Impending Setups/Trades

Experienced trader, new to babypips. I’ve been trading for awhile and do pretty well. Price action is the entire foundation of how I trade. I trade daily charts, simple, set forget, low stress, large movements (800-3,000+ pips), high probability, high profitability. The indicators I use…center of gravity, and MT4 stock RSI, are only for confluence. I only execute a trade when price action reversal candles present themselves. Confluence comes from recognized divergence on the RSI, or possible when in the green or yellow of the COG, or when jumping off major support and resistance lines (my preferred method). I do not rely on indicators, I have to reiterate that. Price action is what matters…the indicators just tell you where price is headed next, supply good support and resistance data, and are kinda just the icing on the cake. If the indicators line up, but if I don’t get my price action candle…no trade. Indicators are actually made from price action. So use the candles!..they are the most direct interpretation of price that you can get, and use support and resistance lines. Also, at higher time frames…price action is much more accurate. I always go for a 2:1, or more, profit target. Once the trade is set, I don’t touch it. I set up and execute mainly limit orders, because I want to get a really good entry via retracement. If for some reason, the next bar after the reversal bar, doesn’t retrace enough and trigger the trade, so be it. I usually shoot for about 1/3 to 1/2 the length of the reversal bar candle via the next developing candle. I absolutely DO NOT chase trades. That may be the hardest thing for a trader to learn. Never ever chase. There will always be more trades.

The first 2 pictures are 2 trades I’m eyeing. Waiting for the AUD/NZD (Sorry, my cross bar/mouse pointer was accidentally in that first picture) to get into range…then will wait for the reversal bar. In the AUD/USD, the indicators are already lined up…so I love the confluence. Now just waiting for my reversal bar. If you don’t wait for the correct price action bar…who knows? price could keep going up for awhile. That’s why it’s crucial to wait for the price action. If you don’t understand price action or want to know more, pick up Steve Nison’s book (the guy who brought price action patterns to the US from Japan…the godfather of price action), Japanese Candlestick Charting Techniques. It’s an absolute must and will change your trading, completely. I cannot reiterate that enough. Get his book! I apologize if that sounded insulting…I truly don’t know how much people know or don’t know on this site. I have little yellow X’s on my charts just so I can pick them out from my control panel. That’s my control panel in picture 3. I can go through my charts in 3 minutes and see if there’s a good setup coming due to the simplicity of this method. Picture 4 is a current trade that I’m in right now and am currently profitable. Once I hit my profit target, I will have made 1,931 pips. Picture 5 is another trade that I am currently in and profitable, as well. A beautiful reversal pinbar developed 2 days ago. This is what I look for…price action doing it’s thing, and telling me via the candles. Profit target when hit will be 1,317 pips. I only make a handful of trades per week…because that’s all that’s necessary. I don’t force trades. They come to me, and when they setup, they are beautifully apparent and basically scream at you.

I used to trade indicators, intraday - 5m, 10m, 1hour, etc. charts…and all I did was stress out and lose money. I was the guy (you may be like this at this stage) that thought I was going to do some fast intraday trading, scalp, make big money, and quickly. If you’ve haven’t blown an account yet, that method will do it. If you are only using indicators to trade, I guarantee that you are already late to the trade. Indicators lag, because the data used to create that indicator(s) is from actual price action. This is no secret, but few…especially newbz (no offense, we’ve all been there), realize this until the first blown account occurs…or the second. It wasn’t until I studied price action and learned to be patient, that I started making consistent money. Nial Fuller (youtube or google him) and the Lazytrader (youtube, google) know what they are doing. Watch their videos, study price action, trade like a lion…patient, waiting for that high probability trade, and then execute without thought, and let it be. Keep it simple!! Pretty soon you will be winning 80% of your trades, as well. With profit targets of at least 2:1…you will make money and consistently. Price action candles are a reflection of what the big market movers are doing and give you the power to jump on board and ride their wave to profits. It truly is that easy. This took a lot of time…lot’s of errors, lot’s of different methods and systems, a lot of losses, a year of incessant studying, reading, and learning. Now hopefully, you can cut through all the Forex BS, that I had to sift through, and start making money, just like I do.

Anyway, just wanted to share my trading. Hope it can help some people out.

-Dr. Ninja






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Here’s another setup that I have my eye on…AUDCHF on the daily, of course. RSI and Center of Gravity show confluence. Now, just waiting for a nice reversal price action candle, then will put in a sell limit order. I’ll set my take profit at the gravity line. Basically, when the reversal candle shows up, I will drop a line perpendicular to that candle, intercepting the COG blue gravity line. I’ll draw a horizontal line from there, and that’s my take profit, which it will eventually hit. My stop loss will be however many pips that distance is, divided by 2…so a 2:1 (large) profit ratio. Simple as that.

