The deadzone

[youyouyou]

dz219

dz219.PNG (51.06 KiB) Viewed 2972 times

[youyouyou]

Unable to post my writeup of today's trade. I seem to be a spambot

[LeMercenaire]

Unable to post my writeup of today's trade. I seem to be a spambot

There's been problems with this issue recently, forexhell had all sorts of hassles.

First off, contact Michal directly and he will sort it for you.

[LeMercenaire]

dz219.PNG

See how you could also trade off the retest, rather than the first break? That's the kind of thing you can investigate further once your initial test is completed.

[youyouyou]

Thanks. Seems I'm able to post again. I just lost a rather lengthy post ( I need to start writing these elsewhere and pasting them into the reply box), so this'll be a bit terser than I'd planned.

I'm able to see clearly the retest--at least in hindsight. It seems to me that my options for a trigger are: price crosses a line; price on a chosen time frame closes across a line; or price closes across and retests. For now my trigger is price crossing a line, but trading retests seems worth further investigation.

A couple observations. I've been watching this pair for a month, and it seems like there is often a slight push out of the one as soon as it forms (here in US central time, or gmt-6, the DZ is 6-7 am bar). There are a couple pips to be had here, but the first 'real' move seems to happen nearer 7:30, when there are often news releases (and also an hour before US equities markets open, though tbh not sure if that's pertinent at all).
I wonder, if this observation holds, how this can be used to one's advantage?

The image below is of the rest of the morning. It shows the 'real' move back up into the DZ. I watched this, but didn't trade it. If i had, I'm sure I would've entered a short trade at 7:36 when price flipped in and out of the DZ. What a sucker I am!

As for the trade I took. I entered at 7:03, and exited at 7:32 the minute price closed higher. My feel for PA is junk, and I tend to get out the second I'm spooked. Worked well today, but this same tendency often leaves me feeling quite foolish.

ucampm

uc219.PNG (45.99 KiB) Viewed 2933 times

[youyouyou]

Wanted to quickly post this 5 min chart, which shows a nice retest as price left the zone north around 8:00. This is something to keep in mind.

uc2195min.PNG (36.67 KiB) Viewed 2930 times

[LeMercenaire]

The retest angle is just one possible option (as you have noted). Don't let yourself be distracted until you are sure you have investigated your original entry style.

Mostly it comes down to personal trading style. I actually virtually never traded the retest at first, then as I got into it more, I used it more and more often - especially as price surfed the zone later in the day.

[youyouyou]

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Still staying focused and working the initial breakouts of the DZ. Today +4.1 pips. Another quick in and out trade. This is a quite average result for me. I’ve made 20 trades so far with this method, and my average pips per breakout is 4.6. There were several days at the beginning of this experiment where I took the first two trades of the day (on the 28th, 30th, and 31st), but I’ve since stopped doing this. Biggest loss so far is 10 pips.

[youyouyou]

220dz.PNG (11.65 KiB) Viewed 2866 times

Here's a picture of today's action (1 hr chart). If someone were trading the DZ as a DZ and not just treating it as a pre-ORBish bar, what to do when the DZ is 90% wick?

[youyouyou]

Retest later in the day. Only noted, not traded.

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