Congestion Entrance Price Action
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Thread: Congestion Entrance Price Action

  1. #1
    Trading Sort:
    Congestion Entry

    1. Trend - relies on the traditional HH HL or LL LH. Heres a link to understand price action tendency.
    2. Direction - the current bar closes under or over the previous bar highest high or lowest low.

    Greater Time Frame Rules:
    Rule 1 Identify the trend based on a greater beginning time frame that's also a multiple of a lesser time frame of 4 or 5. Starting time is concerned, past month's ending, beginning of the year, past week's receptive, etc.. . The idea is to pick 1 time and apply the price at the time as your benchmark price to determine whether the current trend is down or up.
    Rule 2 Next pub shuts within preceding bars range, this is congestion entrance.
    Rule 3 mark the highest high and lowest low of these two bars.
    Rule 4 switch to your lower time frame a number of

    Lower Time Frame Rules:
    Rule 5 identify the next close lower compared to the previoous bars reduced and place entry.
    Rule 6 Set stop loss in the highest high of previous bars.

    Profit taking is up to your own discretion.Ideas welcome.

    Graph: * I will upgrade charts later based on the rule 1.
    This example relies on the market and the inverse is true for entering long any trade.

    to produce this trade as profitable as possible with the smallest amount of risk.In other words create a top P/L multiple.

    Any hints about how best to improve on this notion will be updated with this very first article to make it a lot easier to find for people who have an interest.

  2. #2
    Quote Originally Posted by ;

    what's the logic behind switching to lower time frame, why not just place your stop order below the congestion place once you've established the leadership from the greater time frame, along with your SL about the current high or low and your TP the closest S/R points

    Because I understand price is in precisely the exact same point which TF you change to

    That's what I do anyway and its working alright, but maybe after your explanations I may see the light in your way.

    Pls I am anticipating your reply

    I change to a small time period to cut back my stop loss size. The market scales in size but it's shape stays the same. I would like to be apart of large market moves but also want my stop loss to be minimal in that I can have a chance for a large P/L ratio. Thats why I change time frames. About maximizing entrance to reduce loss and maximize potential profits. Hope that helps.

  3. #3
    Quote Originally Posted by ;
    Opinion? I believe you are confused, Mate. As a trader, I have no opinion. Trading is data and statistics.

    I had been reacting to mrjtdude.
    Yep... another'trader' who believes that his OPINION is the right one and the only real one, and has nothing substantial to say and backs up a debate with something as trivial as the preceding statement... I don't intend to start a flame war with you, MATE. I wish you continued success with your facts and figures.

  4. #4
    the best way to set entryTP?
    Thank you!

  5. #5
    Welcome back mrjtdude,

    another old member since 2007 wit only 31 articles, coming to give back to the area, another price action system, the only difference is that you haven't told us how profitable and how long you have been on the computer system.

    I notice that members between 2006 and 2007 are all coming back using their systems to teach us

    Where did you all go? Or are you in lurking mode since then.

    If its price action am with you on that, nude trading.

    Welcome back sir


  6. #6
    I like your simple system, thanks to share, it's very beneficial



  7. #7
    Post a chart of how you understand it then I will try to answer your question. Others may have the same problem in realizing the setup.

    Target Profit can be anything you may already have or use a simple multiple of your stop loss on lower time frame (ie 3x, 9x or anything ). Idea is always money management. The smaller your time period the lower your stop loss amount but also more chance for your stop loss to be removed. The greater your time period the more loss you'll have with less chance of your stop being removed.

    Just how long have I used this method? I just made it up but have been a fan of having a form of price action. Price appears to give you handle before any indior will. I be at the moment than hanging in the past once I trade.

    Entrance order is following the close. . .so you would buy on the open of the next bar.

    errich fx:
    Thanks. If you have any ideas on the best way best to improve it I'm all ears. It's all about sharing and making things better.

    Questions answered

    everybody is welcome for changes or new insights on enhancing the trading idea.

  8. #8
    Rule #1 is faulty.

    Pick a start time. The price is going to be the same on all charts. (Starting Price)

    Compare that price with the current price. Current price will either be above, below or equal to the Starting Price.

  9. #9
    Quote Originally Posted by ;
    Rule #1 is faulty.

    Select a start time. The price will be the exact same on all charts. (Starting Price)

    Compare that price with the current price. Current price will be above, below or equal to the Starting Price.
    Rule 1 states that you need to spot the trend and direction to a higher time frame.

    How can what you wrote above relate to rule 1?

  10. #10
    Quote Originally Posted by ;
    Rule 1 states that you need to spot the trend and direction on a higher time frame.

    How does what you wrote above link to rule 1?

    I believe FrankenPip is telling you that the chart period doesn't matter. Use a date/time to receive your reference price. Is the current price above or below your reference price?

    Examples: Weekly open price. Monthly open price. Daily open price. Price 5 days past. Etc....

    From the chart, the current price is under the previous daily open and preceding weekly open but above the previous monthly available. What is the trend?

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