Ifmyante Compression
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Intro Creditss and resou Credit resources rces
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Please Please remember remember that that the charts charts and the concepts concepts presentedhere presentedhere arejust a quick introduti introdution on to Price Price Action. Action. You You canconsider all all this as a brie brie introduct introduction ion to a bigger bigger story, astory that weknow as Price Price Action. Action. I you wonna wonna learn learn moreabout Compression Compression,, about Price Price Action, Action, visit the the Red Empire Empire threads threads on Forexactory. Price is everything
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Price is everythingChat Room
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Romancing Romancing the price
and pay pay attention attention to this this great gre grea att resour res resource: reso ource: urce: ce: A NEW USEFUL USEFUL SITE SITE FOR TRADERS TRADERS WHIT WHIT A COMPLETE COMPL OMPLET ETE E TRAD TR TRADING ADIN ING GC COURSE COU OURSE OUR RSE SE FROM FROM IFMYANTE NOE: Allthe credit credit goes to I, I, R, H H, , ,, and theother great peoplewho havecontributed; havecontributed; on the other hand, hand, all errors errors are mine, so ellree to pm me on Forexact Forexactory ory iyou find mistakes, mistakes, bugs, bugs, or i you havesuggestions havesuggestions or ideas. ideas.
Abbreviation
A - as a prefix - Ascending AA- Adam and Adam ACH - Ascending Channel AE - Adam andEve AWG - Ascending wedge BE - Break even BE -As a prefix - Bearish, example: BEACH - Bearish ascending channel BEB - Bearish engulfing outside bar BEFL - Bearflag BH- Bar highs BNR - Bump andrun BO - Breakout BOPA - Breakout, pullback and advance BOPB -Breakout+ pullback BR -as a prefix - Broadening BRN - Big round number BU -As a prefix - Bullish BUB -Bullish engulfing outside bar BUFL- Bullflag CH- Channel CN - Continuation CP - Compression CWH - Cupwith handle D - Demand DBB -DoubleBottom
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DBD- Dropbase drop,descending poleflag pole DBR - Dropbase rally DBHLC - Double Bar high lower close DBLHC - Double Bar low higher close DB -Doubletop D1 - Daily DD - Drawdown DM - Diamond DIV - Divergence DS -Daily supply DS -as a prefix-descending DSCH - Descending channel DSWG - Descending wedge DL- Demandtrend line EA- EveandAdam EE -EveandEve EX - Exhaustion FL - Flag / Consolidation FO - Fakeout FA- First trouble area FB - Firsttime back.Followed by 2B,3B etc. HB - Horn Bottoms HNS -Head andshoulders H - Horntops HF - Higher timerame HFL - High andtight flag (ama-
zing results!) IB -Insidebar Ib4 -Inside 4 bar that is thesmallestbar o theprevious 3 bars ILR - Island reversal INV - Inverted LIL- Long island LF - Lower timerame M1 - 1 minute M2 andso on MMD - Measured move down MMU - Measured move up MN - Monthly PA - Price action PB - Pin bar PFP- Pole,flag,pole PIE -Price Is Everything thread PPZ - Price pivot zone RN - Round number RBD- Rally basedrop RBR -Rally baserally,ascending poleflag pole R -Retrace/Retracement RP- Romancing thePrice thread RV - Reversal S - Supply Shampoo - seeHNS SL - Stoploss SR - Support/resistance
SRF - SR Flip SL- Supply trendline G -arget L- rend line P- akeprofit PP- ake partial profit R - riangle - ouch trade WB - weezer bottoms W -weezertops W1 - Weekly WD - Weekly Demand WG - Wedge
Ante Party*
o understandexactly a scenario, or indeed to readany situation at all on thecharts, past present or uture,you shouldlook or a certain set o clues. General : HF. Know where price is comingrom andgoing to, and thePA past and present inall the Fs, rom theMonthly down. Specific: At the zones you want to trade, look to Past : study thezone in all Fs, down to M1 ask yoursel • •
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Where werethe decisions made? Clean S/D?Mark these lines. No cleanS/D? - compressed zone Didprice really shoot away orm the zone, or did it CP away? Didthe zoneitsel react at the right place?Look beyondthe zoneurther into the past. Seewhat it reacted to. Was there a better S/D nearby that price wants to visit? Tis explains many akeouts.
