Price Action in Day Trading by Dadas

And, if you still don't understand, then think of this way:
If the maximum you can afford to lose is the equivalent of 5 Pips, then you can only trade the M1, maybe M5 charts.
But, the reality is that the way price moves, you need 50 Pips Stop Loss to enter actual moves which you can observe on H4 charts.
This is one of the main reasons why trading small Tf's is so difficult and frustrating.
This is how this market works.
We can't bend the markets to our wishes.
Unless you are Neo from Matrix!

Understand what you are dealing with!

If you refuse to understand, you are trying to bite off more than you can chew.

- Vietnamese internal structure :One word is a teacher; half a word is still a teacher !
- Very grateful - Dadas !

The question is, what do you want to trade, at this time on Friday???
The H1 trade on GBPUSD was here:

If you are still thinking of trading, you really must be very fresh.

Thank you master
After analyze my mistakes understand that one and most reason of my later enter is watching many pairs, more than 20 , what you advising?

I advise you to shut down your trading platform, turn off your computer and take a long holiday.
During the holiday, really rethink if trading financial instruments is for you.
Because what you are doing is the worst trading I have ever seen.
You are not paying attention to anything I say nor to any trading rules.
I tell you to enter long at the bottom of the retest after bullish breakout, you
enter long on the bearish trend, without any signal of trend reversal.
Next, you enter long at the top of the local price retrace on bearish trend not waiting for higher low on PTECZ retest.

You need to rethink your actions.

After the holiday, take 1 instrument and learn to trade it for 1 year minimum.
If you practise trading on that 1 instrument, you can come back and ask questions.

Thank you very much, but I am learning only and only from this thread and your posts, and this enter not excluding. This Enter I have learned in this post

When we saw the Breakout Candle with Index 137, we could have waited until the very last moment when Candle with Index 131 Closed, and entered Long just then.

Obviously, you don't understand what you are reading!!!


But, never then:

Never in the middle!

Where was you R/R?

Today's topic: Understanding Market Price Action

We are going to analyse the area highlighted by the darker rectangle.
We are going to interpret what actually happens on the Market.

Q: What happened on Bullish Trend Candle #1?
A: Some big institutions made some serious transactions moving the Price Up.

Q: Could we have taken any Profit from that move trading this chart?
A: No, and we shouldn't even try to be smarter than the Market!

Q: How does every trading transaction work?
A: If you Buy, you must re-Sell. If you Sell, you must re-Buy.

Q: What must, inevitably, happen at a certain moment?
A: The institutions which caused that move must close their transactions, Take Profit.

Q: How do we know when they are Taking Profit?
A: We see a consolidation and/or retrace.

Q: What are the possible scenarios of Price Action when the big institutions Take Profit?
A: 1. Only a few of them are interested in closing at this level - small retrace, good chance of continuation.
2. More of them are interested in closing - the retrace is bigger.
3. Most of them are interested in closing - we get a 1:1 consolidation.
4. This was a HFT on the news data reaction and trend goes the other way breaking the Open Price.

Q: Which direction is it best and most reasonable to trade?
A: The direction of the Trend.

Q: What do we need to see in order to start looking for an In-Direction Entry?
A: A Break Candle #2 breaking the Close Price of the Trend Candle #1.

Q: Where do we Open our Long position?
A: Anywhere from Close of Candle #2 to retest of BO Line (best).

Q: Where does the Market dictate our Stop Loss must be?
A: Below the Low of Candle #0.

Q: Can we afford this?
A: If the answer is "Yes", we can open a Long position.

Q: Have the institutions realised their Profits, already?
A: No, they haven't even started, yet!

Now, keep in mind the possible scenarios mentioned above.

Q: What must the big institutions do in order to close those big transactions?
A: They must find the other side of the deal, they must find liquidity for their big lots.

Q: Where on the chart do we see this liquidity hunting?
A: In the highlighted box.

Q: Where do we start looking to get on that train, going back South?
A: Best on Break Down Candle #3 on retest of the BO Line.


Still, keep in mind the possible scenarios mentioned above.

The Fibonnaci Retracement Levels are one ideal tool for this.

Q: What next, after the big institutions have completed their cycle?
A: It depends on the outcome scenario. In the case of the presentad chart it was scenario #2.
The big insitutions realised their Profits at the Fibonacci 61.8% retracement.
Or, following the understanding of Market Price Action, they again hunted for liquidity, and Broke Out at Candle #4.


Q: Where do we enter the Long?
A: After the close of Candle #5.


Q: Is Market Price Action discretionary, as many traders claim?
A: No, it isn't. Price Action is the direct representation of Market Activity.
In order to be able to interpret Price Action correctly, one must understand the workings of this Market.

How does that work with your +12 Pips Profit???

It is NOT the ability to open trades which makes a good Trader!!!

It is the ability to NOT Open Trades at bad Risk/Reward,

and the ability to Open Trades when there is a Trend,

and Risk/Reward is proper

which makes a Good Trader!!!

Practice, practice, practice ...

If you are going to practise your bad habits, you will never become a good trader.

Drops collects sea

Until comes the Tsunami.

The short is fine, because after Bear BO.
Your R/R is terrible!
You refuse to listen to me.
Thus, I am not your teacher, not your master.
You must continue on your own.

Thank you for posting.
I will not reply to your posts any more.

do not angry teacher, I correct my mistakes, are you immediately become professionally? Moscow did not built immediately
short continue

The time has come for me to make a quantum evolutionary leap.
Colors are back on my charts!
The PTECZ's showed the consolidation levels so fine but, we never
could tell which ones were the most important ones until price confirmed.

Well, that's the way all Support/Resistance levels work.
They are always potential until price confirms them true or false.

However, there is an unbelieveably precise method to figure out swing levels
and the targets of the price moves or trends.

The following chart illustrates this method, my latest method:

What's most probable next?

Since, I am commercial, it's time to go commercial.
I will teach anyone how to trade effectively.
My time costs 5 000 Euro or equivalent in exchangeable currency.
I promise to give you the best I can give you.
I give no money back quarantee.

Contact me by SKYPE.