Trader Dale - daily trading levels

You should add the VPVR to your charts...gives a lot more info

Do you mean to identify potential swing trades? or to make you think twice about trading an intraday level?

Like below

stumbled upon a pretty nice video... worth a look. Especially in this thread

https://www.youtube.com/watch?v=L7G0OfJUON8

Both...but mainly because it identifies the areas for the entire visible range on your charts...sort of a consolidation of all of the session profiles
The consolidated view really identifies the big volume areas and other nuances not seen on the session profiles

and again a BE trade

EURCAD

Although this guy has a point he is also wrong on many things.

One on these is that you can't make money as day trader because of algorithms etc....Wrong...the opposite is true, algorithms add liquidity to the markets and there are more short term opportunities.....if you open a 1 min chart there are so many opportunities with low risks every day,all day long and you don't have to worry about weekend or unexpected bank interventions (SNB,GBP Flash crash etc.)

Don't forget that this guy has an agenda too,he tells you to trade longer timeframes etc because that's what he sells on his $1000+ training & mentoring courses.

Point is, don't believe anyone on the internet. Try & find your own style and let the other screw themselves.

2 trades today during US hours. EU short at BE and UY short at +10.

good one in UJ short, I had a little bit higher (113.85) and it didn't get filled...

I kinda question whether you watched the damn thing. Ofc he has an agenda, he's not doing the presentation for fun... you are stating the obvious. Every participant in the market adds to liquidity. You don't have to worry about unexpected bank interventions? It can catch you on 1minute chart the same way as on a monthly. (SNP as you stated came out of nowhere during EU session), and would catch you if you like it or not. (not gonna mention spread during this low volatile state the markets are in, so GL on 1min chart)

You have a fair point, but he is not saying you can't make money daytrading. Ofc you can, but it's not that simple as one may think from all the bullshit education that brokers are feeding you. Secondly do some due diligence when looking for education. You have to learn somewhere, the education is not going to get into your head overnight and without work you ain't gonna make it. Question the source you are reading and question the education you are getting. You have to believe otherwise you ain't going to make progress. Wast majority of educators / "mentors" are backed up by a broker. The author of this thread is no exception.

Just question the sources that's all I`m saying. That's the 1st thing you learn at University

"The Trading Arena: Exchange Environment, Regulatory Agencies
Trading futures is much like any other career choice. First there is a basic, theoretical body of knowledge to master. A part of that is the applied learning, the nuts and bolts that one gets during an apprenticeship (doctors and lawyers practice and learn, so must futures traders). Futures traders study their models, but most fail to learn enough about the exchanges and the regulatory services.

The Exchange: A Private Organization
Members on the exchange trade for a living. Floor members either trade for themselves or fill paper for others (your brokerage firm, for instance); or they do both, trade for themselves and fill paper. Commercial members trade only for their institutions. A membership can cost a half-million dollars. There is money to be made on the floor. The unwary are liable to get plucked. Your job as an outsider, is to pay for services received only, to make sure you are treated properly within the rules and to generally protect yourself. The system tends to pit you against your broker--in the case of an error, who pays? Know the rules!

The Exchange: Path of a Trade
The longest path your order can take is: you =>broker =>trading desk =>floor =>pit =>floor =>trading desk => broker =>you.
An order passing through so many hands has an opportunity to get altered or lost, especially in trying times such as 'fast' markets.

The shortest path for your trade is:
you =>floor =>pit =>floor =>you This path is called going through the 'arb' desk; you often get your fill while still on the phone.

Regardless of how you enter your order, your trade is filled by a "floor member" who takes the opposite side. If your order eventually ends up offset by another public trader, that side too will have passed through the hands of a "floor trader". Floor traders do about sixty percent of a day's volume.

