The deadzone

[LeMercenaire]

Left the DZ and never looked back.
dz2251hr.PNG

5 min detail.

A entry, B exit.

A nudge: Have a look at what you'd get on this if you added a trailing fib once price was off and running

[LeMercenaire]

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?

Lol, I spent most of Sunday watching multi-episodes of Columbo!

As it turns out, I had dropped a DZ box over my scalping tick chart on Monday and so here's one I made earlier

USDCAD T-60 Chart The Dead Zone

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With the fib added. I run it from the bottom of the box, however, you could drag it a little farther left to the last actual low or from the top of the box (the break level).

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The way this was lining up, I would have had no problems with entering long (and only long). I haven't looked at the Supply + Demand (major or micro) as those screens are on one of the computers that are switched off just now (plus looking back at S+D, especially at the micro level, can be misleading, as the zones are fluid as time moves on).

I don't know about other pairs, sorry. I just don't have the time just now to go check them all.

[youyouyou]

Haha, I love that show. My bias on Monday was long as well. My thinking behind this was only that the DZ was a fairly nice sized bullish bar at the end of a rundown in price prior to the US open.

In regards to the trailing fib, (this is my interpretation of the information you provided) after price broke out of the DZ and made a new local high, you expanded the fib from the top of the DZ to the new high, and than watched what price did as it pulled back to fib retracement levels? In this case it pulled back to the first retracement level and then started to turn, giving you a reason to not close the trade? (One could hypothetically repeat this process?) Thanks again for your replies.

[youyouyou]

Today's set ups

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dz2265min.PNG (29.21 KiB) Viewed 2921 times

[youyouyou]

I didn't trade this setup today, as the DZ bar was almost all wick. While price did eventually move through and out of the DZ in a big way, it would have been very hard (for me at least) catch that move.

[LeMercenaire]

Haha, I love that show. My bias on Monday was long as well. My thinking behind this was only that the DZ was a fairly nice sized bullish bar at the end of a rundown in price prior to the US open.

In regards to the trailing fib, (this is my interpretation of the information you provided) after price broke out of the DZ and made a new local high, you expanded the fib from the top of the DZ to the new high, and than watched what price did as it pulled back to fib retracement levels? In this case it pulled back to the first retracement level and then started to turn, giving you a reason to not close the trade? (One could hypothetically repeat this process?) Thanks again for your replies.

I would have run the fib from the bottom of the box but that's just my own preference, you could equally have run it from the lower low just before the box open or from the top level break (or all three and see how the levels tie in).

As for the actual way to play that. Yes, it would keep me in the move. If I had kept it open, I would then also stack another entry on here. If I'd missed the original entry, then I could get on board at this point.

[LeMercenaire]

First off, I do agree, that if I played this off H1 candle charts, then I too would have sat out at the sight of that waste-of-time excuse for a candle.

Today as I saw it - viewing it in the same way as yesterday's set-up, via the T-60 Chart, did however give an entry and a fair bit of additional action along the way.

Long bias.

UC T-60 Chart The Dead Zone

Got the go-ahead for entry at 13:01 and signal came and entry at 13:09. Went for +3 or so, retraced for around -2, then headed up.

Screenshot 2019-02-26 at 23.40.03 - Edited.png (49.32 KiB) Viewed 2913 times

The -3 low was again a pullback, this time to the 50 level. A single add-in from there gave +6, we then dropped back onto the 23.6 (going back -2) and then from that bounce, off for another +9 or thereabouts.

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If you continued to lift the trailing fib, then you'd have had a solid bounce off the new 50 level formed, adding another +9.

Screenshot 2019-02-26 at 23.49.11 - Edited.png (53.27 KiB) Viewed 2913 times

[LeMercenaire]

I was spinning my wheels today and not finding much of anything to interest me, so I thought I'd head over to The Dead Zone and in keeping with things here, stuck to UC and looked at no others.

I used a T-25 (25-tick) Chart set-up and that gave me a Long Bias.

Staggered entry and lot size but that's immaterial here. The +5 base target was reached.

Dead Zone T-60 Chart +2 +4.7 [+6.7]

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If you are the kind to hold your position, then you will end the day a very happy bunny...

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Hope you got some of this, youyouyou.

[LeMercenaire]

If you had missed the action, either all of it, or the continuation as I did, then once again, there were opportunities to jump on board...

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Anyway, I am not going to hijack the thread, so I'll s** off back to my own yard now. Just wanted to show how this can go if you stick with it.

[youyouyou]

First off, I do agree, that if I played this off H1 candle charts, then I too would have sat out at the sight of that waste-of-time excuse for a candle.

Today as I saw it - viewing it in the same way as yesterday's set-up, via the T-60 Chart, did however give an entry and a fair bit of additional action along the way.

Long bias.

UC T-60 Chart The Dead Zone

Got the go-ahead for entry at 13:01 and signal came and entry at 13:09. Went for +3 or so, retraced for around -2, then headed up.

Screenshot 2019-02-26 at 23.40.03 - Edited.png

The -3 low was again a pullback, this time to the 50 level. A single add-in from there gave +6, we then dropped back onto the 23.6 (going back -2) and then from that bounce, off for another +9 or thereabouts.

Screenshot 2019-02-26 at 23.41.24 - Edited.png

If you continued to lift the trailing fib, then you'd have had a solid bounce off the new 50 level formed, adding another +9.

Screenshot 2019-02-26 at 23.49.11 - Edited.png

Man, you can really wring the pips out of a move! I've begun looking more in depth at fibs. This is something I've neglected experimenting with thus far in my trading journey--and dang they seem useful. I certainly see how they can be used to stay in a move longer and possibly add on, but I really like the idea of using them to catch a late entry.

You mentioned signal at 13:01 and entry at 13:09. How do you differentiate signal from entry?