DAILY WICK ZONE TRADING

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TheRumpledOne
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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Sun Dec 18, 2016 1:36 am

MightyOne wrote:
TheRumpledOne wrote:
How often do you ask/answer that question?
Once per bar?
Once per tick?

Add or exit? Very simple!


Price moves, it sparks a question, & an action is taken based on a conclusion.

The first three entries add up to one unit and each additional entry is considered an addition; you don't need to
worry about moving your stop until trade 4, at which point you start moving your stop 25% closer to the current price
after each new entry.

Trade 1-3:
1) because I can, BUY!
2) because price is higher than something, BUY!
3) because I am not getting out of this trade, BUY!

Trade 4+ you are simply thinking about your new stop location.
a) the new stop is acceptable, add.
b) the new stop is not acceptable, I cannot add, so I must exit.

You cannot take too many actions, it is self limiting.


Let's see if I understand.

Each entry is 1/3 of a position size. So if 3 lots is your PS, then you have put on 3 trades of 1 lot each.
But now I am lost as usual. Thought it was, add or exit. New stop? What stop? Didn't you call STOP LOSS a LESS PROFIT?
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Re: DAILY WICK ZONE TRADING

Postby MightyOne » Sun Dec 18, 2016 7:30 am

TheRumpledOne wrote:
Let's see if I understand.

Each entry is 1/3 of a position size. So if 3 lots is your PS, then you have put on 3 trades of 1 lot each.
But now I am lost as usual. Thought it was, add or exit. New stop? What stop? Didn't you call STOP LOSS a LESS PROFIT?


Moving a stop to "protect profit" is not the same as moving a stop to normalize risk (creating a new position).

More size means less space.

You know that if you double your position size that your space is halved; it is not that you are moving your stop but that you are keeping everything the same.

Assuming price does not move:

20 pip stop: 1 + 1 + 1
+1 = (3/4)20 = 15 <--Stop is moving closer, risk is the same: $3 * 20 = $4 * 15
+1 = (4/5)15 = 12 <--Stop is moving closer, risk is the same.
+1 = (5/6)12 = 10 <--etc
+2 = (6/8)10 = 7.5 <-- yes 6/8, not a word out of you! lol.
+2 = (8/10)7.5 = 6 <---profit is now 1% per line.

To keep it simple, we just move the stop 25% closer:
20, 15, 11.2, 8.4, 6.3, 4.7, ... you just halve your space twice (just eyeball it, you are going to close it out if it is not working anyways).
The 1.3 pip difference means that you will get stopped out for +13 pips ---> (10/1)1.3
for a total loss of 7 pips at .1%

All that you have to remember is:
1) your stop doesn't move until your 4th entry
2) you can get out whenever you want
3) risk is normalized by reducing your total space, at the time of entry, by 25%.

Starting at +.1% per line, this is what my progression looks like:
1 + 1 + 1 + 1 + 1 + 1 + 2 + 2 + 3 + 4 + 5

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Sun Dec 18, 2016 7:39 pm

MightyOne wrote:
TheRumpledOne wrote:
Let's see if I understand.

Each entry is 1/3 of a position size. So if 3 lots is your PS, then you have put on 3 trades of 1 lot each.
But now I am lost as usual. Thought it was, add or exit. New stop? What stop? Didn't you call STOP LOSS a LESS PROFIT?


Moving a stop to "protect profit" is not the same as moving a stop to normalize risk (creating a new position).

More size means less space.

You know that if you double your position size that your space is halved; it is not that you are moving your stop but that you are keeping everything the same.

Assuming price does not move:

20 pip stop: 1 + 1 + 1
+1 = (3/4)20 = 15 <--Stop is moving closer, risk is the same: $3 * 20 = $4 * 15
+1 = (4/5)15 = 12 <--Stop is moving closer, risk is the same.
+1 = (5/6)12 = 10 <--etc
+2 = (6/8)10 = 7.5 <-- yes 6/8, not a word out of you! lol.
+2 = (8/10)7.5 = 6 <---profit is now 1% per line.

