P A Z
PAZ, Scale, Symmetry, Structure; Anomaly
Price Action Zones – The last piece of the puzzle
Every candle on the chart is part of a PAZ of one form or another
and knowing where price is in relation to these zones gives us a massive edge
on the markets. Up until now, we have been taught nearly everything we need to
know to be successful traders, PAZs really are the last piece of the puzzle.
So let’s get started!
So what is a Price Action Zone? A PAZ is exactly what it says;
it’s a zone on your charts that show a distinct type of Price Action! These
distinct zones include poles, flags, stacked supply/demand and compression.
Once we are able to accurately determine where these zones are, there is one
rule. ONLY trade the edges!
One great type of PAZ is the space between two Failure to returns’
(FTR), which is the space in which a flag forms; let’s look into this a little
further:
You can see in the above chart I have
marked off 8 FTR’s as price climbed up, between each one of these FTR we have a
PAZ. So we have 7 PAZs. Simple as. Once price breaks into a PAZ (engulfs a FTR)
we know it wants to go to the other side of the zone (the next FTR). So let’s
look what happens on the way back down.
- FTR 8 gets engulfed, price has now gotten into PAZ 1. Price retraces then goes to FTR 7
- FTR 7 gets engulfed, price has now gotten into PAZ 2. Price retraces then goes to FTR 6
- FTR 6 gets engulfed, price has now gotten into PAZ 3. Price retraces then goes to FTR 5
- FTR 5 eventually gets engulfed and gets into PAZ 4 and follows through to engulf FTR 4 and FTR 3 and gets into PAZ 6. Price retraces before going to FTR 2
- FTR 2 gets engulfed (see insert 2). Price retraces then goes to FTR 1
Now that you know where price wants to
go, it is your job to enter on a retrace to target the other side of the PAZ
(the next FTR), and we already know how to do this don’t we? PA!
By Pedini
PAZ
So
to sum up, compression itself is a PAZ, but when price is not moving in a
compressed manner, PAZ can be identified using other means, one of it being
FTR? I'm also guessing other than these 2 concepts, there must be other cases
where we can/must involve other Price action and patterns to identify PAZs?
Answer:
http://readthemarket.com/index.php/forum/journals/1577-les-paul-s-journal?start=150#19838
there
are 3 types of PAZ's:
1
- compression
2
- stacked demand / supply
3
- the space between two PAZ's
Pedini's
explanation of PAZ by FTRs: http://www.readthemarket.com/index.php/forum/journals/1184-pedini-s-trades-and-setups?start=175#19876
Pedini's
explanation of PAZ by stacked demand: http://www.readthemarket.com/index.php/forum/journals/1184-pedini-s-trades-and-setups?start=175#19878
Stacked
S/D vs CP?
Stacked
S/D = PAZ, when 1 stack broke, PRICE will TARGET the other edge of PAZ, but
look for entry at Significant levels/zones (dont go in straightaway).
(FXYogi)
You got that exactly. Think about
this, what is momentum candle?. Is it about momentum?. If yes , what TF?. Let's
say you have a momentum candle in 4 Hr but in 1 hr you dont have any . What you
will say about momentum?.Apparently , 4Hr is a product of 4 x1hrs. if 1 hr
there is no momentum, how did you get the momentum in 4 Hr?. same goes to
liquidity gap as both are used for the same thing by supply demand traders for
long time. I would like to call it" trending candle" rather
"momentum candle". If you see monthly momentum candle then daily TF
its trending towards "something". These all very easy to see. But we
traders believe totally what others say without giving a logical thought.
With what i said above , think what is pole?.
I will give you the clue;
it is the "'space between two FLs"'. In other words it is the"PAZ".
PS- These all my understanding from my experience with what i learned from IF. Nowhere im near IF. So my opinion may differ from his . I believe he will apologize if he find any false statements from me. And will be kind enough to correct
With what i said above , think what is pole?.
I will give you the clue;
it is the "'space between two FLs"'. In other words it is the"PAZ".
