TraderSan
I have my EUR BBZ between 50 and 62% Fibs and I note yours are within 38 and 50 fibs. My thinking was that it contains the 100 and 200 SMA within the 50 and 62%. What do others have?
cheers
This might be me missing a post somewhere, but because 100SMA has now moved between the 38.2 and 50 fib I am no longer looking for a B/B Zone and now just a correction zone.
My convergences are:
Strong Support for the option at 1.2235
Euro pairs are meandering along waiting for Thursday.
100SMA pulling away from 200SMA shows that bulls are in control of the market.
I missed the entry, but I am hoping for the 38.2 fib to be tested again at which point I might enter if there decent Bullish PA on the 15min chart.
Once again, I am still learning so if anyone can tell me I am making a mistake I would be grateful :44:
I am going back through the older posts to see at what point a BB Zone can become a correction zone and vice versa, I have assumed because the 100sma is by itself that the current chart will be better suited to a correction zone, however should the 100sma revert back towards the 200sma and they lie between the same fib’s as the 200sma Ill re-adjust the chart to a BB Zone.
I think David said that a correction zone occurs mostly between 38.2 and 50 and must have the 100sma, whereas the BB Zone could be between any of the fibs and will normally have the 100 and 200sma.
However if a BB Zone should contain a 100sma and 200sma cross then I am wrong.
The European traders should be here in 2 hours or so, hopefully they can help us
just finish read for first 30 pages and last few pages, need your help here, i still have a problem on find the BB zone, any easy way to recognize where is the BB zone? is this depend on SMA100 or SMA200 or a fibs or combination or SMA100,SMA200 and fibs? please help me to understand, i already trade with other system, but most of my result is lose, i start feel very fail out.
This is my first post so please be gentle. I’ve been reading the thread back and forth and I think I got the idea. There is just one concept that is still vague to me - what’s the difference in purpose of a bbzone versus a correction zone? As I’ve read, one difference is that the bbzone has both the 100 and 200 sma and the correction zone only has the 100 sma. But are they really distinct in what they represent?
BBZONE/Correction zones are just areas of confluence. This can combine one or both MA’s if close to each other, and fib levels or technical support and resistance. It can also combine a chart pattern such as the neckline of head and shoulders or double top/bottom or previou days break point.
Correction zone is an area where you expect price to bounce from, but if broke and held on the other side, then bias will likely change…normally the 100sma is the only MA locaated here but not nessaserly.
BBZONE is an area on the chart you expect price to bounce from, but if broke and held on the other side, then not only is the bias changing but also the trend…hence why its called Bull/Bear zone. Both MA’s are typically located here
Thanks PREDITER. Yes, I’ve read this in one of David’s post… but isn’t bias same as trend? That’s what I don’t get. Their function is similar, isn’t it?
Here is how I construct my bbzone/correction zone (correct me if I’m wrong, please!)
Draw a fib on the 1D chart from the last major swing
Draw a fib on the 1H chart from the last major swing
In 1H chart, locate where current 100 sma in the fib (1H) is. Shade that area (if possible; if not just remember this zone when you go to lower timeframes). This is your correction zone. However if 100 and 200 are in the same range then this is your bbzone.
Go to 15 min and find entry patterns. “Ignore” the 100 and 200 sma in the 15M chart and concentrate on the bb/correction zone.
You may need to read the first 30-50 pages again to fully understand it, thats what I had to do when things weren’t fitting into place.
Here’s another one of DJ;s quotes
If I see price attack the 100sma and the price action holds above it, then the bias is still favoured with the bulls. If I see the price breal below…and more im[portantly hold/stay/sustain below, then I can anticipate a change in the bias, and if I weant to be aggressive then I can find an entry to get short…the bias now favours the bears, but they are not in full control, the momentum is with them, but they will only gain full control if they can move and sustain a move below the 200sma…
Hello all, Could anyone answer this for me. AU was trending without any retracement’s to the BB/Correction Zone since friday. Is this move considered as a retail driven move or it’s a pro money move ?
There has been rumors of the Swiss National Bank pushing the AUDUSD upwards, as well as Reuters stating there big money just over the 1.0500, there are also a few options in the mid 1.0430 + region.
I am waiting for a retracement to about 23.6 which is currently a correction zone. From there AUDUSD could rocket through the 1.0500 resistance and beyond as Pro money will be funding the push.
EUR/USD price is 1.2250, and there offers at 1.2300 and bids at 1.2200.
The bids and offers would form support and resistance, thus you would aim to short price on a retracement from 1.2300 and would go long on a bounce from 1.2200.
Order Flow also pays a role here, so that’s important to consider as well.
The bid is where you want to buy, and the offer is where you want to sell.
Bids/Offers at specific prices wont cause 50-100+ pips moves, that’s not how it works. The bids/offers are orders belonging to the pro money, as price hits one of these levels it will cause a small reaction in price as the bid/offer gets filled and the transactions take place… thats exactly what you are trading…[B]“the reaction”[/B] this could be from 5-20-30 pips depending on the size of the transaction (bid/offer) sitting at that level.
What you are trying to do is piggy back the banks or funds, or corporates ect ect bid/offer transaction and profit from it.
So if you Bid’s example above for EUR/USD… the bids are @ 1.2200-10, you would buy if price hit 1.2210 and also buy if price hit 1.2200 and trade the transaction reaction.
Thanks for All the info David been reading for well over 2 weeks, can’t get enough of SMA’s, zones and candles in the wind!!
I have a question regarding this order flow strategy if anyone could answer if would be greatly appreciated. I don’t think it’s been covered already but i might be wrong.
First off how do you decide which bids offers to trade? Do you wait for price action to hit the bid and then see if there is a bounce on the 5 min chart or is it done on the size of the bid and who it’s from?
This also brings me to my second question, as soon as you see the price hit the bid/ offer do you take it or wait for the candle to form first or will it be to late then.
Sorry if these have been covered before I couldn’t see them, didn’t want to clog up the thread with questions already covered.
The option expires/barriers for today are for the New York cut which expires at 15:00 BST. Once the barrier expires thats it for the day, and any protective bids/offers that were there protecting it which have not been triggered will be deleted as they will no longer be needed.
As you have also said there is another option expiry at 1.2300 tomorrow as well, so that one will still be in play tomorrow for Wedns New York cut (15:00 BST)
If your trading option barriers, just focus on the ones due to expire today. Don’t worry about tomorrows, those will attract fresh protective bids/offers for tomorrows NY cut expiry.
