DAILY WICK ZONE TRADING

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courier12
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Re: DAILY WICK ZONE TRADING

Postby courier12 » Sun Jan 01, 2017 5:53 am

TheRumpledOne wrote:
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:


Understood. Thank you TRO. Freq distribution is for the prior day / H4/week / month candle only. But all other wick zones are just horizontal lines!

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Re: DAILY WICK ZONE TRADING

Postby courier12 » Sun Jan 01, 2017 5:54 am

TheRumpledOne wrote:TRO001.png

When price not in the daily wick zone, it may be in another chart period wick zone!


Yeah, that's what I have noticed as well. So to add to the comment in one of your latest videos - one pair, one method AND one Timeframe? Else there will always be a wick zone somewhere in some timeframe! :)

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Sun Jan 01, 2017 3:02 pm

courier12 wrote:
TheRumpledOne wrote:TRO001.png

When price not in the daily wick zone, it may be in another chart period wick zone!


Yeah, that's what I have noticed as well. So to add to the comment in one of your latest videos - one pair, one method AND one Timeframe? Else there will always be a wick zone somewhere in some timeframe! :)

PRICE IS THE SAME ON ALL TIME FRAMES!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Re: DAILY WICK ZONE TRADING

Postby courier12 » Sun Jan 01, 2017 4:57 pm

TheRumpledOne wrote:
courier12 wrote:
TheRumpledOne wrote:TRO001.png

When price not in the daily wick zone, it may be in another chart period wick zone!


Yeah, that's what I have noticed as well. So to add to the comment in one of your latest videos - one pair, one method AND one Timeframe? Else there will always be a wick zone somewhere in some timeframe! :)

PRICE IS THE SAME ON ALL TIME FRAMES!


yes, I understand that. But the wick zones are different on different timeframes? E.g. price may exit a wick zone on H4 but come into a daily wick zone?

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Postby MightyOne » Sun Jan 01, 2017 6:31 pm

PRICE IS THE SAME ON ALL TIMEFRAMES...but there is much that is different.

1) a candle can be green in one period and red in another.
Is price going up or down? In relation to what, the previous tick? That's not significant! SO what is?

2) an M5 bar does not have the same historical significance as a monthly bar.
Take this little section of chart for example:
-price returned to the same level 4 months in a row & that is much different than M5 bars returning to
the same level (think of all the eyes that see that little section of chart vs the eyes that see the same section of M5 chart).
-the long outside bar with a weak close and the lower high is a short on a monthly chart but it doesn't
really mean much on an M5.
-from a long-term perspective you are accumulating a large size through these months for the inevitable
decline where as from a short-term perspective you are either looking for a reason to get out of a trade or
for some sign that price might continue to rise.
-if this were an M5 then you would not consider the 2nd bar from the highest high to be a trend-line break.
You use TL, you don't use TL, it doesn't matter! What matters is the way in which they are used, in different chart periods, by
other people.
EURUSD_MN.png
EURUSD_MN.png (2.06 KiB) Viewed 425 times


3) the ranges that you have to wait through, if you decide to hold a trade, are different.
Splashing about in 7 pip bars is not the same as heading into the great deep of 700 pip bars.

Through position sizing, you can give two charts the same financial consequence and thus treat them the same but the fact
remains that, from a technical perspective, everything is different about larger charts: position sizing, strategy, objectives, interpretation, etc.

Scalpers have trouble with large charts because they were sold that little line that "a chart is a chart".
This is not an M5 bar, this is: 30 days of mans life, his hopes, his dreams, and where he stands today; all in one bar.

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Mon Jan 02, 2017 12:37 am

TRO001.png
TRO001.png (49.23 KiB) Viewed 369 times


TRO002.png
TRO002.png (46.01 KiB) Viewed 369 times


Same data, different (time) compression.
That's my point.
And I understand your point, MO.
Thanks.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re:

Postby TheRumpledOne » Mon Jan 02, 2017 12:41 am

MightyOne wrote:
Through position sizing, you can give two charts the same financial consequence and thus treat them the same but the fact
remains that, from a technical perspective, everything is different about larger charts: position sizing, strategy, objectives, interpretation, etc.


That is the concept I still fail to grasp.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: Re:

Postby MightyOne » Mon Jan 02, 2017 7:55 pm

TheRumpledOne wrote:
MightyOne wrote:
Through position sizing, you can give two charts the same financial consequence and thus treat them the same but the fact
remains that, from a technical perspective, everything is different about larger charts: position sizing, strategy, objectives, interpretation, etc.


That is the concept I still fail to grasp.


On one side of a nickel, even wrapping onto the edge, it reads "SPACE" & on the other side it reads "POSITION SIZE".

Space is gained as the nickel rolls in the direction of profit and space is lost as it rolls in the direction of loss and the only other way
to effect space is to change the position size, which instantly lengthens or shortens the current space.

It is not simply a formula, it is a living breathing thing that is nurtured throughout the life of the idea; it is something that can be seen
with your eyes and shaped with your hands.

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Tue Jan 03, 2017 12:53 am

RISK is the amount you are willing to lose if you guess wrong on the direction price is moving.

Some risk 1% of their account balance.
Some more and some less.

RISK = POSITION SIZE / STOP LOSS

Find the place on the chart where it makes sense to stop out.

Calculate the position size and enter the trade.

As price moves the distance between price and stop loss increases or decreases.

The risk stays the same unless you change the position size.

Once you put a trade on you can:
1) wait,
2) exit part of the position,
3) exit all of the position,
4) add to the position.

That is it.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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Re: DAILY WICK ZONE TRADING

Postby Mira » Tue Jan 03, 2017 1:45 pm

MightyOne wrote:The risk stays the same because space is affected by changes in position size: (oldSize/newSize)space.

Space can be increased, reduced, or divided and spread between pairs and periods:
if I have 4 lines on an H1 chart then I might divide my position size in half to trade 4 lines on the
H4 chart that are twice as wide. If after moving to the H4 chart I am sitting with 6 lines then I might
divide my size in half and trade the daily chart with 6 lines that are twice as wide as the H4 lines.

While your math is correct, I believe that you are overlooking a whole universe of strategy.




Mmmm.. so i'm risking the same and making the same over any chart (period and pair)..
In other words making one line on EURUSD 5m-1h is the same (in % of my account) of making one line on GBPUSD D1!

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