TRO BUY ZONE - KEEP IT SIMPLE

[LeMercenaire]

I'm reviving this old thread. I'm giving this one a go (I expect to fail a lot at first )

Following TRO's advice, I'll be trying to learn and become consistent at following the method and grabbing 3-5 pips, at least, that's the current goal.

I'm trading the USDCAD, the first 3 hours of the NY Session.

"The STOP in the BUYZONE is a natural stop. If you go long and price triggers a short, then exit and go short."
"...you can use the London, New York and Sydney open prices."

So, I'm drawing the buy zone at the start of the NY Session, with the long and short entries 10 pips above and below the session open, respectively. Stop loss is at the other end of the zone, where I'll exit the trade and open another one in the opposite direction (not revenge trading, just opening trades as price leaves the zone).

---

Absolute and total beginner here, but some thoughts and things I noticed today:

- There wasn't too much movement outside of this particular buy zone at my trading session (3 hours). Price stayed for the most part within these 20 pips.
- It seemed like I was trying to "fight" against the range of the 1 hour bar range. At least, the hourly bars in those 3~ hours that I traded in had an average of 23 pips while my zone was 20 pips (and it seemed to be that way in previous bars as well, maybe even less).
- After my trading session ended, out of curiosity, I saw other charts, and pairs that had a bigger hourly range had "bigger" breakouts to maybe profit from.
- Maybe the width of the buy zone depends on the range of the hourly bars? Is the problem that price is stalling within that zone and I wasn't able to identify that early enough? Or is it that my buy zone is too big for this particular pair?

Again, these were my impressions trading today. If I'm talking nonsense, let me know haha!

Thanks!

Good stuff.

I'm running BZ on a select number of pairs, including indices, with the day starting at midnight UK time. I only trade away from the Weekly Open (Monday I take whichever one hits first). I can say for sure that you will gain an advantage if you adjust the distance away and actual size of the Buy Zones themselves.

I wish you well with the thread and hope you're as happy with BZ as I am

[Jhx]

Good stuff.

I'm running BZ on a select number of pairs, including indices, with the day starting at midnight UK time. I only trade away from the Weekly Open (Monday I take whichever one hits first). I can say for sure that you will gain an advantage if you adjust the distance away and actual size of the Buy Zones themselves.

I wish you well with the thread and hope you're as happy with BZ as I am

Hopefully! I still need to learn how to adjust the size of the buy zone though . Don't know if it's a trial & error thing or if there's something related to ranges that I should be looking at.

Study the WICK ZONE. Wick Zones of H1 candles give you a clue which way price is moving when it enters/exits the H1 wick zone!

That's interesting! If I look at my trading session from today, picking the direction based on the previous bar's wickzones would've been better and would have avoided some losers (by waiting for the price to break out of the previous bar's wickzone).

The thing is, if I wait for the price to break out of the previous candle's wickzones to pick my direction, wouldn't I be essentially using the wickzone method instead of the Buy Zone? Which they are similar in some way: horizontal lines and price breaking out of zones. Is the wickzone some sort of subset of the buy zone?

Let's see how tomorrow goes.

Thanks for the replies!

[TheRumpledOne]

BUY ZONE...

If price moves X pips then it will move Y pips. Look at the frequency distribution of High minus Open and Open minus Low. That's how to determine where to place the triggers.

[Jhx]

Interesting. I looked at the frequency distribution of High minus Open and Open minus Low of the last 100 H1 bars.

Average over 100 1h bars:
High - Open: 10.75 pips
Open - Low: 7.08 pips

And I also tested H1 bars over the last 100 days, and both the high-open and open-low get closer to 8.5pips on this particular pair.

---

By the way, I watched your latest video on price action, and this helped immensely.

"Even within the Buy Zone, you can overlay a Wick Zone and trade the price action, and use it for profit taking, or for scratching a trade before it goes to the full stop."

I'll be trading again tomorrow using what I've managed to learn so far on Buy Zone and wick zones.

Thanks!

[Jhx]

So today was another trading day. I'm still trading for 3 hours using the 1H chart, so I'm limiting myself to 1 trade per hour, aiming for those 3 pips.

