators and want to study PA
  • #3,640
  • May 25, 2014 2:36pm May 25, 2014 2:36pm
Quoting Dadas
Price Consolidation can be clearly recognizable on the chart as a Doji Candle (no candle body), as two opposite Candles (Bullish and Bearish) of equal or nearly equal body hight, as a series of Candles oscilating in a certain horizontal channel of, sometimes a few, sometimes even a couple of hundred Pips without a clear trend. However, the most important Price Consolidation Zones seem to be the ones not readily recognizable on the chart, yet, they are the beginnings, the earliest indications of a Price Consolidation! And they are: the Shadow Zones...
Hello, Dadas
What is Candle on the chart?
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