Forget everything you know about the market.Try as you get acquainted with the material below, turn off the internal filters, and look at the market from a new perspective.Graphs - are not what they seem.
Hello Dear forex traders!Today we will talk about a very original and deserves the full review trading system.It's called Transient Zones or "transitional zone".It is based on an extremely powerful idea, realizing that, you will forever change his views on trade.And while below are the detailed rules for the inputs, the main thing - to understand the idea, only then you can move on.
Features TC Transient Zones
Platform: Metatrader 4
Currency pairs: any
Timeframe: M1 - D1
trade time clock
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theory at the heart of the system
Transitional and repetitive area
transition zone (transient zone) - is t
Repeated zone (recurrent zone) - is the area to which the return price movement (they are not transitive).
Let's simplify this.
- The original definitions TC author says that the transition and recurring costs should be within the maximum and minimum price of the bar.
- Therefore, we must in some way to share, or a filter, transition rates from recurring price.
- One useful way - is to look left and right at the bar.
- look at the bar on the left: if it High / Low of the current bar level does not cross.
- also look at the bar on the right: if he High / Low of the current bar level does not cross.
- overlapping areas called repetitive.The rest area is called transition.
- How many bars on the left and the right should be sought?Their number is equal to value of h.
The figure below (below) we have a center, it is also the focus bar (in the green rectangle).It is necessary to define the transition zone and repetitive.
Using the above rules, you can see that the right side of the bar (h = 1), we see a bar, which is within the maximum / minimum of the central bar.
rest area, which has not been activated, can initially be considered transitional.
Obviously, it will be easier if you use Transient Zones indicator.The picture shows the construction zone.
Take the height of the central bar and subtract from it any number of bar h bars, the breakdown level High / Low central bar.
remaining area is in transition.
Also pay attention to the tail of a candle.It also says that in this bar price went below, then higher and closed higher, indicating that the price has not gone below.Therefore, lower prices of this bar were transient.However, one bar, you can not say what specific prices were transients or repetitive - to answer this question, you will need to go to a lower timeframe.
The figure shows that only 4 bars to the left of the central bar breakdown at the level of its high / low.To the right was 3 bar, struck his maximum / minimum.
Thus, we could summarize that we have a transition zone, which consists of more than 4 repeating prices, where 4 - is the maximum number of bars that are struck him high / low level.
And what of it?
preceding argument shows how the transition zone is determined by the price bar.If you define a transition zone, then you also define and repetitive area.
If you use Transient_Zones indicator, then it's pretty simple.Repeating the same area - is any area that is outside the box.
Let us further simplify.If you are using Transient_ Zones indicator, the rectangles limit transition zones.
Why is this so important?
shopping opportunities - a designated contact area in which the price is probably not going to come back within the h bars.
If it is likely that we can open a position in one of two directions:
- Trading in the direction of the transition zone
- Trade in the direction back to the transition area after the fact, as the chart appears h bars
in other words, we rely on the fact that the price returns to the transition zone.If we believe that the price will not be back in the transition zone, we, therefore, make an assumption about the direction of price movement."Transition" means that "prices will not return", and we definitely need to move away from this area.
Since the original definition Eurusdd (author of the method) is that there is a transition zone for a given value of h, then we say that there is a time limit for the transition zone.Just as the clock ticks, the price will not return to that zone within a certain time interval.If, for example, you determine that h is equal to 5, then you would expect that the price is not returned within the rectangle, at least for 5 price bars.If you are working on the hourly chart, this would mean that for 5 hours, prices will not return.What you could do, having this information?Think.
Experienced traders know this rule: the higher timeframes are more powerful than the less durable, low timeframes.
step aside from this discussion of the topic.It is well known that the trends that exist on the longer time frames, there will always be more powerful and will break (cancel) the trend to less lengthy timeframes.
you can not overcome the uptrend on the weekly chart, even if you do a few times to open short positions in the 5-minute chart.There is a high probability that prices will move higher because there is an uptrend on the weekly chart.Similarly, for a downtrend.
This opens up a theme that can be quite difficult because of the nature of time / price.I do not mean "the time or the price", and the combination of price and time.