To keep it simple, we just move the stop 25% closer:
20, 15, 11.2, 8.4, 6.3, 4.7, ... you just halve your space twice (just eyeball it, you are going to close it out if it is not working anyways).
The 1.3 pip difference means that you will get stopped out for +13 pips ---> (10/1)1.3
for a total loss of 7 pips at .1%

All that you have to remember is:
1) your stop doesn't move until your 4th entry
2) you can get out whenever you want
3) risk is normalized by reducing your total space, at the time of entry, by 25%.

Starting at +.1% per line, this is what my progression looks like:
1 + 1 + 1 + 1 + 1 + 1 + 2 + 2 + 3 + 4 + 5


I will have to let all of that soak in.
Thanks, MO.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Tue Dec 27, 2016 8:18 pm

EURJPYH1.png
EURJPYH1.png (48.56 KiB) Viewed 402 times
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Thu Dec 29, 2016 5:16 pm

EURJPYH1.png
EURJPYH1.png (46.04 KiB) Viewed 382 times
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: DAILY WICK ZONE TRADING

Postby courier12 » Sat Dec 31, 2016 6:25 pm

Hi TRO,

Wish you Happy New Year!

Quick question: When looking at the daily wick zone, do you look only at yesterday's wick zone or also a wick zone from say 2-3 days or even 2-3 weeks / months back?

I understand you look at the weekly and H4 wick zones as well, but just refering to the daily wick zones, does it make sense to look at the wick zones on daily from the earlier days instead of only yesterday?

Hope this makes sense. Thank you

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Sat Dec 31, 2016 7:39 pm

courier12 wrote:Hi TRO,

Wish you Happy New Year!

Quick question: When looking at the daily wick zone, do you look only at yesterday's wick zone or also a wick zone from say 2-3 days or even 2-3 weeks / months back?

I understand you look at the weekly and H4 wick zones as well, but just refering to the daily wick zones, does it make sense to look at the wick zones on daily from the earlier days instead of only yesterday?

Hope this makes sense. Thank you


No, I do not.
Because I do not run the frequency distributions for that.
But a HORIZONTAL LINE is a HORIZONTAL LINE.
And you know what to do when price reaches a horizontal line.
Don't you? :lol:
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby MightyOne » Sat Dec 31, 2016 7:54 pm

If you think about it, the high minus open is going to be older than the close minus low.

The idea is that price is going to leave the zone so I don't think that it matters whether the candle is a day old or 14 years old; price is where price is and it is going to leave the area no matter how and when it was formed.

Rat/Wick/Buy Zone, opens, SweetSpots, etc, you are simply choosing a line to trade away from:

Will price remain the same forever? No.

How do I know whether price is going up or down? It is either higher or lower than it was before.

What if price is higher in one period and lower in the other? If you use two lines then price must be
higher or lower than both.

What if price is spiraling around my line so that I cannot tell whether price is moving up or down?
a) move to a larger chart. b) consider closing prices. c) move to a larger chart and consider closing prices.

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Re:

Postby TheRumpledOne » Sat Dec 31, 2016 8:15 pm

MightyOne wrote:If you think about it, the high minus open is going to be older than the close minus low.

The idea is that price is going to leave the zone so I don't think that it matters whether the candle is a day old or 14 years old; price is where price is and it is going to leave the area no matter how and when it was formed.

Rat/Wick/Buy Zone, opens, SweetSpots, etc, you are simply choosing a line to trade away from:

Will price remain the same forever? No.

How do I know whether price is going up or down? It is either higher or lower than it was before.

What if price is higher in one period and lower in the other? If you use two lines then price must be
higher or lower than both.


What if price is spiraling around my line so that I cannot tell whether price is moving up or down?
a) move to a larger chart. b) consider closing prices. c) move to a larger chart and consider closing prices.


PRICE IS THE SAME ON ALL CHART PERIODS.

You must mean it may be up relative to the open on one chart period and down relative to the open of another chart period.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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TheRumpledOne
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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Sat Dec 31, 2016 10:27 pm

TRO001.png
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When price not in the daily wick zone, it may be in another chart period wick zone!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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