My price-action strategy

[fxfxfx]

Hi PyeR2,

 

Good to see some folks are successful with PA.

 

How long are you trading Price-Action and how successful are you ? Maybe all the are readers would be interested in that ;-)

 

And: Don't worry - I also wasted about 6 years of my live with Indicators and EAs ;-)

 

Thx for your kind works :-)

 

Good trading to you (and all the others of course)

 

fxfxfx

 

3 cheers for 3fx for this thread. Price action is the only thing that works & the massive s**** heap of failed EA's in this forum is a testament to that.

I have 10+ yrs experience trading & it took me 5yrs to start making a buck out of it. The turning point was when I started doing analysis as is being taught in this thread and using my brain and price action instead of trusting squiggly lines, EA's and scam signal providers.

 

3fx you are very lucky to have seen the light so early in your trading career. Cudos to you.

[PyeR2]

Hi PyeR2,

 

Good to see some folks are successful with PA.

How long are you trading Price-Action and how successful are you ? Maybe all the are readers would be interested in that ;-)

And: Don't worry - I also wasted about 6 years of my live with Indicators and EAs ;-)

Thx for your kind works :-)

Good trading to you (and all the others of course)

fxfxfx

 

Hi 3fx. I have been trading full time for about 2 years, predominantly forex & occasionally gold & oil. I have a couple of little sideline businesses but trading constitutes about 80% of my income now. It's not a walk in the park as I'm sure I don't have to explain to you. I rarely have a losing month and usually manage 5 - 25% per month occasionally more. I would evaluate my style as quite conservative risking .5 to 1% per trade. My entry methodology is a bit different to yours but similar . Most positions I take have a small 15 => 30 pip SL but I try to let them run for 150 = 300 pips or more so I make 10:1 or more on my risk. I am often able to add to winning positions as which means I am quite highly leveraged given the small SL I use. The downside to that is I would have more losers than winners and a lot of B/E trades, so it can be frustrating sometimes trying to establish a position.

I wrote a bit of an insight to one of the methods I use on Page2 of this thread http://indo-investasi.com/showthread.php/10580-M-rket-M-ker-Strategy-Comp-ssfx-steve, however my methodology has changed a little bit since then. As someone stated in your thread, it's amazing / frustrating that it's so difficult to get people interested in systems that require work and thought in this forum, yet start a page on a new EA and it's 45 pages deep in 3 days a lot of the time. People seem to want either an EA that does it for them or rule based indicator system that takes the work and thought (& responsibility for their decisions) out of it. They don't realise that in the long run it's more work and effort, costs more money not just through losses to their trading account but also opportunity cost, plus they don't really learn anything.

Once you really grasp the concept of price action it's amazing how 'perfect' the market is sometimes, bouncing off these predicted levels to within 1/10th of a pip sometimes. And the more you study it the more you begin to see and understand. You never stop learning. I pay a lot of attention to gaps these days. Gaps are extremely important because usually price will have gapped through one of these levels, so it often comes back many times to that level to test & retest it. Another member of this forum SoundFX kindly coded me a indicator a few weeks ago that plots lines forward into the future from the centre, close & open of weekly and monthly gaps. There are a few variables such as min gap size that can be defined as well. I have been meaning to open a thread sharing the indi with either screenshots or a video or pdf on how how to use it, but haven't managed to find the time to do it yet. It's important that you use a broker that opens 5pm Sunday EST and closes 5pm EST (New York Time) when calculating gaps. Study gaps if you haven't already, you will be amazed at what you find.

I wonder how many people realise that the current low we have in place on the EURUSD is the centre of a monthly gap that occurred April 2007 (I wonder if it chose April fools day for a reason :-D ). It may seem like a long time ago, but on the monthly chart it's not. I'm not going to go right into now but I'll post a screenshot for you. Even where you see price did not stop right at a gap, if you drill down to the shorter time-frames you will usually find that price reacts of these levels.

 

http://img714.imageshack.us/img714/276/monthlygaps.gif

 

http://img641.imageshack.us/img641/4837/weeklygaps.gif

 

Blue dotted lines are gaps (centre) that occurred at the beginning of a new month. Red dotted lines occurred at the beginning of a new week. Even without drilling down to the shorter time-frames if you look closely you can see how often the centre of an old gap marked a major turning point quite often to the pip. Drill down to shorter time frames and you will notice that once a trend is underway, price repeatedly retraces back to gaps that it has broken through, giving an opportunity to enter with the trend and add to a position if you already have one. I LOVE gaps. Combined with traditional TA they are very powerful.