1st Hour (NY Open):
Price broke out of the previous candle's high (near the buy zone as well, so I took that as confirmation), entered long and grabbed +3.

1-buyzone-usdcad-day3-06-19-21.png (55.64 KiB) Viewed 115998 times

2-buyzone-usdcad-day3-06-19-21.png (54.86 KiB) Viewed 115998 times

3-buyzone-usdcad-day3-06-19-21.png (56.09 KiB) Viewed 115998 times

2nd Hour:
Price moved a lot in the first hour, so now the previous bar has large wicks on both ends. The first bar also closed near the open and its range was larger than the average hourly range. So I was pretty sure that I wouldn't be taking any trades in the second hour .

4-buyzone-usdcad-day3-06-19-21.png (58.43 KiB) Viewed 115998 times

3rd Hour:
And this is the candle that brought the question:
When trading off a candle's wick zone...
Is that candle the previous candle?
Or is it the highest / lowest of my session?
Or is it the highest / lowest of the day?

5-buyzone-usdcad-day3-06-19-21.png (67.68 KiB) Viewed 115998 times

Maybe I'm asking myself too many, but those popped up while trading today, and my trading plan has some blanks I need to fill .

(Hope I'm not bothering too much bloating this thread with charts, sorry!)

Thanks!

[Leoheart]

I'm reviving this old thread. I'm giving this one a go (I expect to fail a lot at first )

Following TRO's advice, I'll be trying to learn and become consistent at following the method and grabbing 3-5 pips, at least, that's the current goal.

I'm trading the USDCAD, the first 3 hours of the NY Session.

"The STOP in the BUYZONE is a natural stop. If you go long and price triggers a short, then exit and go short."
"...you can use the London, New York and Sydney open prices."

So, I'm drawing the buy zone at the start of the NY Session, with the long and short entries 10 pips above and below the session open, respectively. Stop loss is at the other end of the zone, where I'll exit the trade and open another one in the opposite direction (not revenge trading, just opening trades as price leaves the zone).

---

Absolute and total beginner here, but some thoughts and things I noticed today:

- There wasn't too much movement outside of this particular buy zone at my trading session (3 hours). Price stayed for the most part within these 20 pips.
- It seemed like I was trying to "fight" against the range of the 1 hour bar range. At least, the hourly bars in those 3~ hours that I traded in had an average of 23 pips while my zone was 20 pips (and it seemed to be that way in previous bars as well, maybe even less).
- After my trading session ended, out of curiosity, I saw other charts, and pairs that had a bigger hourly range had "bigger" breakouts to maybe profit from.
- Maybe the width of the buy zone depends on the range of the hourly bars? Is the problem that price is stalling within that zone and I wasn't able to identify that early enough? Or is it that my buy zone is too big for this particular pair?

Again, these were my impressions trading today. If I'm talking nonsense, let me know haha!

Thanks!

Good stuff.

I'm running BZ on a select number of pairs, including indices, with the day starting at midnight UK time. I only trade away from the Weekly Open (Monday I take whichever one hits first). I can say for sure that you will gain an advantage if you adjust the distance away and actual size of the Buy Zones themselves.

I wish you well with the thread and hope you're as happy with BZ as I am

Curiosity is as dangerous as a cat sticking its mouth in a tiny space in attempts to eat a mouse.

What Buy Zones size are you running, and how did come up with your numbers?

Needless to say, you are a dangerous man & know how to spark my Curiosity

[TheRumpledOne]

You have to run a frequency distribution on price: High - Open and Open - Low. Then you will see if price moves X then it tends to move Y. For stocks, I pick my herd of cows by selection the ones where High - Open and Open - Low is more than $0.50 at least 80 times in the last 100 days.

[LeMercenaire]

I'm reviving this old thread. I'm giving this one a go (I expect to fail a lot at first )

Following TRO's advice, I'll be trying to learn and become consistent at following the method and grabbing 3-5 pips, at least, that's the current goal.

I'm trading the USDCAD, the first 3 hours of the NY Session.