PS- These all my understanding from my experience with what i learned from IF. Nowhere im near IF. So my opinion may differ from his . I believe he will apologize if he find any false statements from me. And will be kind enough to correct
(FXYogi)
smaller poles connected as chain
and create swings. This swing can be considered as bigger pole, In that case ,
i consider extreme FL( at the swing) as the pole base.
Following are the 3 types of Price Action.
The lines you drawn are compression and the end of the compression has strong bounce (pole). End of the compression can be supply or demand. It is not rule that if price compressing from down to up then the price have to drop. No. In you below image, where you have drawn lines, price compressed from down to up and then bounce up and made a pole. As per my observation it happens when compression reaches the supply and at the supply "they" buy against seller and supply becomes demand. If you look at right side of the pole base where price is bounced, you can see price once again bounced, it not only bounced, it rallyed
The lines you drawn are compression and the end of the compression has strong bounce (pole). End of the compression can be supply or demand. It is not rule that if price compressing from down to up then the price have to drop. No. In you below image, where you have drawn lines, price compressed from down to up and then bounce up and made a pole. As per my observation it happens when compression reaches the supply and at the supply "they" buy against seller and supply becomes demand. If you look at right side of the pole base where price is bounced, you can see price once again bounced, it not only bounced, it rallyed
(kumaramy)
Yes. nothing is beyond Compression, pole and
flag
Excellent IF,
I always mark in LTF. In this one , i saw a pole breaking, then i thought if not 1 min , it should have returned in other TF at least, that's why i marked that FL using other TF.Your reply is strengthening my view on time frame. Now i got a eureka moment
I always mark in LTF. In this one , i saw a pole breaking, then i thought if not 1 min , it should have returned in other TF at least, that's why i marked that FL using other TF.Your reply is strengthening my view on time frame. Now i got a eureka moment
Certainly don't give up on support and
resistance. In the right places, the Flags created at their breaks can be
phenomenal rejectors of price.
There are a few tricks to learn, but you'll find them all in the RTM site.
Most of all though, remember that the IT wants to be the only one trading in the right direction, meaning that he wants to pressurise the retailers into handing over their stops. Be ready for this. Think like the IT does, and learn the rules he works by, and you'll be on the right side of the market at last!
There are a few tricks to learn, but you'll find them all in the RTM site.
Most of all though, remember that the IT wants to be the only one trading in the right direction, meaning that he wants to pressurise the retailers into handing over their stops. Be ready for this. Think like the IT does, and learn the rules he works by, and you'll be on the right side of the market at last!
(DrSwing): The level at which price leaves a
zone and fails to get back into the zone is the FTR(FL). So now we have a PAZ
above the FTR and another PAZ below the FTR, and we can operate within these
individual zones. Oh, and the FTR(FL) level is the DP between the PAZs.
(FXYogi) 1. In fact, I
don't think they are PAZs as they are drawn differently. But seemingly your
charts imply that "if one box is engulf, price will finally go to next
box", which sounds like a PAZ.
Boxes are FL. PAZ are between FLs.Once engulfed , going other FL. Correct. Than where you enter??. This is where you wait for retracement.When maximum pain a retail trader takes and suffering from drawdown. Anxiety, revenge and give ups. Then its the correct time for you to enter.If not all, keep this mind. You need to verify the retail traders pain before you enter. If you dont feel that. Pain is yours. This pain does not have definite pattern. It could be PB or BEOUB etc etc. But not necessarily should be in any form. When you enter, you enter from PAZ edge as IF said. In case if you want to enter early, quantify where the extreme retracement shall be and divide your positions into 5 fold or 3 fold and enter partially.
Boxes are FL. PAZ are between FLs.Once engulfed , going other FL. Correct. Than where you enter??. This is where you wait for retracement.When maximum pain a retail trader takes and suffering from drawdown. Anxiety, revenge and give ups. Then its the correct time for you to enter.If not all, keep this mind. You need to verify the retail traders pain before you enter. If you dont feel that. Pain is yours. This pain does not have definite pattern. It could be PB or BEOUB etc etc. But not necessarily should be in any form. When you enter, you enter from PAZ edge as IF said. In case if you want to enter early, quantify where the extreme retracement shall be and divide your positions into 5 fold or 3 fold and enter partially.
