Trade The Market Behaviour

Setio Widianto S.s
140

1) Delete all indicators

2) Of course we must able to determine the flow of the market. Simply like this, if I dont know where my location is, the map will be completely useless.

3) The Flow of the market is always repeating. Trending --> Retrace ---> Break Reversal or Break Trend Continuation ---> Trending ---> Retrace ---> and on. There is Sideway between each flow. That is where the game start.

4) Then decide what kind of Trader we want to be. Scalper/Intraday? Short Term? MidTerm? LongTerm?


Lets talk about Scalper/Intraday, which is M5 or M15 is being used, or even M1. 

5) Only trade where the volatility is high enough, a) London Open to London Day Break. b) New York Open to London Close.

6) No trade on a day when there is High Impact News.

7) Determine the previous market flow.

8) Ex: Previous Flow is Trending, and still doesnt have any meaningfull retracement. So you expect market will be stop for a while (sideway), then retrace. Remember, the flow of the market is always repeating. In this case, you will trade for retracement, which is the easiest way to enter but hard to exit (because of greed, or the market sharply continue the trend in case of extreme condition).

9) Maximum target for trading retracement is at Last Break Out (meaningfull HL before recent LL or meaningfull LH before recent HH)

10) Cut Loss when the market formed another LL, or when market reach your risk tolerance.


note: HH LH LL HL is hard to identify in small timeframe due to noises and spikes.


Sorry no image added, because you want to learn from recent real market condition.

There is so many type of trending market, there is also so many types of retracing market, and on.


Question to answer for mastering this strategy:

1) What is Trending?

2) What is Retracement?

3) What is Reversal?

4) What is Trend Continuation?

5) What is Sideway?

6) What is Volatility?

7) What time is London Open, New York Open, London Close?

8) What is High Impact News?

9) What is HH LH LL HL?

10) What is Target, Stop Loss, Cut Loss?

13) What is Risk Tolerance / Risk Management?

Jimmy Subagiyo
134
Jimmy Subagiyo  
Setio Widianto S.s:

1) Delete all indicators

2) Of course we must able to determine the flow of the market. Simply like this, if I dont know where my location is, the map will be completely useless.

3) The Flow of the market is always repeating. Trending --> Retrace ---> Break Reversal or Break Trend Continuation ---> Trending ---> Retrace ---> and on. There is Sideway between each flow. That is where the game start.

4) Then decide what kind of Trader we want to be. Scalper/Intraday? Short Term? MidTerm? LongTerm?


Lets talk about Scalper/Intraday, which is M5 or M15 is being used, or even M1. 

5) Only trade where the volatility is high enough, a) London Open to London Day Break. b) New York Open to London Close.

6) No trade on a day when there is High Impact News.

7) Determine the previous market flow.

8) Ex: Previous Flow is Trending, and still doesnt have any meaningfull retracement. So you expect market will be stop for a while (sideway), then retrace. Remember, the flow of the market is always repeating. In this case, you will trade for retracement, which is the easiest way to enter but hard to exit (because of greed, or the market sharply continue the trend in case of extreme condition).

9) Maximum target for trading retracement is at Last Break Out (meaningfull HL before recent LL or meaningfull LH before recent HH)

10) Cut Loss when the market formed another LL, or when market reach your risk tolerance.


Sorry no image added, because you want to learn from recent real market condition.

There is so many type of trending market, there is also so many types of retracing market, and on.


Question to answer for mastering this strategy:

1) What is Trending?

2) What is Retracement?

3) What is Reversal?

4) What is Trend Continuation?

5) What is Sideway?

6) What is Volatility?

7) What time is London Open, New York Open, London Close?

8) What is High Impact News?

9) What is HH LH LL HL?

10) What is Target, Stop Loss, Cut Loss?

13) What is Risk Tolerance / Risk Management?


I love swing trading with no indicators. Fundamental drivers important too.

Setio Widianto S.s
140
Setio Widianto S.s  
Jimmy Subagiyo #:


I love swing trading with no indicators. Fundamental drivers important too.


Yes fundamental (economy factor) is very critical, when trade the higher timeframe D1 above/Big Scoop.

Especially to determine the next flow probability.


51120625
5
51120625  
Setio Widianto S.s #:

Yes fundamental (economy factor) is very critical, when trade the higher timeframe D1 above/Big Scoop.