-Dr. Ninja


This will be a buy limit order when the price action reversal candle shows up. The beauty of trading this way, is that you can keep your day job and still make a ton of money…until you’re good enough and make enough money to quit. You only need to look at charts for a few minutes at the end of each trading day. (USA - 5:00pm Eastern)

-Dr. Ninja


So, gold has been on the rise for awhile, and we could still see higher highs. I’m cautiously looking at it for a reversal sell. With this one, I’m manually marking the major support line and hope to see some tall wicks on future candles reach out for it, to signify selling resistance and possible reversal of the trend.

If I see a higher high, with divergence on the RSI, this too will be an indication of things slowing down and an impending reversal price action candle…which I will wait for before setting a sell limit. Take profit will be set as explained above, or at a support line that I deem a good enough profit for the amount of movement. Stop loss will be half that distance.

Watching this chart.

-Dr. Ninja


Hi DrNinja I have been studying pure price action and demoing for 6 months now with a fairly high win rate about 72% and am feeling confident in opening a live account and am interested in your post.I understand RSI and convergence / divergence but I am not familiar with COG could you explain a little more detailed to me how this works and how you set your parameters.Thank you Dave

[I]*(Update 2-17-17: I am using Center of Gravity setting - 125 and RSI - 14…for all charts now. No custom settings per chart.)
[/I]

Hi Dave,

I’m happy for your success! Price action is where it is at! Center of Gravity is an indicator that was developed by a hugely successful trader named El Mostafa Belkhayate, and from my understanding utilizes complex mystical universal fibonacci math. When the bars reach the green to yellow area, we are looking for reversals, and price will eventually gravitate back toward the blue center line…the center of gravity…which makes complete sense, if you understand how price fluctuates and moves.

Babypips won’t let me attach the files for this indicator for you. Just google it and you can find it for free in multiple places. Now, some people just use a standard setting of 125 for the ‘bars back’ setting in the indicator. Some use 250. I have tweaked it, so that each pair I’m trading has a custom setting. I also did the same on the RSI for better confluence. Is this the right way to do it? Some may argue, but it works well for me. I’ll post my settings below. If you see a third number, that’s because I either raised or lowered the top or bottom level of the RSI, (for example from 70 to 80, or 30 to 20). Hope this helps. Feel free to ask any questions. The market opens today! Counting the hours…can’t wait! $$$

(1st number = COG bars back, 2nd number = RSI Period, 3rd number (if any) = RSI level

AUDJPY - 400, 20

USDSGD - 150, 10, 75

AUDCHF - 150, 12

WTI - 275, 12

XAGUSD - 150, 10, 20

USDCAD - 200, 12

USDSEK - 140, 16

AUDNZD - 190, 14

AUDUSD - 175, 12

GPBUSD - 100, 9

GBPCHF - 95, 20

EURUSD - 115, 14

GBPAUD - 110, 16

GBPJPY - 90, 16

EURGBP - 100, 20

USDCHF - 110, 14

EURCAD - 90, 12

NZDUSD - 110, 12

NZDCAD - 130, 20

USDJPY - 100, 26

CADCHF - 95, 18

NZDJPY - 110, 6, 90

USDNOK - 95, 12

AUDCAD - 80, 16

EURAUD - 200, 18

-Dr. Ninja

Here’s the current control panel. Watching 25 pairs, which is extremely manageable with this system. The small yellow ‘X’s’ are the possible impending trades, that I mentioned above, that I’m watching. The 2 with the aqua arrows are the 2 trades I’m currently in (and are profitable). Cheers!

And whoever rated this post/feed with a low amount of stars, just makes me shake my head. Go blow an account.

-Dr. Ninja


Just a polite comment, but you might want to use an image sharing website such as ‘imagebucket.com’. The reason being that your images as they are on your thread are extremely difficult to make out.

Good call, Jezzode. Will do so going forward. Happy trading.

-Dr. Ninja

hi, you can use winzip to zip your indicators and tpl files and then upload to sendspace.com so we can easily download and set up!
Thanks for sharing!

Here should be all the above photos, minus the first control panel picture, because it has since been updated by the second control panel photo.

Hope this helps.

