My Basic Chart Analysis Method

[o990l6mh]

Originally Posted by chtangwin

Hi Phil and everyone,

This is a great thread. I learned quite a lot from your ebook and on-going discussions, and would like to thank you (and others) for the help!

Have you look at EURJPY? It is getting close to S/R zone of 138.55 - 139.69.
There were 3 prior bounces to this line, on 4/6, 6/5, 8/7. It might be a good play for retracement or breakout.

Would you please take a look and comment? I am new to forex and still learning.

chin

I think Phil is away at the moment. I'm sure he'll answer when he comes home.

Here's my view.

It's true that EURJPY is now at a location where it has turned several times recently. There's one thing missing though for me to take a trade: there's no price action trigger for a short trade.
I'd like to see something like a pin bar on Monday, or a bearish outside day or something like that. Then I might consider going short.

Or we might get a break above the recent highs and then we might have a long trade to consider.

My point is that right now there's no trade for me, just price being in an interesting location.

It should be pointed out also that the pair is currently in an uptrend, so any trade should be taken with a cautious attitude.

It's all about location you know. Another trader wrote something pretty funny but also true ( he uses bar charts instead of candlesticks):

Great bars at great locations!

That's what we want! So far we only have the location.

[phil838]

Originally Posted by o990l6mh

I think Phil is away at the moment. I'm sure he'll answer when he comes home.

Here's my view.

It's true that EURJPY is now at a location where it has turned several times recently. There's one thing missing though for me to take a trade: there's no price action trigger for a short trade.
I'd like to see something like a pin bar on Monday, or a bearish outside day or something like that. Then I might consider going short.

Or we might get a break above the recent highs and then we might have a long trade to consider.

My point is that right now there's no trade for me, just price being in an interesting location.

It should be pointed out also that the pair is currently in an uptrend, so any trade should be taken with a cautious attitude.

It's all about location you know. Another trader wrote something pretty funny but also true ( he uses bar charts instead of candlesticks):

Great bars at great locations!

That's what we want! So far we only have the location.

I second everything MacGyver said, but it's been over 12 hours since he posted and I think it's starting to showing us what we need.

We have an Inside Bar forming right now (If you're on IBFX I don't count the 2-hour-long Sunday candle as a real Inside Bar). It's still too soon to call this one "tradeable", but I'm keeping my eye on it.

If today closes with an Inside Bar, which it looks like it very well may do, I'll set up a pending order to go short a few pips below that IB.

[chtangwin]

Hi Phil/mh.

Thanks very much for the feedback. I really like this quote, it says a lot: Great bars at great locations!

There was a pinbar formed earlier, and it could be a very good trade if entered on next bar. I would take entry @138.15 (10pips below PB), SL 138.65 (S/R line), first TP 136.85, second TP 136.00. Is this setup all right?
Also, I can not see IB in this chart.



I am still in early stage, doing some paper trading now and plan to demo trade after learning the technique. Too bad I am not able to watch market during the day due to work schedule. Do you think I can trade just using daily chart (or maybe H4)?



Here on daily chart, the entry would then be 137.09 from OB, with the same SL/TP. Do you think this is sensible?

Would really appreciate your comments. Thanks.

[bali]

Phil:
I've just read the whole thread and it's amazing! Great material.

Keep it coming, loooking forward for the second part of your ebook.

Sorry to hear about your car accident. I hope it was nothing serious and you're ok.

Regards.

Bali

[danbradster]

I hope to see the second part.

This would also apply to indices, right?

I am up $10k this week from one trade. The ASX200 was down 8% from the previous week, then it had a pin bar on 3rd Nov and then went up 6% so far. I based the trade on the candle pattern and my understanding of the economy as a whole.

Although I was not following basic money management rules, I put $250k long on that trade. I will be trading more closely to your system from now on. Time to re-read your book and start trading smaller lots. Haven't closed the position yet, holding until I see a reversal.