DAILY WICK ZONE TRADING

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TheRumpledOne
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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:
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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.
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Re: DAILY WICK ZONE TRADING

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

TRO001.png
TRO001.png (50.21 KiB) Viewed 450 times


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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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!



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 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 620 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 564 times


TRO002.png
TRO002.png (46.01 KiB) Viewed 564 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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