DrNnjA’s Library | Photobucket

-Dr. Ninja

Thanks sailormoon…I put the Center of Gravity indicator up on sendspace.com. Here’s the link.
I don’t quite remember which file it is, so just download all of them and install all into MT4. Then just activate the one called ‘Center of Gravity 1’ onto your charts. That’s the one I use.

https://www.sendspace.com/filegroup/1o4xB4YK7ycInh5fZc0gsr11z1Atrol3

-Dr. Ninja

Thanks DrNinja I have my major S/R levels set on the daily charts which I always do on Sundays and found your posts on the pairs you’re watching match mine completely (awesome!) this assists me greatly in my confidence level that I am marking my levels (and watching the same pairs approx 30) as well as an experienced trader! Hope we can keep in contact and I appreciate your quick response to my question I hope 4 pin bars jump on your charts on today’s opening! Your Canadian friend Dave.

Nice, my new Canadian friend Dave! I’m glad to have another pair of eyes on these trades. Also, glad we are on the same page. I’ll try to always be communicative on here. I absolutely love trading and love helping. There’s only 3 other things I love more than trading - my family, exercise, and women. :slight_smile: I also love learning more, as I am no expert by any means. I can [U]always[/U] learn more. Yes, let’s hope for some good reversal patterns and pinbars by tomorrow’s close, yes? If I execute a sell or buy limit, I will post pictures up here, so you and everyone else can see. Take care.

-Dr. Ninja

I’m 62 now and will retire in 2 1/2 years and hope to be able to trade full time. I am completely hooked on forex and devour everything I can get my hands on. I also love my family,friends,golf and am a 2200 rated chess player (which I don’t have much time for now) I’ll be watching your posts with great interest and hope I can contribute from time to time as I may watch a few pairs you don’t and can pique your interest on them. Dave

So, developing right now, is an inside bar/bearish harami on the daily chart. The center of gravity and RSI indicators are providing nice confluence to this bearish reversal patter. If today’s candle closes “inside” the preceding green bullish candle, I will be putting in a sell limit order.

These will be my inputs:

[B]Stop Loss: 0.77177[/B]

[B]Entry: 0.76534[/B]
(looking for about 1/3 retracement to trigger the trade, to get a nice entry)

[B]Take Profit: 0.75230[/B]

Take profit was decided by looking at a nice support line and using it as my target. Also the stop loss looks nice…gives the trade some area to “breathe”. 2:1 profit to loss ratio of course.

Profit, if hit, will be a nice [B]1,304 pips[/B].

Will post a picture later, [U]IF[/U] this candle/pattern closes, at 5pm Eastern USA, as I hope it will.

Happy trading, everyone.

-Dr. Ninja

Executing a sell limit for the above trade.
This is what it looks like. Also, will post a clearer picture on photobucket. Link below.

DrNnjA’s Library | Photobucket

-Dr. Ninja


Also set up a buy limit for the EURAUD. A gap down piercing pattern presented with all indicators in line as well.
I’m not 100% about this trade, but am going to pull the trigger on it anyway.

Setup is as follows:

Stop Loss: 1.37377

Entry Price: 1.38545

Take Profit: 1.40924

Pips if TP is hit: 2,379

Take profit is set at 2:1, and also at a support line. Stop loss gives room for the trade to “breathe”.
Looking for a 1/3 retracement for entry.

DrNnjA’s Library | Photobucket

-Dr. Ninja


So, I did a quick market execution this morning as a sell. I don’t know where my head was at last night, as to why I missed this beautiful price action pattern. Dark cloud cover pattern, hopefully for a reversal. I don’t like throwing too many trades on just one currency…the AUD, but we shall see. It looks to be a beautiful setup, and I couldn’t pass on it. Take profit decided to be at the blue center of gravity line.

Stop Loss: 0.77469

Entry: Instant Sell Execution

Take Profit: 0.75674

Pips if TP is hit: 1,205

DrNnjA’s Library | Photobucket

Happy Trading.

-Dr. Ninja


Update:

Took a nice profit on the NZD/USD trade from last week.
The NZD/JPY trade from last week is about 200 pips away from profit target, as well, and still moving strongly toward it. Hopefully will hit today. [I](Update since posting: NZD/JPY hit profit target for a total of 1,317 pips)[/I].

Stopped out of the EUR/AUD.
Stopped out of the AUD/CHF

Will look for more conclusive price action reversal patterns before executing a trade next time. Pinbars are the strongest signals, so will hold out for those. You learn from every trade, and getting stopped out is part of trading. Can’t worry about that, because with the wins I get from 2:1 - I’m still way up for the week.

AUD/USD trade is still on, and we will see what happens!

This is trading! Fun stuff!
Have a great morning, everyone and happy trading.

-Dr. Ninja