"The STOP in the BUYZONE is a natural stop. If you go long and price triggers a short, then exit and go short."
"...you can use the London, New York and Sydney open prices."

So, I'm drawing the buy zone at the start of the NY Session, with the long and short entries 10 pips above and below the session open, respectively. Stop loss is at the other end of the zone, where I'll exit the trade and open another one in the opposite direction (not revenge trading, just opening trades as price leaves the zone).

---

Absolute and total beginner here, but some thoughts and things I noticed today:

- There wasn't too much movement outside of this particular buy zone at my trading session (3 hours). Price stayed for the most part within these 20 pips.
- It seemed like I was trying to "fight" against the range of the 1 hour bar range. At least, the hourly bars in those 3~ hours that I traded in had an average of 23 pips while my zone was 20 pips (and it seemed to be that way in previous bars as well, maybe even less).
- After my trading session ended, out of curiosity, I saw other charts, and pairs that had a bigger hourly range had "bigger" breakouts to maybe profit from.
- Maybe the width of the buy zone depends on the range of the hourly bars? Is the problem that price is stalling within that zone and I wasn't able to identify that early enough? Or is it that my buy zone is too big for this particular pair?

Again, these were my impressions trading today. If I'm talking nonsense, let me know haha!

Thanks!

Good stuff.

I'm running BZ on a select number of pairs, including indices, with the day starting at midnight UK time. I only trade away from the Weekly Open (Monday I take whichever one hits first). I can say for sure that you will gain an advantage if you adjust the distance away and actual size of the Buy Zones themselves.

I wish you well with the thread and hope you're as happy with BZ as I am

[b]Curiosity is as dangerous as a cat sticking its mouth in a tiny space in attempts to eat a mouse.

What Buy Zones size are you running, and how did come up with your numbers?

Needless to say, you are a dangerous man & know how to spark my Curiosity[/b]

Well, I took the Doo-Whah-Bop and subtracted the Fleet-Whop-Whop from the Koobie-Zabie. Then I switched in Mountain Time

Or, maybe not.

In truth, I scanned a number of pairs to see which ones seemed to give a straight forward move for a reasonable length of time.

Then I stuck the Buy Zone Indicator on them. Default.

Watched for a while and then manually adjusted settings to pull some zones closer, others wider, whatever.

This means that for me, the Open is Midnight UK and as I've said, I only take trades in the direction away from the Weekly Open. Quite often, the first tp is on the very first bar.

Reading the recent posts, it seems to me that I have skated over the subtleties of entry, lol.

I just go in as price breaks the first line and take what it gives me, locking in the +2 or +3 or whatever it is. Let it run if it does and then if it has gone a decent distance - gut feeling - then I will kick in with my usual scalp trade-management.

The pairs I have it on are (in no particular order):

AC, GU, EJ, GN, Dollar Index, UC, S&P, UNok, EJ, GOLD, EA, EG, CJ, CAC40, 225JPY, AU, DAX and US30

Of these, yesterday (I think...or Friday) all but the CAC40 and The DAX made the TP. That's not unusual stats. Pretty standard actually.

Those two failed the first move but hit tp the other way or hit sl or whatever way you would play it. I'd be tempted to counter if it got over a certain percentage of move length or something similar. Those two mirror each other as well, so debatable as to whether you'd have both.

I'd have to factor in that these are kicking off out of hours for me, so there would be increased spread and trim the fat if needed.

Anyway, at the moment, it's just something I am playing at in quiet moments. So far it's showing as something that I am willing to faff around with to see if I can swing something - and I would certainly consider running a move as I set myself up for bed if I happened to see it go.

Oh - and I have also looked at whether you would be as well just going in the direction away from the Weekly Open as soon as the Midnight candle kicks off. A kind of Top-Of-The-Hour kind of play.

Jury's still out.

[Leoheart]

Good stuff.

I'm running BZ on a select number of pairs, including indices, with the day starting at midnight UK time. I only trade away from the Weekly Open (Monday I take whichever one hits first). I can say for sure that you will gain an advantage if you adjust the distance away and actual size of the Buy Zones themselves.

