Congestion Entrance Price Action - Page 2
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Thread: Congestion Entrance Price Action

  1. #11
    Quote Originally Posted by ;


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

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

    From the chart, the current price is below the prior daily open and preceding weekly available but over the prior monthly open. What is the trend?
    Potentially you could be at a ranging market or consolidation period (potentially lasting a number of hours or maybe days). Your current price means nothing if you don't take it into context, which can only be carried out by looking at a chart or a spreadsheet with all the previous x prices such as the current price.

  2. #12
    Yea, I really don't think anybody has come up with anything really original for a while. It has been done before I agree. Perhaps I should have rephrased it stumbled across, wasn't actually saying I'd come up with anything new. I'm not the best communior in the world.

    Harmonic trading and cycles, daily range sup. res. Will read thanks for the information.

    Frankenpip and gbp:
    I'm an idiot but I'm not following how that relates to greater time frame trend with support and resistance. HH HL LL LH. I know your speaking to a time stamp and the terms of weekly and monthly opens to the current price. In the event that you were to rewrite the very first rule how do you do it. I'll unveil it if it's flawed. Thanks for the information.

  3. #13
    Hi mrjtdude

    what's the logic behind switching to reduced time period, why don't you just place your stop order below the congestion place once you have established the direction from the Higher time period, along with your SL on the current low or high and your TP the nearest S/R points

    Since I understand price is in the same point which TF you switch to

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

    Pls I'm looking forward to your response

    kos

  4. #14
    Quote Originally Posted by ;
    Hi mrjtdude

    What is the logic behind switching to lower time frame, why don't you just place your stop order under the congestion area as soon as you have established the direction from the greater time frame, along with your SL on the recent high or low and your TP the nearest S/R points

    Because I understand price is in the same point which TF you switch into

    That is exactly what I do anyway and its working alright, but possibly after your explanations I may see the light in your own way.

    Pls I am looking forward to your response

    kos
    Kos,

    look at Hammers and Walls for perspective. Lets say you set a wall over the hour time frame. You may not always observe a hammer onto the H1 time frame, however if you should look at m15 for instance, you might find a hammer there and thereby finish the scenario for transaction setup.

    In this instance, we are not looking for walls, we're looking for HH, HL, LH, LL. We switch to a lower timeframe once we have a bar of consolidation (an inside bar). We look for a clear higher or lower compared to the last bar close on the lower time frame. Since we've switched time frames to a lesser one, in the majority of instances, entry will be earlier than waiting for a breakout of the bar before the inside bar on the higher time frame.

    Please ask if you need additional clarifiion.

  5. #15
    Quote Originally Posted by ;
    Hi

    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

    kos
    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.

  6. #16
    Hi Limstylz

    I wanted to PM you about T101 but your PM and email Isn't enabled

    kos

  7. #17
    Quote Originally Posted by ;
    Potentially you might be in a ranging market or consolidation interval (potentially lasting a number of hours or even days). Your current price means nothing if you don't take it in to context, which can only be done by looking at a chart or a spreadsheet using all the previous x prices including the current price.
    Price is always ranging and trending, Mate. Choose 2 prices and you also can ascertain if price is determined or trending. Pick 2 occasions and you can ascertain if price is determined or trending. Or you can pick 2 prices and pick 2 times to find out if price is ranging or trending. 1 trader's trend is another trader's range.

  8. #18
    Quote Originally Posted by ;
    I am an idiot but I am not following the way that relates to greater time frame trend together with support and resistance. HH HL LL LH. I understand your speaking to a time stamp and the relation of monthly and weekly opens into this current price. If you were to rewrite the first rule how would you get it done. I will rewrite it if it is flawed. Thanks for the info.
    Never said you're an idiot, Mate, that wouldn't be considerate.

    The very first rule could be: Describe the trend based on your starting time. Starting time is concerned, previous month's ending, beginning of this year, previous week's open, etc.. . The idea is to select 1 time and use the price at the time as your reference price to find out if the current trend is down or up.

  9. #19
    Quote Originally Posted by ;
    Never said you were an idiot, Mate, which wouldn't be considerate.

    The very first rule may be: Describe the trend according to your starting period. Starting time can be, previous month's end, beginning of this year, previous week's receptive, etc.,. . The idea is to select 1 time and apply the price at that time as your benchmark price to determine if the current trend is up or down.
    Good point. I'll add that particular info into the rule but I kind of thought that was implied by using whatever greater time period someone selects. Those two time frames that I picked were out of the blue.

    There's another rule which I will add according to Limstylz proposal about using multiples of a period frame. With it being 4x or 5x is something I have read as well but not sure of the logic of these multiples aside from 4x being a multiple of 2x. Not certain if these numbers actually mean anything in lively cycles of period (the true truth of market movements).

    The biggest problem though with multiple time frames is the cycles of each time period are lively in length. When there was a much better approach to align those dynamics closer to a given time range then I'd guess it'd be a far higher probability of making the correct entrance. Discrete fourier transform might help some IF you applied some sort of margin of error regarding the cycle ending and/or beginning.

  10. #20

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