 

http://img12.imageshack.us/img12/5171/h4gaps.gif

 

Sorry, couldn't resist showing you an H4 of the last major move down on the EURUSD.

 

Full size images can be downloaded here if you would like a closer look http://www.mediafire.com/?n0swy6kbc5zk7sh

 

PS: Gold lines are the Close/Open. I only plot them for very recent gaps.

Edited September 29, 2011 by PyeR2
put quote at top of post

[henghui]

Hi PyeR2,

Your sharing sound interesting to me, but still don't quite get the idea about drawing the gap you have mentioned, can you explain a bit more? Thx

[PyeR2]

Hi PyeR2,

Your sharing sound interesting to me, but still don't quite get the idea about drawing the gap you have mentioned, can you explain a bit more? Thx

 

Quite simply I've noticed gaps seem to act as both support & resistance, so they are useful for entries and targets. I have a couple of theories as to why.

Firstly, I've noticed that when a new weekend gap occurs, price usually gaps through an established area of support or resistance OR gaps to established support or resistance. This is why most gaps are filled, as the market endeavors (& usually succeeds) to come back and test that area. When a gap is new, you will find that the Open, Close & Centre can all act as support or resistance. I am not a gap trader per se, my methodology is not to trade gaps 1st thing on a Monday morning however I have observed price action reacting off the Close, Open & Centre when a gap is new. It's difficult to give you a timeframe on what the cutoff is for a 'new' gap, it is more to do with whether it has been completely filled or not and how many times price has passed over the gap. Once the gap has been filled and it matures then the Centre seems to become the most important by my observations.

Secondly, I believe traders like to use gaps because they are unambiguous. It is a definitive price where previous support or resistance was, and is likely to be again. Everyone has looked at a chart & thought to themselves OMG there's levels everywhere, price could bounce off any of them. Which level should I use? Well there's never any guarantees, but in my experience if you pick a level where there is also a gap then you greatly increase your chances of picking the right one.

Below are a couple of screenshots that I'm sure you will find interesting. We will take a closer look at the ~120pip gap that occurred on the EURUSD 2 weeks ago Sept 19th 2011.

 

http://img851.imageshack.us/img851/6445/gapsept192011.gif

 

Now what occurred here is this. In the week before that 120pip gap, price declined to, and penetrated the major high of December 2004 - an expected area of support. Price managed to claw its way back above the the Dec 2004 high & close above on the Friday. Monday morning price gapped down straight to the Dec 2004 high and opened exactly at the that price of the Dec 2004 high.

You can then follow the price action on the hourly chart after this. Price attempted to fill the gap, firstly finding resistance at the Centre. It then struggled up to the Friday Close, just managing to fill the gap. It then sold off sharply making a new low, later clawing its way back up only to find strong resistance at the Open of that gap. It's picture perfect and very typical - although we all have 20:20 hindesight and it's always easier to see these things after they happen. I've always said it's called the hard right edge because it's HARD! LOL

 

Below is the Dec 2004 high that I am referring to

http://img545.imageshack.us/img545/3058/dec2004high.gif

 

Full size images here if you want a closer look. http://www.mediafire.com/?l70gi3tmc3yin

 

The best thing to do is plot them on your own charts and take a look. You must use a brokers data that closes Friday 5pm EST (New York) and opens Sunday 5pm EST. I use Gomarkets data to calculate my gaps because my live broker Pepperstone open earlier on Mondays.

 

Keep an eye on the other gap you can see I have plotted on the hourly chart from last Monday 26th. The EUR looks heavy to me & new lows are likely, however we may see price come back & kiss it goodbye. It also lines up with the low put in on 12th Sept. 'Caveat Venditor' of course.

Edited October 1, 2011 by PyeR2
fix spelling error

[juicyt]

Interesting PyeR2, would like to get a test of that indicator if you are up for a share...

 

(Although you're in Bondi, you going to watch the AFL grandfinal today?)

[PyeR2]

Interesting PyeR2, would like to get a test of that indicator if you are up for a share...

 

(Although you're in Bondi, you going to watch the AFL grandfinal today?)

 

I PM'd you a link where you can download it. I do intend to share with the forum but wanted to do it properly & make a video on how to use it & what the variable settings do as well as how to copy objects (the lines) from one MT4 platform to another as it's not practical to do it manually.

[henghui]

PyeR2, thanks for your explanation. I observed that you draw your gap at the end of the 1st hour of the new week, if the 1st hour happened to be bull candle where will you draw your lower boundary ? Still the closed price of the 1st hour or use the open price ? In either case, we should pend the order in the direction toward closing the gap ?