The Exchange: Filling Your Order
Orders are filled on the floor by open outcry, the auction process. Your order might not get filled at your price because there may not have been enough contracts offered at that price to fill all takers. Getting a worse price is called 'slip'. Normally, you will get a fill near your price because of exchange rules which govern the way floor traders do business with the public (members are held to these rules). However, your price may be hit and still you get an 'unable'. This can happen if you have an order for a price or better. Say it turns out that your price was the low of the day and you were buying. When the low was hit very few contracts were traded and yours was not one of them. Or it was a 'fast' market with violent price action. Then the brokers are 'not held'. Even then, there are rules your broker must follow. He must not fill someone ahead of you, if he has your order first.

The Exchange: The Initial Balance
On many occasions, most of the day's range will be covered during the first hour after the open. This comes in part because of the orders that came in after the close the previous day (resting orders). These are in the floor traders 'book'. The floor finds a way to trade as many of these resting orders as possible, by rotating price. It is said that the floor 'controls' the market during the initial balance. Obviously, you would like to avoid getting stopped out by a non-economic process. Whenever possible, you should place your orders after the open, and ideally, after the initial balance." - Jones

We (public/retail) are not floor traders. Our job as retail traders is not to take the other side of trade for the sake of providing liquidity to the market. The pricing & fee structure for "floor traders" allows them to profit from short time frame moves.

Steidlmayer & Dalton were both floor traders (members) Let's put this in the proper context..........

Quoting Jones........

"Advisory: The following material is primarily of use to day traders. Standard day trading using some sort of pattern recognition has generally not proved a successful way to trade. Typically, the trader is competing with the floor in picking profitable short time frame moves. The difficulty, in part, is: that the off-floor, non-member trader trading is delayed relative to the floor. That delay, plus the cost factor (members trade for $2, non-members for $20) creates large odds, a house advantage that is hard to beat.

Floor Member
Can trade in 2 seconds
Pays $2 commission
Can be profitable with $20 gain

Public Trader
Takes 2 minutes to trade
Pays $20 commission
Can only be profitable with $100 gain

It is the thesis of AMVA that the Public trader needs an edge, one that comes from superior knowledge. The Public day trader is helped by knowing what the commercials are doing, where balance exists, the market's volatility structure and other reference points from the Trader Control database. This is superior knowledge, but is it enough to overcome the huge odds in favor of the "floor members"?

Generally, no! We believe the Public day trader must be much more selective than his floor counterpart. The way we see to beat the odds is to not compete head to head. Trade the market structure, use market condition as a guide: trade breakouts, trade responsively. These are positioned trades that require the market to offer an opportunity. There are far fewer such trades than one can find through pattern recognition. But the odds are better. "- Jones

the retail trader is "competing" with the floor in picking profitable short time frame moves. The pricing & fee structure of being a "member" allows them to be profitable trading short intraday moves. If we were to trade the exact same trades as a floor trader who ended the day profitable, head to head, due to fees & pricing structure, we as non-members can end the day with a negative balance. Trying to compete head to head for the same short timeframe moves as floor traders is a losing strategy over time due to the retail fees & pricing structure. In order to beat the odds as a Public/Retail you cant employ the same methods of short timeframe trading used by floor traders with a house advantage

Different market participants, have different roles in the market. The floor traders job was to provide liquidity by taking the other side of your trade.

Four Types of Trading on the Floor: The Participants

Floor Members: These are the 'middlemen'. They do about sixty percent
of volume. They seek a well defined fair price, and hence are happiest
with balanced markets. Known as 'short timeframe traders', they are in
control during the initial balance, or approximately the first hour of
the trading day. Floor members end the day with no open trades. Floor
members are identified as Cti1 in the Liquidity Data Bank Report

Commercial Members: These are the 'businessmen' on the floor. They trade
for their institutions. They know value better than any other type of
trader. They are in control in balanced markets, where they buffer the
edges of the distribution. Commercials end the day either hedged or out
of the market. Commercial members are identified as Cti2 in the
Liquidity Data Bank Report

Off Floor Members: Members trading from screens outside the floor.
Otherwise very similar to Floor Members. Off floor members are identified
as Cti3 in the Liquidity Data Bank Report