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=200#18550
PAZ = FLAG (edges of the FLAG are two FLs that are at the
same as FTRs)
https://www.readthemarket.com/index.php/en/forum/journals/1523-if?start=1450#44558
IF, im so happy right now
After
a few days of looking over your youtube videos and after i taken almost
every trade from your journal trying to analyze in history why return
was there and not in another place i found something interesting which
seems to confirm my understanding.''I see the market in FLAGS and POLES''
''FL=FTR"
"PAZ= space between two FL"
''Look left, then look left and if you need to look more to the left then do it! ''
These its words from you.
Now... my understanding: EACH FLAG IS A FL(or it need to be) FOR A FLAG FROM HIGHER SCALE.
https://readthemarket.com/index.php/en/forum/classroom-and-trading-room/1517-the-classroom?start=500#18479
Allow me to give you one big clue.
In fact, for many of you, it may be the last thing you need to know for that massive EUREKA moment to occur
Once it does, you'll be advancing to the Associate Traders rung, where I'll fine tune it for you, until you're ready to go to the Master Traders Room, where I'll lay it all out on a plate
So here goes
A CP is a PAZ
If you're having trouble spotting your PAZ, look to a CP zone,, look to its engulf and FTR. That'll be a reference for all your further PAZs
Raven, you'll need to look further left for PAZ engulf and FTR in order to draw your PAZ1 properly
Each PAZ remember, is formed by the FTR after the break of the last PAZ. (that's why, when you look across a zoomed out chart, you can see Zones lining up in bands all across the chart, be they flags, poles or empty space. The don't line up to the pip though because it's the break of one and its FTR that creates the next, offsetting it one way or the other each time :) )
https://readthemarket.com/index.php/en/forum/journals/1538-castus#22520
WHICH TIMEFRAME TO TRADE
SYMMETRY
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=2475#62335
IF: Don't forget the symmetry with the purple line
What's on the left shall be met again on the right
SCALE
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=2550#63152
IF: If a FL is visible in a certain timeframe, then it is a FL on that TF.
If it's the kink of the top or bottom of an higher TF FL, it becomes significant in the HTF.My definition of a BSZ differs from your video.
For me, a BSZ is the area beyond two or more horizontally aligned highs/lows, set to trick retailers into believing the S/R is strong, and trading it with stops beyond.
A single H/L can be a trap too, but it's set to catch the stops of SD traders
(from discussion with Aran)
SYMMETRY & SCALE
https://readthemarket.com/index.php/en/forum/journals/2904-neohunter-journey#63771
There's no point in identifying an engulf without also marking its target and scale.Why mark target? Well, that one doesn't need explaining.Why mark scale? We need to know how far it can retrace before hitting target
ANOMALY
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=2675#64295
We
read PA, and use it extensively for our trading. But the market is
moved by people. Most of these people we see over and over again, making
plays from the same book all week long.
Sometimes
though, a new player will dump a ton of orders into the market; more
than the ITs are willing to cover, and a level will break.Sometimes an IT will himself make a slip and accidentally break a level.
Sometimes an IT will break a level just to mess with us lot's brains.
These events are extremely rare, but they do happen.
If they didn't happen, we could go all in on every trade, and soon find ourselves as rich as the Rothschilds!
It's due to this risk of false PA that we only risk a small percent of our accounts on any trade or set of correlated trades.
https://readthemarket.com/index.php/en/forum/journals/1523-if?start=2750#64903
IF: Oh please let that not be the last post about the evils of the market!
The game IS rigged, and everybody should be aware of it.If we haven't yet got a thread about it, we should.
Whenever we look for a trade opp, one of the first things we should be asking is "how will they get people to trade in the right direction and hand over their stops?"
Suggesting that the market should become fairer is akin to suggesting that politicians should fulfill their promises, or that the World Health Organisation should not be a vehicle of the eugenic agenda.
If you want to fix it, then you should come help me destroy it
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