[PyeR2]

Gaps are always drawn from Fridays Close to Mondays Open. Use data from a broker that closes at 5.pm Friday EST & opens 5pm Sunday EST (New York time).

[PyeR2]

Gap Sept 26th

 

Well it took all week to get there, but for those that have been following we finally reached the gap I suggested to keep an eye on at the bottom of post 254. Not sure whether this will be a a 'kiss goodbye' but there's no denying it provided solid resistance and a quick 100+ pips if you traded it.

Notice also that the gap from Oct 03 provided support and halted the sell off. Picture perfect again - what more could you ask?

 

http://img143.imageshack.us/img143/4984/euraudgap26092011.gif

 

For closer inspection download the original image here http://www.mediafire.com/?s06e18u0mozumf5

Edited October 8, 2011 by PyeR2
Add original image link

[PyeR2]

Indicator Download Link

 

I am getting PM's asking me to share my gap indicator. I've never had a problem with sharing it, and had always intended to do so. The reason I have delayed my share as I wanted is that I wanted to create a video and maybe a PDF on how to use it as well as the accompanying Copy & Paste scripts. I am moving house and I am unlikely to find the time to do this for at least a month. The Copy & Paste script has been behaving erratically for me also which I wanted to get sorted out before an official share. When it works it works perfectly, other times it simply doesn't work for some reason. I haven't been able to determine whether on the occasions that it works perfectly I did something differently, or whether it is a random thing and it simply works sometimes and not others.

 

Anyway I have decided to do an Unofficial Share. I will endeavor to update with a video & pdf at a later date. There are brief instructions included in the archive from memory. If anyone is able to get to the bottom of the bug with the Copy & Paste scripts and fix it I would be most grateful.

 

I have also opened a new thread as I do not wish to hijack 3fx's thread. Further discussions, Q & A's etc should be posted there.

 

Gaptronic_V1.4 http://www.mediafire.com/?w7a585kpwjzeltm

 

The Gaptronic thread is here: http://indo-investasi.com/showthread.php/15394-Gaptronic_V1.4?p=181822#post181822

[swordfish]

Is there a pinbar indicator that can catch the pinbar in GBPUSD daily chart on 10/6? I have a couple of candlestick indicators but they all missed this one.

[swordfish]

Is there a pinbar indicator that can catch the pinbar in GBPUSD daily chart on 10/6? I have a couple of candlestick indicators but they all missed this one.

 

This indicator caught it, as well as other patterns.

http://www.multiupload.com/6RR59EJA9R

[cnuse]

seems link is dead. please reupload. thx.

This indicator caught it, as well as other patterns.

http://www.multiupload.com/6RR59EJA9R

[dhinesh89]

seems link is dead. please reupload. thx.

 

here u go mate

 

hxxp://www.multiupload.nl/7IJ8AVX0Y4

[oac2104]

here u go mate

 

hxxp://www.multiupload.nl/7IJ8AVX0Y4

 

I heard that Multiupload is only good in certain countries as they block access from other countries.

Anyone knows which countries are good and which ones are not ?

[Sesshoumaru]

can anyone please mirror to 4shared or mediafire or wupload?

multiupload is down in a lot of countries including mine.

Thanks!

[oac2104]

can anyone please mirror to 4shared or mediafire or wupload?

multiupload is down in a lot of countries including mine.

Thanks!

Using a proxy server, I was able to access www.multiupload.nl successfully.

[oac2104]

NewLink:

 

http://[email protected]/file/Hmeew8FX/Pattern_Recognition_Master_v3.html

[futuretick]

Great post... I should read it all :O)

[futuretick]

Great Post... keep in on guys. Thank you

[coolsnake]

Thanks very much. It is very useful.

[Jfx862]

Yes it looks good, hopefully they'll be some more followup soon.

[smartvin]

Any manual guys?

[tommy1618]

Here is a secret share just for my indo friends in this thread!

 

I have just had professionally coded my own Custom Indicator that may be a help to those who already understand how to plot swings and breaks of them. I have never shared this before but wanted to save it for a special moment...

 

Below is an image of recent EURUSD. In the picture, the indicator is programed to follow fairly large swings however that can be customized whatever way you like. You can also customize how many pips it must break the swing by.

 

http://i177.photobucket.com/albums/w201/jtimpsonstamps/jt.gif

 

and here it is. Enjoy!

 

http://www.mediafire.com/?xh6quaxcxs91xmt

 

this is for your personal use and not to be resold. Thanks for respecting my wishes on this.

 

Hi, can someone please reup this indicator?

 

Thank you

Edited January 7, 2013 by tommy1618

[king_man]

Hi, can someone please reup this indicator?

 

Thank you

 

plz re up all indicators