The Public: (members trading for): Speculators, funds and all others
outside the first three types. (this is us as retail traders) This type takes both long and short term
positions in the market. Usually long timeframe traders, they dominate
the trends and drive prices away from the center (value) in balanced
markets. The Public ends the day with positions open, creating demand.
Members trading for the public are identified as Cti4 in the Liquidity
Data Bank Report

The Public is what Dalton refers to as OTF "other timeframe participants". We as Public/Retail traders, are the "other timeframe participants"

Why do OTF/LTF participants dominate trends, and drive markets? Because it is profitable. In order compete in the market against short timeframe traders with a house advantage, we as public/retail traders have to make more gains per trade due to the retail pricing structure .

Most Retail traders dont understand how Auction Markets operate. When Dalton wrote his book describing the auction market process, he did from the perspective of a floor trader with a house advantage. When describing OTF he almost describes them in a way that gives an impression it's an "Us vs. Them" mentality. Rightfully so, when the job of the floor trader is to provide liquidity to the market. The pricing structure allows for it. We as retail traders, are not Floor Traders. Why do you think "Big Money" drives the market and dominates trends, rather than dominate balanced markets? Because that's where the money is made. "Big Money" knows they/you can't make big money trading short/intraday timeframe moves. They are the same class of trader we are and have the same disadvantage when trying to compete head to head with floor traders with a house advantage, for short time frame moves.

Now lets jump into the here and now, floor traders are a thing of Past due to online trading. Most floor trading no longer exists. No overnight resting orders, there is no reason to rotate price first hour (IB) filling overnight resting orders. IB concept needs a market that has a daily open & close.

IB is a non-economic process used by floor traders who rotate price in order to fill resting overnight orders. A 24h FX market has no overnight resting orders.

In the past it was the floor trader who provided liquidity to the market by taking the other side of trades. They no longer exist. Now the intraday & day traders are providing the liquidity. The majority of day traders, with their indicators, misinformation, axioms , and lack of market understanding are virtually on the other side of every trade. They provide the fuel & liquidity for the OTF participants.

With the house advantage and fee structure of a floor trader, there was an opportunity to make a lot of money on small moves by taking the other side of the trade. Do the same thing with retail account and pricing structure, and trade for trade, those profits made by the floor trader, result in losses to those with a retail account over time. It's not complex, its math.

80-90% of retail traders lose. Maybe because greed allows them to believe they can make huge amounts of profits trading short timeframe moves if they can just find the right indicator settings, or learn to trade like professional floor traders. As long as retail traders believe that they can make huge profits from short timeframe moves using TA, rather than learning the way auction markets actually operate there will always be someone on the other side of the trade.

The retail pricing structure makes profiting from short term market moves like a "floor trader" difficult and a losing strategy over time....

Talk about info overload lol. Dont over think the obvious if buyers come into market at the levels be a buyer too when it stalls and market breaks down be a seller

Guys, why don't we take into consideration those vacuum areas to boost R/R and take more pips?

Here are my spotted levels for the coming session:

ps: Don't follow me blind....I'm still learning!!

Audcad: L 1.0050 s 1.0186
audjpy: L 83.88
audnzd: S 1.0857
audusd: S .7449
cadjpy: L 82.72 s 83.69
chfjpy: L 113.28
euraud: S 1.4897
eurcad: L 1.4878 s 1.5106
eurjpy: L 123.91
eurnzd: L 1.5854 s 1.5998
eurusd: L 1.0930 s 1.1012
gbpcad: S 1.7645
gbpjpy: L 146.19 s 147.72
usdcad: L 1.3604 s 1.3712
usdjpy: L 112.83 s 114.21

First trade of the day (in my case) was this night at GBPUSD and went to TP)

First trade in the VPS

UJ short 113.745

Dont you think this level was already tested? It worked perfectly during the night.

AUDUSD level is considered as tested at 0,7 pips before entry. Afterwards went up with 11pips (No entry anymore....)