I have made some modification to the LC-b-Clock to display the system rules. You just need to replace the LC-b-clock with this indicator and you will be reminded with the rules whenever you look at the graph. After you load this indicator to your graph, you can update the template and this will ensure that you will get the indicator to display the rules every time.
Like mulri and marc rightly pointed out, you will need to follow the system rules CLOSELY in order to take green pips consistently. So the best way to be reminded of the system rules is put it in front of you all the time ;).
It's been a long time since I started a new (long) thread on this forum. Being busy and lazy of me >:)
Well, I know that it's quite rare to find any price action "guides" to learn, so how about we make one ourself? Let's all try to add your knowledge here and there to make this a good and usable "guide"
For beginners, you might find the word "naked trading" a weird phrase. Naked trading is trading without any indicators. Some may said that using only chart pattern is considered naked trading. Some said that even chart patterns are not allowed in naked trading. I myself don't care which one is true. If it's not making any money for me, I would care very less about the strict definition of naked trading.
Now, the definition of price action is... Well, the action of the price. It's a very vague term that in my personal opinion is naked trading in a very naked way. No indicators, no robots, no patterns, just price and the movement of price.
Like what should you compare price action traders? Price action traders are like a noble man (or woman if you are femme trader) fall in love in the 1st time. :"> He (the noble man a.k.a the price action trader) would look with love and awe at the woman (the price) he loved. He looks the beauty beyond any cosmetics or make ups (indicators). He looks the beauty beyond any hairdressers (robots). He does not judge whether the woman's nose is too long or too big (no chart pattern), he does not care how long the head and shoulder's proportional height. He sits there quietly hours by hours looking with love at how the woman react. He does not grow tired or bored at looking how beautiful the woman really is. He looks with love when the woman jumps in euphoria. He looks with love when the woman sinks in sadness. He just looks with love. Love at the woman. The woman herself. Her true self. Nothing else. :">
Ok, back to earth. ;))
I know that price action is very hard to do, mostly because it takes time. A very long time to understand, and most people don't have that much time. For all price action traders out there, I really hope that we could collaborate and help each other by sharing your experiences here so that we could shorten our learning time. Yes, I understand that this kind of knowledge could not be taught and must be gained by experiences. Even if you share it here, we must also experience it ourselves to gain the same understanding as you are. Thus, we find no scam artists on price action. Yes, I understand that it took a very long time for you to gain this understanding. But, by helping each other we could shorten our "foreplay" time :P
Let me start with my own. These experiences are from EURusd only.
#1 === Psychological round number (double O) ===
- Many people said that price with double zero, e.g. 1.3100, 1.3200, 1.3300, etc are good as Support and Resistance.
- In my experiences with EURusd... not true.
- Yes, you could draw a very nice and "perfect" SR lines using each and every round number prices. It's beautiful on chart, it's almost dead-on. But in my experiences, not all of them made me money. I want money, not beautiful chart.
- In my experiences, if on H4 or Daily chart the double O price has been breached 3 times or more in at least the last 100 candles, then the double O is useless as SR. Yes, it's a beautiful sandwiched SR lines, but it does not make me any money. It's useless for me. I don't see them as double number anymore.
#2 === Price moving to 0.xx20 and 0.xx80 from 0.xx50===
- This price action idea was 1st introduced to me by Boris Scholberg. He said that if price has moved to 0.xx80 from 0.xx50 without moving back to 0.xx50 again, then it would have high possibility to move to 0.x100. Vice versa if price has moved down to 0.xx20 from 0.xx50 then it has high possibility that the price will go to 0.xx00. e.g. from 1.3050 to 1.3080 then it will go to 1.3100. vice versa from 1.3050 to 1.3020 then it will go to 1.3000
- At 1st I thought this would be a great idea to gain 20 pips blindly.
- My experiences on EURusd... this only works 50%. Not making me any money.
- I think there are more criteria. I think there are some additional movement criteria that he didn't mentioned. Well, it was a free report so I can't expect much.
- If you have better experience in this, please, please, please share.
#3 === the buffer price of 0.xx27 and 0.xx70 ===
- This is my "creation" from trying to get the experience on #2 and #1
- Have you met this situation: price went up fiercely and has met the double zero price. e.g. 1.3100 It hesitated for a while moving only betweek 1.3090 to 1.3110 You think the price has already run out off steam and exit your long position. Then suddenly price went up to 1.3111, then 1.3115, then 1.3109, then 1.3117, then 1.3111 then 1.3121. Seeing the price movement, you entered long again. But then not long after than price fall down to 1.3060 :D yeah, life sucks.
- This is famous for the situation of "big eats small". We know this is the place where brokers take the limit and stop around round number prices. Broker eats the players.
- In my experience with EURusd... 0.xx27 and 0.xx70 is a safe number to put a break high and low respectively. If price is able to up touch 27, then it has high probability that it could move up to 50. If price is able to down touch 70, then it has high probability to down touch 50.
- It's not perfect, but the probability is quite high, I would say this price action has a probability around 80% being true.
#4 === 1st hesitation on small daily range break out ===
- again this one is from my experience on EURusd. I normally see this on M30 chart.
- This is the ONLY situation where the saying "follow the market" could really be applied, imho.
- There are several strict conditions that have to be met for this price action to happen.
- 1st market must be running at normal speed before hand. If the market is calm then you could get bigger profit.
- 2nd on the M30 chart, you suddenly see a wild movement on current candle. It was normal the candle before, but at this candle, it suddenly went wild. If there are fundamental news behind it, it's better. However, this is not very effective on NFP though.
- What I mean wild is that the current running candle is as big as two or 3 normal candles. That is wild.
- 3rd, the price has to be breaking the daily range. It has to be on the same wild candle. It has to break, e.g. 5 pips. but no more than 10 pips.
- 4th, the price move back to the last daily range leaving only the candle tail on the running candle.
- You enter the position according the break.
- Expect a profit of 20 to 30 pips in several minutes.
- This has a high probability of 85%
- If the previous daily range is quite small, below 60 pips, you could expect around 50 to 80 pips profit if you ride the trend. This riding could take up to 6 hours though. So you really need a big heart when the price moving up and down to your BEP.
- You do not need to wait for the candle to close. As long as it breaks for 5-7 pips and come back, enter. If you can enter on the same wild candle it's better. Most of the time, in my experience my entry time is around 2 to 3 minutes before this wild M30 candle close.
- This normally happens on European time until US 1st session.
That's all that I can remember right now. It's been quite a long thread already.
Again, I know that price action is very hard to do, mostly because it takes time. A very long time to understand, and most people don't have that much time. For all price action traders out there, I really hope that we could collaborate and help each other by sharing your experiences here so that we could shorten our learning time. Yes, I understand that this kind of knowledge could not be taught and must be gained by experiences. Even if you share it here, we must also experience it ourselves to gain the same understanding as you are. Thus, we find no scam artists on price action. Yes, I understand that it took a very long time for you to gain this understanding. But, by helping each other we could shorten our "foreplay" time :P
So, what do you think of my experiences above? Could you add or even fix mine so that it would have higher probability to benefit both of us? Would you be kind enough share your experiences? Or, nobody is actually following price action? Anybody would like to add #5, #6, etc?
Solear got a reaction from gctex in (REQ) Steinitz Fractal Pterodactyl Robot v1.41.