I wish you well with the thread and hope you're as happy with BZ as I am

[b]Curiosity is as dangerous as a cat sticking its mouth in a tiny space in attempts to eat a mouse.

What Buy Zones size are you running, and how did come up with your numbers?

Needless to say, you are a dangerous man & know how to spark my Curiosity[/b]

Well, I took the Doo-Whah-Bop and subtracted the Fleet-Whop-Whop from the Koobie-Zabie. Then I switched in Mountain Time

Or, maybe not.

In truth, I scanned a number of pairs to see which ones seemed to give a straight forward move for a reasonable length of time.

Then I stuck the Buy Zone Indicator on them. Default.

Watched for a while and then manually adjusted settings to pull some zones closer, others wider, whatever.

This means that for me, the Open is Midnight UK and as I've said, I only take trades in the direction away from the Weekly Open. Quite often, the first tp is on the very first bar.

Reading the recent posts, it seems to me that I have skated over the subtleties of entry, lol.

I just go in as price breaks the first line and take what it gives me, locking in the +2 or +3 or whatever it is. Let it run if it does and then if it has gone a decent distance - gut feeling - then I will kick in with my usual scalp trade-management.

The pairs I have it on are (in no particular order):

AC, GU, EJ, GN, Dollar Index, UC, S&P, UNok, EJ, GOLD, EA, EG, CJ, CAC40, 225JPY, AU, DAX and US30

Of these, yesterday (I think...or Friday) all but the CAC40 and The DAX made the TP. That's not unusual stats. Pretty standard actually.

Those two failed the first move but hit tp the other way or hit sl or whatever way you would play it. I'd be tempted to counter if it got over a certain percentage of move length or something similar. Those two mirror each other as well, so debatable as to whether you'd have both.

I'd have to factor in that these are kicking off out of hours for me, so there would be increased spread and trim the fat if needed.

Anyway, at the moment, it's just something I am playing at in quiet moments. So far it's showing as something that I am willing to faff around with to see if I can swing something - and I would certainly consider running a move as I set myself up for bed if I happened to see it go.

Oh - and I have also looked at whether you would be as well just going in the direction away from the Weekly Open as soon as the Midnight candle kicks off. A kind of Top-Of-The-Hour kind of play.

Jury's still out.

You had me at "I took the Doo-Whah-Bop and subtracted the Fleet-Whop-Whop from the Koobie-Zabie. Then I switched in Mountain Time" I thought I was only one with a few loose nuts. Good stuff bud.

[LeMercenaire]

''You had me at "I took the Doo-Whah-Bop and subtracted the Fleet-Whop-Whop from the Koobie-Zabie. Then I switched in Mountain Time" I thought I was only one with a few loose nuts. Good stuff bud.''

The only way to stay sane in this game is to be a little nuts, buddy

Right, today's results. The way I have done it is the first ''G'' is tp hit. If ''X'', then first tp failed. After that, the next one is if the retrace / reverse move hit tp and the third, if the second test of the original direction BZ.

EG: if it was ButtCoin ''G'', then it hit tp. If Buttcoin ''X'' ''G'' then the tp is failed but the reverse hits tp. Finally, if Buttcoin ''X'' ''G'' ''G''...ah go on, you've worked it out for yourself by now.

So...Results:

225JP ''G''
AC ''G''
GU ''G''
UC ''G''
CJ ''G''
GN ''G''
Dollar Index ''G''
S&P ''G''
UNok ''G''
GJ (I think...my writing is really bad, it could be EJ again and I'm too lazy to go check. Treat with caution). ''G''
GOLD ''G''
EA ''X'' Just failed to clear spread. ''G'' ''G''
EG Probably NA here, as the upper zone was lined up against a Supply Zone (It would have failed if taken). Retrace ''G'' then ''G''
AU ''G''
CAC40 ''G''
DAX ''G''
UChf ''G''

You will notice that my list seems to have upped its number from the last post. Or maybe it just seems more, I dunno, again, I haven't gone to confirm or whatever. All I can say is that the ones listed here are the full shebang (with the caveat about the GJ that might be EJ).