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The One: Price Action and Reaction

  • #461
  • Nov 28, 2015 2:15pm Nov 28, 2015 2:15pm
Quoting ccr
{image}{image}
Very funny This cartoonist is very good.
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #462
  • Nov 28, 2015 3:18pm Nov 28, 2015 3:18pm
Just forking around...

A little confluence never done anyone harm
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Maybe, coincidence, but I'll take that!
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Gonna keep those two H4 forks and see how price plays around these edges and whether we get confluence with Monthly fork

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  • #463
  • Nov 28, 2015 3:56pm Nov 28, 2015 3:56pm
What's the difference between this:

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and that:

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Mostly, the value seems to be the parallel line, which could just be a trendline in that case.
The question I'm considering is, the similarities and differences between a straightforward TL which can be cloned etc, and a pitchfork.
Both act as dynamic Support / Resistance.

THX
  • #464
  • Nov 28, 2015 11:07pm Nov 28, 2015 11:07pm
Quoting livindaylite
Just forking around... A little confluence never done anyone harm {image} Maybe, coincidence, but I'll take that! {image} Gonna keep those two H4 forks and see how price plays around these edges and whether we get confluence with Monthly fork {image}
Looks good, I saw something similar.
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #465
  • Nov 28, 2015 11:15pm Nov 28, 2015 11:15pm
Updated 4h
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #466
  • Nov 28, 2015 11:39pm Nov 28, 2015 11:39pm
Observe and see if there were any possible trades on this Euro chart.
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #467
  • Nov 28, 2015 11:48pm Nov 28, 2015 11:48pm
By observing time frames you will see that on 1h charts there will be a basic trade possibility near the weekly high, weekly low, and weekly open. On 15/5m charts you will see a trade opportunity near the daily open, daily high, and daily low. As a chart exercise, open any pair and see if this is true.

Notice something on these 5m Euro charts?

Price makes extremes then goes back to balance. Just by knowing this very basic information is powerful.

Do you see the Valleys and Mountains?
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #468
  • Nov 29, 2015 12:14am Nov 29, 2015 12:14am
Also on Aussie
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #469
  • Nov 29, 2015 4:08am Nov 29, 2015 4:08am
Quoting eaglestar
{quote} Looks good, I saw something similar. {image}
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interesting, different tools but same frequency, also did you see the nice GBPUSD 4H short opportunity market with red arrow?
Did not see it at that time, next time my forks will be ready
the 3rd wave is the crowd's wave
  • #470
  • Nov 29, 2015 4:30am Nov 29, 2015 4:30am
Quoting eaglestar
Observe and see if there were any possible trades on this Euro chart. {image}
Hi eaglestar;

Do you consider why the Market takes out a Swing High/Low by a few pips and then reverses?

Until this is taken into account you are only observing and reacting to the chart that is being created and not understanding the forces that go into creating the chart we all see.
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  • #471
  • Nov 29, 2015 9:40am Nov 29, 2015 9:40am
Quoting stevepatt
{quote} Hi eaglestar; Do you consider why the Market takes out a Swing High/Low by a few pips and then reverses? Until this is taken into account you are only observing and reacting to the chart that is being created and not understanding the forces that go into creating the chart we all see. {image}
Your charts are very good. I believe you are probably talking stop hunts? Market makers on each time frame create wash and rinses to wash traders out of their positions before taking the market in their direction. If you can have a 3:1 or 5:1 trade it shouldn't matter the occasional stop hunt or you can do what a friend of mine does which is trade the stop hunt and take the entry on the candle wick. Feel free to post your observations. My reason to post a horizontal chart is to show that just as there are extremes on a fork and price returns to balance, so are there extremes on a horizontal 2D plane and price also returns to a balance point before continuing trend. These are meant to be eye observations more than a more detailed explanation of intraday price action. You can post some observations if you feel it would be helpful to readers. I looked at your new journal and it is very good.
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #472
  • Nov 29, 2015 2:54pm Nov 29, 2015 2:54pm
Quoting eaglestar
{quote} Your charts are very good. I believe you are probably talking stop hunts? Market makers on each time frame create wash and rinses to wash traders out of their positions before taking the market in their direction. If you can have a 3:1 or 5:1 trade it shouldn't matter the occasional stop hunt or you can do what a friend of mine does which is trade the stop hunt and take the entry on the candle wick. Feel free to post your observations. My reason to post a horizontal chart is to show that just as there are extremes on a fork and price returns...
Hi eaglestar;

Yes; I am talking about stop hunts and the Volume this creates for Big Money to accumulate their Orders.

I tend to stick with horizontal lines and look for the obvious Stop Loss levels on H1 and above and then wait for these Stops to be targeted before looking to enter Trades on M5.

Big Money will also instigate false Break Outs to trigger Orders against their intended direction and then accumulate their positions by consuming the Volume created by the false Break Out.

Quite often the Asian session will consolidate before we get a strong Market move either just before or at the Frankfurt open. This is often done to trigger Stop Losses or a false Break Out to trigger Orders this provides Volume for Smart Money to consume. We need to be aware of Smart Moneys intentions before we jump into a Trade. (See first EUR/USD chart below). The second chart illustrates intraday levels I have marked for Monday 30th Nov.