Especially to determine the next flow probability.


Any tips on trading market behaviour at the higher timeframe 1D ? 
Setio Widianto S.s
140
Setio Widianto S.s  
51120625 #:
Any tips on trading market behaviour at the higher timeframe 1D ? 
You must alligned or in synch with the fundamental (economy factor). Just ignore all the noise such as Ukr-Russ the recent noise.

For example, USD. FED must hike the rate, maybe super hike rate to maintain inflation. So the outlook BUY USD (short term). Time is ticking before the next FOMC.
Young Ho Seo
115073

Probably, more estabilised concept towards your notion of "trade the market behavour" is price action and pattern trading. There are already huge community on this.

Consider the informtation flow like below.

Fractal Wave (Market Memory) -> Peak Trough Analysis (Visualize Fractal Wave)-> Momentum, Trend, Revesal, Sideways Market,Volatility (Recognize Market Behavior) -> Support Resistance, Fibonacci Analysis, Harmonic Pattern, Elliott Wave, Triangle Pattern, Channel, Falling Wedge Pattern, Rising Wedge Pattern, Double Top, Double Bottom, turing point analysis, renko chart, zig zag analysis, swing trading and so on (Trader's Tool to predict or to react to market).


You can also have a look at this post to understand how the fractal wave unfold to the important technical analysis used by the trader as outlined above. 

https://www.mql5.com/en/forum/376896


I only wrote this because using the right keywords can help you learning how to trade really fast. 

Fractal Wave For Forex Trading (and Stock Market Trading)
Fractal Wave For Forex Trading (and Stock Market Trading)
  • 2021.09.03
  • www.mql5.com
Fractal Wave is by far the most conformative and practical theory in the technical analysis. However, it is also most underestimated theory too...
Setio Widianto S.s
140
Setio Widianto S.s  
Young Ho Seo #:

Probably, more estabilised concept towards your notion of "trade the market behavour" is price action and pattern trading. There are already huge community on this.

Consider the informtation flow like below.

Fractal Wave (Market Memory) -> Peak Trough Analysis (Visualize Fractal Wave)-> Momentum, Trend, Revesal, Sideways Market,Volatility (Recognize Market Behavior) -> Support Resistance, Fibonacci Analysis, Harmonic Pattern, Elliott Wave, Triangle Pattern, Channel, Falling Wedge Pattern, Rising Wedge Pattern, Double Top, Double Bottom, turing point analysis, renko chart, zig zag analysis, swing trading and so on (Trader's Tool to predict or to react to market).


You can also have a look at this post to understand how the fractal wave unfold to the important technical analysis used by the trader as outlined above. 

https://www.mql5.com/en/forum/376896


I only wrote this because using the right keywords can help you learning how to trade really fast. 

Yes that is the very basic concept of price action. But im outcluding chart pattern, only market flow. 
Young Ho Seo
115073
Setio Widianto S.s #:
Yes that is the very basic concept of price action. But im outcluding chart pattern, only market flow. 


Flow of market you have described is the resulting market behavior from the infinitely repeating fractal wave in the market, which is considered as the basis of the price action and price pattern trading.


3) The Flow of the market is always repeating. Trending --> Retrace ---> Break Reversal or Break Trend Continuation ---> Trending ---> Retrace ---> and on. There is Sideway between each flow. That is  where the game start.


However, Price Action does not has to be based on chart pattern.


For example, some legendary traders already expanded this resulting market behavior to profit.


For first example, Wyckoff took it to define accumulation and distribution area in his volume spread analysis (VSA, 1930s).


For second example, supply demand zone trading looks for the short sideways movement that can be used for breakout or reversal trading.


For third example, sideways market and volatility can be precisely measured using statistics and probability theory.


I am just giving you some ideas to add in your strategy as anyone can open this rich tool box called the price action and price patterns trading, that stores many valuable tools and gadgets for traders.

Setio Widianto S.s
140
Setio Widianto S.s  
Young Ho Seo #:


Flow of market you have described is the resulting market behavior from the infinitely repeating fractal wave in the market, which is considered as the basis of the price action and price pattern trading.

No its not pattern trading. You'll find it very useful when you trade the economy which is using Daily Weekly Monthly above chart. You'll able to sync with the market.