Good day,
Thank you for taking the time to open this thread and pondering the idea of S/D zones, how are they created ? Do you trade S/D zones ? Highs ? Lows ?. The reason for asking is to determine a solid method of developing these zones in code. Trading these zones can result in a very precise way of trading, of course a trader is not able to only trade from a specific area and hope for it to work. Does that seem strange ? Hahaha A trader can trade these zones in a precise manner but not make money or make large amounts. Why is that ? what does a solid trader look at, to determine these zones to have strength and price break, reverse or turn consolidation period ?
More to the point of this thread, we are here to determine a suitable way of determining S/D zones so that it can be coded in a consist manner, (Yes Im aware of the other threads that thrive on this idea). Trading these zones can be very profitable learning the weaknesses or strengths when prices comes into these areas. Being a short term trader ( 6am-12pm EST) holding my positions no longer then an hour can surely allow for nice entries that result in short term gains. I have made money trading this way so I know it works but the humans (me included) make mistakes. Lets move past the mistakes of the trader and in to the hands of the algo.
Here are the first examples. Each evening analyzing the markets to see where price has found key zones of S/D, then extending these areas to the following day trading hours, of 6am-12pm EST ( my platform is 15:00-21:00). I look at highs, lows, close and where price has consolidated. I have had one idea coded using a simple method for determining these areas but we then get overlap, this is something that makes this tough, having overlapping areas is something we dont want.
To determine these areas I look to the previous days highs+close and lows+close and where price was rejected, knowing the following day these areas will play a significant roll in the current days price action, unless of course price makes new highs or new lows.
Thank you for taking the time to open this thread and pondering the idea of S/D zones, how are they created ? Do you trade S/D zones ? Highs ? Lows ?. The reason for asking is to determine a solid method of developing these zones in code. Trading these zones can result in a very precise way of trading, of course a trader is not able to only trade from a specific area and hope for it to work. Does that seem strange ? Hahaha A trader can trade these zones in a precise manner but not make money or make large amounts. Why is that ? what does a solid trader look at, to determine these zones to have strength and price break, reverse or turn consolidation period ?
More to the point of this thread, we are here to determine a suitable way of determining S/D zones so that it can be coded in a consist manner, (Yes Im aware of the other threads that thrive on this idea). Trading these zones can be very profitable learning the weaknesses or strengths when prices comes into these areas. Being a short term trader ( 6am-12pm EST) holding my positions no longer then an hour can surely allow for nice entries that result in short term gains. I have made money trading this way so I know it works but the humans (me included) make mistakes. Lets move past the mistakes of the trader and in to the hands of the algo.
Here are the first examples. Each evening analyzing the markets to see where price has found key zones of S/D, then extending these areas to the following day trading hours, of 6am-12pm EST ( my platform is 15:00-21:00). I look at highs, lows, close and where price has consolidated. I have had one idea coded using a simple method for determining these areas but we then get overlap, this is something that makes this tough, having overlapping areas is something we dont want.
To determine these areas I look to the previous days highs+close and lows+close and where price was rejected, knowing the following day these areas will play a significant roll in the current days price action, unless of course price makes new highs or new lows.
Learn, a forex trader must, unlearn and relearn he will.