I say this, because if I say that the EURUSD currency pair has reached the bottom at 1.2495 level on the weekly chart, then I should also point and time, as the exact coordinates on a graph is an (x, y), wherex = the price, and in = time.You can not mention one without the other.The same is true for the 15-minute chart: if I just say the price of 1.2495, then I probably should point out to you the date and time to achieve such a price.
This is because time / price for their nature are fractal.This means that it can be divided into smaller parts, and these parts form a large value equivalent parts.
For example, 1 hour is equal to four 15-minute segments, which is quite logical.For schedules, this will mean that 1 hour bar 4 will be the price of 15-minute bar.
This enables call in and the extent to which engineering graphics associated with the transition zones and with the value of h.
Since h - this time, the h is the number of bars on the chart.But if you want to analyze, where prices are transient, you will need to decide in what timeframe, we will define them.
When performing routine analysis tamfreymov I strongly recommend you to define the transition zone on all timeframes.
Check transition zones on all timeframes are always carried out in the following order.Start with a monthly timeframe, and further descending: on a weekly, daily, four-hourly, hourly, 30-minute, 15-minute and 5-minute.
«Day" is, in my opinion, the purest form of temporary fractal, because one day can be defined as 24 hours.In this definition, no other adjustments.Based on this definition, we can divide the greatest "day," as the value of 24 hours and then divide the time interval on the hour and minutes (1 hour is 60 minutes).
So, theoretically, you can say the following:
1 day = 24 hours
1 day = 1440 minutes
This means that at any minute chart, you can use 1440 candles as a parameter equivalent to 1 candle onthe daily chart.
Using simple math, you can easily imagine other graphics: hour, minute, etc.
If we were to move from the smaller to the higher timeframe, the week should be defined as 5 days ....And, speaking of the monthly chart, it necessarily contains 4 weeks, here you need to look at a calendar month.Months contain at 30-31 days, and holidays are present in them.
Thus, any timeframe, longer than a day, is more difficult to determine in fractals.
So why is so important to consider all timeframes?
In light of the above, the key effect of checking different timeframes is that the quantity of H, is likely to have different results for analysis.
What should be the value of the H?
frequently asked question is: "What should be the value of H?»
answer: "It depends on ...»
It depends on your trading goals.
It depends on your trading style.
scalper would probably choose a smaller value of h.
positional trader or swing trader is likely to make a choice in favor of a larger value of h.
Or something in between.As
h acts as a filter of the original thesis: prices will not return to a certain level for a specified period of time.
Therefore, applying variable h, you need to take into account the timeframe in which you work, as well as any equivalent timeframes in which your strategy relies.
example, traders usually prefer to look at 15M and 1H charts.
Therefore it would make sense to use the H value on the 15M chart, in terms of time of 1 hour.
But what if you really work on 4-hour chart, and want to use the hourly chart?On the hourly chart the value of h should be equal to 4. 15M chart is the same value must be 16.
Experiment with this and see the results.The idea is that you are now beginning to feel that makes the price after the onset of the transition zones.
Firstly: exact entry and exit algorithms you need to identify yourself! Depending on your trading strategy and trading style.
Second: input "from the bulldozer", just because it started to form a transition zone, you can not!
Thus, the method described above can serve as a filter for your trading system, or the basis for creating a new one.Use indicator for mindless inputs on arrows - unwise.The author of the strategy does not give specific input parameters / exit / stop-loss / take-profit.Therefore, I will not.You will have to turn his head.
Possible strategies for working with Transient Zones :
- input when shaping setups Price Action near the transition zones
- Combining the methodology VSA
- entrance on the breakdown of the transition zone on the rollback to it, either with the trend (depending on your goals)
- expose pending orders above and below the transition zone
- look for places where the transition zone coincides with the support / resistance levels and trade them
- trade on a return to the transition area, using it as a goal
- combination with another strategy of your choiceor with individual indicators
- your version
also offer to pay attention to a competent interpretation of the method of our forumchanin Mamotaro :
Forex strategy Transient Zones certainly is an interesting object for study and experimentation.The main thing - to understand the idea behind it is based.And then try to combine it with their own views on the market and trade policy makers.The results can exceed all your expectations.
Download indicators Trading System Transient Zones
discussion in the forum