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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
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- Edited 4:00am Apr 7, 2015 1:02am | Edited 4:00am
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Here is a pattern I have notice consistently in every time frame that occurs quite frequently. I had a thought today about what may be going on behind these patterns. Let me know your thoughts.
I sat down today thinking about the psychological game of the market. My conclusion is IT does 3 things.
a) Create area of imbalance by pushing price against retailers orders at an area where retailers are most likely to enter the market.
b) Engulfing certain hard zones in the intended direction to signal the other IT on market direction.
c) Bring back price against the intended direction to the area of imbalance(At the end of the retrace retailers are trading into the 'new' trend) and then touch the area of imbalance while triggering the orders of desperate retailers hoping to get out at BE. The IT then ride on the SL of those retailers that bought into the new trend and the poor desperate retailers that are waiting to get out at BE.
For those that are experience please feel free to speak your thoughts if this is right or wrong.
I sat down today thinking about the psychological game of the market. My conclusion is IT does 3 things.
a) Create area of imbalance by pushing price against retailers orders at an area where retailers are most likely to enter the market.
b) Engulfing certain hard zones in the intended direction to signal the other IT on market direction.
c) Bring back price against the intended direction to the area of imbalance(At the end of the retrace retailers are trading into the 'new' trend) and then touch the area of imbalance while triggering the orders of desperate retailers hoping to get out at BE. The IT then ride on the SL of those retailers that bought into the new trend and the poor desperate retailers that are waiting to get out at BE.
For those that are experience please feel free to speak your thoughts if this is right or wrong.
Riding the order flow
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- Apr 7, 2015 4:29am Apr 7, 2015 4:29am
Here is a pattern I have notice consistently in every time frame that occurs quite frequently. I had a thought today about what may be going on behind these patterns. Let me know your thoughts. {image} I sat down today thinking about the psychological game of the market. My conclusion is IT does 3 things. a) Create area of imbalance by pushing price against retailers orders at an area where retailers are most likely to enter the market. b) Engulfing certain hard zones in the intended direction to signal the other IT on market direction. c) Bring...
Totally agree about point 1.
I have not seen anybody yet that noticed this. I iam trading this point.!!! coz its important for my trading style.
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- Edited 4:24pm Apr 7, 2015 3:12pm | Edited 4:24pm
Here is a pure SD trade. kept very simple. Price reached H1 supply, there is no demand zone in sight too close from the supply area. that's a good profit margin and an attractive risk reward ratio. Whatever you do, be it a blind limit sell order or a market order backed by PA, entering at supply presents a low risk so unless you are betting the farm there is nor reason not to take it or to sweat it once you're in the trade. For confirmation before entering and to avoid a bad surprise have a quick look at GBP/USD and USD/JPY and off you go.
When you know the direction, the game is to add positions on small retracements on the way down to target, but even one sell up in supply was a nice enough trade. Target was previous H4 supply.
Don't overcomplicate it, or try to find crazy patterns or pull your hair analysing charts after the facts. Not everyone is Redsword, you can't run before you walk.
Save Magician11's charts somewhere and try applying the same simplicity. Use small positions size and just take the trades.
When you know the direction, the game is to add positions on small retracements on the way down to target, but even one sell up in supply was a nice enough trade. Target was previous H4 supply.
Don't overcomplicate it, or try to find crazy patterns or pull your hair analysing charts after the facts. Not everyone is Redsword, you can't run before you walk.
Save Magician11's charts somewhere and try applying the same simplicity. Use small positions size and just take the trades.
Hidden in plain sight.
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- Apr 7, 2015 5:01pm Apr 7, 2015 5:01pm
- Joined Dec 2012 | Status: On Life's Path | 2,076 Posts
{image} {image}
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
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- Apr 7, 2015 10:23pm Apr 7, 2015 10:23pm
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{quote} Nice graphic !
Riding the order flow
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- Edited 4:15am Apr 8, 2015 3:56am | Edited 4:15am
Hey Bin,
I believe there is not one pattern in particular but if you happen to like what you drew and to see it often, indeed, just trade it. The whole point of succeeding in trading is having an edge and be disciplined (those who tell you they don't want an edge are idiots). It can be supply and demand or a moving average, it doesn't matter. A naked chart with horizontal line can also prove to be the most efficient one, but one needs a few hours of screentime to see what's going on. I don't think you need to decipher any secret price action to make it. If you can manage 20 pips a day on a regular basis with a 90% consistency, and manage your position size correctly, you can be happy. The reason we like SD so much is because it seems a bit simpler that anything else. We have the zones, we can see the market dynamics, it feels reassuring. Like training wheels if you like. The whole point of studying PA under the microscope like some do (but a very few master) is either to show off or to precisely go from a 60% win ratio to a 90% win ratio and filter the zones that work from the zone that don't, by understanding either how a zone has been created or how price reacts to it.
But for those who discover this thread, just force yourself to trade only one timeframe, whichever it is (i would advise to trade only h1 for a start) and be disciplined enough to not switch timeframes. Find ONE price structure or price action pattern that you like, i don't know, an engulf in the SD zone, or a pin, and trade ONLY that, nothing else. Take 20 pips or at least a 1:1 RRR and do it again. While you do that, others will still be watching PA on M1 feeling very clever and not doing anything. You, on the other end, will have your 20 pips.
I believe there is not one pattern in particular but if you happen to like what you drew and to see it often, indeed, just trade it. The whole point of succeeding in trading is having an edge and be disciplined (those who tell you they don't want an edge are idiots). It can be supply and demand or a moving average, it doesn't matter. A naked chart with horizontal line can also prove to be the most efficient one, but one needs a few hours of screentime to see what's going on. I don't think you need to decipher any secret price action to make it. If you can manage 20 pips a day on a regular basis with a 90% consistency, and manage your position size correctly, you can be happy. The reason we like SD so much is because it seems a bit simpler that anything else. We have the zones, we can see the market dynamics, it feels reassuring. Like training wheels if you like. The whole point of studying PA under the microscope like some do (but a very few master) is either to show off or to precisely go from a 60% win ratio to a 90% win ratio and filter the zones that work from the zone that don't, by understanding either how a zone has been created or how price reacts to it.
But for those who discover this thread, just force yourself to trade only one timeframe, whichever it is (i would advise to trade only h1 for a start) and be disciplined enough to not switch timeframes. Find ONE price structure or price action pattern that you like, i don't know, an engulf in the SD zone, or a pin, and trade ONLY that, nothing else. Take 20 pips or at least a 1:1 RRR and do it again. While you do that, others will still be watching PA on M1 feeling very clever and not doing anything. You, on the other end, will have your 20 pips.
{quote} Same with me, I absolutely look out for it all the time. I feel we really don't know what goes on behind the patterns... That is why I bring up this example to discuss. So far no one can confirm it, not even the institutional traders on the other thread. They don't seem to know anything about it..... In the end of the day it may not matter why price do such and such for the bottom line. Just trade what works.
Hidden in plain sight.
