Disliked{quote} Hi elsensei. This question is wrong on so many levels i don't know where to start! The question and thread title should be: How much time should i waste on PA and TF's? rgdsIgnored
- Joined Dec 2010 | Status: Member | 572 Posts
Never Force your timeframe onto the market! Here is why..
Liquidty changes in the market... So choosing a timeframe is tricky.. Look at Daily, weekly candles, news flow, hollidays. to get a sense of Liquidty.. Also time of day is important on smaller time frames..
You can not force your timeframe on the market... You must Adapt to changing conditions..
Here is an example.....
I remember u/j stuck at 1.02 for 8 months! so the only way to make money interday is to use a smaller time frame...
Once u/j broke 1.02 8 month consolidation.. It started making huge moves! you want to ramp it up to a bigger time frame at this point.
Good traders can sense a bigger move is coming! They also know when market is queit and to use the smaller time frames.
. 
Liquidty changes in the market... So choosing a timeframe is tricky.. Look at Daily, weekly candles, news flow, hollidays. to get a sense of Liquidty.. Also time of day is important on smaller time frames..
You can not force your timeframe on the market... You must Adapt to changing conditions..
Here is an example.....
I remember u/j stuck at 1.02 for 8 months! so the only way to make money interday is to use a smaller time frame...
Once u/j broke 1.02 8 month consolidation.. It started making huge moves! you want to ramp it up to a bigger time frame at this point.
Good traders can sense a bigger move is coming! They also know when market is queit and to use the smaller time frames.
.
The only system that will work is one designed by and for yourself.
- | Joined Mar 2015 | Status: 9-5 is how you survive. | 86 Posts
Never Force your timeframe onto the market! Here is why.. Liquidty changes in the market... So choosing a timeframe is tricky.. Look at Daily, weekly candles to get a sense of Liquidty.. Also time of day is important on smaller time frames.. You can not force your timeframe on the market... You must Adapt to changing conditions.. Here is an example..... I remember u/j stuck at 1.02 for 8 months! so the only way to make money interday is to use a smaller time frame... Once u/j broke 1.02 8 month consolidation.. It started making huge moves! you want...
- Joined May 2012 | Status: ... | 1,940 Posts
OP,
Two price-action trades; different direction but similar criteria for entry. One is M5 timeframe, the other is D1 timeframe.
Can you tell which one is which?
Two price-action trades; different direction but similar criteria for entry. One is M5 timeframe, the other is D1 timeframe.
Can you tell which one is which?
- | Joined May 2014 | Status: Member | 196 Posts
Price action trading really is as it says; the action of price.
Most people on here focus solely on a chart but don't actually understand the true context behind price
This is what's called a price ladder. It's the core of any financial market. This picture shows the Eurostoxx back from October 2015. We have the asset price in the middle, with Bid (Buy/Long) orders on the left and Ask (Sell / Short / Offer) orders on the right. These are lots. So for example, at 3181 there were 1,626 lots hitting the Bid. At 3195, there were 587 lots hitting the offer.
Markets are simply made up of these orders all over the place. If you were to stretch this out to go from, say, 1900 to 3800, then there would be these limit orders sat at all the different prices up and down the scale. I use those prices as 1900 was around the low of September 2011 and 3800 was around the high of April 2015.
So moving back a little, our price charts show us the history of price, correct?
Now I accept that price action principles are fractal, meaning they work in a similar way on a M5 to chart as they do on a Weekly chart. But they are just a representation, and really the market is made up of all these orders placed around the market. When the market moves to a certain price, those orders are executed.
What these traders / investors are looking for with these orders is value. They want to either Buy or Sell their asset at value. Let's look at a practical example of AUDUSD. A little background, and some pure technical traders would shoot me for this, but I always combine technicals with fundamentals. The RBA for the AUD maintain an easing bias. They eased their monetary policy in 2015 and their bias still remains. That means I am short AUD. The Fed for the USD maintain a tightening bias. They've recently hiked, and said there's more to come. So I'm overall bearish AUD/USD, the same as most large investors and some longer term traders will be. Simple economics.
By looking at this Daily chart of AUD/USD, I can now predict where a lot of these large limit orders will be sat on the Offer (offer as I am wanting to sell). Remember we said traders and investors want value. So we know where we are looking to do business. The resistance line at 73828 was created, and then we came right back up to it again, before falling back to eventually the lows on the screen. We can predict this, with huge probability, due to everything coming together. And understanding the fact that a market is made up of all these orders sat at different prices, and the idea of "price action" is simply just a representation of the action of price, in our case in the form of a chart.
Most people on here focus solely on a chart but don't actually understand the true context behind price
This is what's called a price ladder. It's the core of any financial market. This picture shows the Eurostoxx back from October 2015. We have the asset price in the middle, with Bid (Buy/Long) orders on the left and Ask (Sell / Short / Offer) orders on the right. These are lots. So for example, at 3181 there were 1,626 lots hitting the Bid. At 3195, there were 587 lots hitting the offer.
Markets are simply made up of these orders all over the place. If you were to stretch this out to go from, say, 1900 to 3800, then there would be these limit orders sat at all the different prices up and down the scale. I use those prices as 1900 was around the low of September 2011 and 3800 was around the high of April 2015.
So moving back a little, our price charts show us the history of price, correct?
Now I accept that price action principles are fractal, meaning they work in a similar way on a M5 to chart as they do on a Weekly chart. But they are just a representation, and really the market is made up of all these orders placed around the market. When the market moves to a certain price, those orders are executed.
What these traders / investors are looking for with these orders is value. They want to either Buy or Sell their asset at value. Let's look at a practical example of AUDUSD. A little background, and some pure technical traders would shoot me for this, but I always combine technicals with fundamentals. The RBA for the AUD maintain an easing bias. They eased their monetary policy in 2015 and their bias still remains. That means I am short AUD. The Fed for the USD maintain a tightening bias. They've recently hiked, and said there's more to come. So I'm overall bearish AUD/USD, the same as most large investors and some longer term traders will be. Simple economics.
By looking at this Daily chart of AUD/USD, I can now predict where a lot of these large limit orders will be sat on the Offer (offer as I am wanting to sell). Remember we said traders and investors want value. So we know where we are looking to do business. The resistance line at 73828 was created, and then we came right back up to it again, before falling back to eventually the lows on the screen. We can predict this, with huge probability, due to everything coming together. And understanding the fact that a market is made up of all these orders sat at different prices, and the idea of "price action" is simply just a representation of the action of price, in our case in the form of a chart.