Present: Approach. Howis price returningto the zone? Where's thenearest flag in the F you want to trade? Tis is your tg1 inthis F. Flags inthe LFs?What does PA tellyou? Has price tested thelast flag on approach?(good sign) Has price compressedinto the zonein this F or LFs?(good sign) Is there bignews on theway?Has there just been bignews? Reaction: In LF, does pricereact violently to thefirst decisionpoint?Does it quickly engulthe nearest S/D? (goodsign) Does price simply CP away? Maybeit wants to go to thene xt decisionpoint I the first decisionpoint breaks, watch thesigns on approachto the next, and, o course, reaction.
* Past,Approach, Reaction, Tank You!
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Compression denition
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by Ifmyante
We talk aboutcompressionwhenprice taking out last decisionpoint and the orders that where lef there.
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Compression charts
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Compression an explanation b y Red* Lets put an endto whats compression ( otherwise known as a finishing triangle ) and what not compression. Noticed someconusingcomments and charts lately with regards to compression. So, below is an entry rom the past to clearly identiy the PA Firstly, we look lef and notice a supply zone - supply zoneidentied simply by noticing prices ell hardrom therebeore, thereoresellers exceed buyers. Now we wait or PRICE ARRIVAL
* As i know,Red was the first whohave talked aboutCP,so all thecreditsgoesto him. Ten, why don’tput his charts firstly ? Because his audience onPIE was generally skilled,he was talking toexpert traders, that don’t need somuch explanations.On the other hands, the charts o Imyante and the charts presented here are more “noob”proo, so study onthem beore all. In detail, seems that the “spiking” is the most complicated part o the story or inexperienced trader.“Where the hell are the spikes ? I don’t see any spikes on your chart”was my first questionto Imyante;well, remember that you have tounderstand the dynamics o price inLF thatproduces the spikes onthe HF, and never ever orget thatcandles are justa representationo what happened toprice over a giventime - your broker time, notthe PA itsel,so always looks at the dynamics o the PA,and remember whatCP represent: “price taking out last decision pointand the orders that where lef there”.
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.......... ok, nowprice arrival to zone. But notice the manner in which it approaches - its spiking south WHILS RISING .......... what does this mean? Rising to findsupply, spiking southis doing several things @ thesame time. Prices arefindingsmall pockets o demand and testing them to rise to supply. So, as its spiking southits also consuming thosesmall pockets o demand thereore the pathsouth is beginclearedo demand @ the same time!
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PA watch andentry, ok nowlook @ the result. Notice howthe bears that dropped through the compressedzone arelarge and clean suggestingno demand or resistance, reason? - the demand was already consumedby theSPIKINGSOUH ON APPROACHO SUPPLY ZONE ............. this is why l have stated ofen- PRICES HINKAHEAD OF IME, prices already decidedto turnbe causeprices cleared the zoneo demand by spikingsouth beore they reached supply clearing the pathsouth or thebears........... so thereit is.
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another example- someo you havebeen conusingflags or compression. Why does aBULLFLAG DIP?Its dippingto consume sellers @ a givenlevel, once the sellers have beenconsumed, the flag is completeand prices can advance - no mystery. Ten prices leavethe flag to advance, then onceprices reached supply, theapproach to the zonethere was compression, so l sold it
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Compression a video by Ifmyante A quick video on CP andthe importance o finding the Drop BaseRally that creates an SR flip.
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Compression study on breackout by Tyoon Price compresses up/down thenpulls back rom hitting a resistance/support|sup/dem andbalances out beore an advancein the compresseddirection. Te res/sup|sup/dem usually comes rom a higher F.. this wouldnormally makeme biased or a reversal.. but whenyou watch the PA unold you see that actually pricewants to carry on.. also keepingin mind o where price came rom. For example, i price has only just lef a 4H demand zoneand it hits 30M resistance.. the likely scenario hereis that the 4H demand is more powerul andwill break the 30M resistance. Teseare somestructures that I have oundto have happenedin example o this scenario.
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A note o I: I price flags atop a cp zone, nothing is valid'til the flag breaks, one way or the other.
End [22May 2012]
