The deadzone

[LeMercenaire]

220dz.PNG

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?

I wouldn't take those situations.

It shows indecision. You don't know how long that indecision is going to go on - for all you know you are heading for a day of whip in a tight range.

[youyouyou]

Ok, thanks for the tip. Things to avoid: DZs that are too big in relation to ADR (still figuring out how to sort this out) and DZs that are mostly wick.

[LeMercenaire]

Ok, thanks for the tip. Things to avoid: DZs that are too big in relation to ADR (still figuring out how to sort this out) and DZs that are mostly wick.

Sorry, I know it sounds very arbitrary but it does get better with experience. The more mileage under your wheels, the easier it becomes to figure out the strength of the signal.

When I was running it very day, I honestly hadn't realised how much my experience was coming into play concerning my decision making on the set ups.

It was because of this realisation that I began to examine how to incorporate some sort of bias confirmation, to take a little of the weight off of gut instinct.

[youyouyou]

For now I'm pretty happy to blindly trade initial breakouts and observe for the remainder of the day. I've challenged myself to do this and nothing more for several months.

Weak end to the week though.

Thursday:

221dzbo.PNG (39.4 KiB) Viewed 3044 times

Friday:

222dz.PNG (71.4 KiB) Viewed 3044 times

a's are entries & b's are exits.

edit: thursday's trade was a failed short.

[LeMercenaire]

For now I'm pretty happy to blindly trade initial breakouts and observe for the remainder of the day. I've challenged myself to do this and nothing more for several months.

Weak end to the week though.

Thursday:
221dzbo.PNG

Friday:
222dz.PNG

a's are entries & b's are exits.

edit: thursday's trade was a failed short.

That's all well and good and admirable in its intentions, however do remember that you are (re) treading older ground and that I have already stated that although the DZ can be traded this way, I very, very, quickly added the Wick Zone element and the method is improved substantially not only by that but by a directional bias - which in my case was Supply + Demand.

[youyouyou]

I know I'm retreading old ground and realize that you've said the DZ can be traded this way, but fair enough. I merely want to learn to implement the method piece by piece. This might be wrongheaded or due to an innate lack of cleverness... I've always tended to approach learning new things in this manner(but I'll be first to admit this is a symptom of mine). Perhaps I'll attempt to incorporate the WZ element next week.
I've read the 'wannalearn es journey' thread, and I'm studying the many examples of the DZ posted there that incorporate s/d zones.
I want to reiterate that I'm not a seasoned trader looking for another trick to add to his bag.
I'm a novice looking for an approach that works for me. Thanks for your responses to these efforts.

[LeMercenaire]

I know I'm retreading old ground and realize that you've said the DZ can be traded this way, but fair enough. I merely want to learn to implement the method piece by piece. This might be wrongheaded or due to an innate lack of cleverness... I've always tended to approach learning new things in this manner(but I'll be first to admit this is a symptom of mine). Perhaps I'll attempt to incorporate the WZ element next week.
I've read the 'wannalearn es journey' thread, and I'm studying the many examples of the DZ posted there that incorporate s/d zones.
I want to reiterate that I'm not a seasoned trader looking for another trick to add to his bag.
I'm a novice looking for an approach that works for me. Thanks for your responses to these efforts.

Please don't think that I am trying to put you down at all. I really am not.

I was simply concerned that you may become disheartened as it seems like the method is not living up to your expectations, while what you are experiencing in a shortened time span is in fact the natural evolution of the whole DZ method as it stands just now.

I'd simply hate to see you quit half way through. Keep up the good work!

[LeMercenaire]

An example of this thinking, is that the focus on UC actually only came about as a result of the additional material. While being run ''naked'', I was scanning all 11 of the original selected pairs.

[youyouyou]

Left the DZ and never looked back.

dz2251hr.PNG (36.41 KiB) Viewed 2943 times

5 min detail.

A entry, B exit.

[youyouyou]

I won't quit half way--I'm just getting started!
I have a bunch of questions, but I think it's on me to read more of what's available in the forums before posing these, as I feel I can probably find many of them answered elsewhere. However, one thing I am thinking about right now is my use of stop orders to enter trades. Is there an argument to be made against doing this?

Right now I'm just grabbing the first handful of pips that I get, but I suspect that I should have a target in mind.

Resolving these two issues are my two immediate concerns.


One more thing (I've been watching Columbo)...may I ask what your thoughts on Monday's DZ setups were?