Price Action in Day Trading by Dadas

I agree. Just want it to share it with everyone to see how people react, when they lose a lot of money because they don't use stop loss and go against the market.

Yes, we all react in a very similar way.
Only, we don't necessarily lose that much, or we lose much more.
Every trader was, is or will be in that state of mind, like the guy in the video.
Paralysed, frustrated, unable to do anything.
It does not matter how much money is actually on the loss side.
It is the mechanism combined with lack of knowledge what must be done.
It is the inability to cut losses and let profits run.
Or, it is the inability to take break even as soon as possible.
It is something called "expectations" - false expectations.

5 Pips a day will make you rich.
Just, never lose more!

Hi Dadas,
I read your method of price action, interesting. You posted that no indicator is there like traffic signals, true...but what I want to state that there are Indicators/analyzers which can signal to get ready and trade profitably..My style is swing trading..it matches with your style of price..the difference is that I have developed an analyzer which tells me where is the consolidation area...and thats the most important part of your method..you can see youself in my thread..

A very simple rule bout this analyzer(fully no-repaint) is that a move downside with with white/pink dots indicates that its going to retrace/reverse.





http://www.forexfactory.com/showthre...&goto=lastpost

Don't make me laugh, Man!
Your indicator is BS!
Just like any other!
You want me to expect a swing for 100 Pips, for example???
I can do that without any indicator.
Please, advertise elsewhere, not on my thread!

Maybe it's just me, but I don't see nothing on this chart but a lot of colors.

Yes you can do it without indicator, but not everyone ...Do you have any Trade Explorer ?

Can we see your bank account savings?

Its very simple

A word of explanation.
My thread is in the Commercial section because Forex Factory decided to put it here.
I am not selling anything on Forex Factory.
Anybody, who asks for a trade explorer or any other evidence of my trading shall be ignored automatically and without warning.

Short:

Take Profit:

By the way, PTECZ works great also in stock and (almost) european future market.

Pure PTECZ!

One more:

What is happening with this thread. Dadas where are you can you post more charts and explanation. Thank you.

Everything has already been said and explained.

I can only add the following:

1. The method one trades does not matter, as long as Profit > Loss!!!
2. One will never make Profit on trading untill one realises the following:
a) I decide how much I give away to the Market!
b) I decide how much I want to take from the Market!
3. The only thing one needs to make money is Price Change (which has nothing to do with time)!
4. In order to achieve the above, one needs to have a strictly defined trading algorythm and follow it!

how do u decide you Support and resistance?

?????????????????????????????????????????????????????
You've got a lot to learn!!!
There is no such thing as Support or Resistance!!!
Those are just false myths created by various people.
It's not our role to decide anything other than what I have written in the above post.

Sorry for Interruption. I totally agree with you trade signaling indicators are the best friends of Brokers. Via these indicators they snatch our money. Regarding support/resistance indicators, i don't agree with you. But whats a true support resistance(?) is a separate discussion. Money Management can turn a good strategy into a worst one and a worst one into a best one. I am working really hard on a robot which purely acts on Price Action patterns+Support/Resistance+BQ Offline Charts with an RR ratio of 1:4. Till now having great results but the TP settings and where to enter exactly needs fine tuning.

Support is the lowest price the market can not break at the given time.
Resistance is the highest price the market can not break at the given time.
Which does not mean that in the next millisecond a Fat trader can not break this price by 100 Pips or so.

Price moves for only one-single reason: the inbalance between Buyers and Sellers.
There is no other reason for the price to move in any direction.
If there are Buyers > Sellers - the price must move up, to fill the Buy orders.
If there are Sellers > Buyers - the price must move down, to fill the Sell orders.

All other theories are just pure imagination of various traders.
The standard charts show us price change in the function of time.
They show us a false picture.
Time is not an important factor in trading, it plays no role.
The only thing which interest us, traders, is the most probable range change of price in the more probable direction.

There are Markets within Markets - people and institutions are trading most of the time.
Each Market has a "cheap" price and an "expensive" price.
Our role is simple:
1. Identify the Market,
2. Find the cheap and expensive price,
3. Buy cheap and Sell expensive.

IOW, trading can be like gambling, looking for opportunities and hoping for the price to move in our favor.
Or, trading can be a money making machine.

In trading, there are 3 elements which decide if the trader is profitable or loser:
1. Risk to Reward,
2. Efficiency,
3. The ability to consistently execute the same action algorythm without emotion, without any opinion.

Risk to Reward
Obviously, the lower the Risk and the higher the Reward, the more profitable we can be.
This issue has been discussed over and over, and many, many times.
To a newbie, or even a trader with some years of experience this can be a tough issue, indeed.
Try trading DAX30 at 5 Pips Stop Loss.
Impossible? Absolutely possible!!!
However, if one can not get their emotions out of the way, 10 SL's in the row will kill your psyche.
If you can follow your action algorythm, you may get 10 SL's in the row followed by 10 TP's in the row.

If your Reward is 2 times your Risk, you are way in profit!
Now comes the most important element of this point!
You and only you decide what your Risk is and what your Reward is!!!
Never leave anything to the Market!!!
That is the difference between gambling or lottery, and money-making machine!

You must make the RR realistic to your trading conditions and the instrument traded.
It does not matter that the instrument made 200 Pips the specific day!
All that matters is that I made my 20 Pips Reward Risking 5 Pips on that trading session.
All that matters is that I followed my action algorythm and never deviated from it.

Efficiency
Obviously, the more we win over losses, the more profitable we will be.
So, if we can win 80% of our trades, we will profit even if our RR is not good.
But, we all know how difficult that is for most of the traders.
With a good RR we can be profitable even with 30% win ratio.

Again, what is the way to increase our efficiency?
Take time out of the equation.
Stop chasing the price!
You decide how much you can realistically take from the market!
You can be a millionaire just by taking 5 Pips per day and risking 20 Pips.
As long as your efficiency is 80%, or 90%, or close to 100%.
Impossible? Absolutely possible!!!
However, if one can not get their emotions out of the way, one can not see the Market independent of time.
If you can follow your action algorythm independent of time, you can identify Markets and their cheap/expensive prices.
You can understand and know how price change works and why Price Action which you see on time related charts is
counter-intuitive, thus fools us most of the time.

Remember, all that matters is that I followed my action algorythm and never deviated from it.

The ability to consistently execute the same action algorythm without emotion, without any opinion.
Remember, all that matters is that I followed my action algorythm and never deviated from it.

In order to make 5 Pips per day, or 20 Pips per day, or even 100 Pips per day, all you need is just 1 opportunity per day - just 1.
Identify that opportunity on a non-time-related chart!
Be patient and take that opportunity only when price meets your Risk assumptions!
Thus, Buy cheap!
Thus, Sell expensive!
Only! Otherwise don't make any transactions!
Wait for the next opportunity.

Good luck with your EA!
As long as it profits more than loses, it is a good one.

Dear my view of SNR is a little different than yours. They are not highest or lowest levels/zone. In fact, they are areas from where market can take a turn. Talking from a tiny trader point of view, can we find exactly the imbalance of buyers and seller? I think not. Price Action setups are the clues left by that how Market movers are thinking. Jump in trade early. Set a logical SL(difficult to hit and economical for trader) and enjoy the ride without taking the tension of setting whole day in front of computer. Set and forget trading.