LeMercenaire wrote:Hi guys.
You seem to have sussed things out without me getting involved, so I won't muddy the water unless any more clarity is needed.
Basically, the Dead Zone method uses the one hour candle from noon to 13:00 uk time as your range and no matter which variant you are going to use, you are looking to take advantage of the movement that comes at the US Open.
The ES does behave slightly differently to the other FX pairs and in fact, because of this quirk, it lends itself more to DC's take on Wanna's Tramlines, going in heavy for the +1. This in turn, grew out of the Buy Zone concept.
With The Dead Zone away from the ES, yes, I do have more involved but equally, you can do the same thing there if that suits you better. In fact, as I mentioned above, it is no coincidence that the pairs I have on my watch-list for The Dead Zone are near enough the same ones that I was running in the trial for the Buy Zone Revisited I had on the other thread.
I run it as a Wick Zone set-up, that is I use the upper and lower wicks (of the one hour candle) as micro Supply + Demand Zones. I will then trade that extended range, including its two zones, out into the day. The move does not have to come immediately.
If the initial entry goes negative before any profit is taken, then a counter-trade is entered. That locks in any negative as a ''floating loss''. You can leave it like that till the end of time and it will never get any worse (swaps not included if they were to come into play).
I will then either leave it till I get another pure trigger entry - which could be the next day - or I will look to unwind that negative by scalping it away. I use my stand alone scalping method to do that.
For those not able to run large accounts or who have stuck to European brokers in general, the ESMA regs have kind of put a dampner on that, as the ability to run more than a couple, maybe three, trades at the same time has been severely hobbled. However, with a little bit of jiggerey-pokery, it is perfectly possible to run this without counter-trading.
To be honest, when traders first come to the method, the aspect they find the most difficult to get their heads around is the countering. I think maybe you need to have a certain brain wiring loop to like using it and to just ''get it''. I dunno.
Thank you LeM!
I gave a look to several “dead hr” bars and now I see how you are trading them.
On m5-m1 price creates micro S/Ds around the H1 High/Low, an idea could be trading the breakout of an opposite zone when the range is thin and watching for a sort of DWZ when the range is large.
It’s simple but one should have a good trigger and a good system to cut losses.
I like the idea of countering, even if I’d need to go deeper about it.
Very good stuff to work with, BTW!
I’m going to take some demo trade.
IS A LIE__________