If what I am posting here isn't appropriate for your thread let me know and I will delete the post.
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  • #473
  • Nov 29, 2015 9:43pm Nov 29, 2015 9:43pm
Quoting stevepatt
{quote} Hi eaglestar; Yes; I am talking about stop hunts and the Volume this creates for Big Money to accumulate their Orders. I tend to stick with horizontal lines and look for the obvious Stop Loss levels on H1 and above and then wait for these Stops to be targeted before looking to enter Trades on M5. Big Money will also instigate false Break Outs to trigger Orders against their intended direction and then accumulate their positions by consuming the Volume created by the false Break Out. Quite often the Asian session will consolidate before we...
Stevepatt, you are more than welcome to post here. I think your charts show exactly what many traders need to learn, and what I went over in the beginning of the thread. I am not much of a writer, I choose to let my charts do the talking, so I like your thoughts and ideas. Feel free to continue, and other thread participants can feel free to give their opinion as well. This thread is called The One: Price Action and Reaction because what we are learning here is how to observe price as it moves and flows using the basic and advanced lines. This is just the beginning (God willing).

All the best
Eaglestar
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #474
  • Nov 30, 2015 3:52am Nov 30, 2015 3:52am
Observing this one
EURJPY 4H/1H
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the 3rd wave is the crowd's wave
  • #475
  • Nov 30, 2015 4:06am Nov 30, 2015 4:06am
Potential short opportunity on good separation + retest (AUDJPY)
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the 3rd wave is the crowd's wave
  • #476
  • Nov 30, 2015 11:47am Nov 30, 2015 11:47am
Quoting stevepatt
{quote} Hi eaglestar; Yes; I am talking about stop hunts and the Volume this creates for Big Money to accumulate their Orders. I tend to stick with horizontal lines and look for the obvious Stop Loss levels on H1 and above and then wait for these Stops to be targeted before looking to enter Trades on M5. Big Money will also instigate false Break Outs to trigger Orders against their intended direction and then accumulate their positions by consuming the Volume created by the false Break Out. Quite often the Asian session will consolidate before we...

EUR/USD has been accumulating Orders all day.

The New York Open saw the Market move higher, to take out intraday Buy Stops which where Sold into, and Short Positions accumulated. Once all the Buy Orders where consumed the Market dropped below the Daily level from the 15th April 2015. This is where the Market is at the moment accumulating more Short positions, just look at a M5 chart to see this happening.

This is to highlight that you need to put the Trend Lines that are drawn into Market Context and try to anticipate what the Smart Money is planning.
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  • #477
  • Nov 30, 2015 3:13pm Nov 30, 2015 3:13pm
Hi Stevepatt,

I was waiting (read: dreaming) for a retracement, today, which never materialised. Instead Price has been in a +30pip range. So, when you say:
Quote
The New York Open saw the Market move higher, to take out intraday Buy Stops which where Sold into, and Short Positions accumulated.
I am wondering how you can know that? "Move Higher" to take out intraday stops sounds dramatic given we were in such a tight range.
I'm not saying this doesn't happen; rather asking how you can read that on a chart esp. given the small range today.
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1st move out of Asian Range was a FO trapping buying volume?
Then we see same to the downside.
Normally, we see a fake to one side and the real move to the other, right? or ??
After this double fake expected Price to take its real direction for the day, but that really was IT ! (pretty much)
How did you know to sell there and that Price would not go higher?
Look forward to clarification on how you put things into Market Context and the process of "trying" (to) anticipate what Smart Money is doing.

Thanks in advance...

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  • #478
  • Nov 30, 2015 5:14pm Nov 30, 2015 5:14pm
Quoting livindaylite
Hi Stevepatt, I was waiting (read: dreaming) for a retracement, today, which never materialised. Instead Price has been in a +30pip range. So, when you say: {quote} I am wondering how you can know that? "Move Higher" to take out intraday stops sounds dramatic given we were in such a tight range. I'm not saying this doesn't happen; rather asking how you can read that on a chart esp. given the small range today. {image} 1st move out of Asian Range was a FO trapping buying volume? Then we see same to the downside. Normally, we see a fake to one side...
Hi livindaylite;

I was also expecting the Market to move higher, today, looking for larger levels of Stops to trigger.

But there must have been enough Buying Volume within the 37 pips range yesterday for Positions to accumulate.

We often see a false move just before or at Frankfurt or New York Open, as I stated in this Post 472, that breaks a previous Support/Resistance Level, by a few pips, and triggers a move in the opposite direction.

My bias today was Short because of the obvious Daily Bearish Trend, I don't know any more than anyone else what the Market will do. It was because of previous Observations that I went Short when I did where I did with what I believe put the Odds of success in my Favour. I got taken out for (-4.5 Pips) (-0.5R) because the Smart Money hadn't accumulated enough of it's Order when I entered. If i saw the same set up tomorrow I would still take the Trade because I know by doing so, in the long term, the Odds are in my Favour.

I hope this helps.
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  • #479
  • Nov 30, 2015 5:35pm Nov 30, 2015 5:35pm
Quoting stevepatt
{quote} Hi livindaylite; I was also expecting the Market to move higher, today, looking for larger levels of Stops to trigger. But there must have been enough Buying Volume within the 37 pips range yesterday for Positions to accumulate. We often see a false move just before or at Frankfurt or New York Open, as I stated in this Post 472, that breaks a previous Support/Resistance Level, by a few pips, and triggers a move in the opposite direction. My bias today was Short...
Thank you for that explanation.
Unlucky for your trade given it went your way afterall; that was a tough range to trade today.
I guess you also use the volume indicator to see what's going on ?

Tomorrow should see markets move!
  • #480
  • Nov 30, 2015 10:25pm Nov 30, 2015 10:25pm
I wanted to take a brief pause and ask the followers of this thread and my work to send me by private message any suggestions they would like to see this week and going further. I do this to help others, as you can see it is my goal to help traders here make profitable trades and succeed. Please tell me your suggestions and comments by private message that and feel free to be honest and open, as I am the same. Please let me know if the pitchfork chart sets are helping and if there is any structure you want me to change or add to them. I hope this thread will become one of the most helpful on this site, so that is why I would like to improve it in any way I can. Thank you
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
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