Yet another example of being burnt not entering at the break of the candle like the rules of the thread state!
Regardless of the setup you should not have been in the trade as it did not move higher to break the high of the BUEB.
As for the setup; can I ask did you find the BUEB first and then the level? The reason I ask is because the level is not really there. It is not a really strong support level. Yes there is support there, but it is not a support level we would mark on our charts to say that we would want to find a trade at. Normally we go through our charts and mark all our level where we want to find trades and then it is just a matter of waiting for price to either make a price action setup at our level or move through to the next level and then we mark up the next levels.
As for the BUEB itself; it is an inside bar. Engulfing bars should be large and commanding signals that show that either the bulls or the bears have fully grabbed the market and are about to push it one way. In this case price was winding up. We could see a large housing candle (candle A on chart below) and then 4 candles inside this housing candle winding up getting reading for a breakout. Technically this was a BUEB, but this was not a large and commanding candle that had control of the market. It was an inside candle that was winding up and was at the mercy of whichever way the next push came. That could have been higher and if you have your orders to enter at the break you would have been laughing! If you had of realised this winding up and the price action you could have set yourself and your orders and prevented this loss, but not all is lost!
The best learning is done when you have a position in the market. From you taking this loss you have been forced to learn things that you otherwise would have never learnt so even though it sucks to lose, take the lessons on board and use them for next time.
PS: I do hope you take this as it is intended and that is to help you! I would not spend 15 minutes making a post and a chart unless I was trying to help!
Actually i did draw the SR line before, maybe i did not draw it accurately as sometimes going through many pairs and draw SR on them, i tends to get a little confused. And ya i realized the consolidation after i went in. Im going to put that down in the trading journal
Im happy i got stopped out and learn from market and luckily im still demoing.
Thanks so much on taking the time to correct me even though im not in your course. I appreciate it.
Btw, which broker you suggest i go to for the oil, indices?
If I look only at the very recent weeks, I would rather wait for correction upside and then wait for sell signal (red arrows), but when I look more longer term (black arrows), it can be reversal signal from possible higher low. So, how do you see this guys and Johnathon?
If somebody wake me up at midnigt and show me this chart, I would say uptrend so, what is the trend, that is the question
Important: Forex pairs range far, far more often than they trend.
Traders are often caught up always looking for the trend in every pair when more often than not there is no trend.
Clear case on the GBPUSD there being no clear trend either way.
You can have short term momentum, and clear on the GBPUSD that is all to the downside, but as for the trend there is none. We are in clear sideways action just as your chart clearly shows. So don't worry about getting caught up in finding the trend when there is none. Identify the range and learn to trade with-in it.
The best way to trade ranges is not to get caught trading in the middle. The middle of ranges is where price can chops and turn and stop you out quite easily with whipsaws. Look to take trades from the extremes or in other words take trades from the highs and lows of the range, but not in the middle. That BUEB the other day was an example of a signal in the middle of a range. This would be much better down at the low of the range where major support could be found and there would also be more space to move and the risk of price chopping would be a lot less.
Last edited by Forex School Online; 07-05-2013 at 01:42 AM.
Below is an image showing a trade I entered based on a BEEB formed on AUD/NZD daily. (Someone had mentioned it here too)
I took one position and I was waiting to see if it’s able to make a new low. My plan was to trail my SL as it moves in my direction. But now I am not sure how should I do this. In fact I don’t see any suitable level (like a lower high) to move my SL there. I prefer to close it here instead of just letting my SL get hit 50-100 pips higher. Attachment 47944
And the second trade is a trade based on a PB on CAD/CHF daily chart. (It was mentioned and discussed here too)
I see that it is just wasting time around my entry without going up/down. What would you do if you had entered this trade? Would you close it for a small loss? Attachment 47945
It would be really nice to know your opinions as I’m yet learning by trading on a demo account.
I'd like to get your advice about managing these trades if you're currently online.
Would you be looking at trades setup in the EURUSD for reversal as it will soon touch the low/low of the range? Or continuation of the current downward momentum? Look at my chart as I am already awaiting signals, but been confused about going against the momentum as you said earlier on this topic, and avoid loses, or expect a rebounce on the low, as we are "ranging".....
Thanks again for this amazing thing you are doing here:
EDIT (ONE LAST ? MR J)
As I see the USDJPY there is a consoloditation (resting) (winding up), but where will it go? Would you set orders above and below of this box? to catch the next momentum? with a trailing stop? or it wouldnt be a winner A+?
Please advise doesnt matter the time you take, but answer please, this is for learning purpose so fat I already blown one account before getting stopped at this thread and demoing...
Would you be looking at trades setup in the GBDUSD for reversal as it will soon touch the low/low of the range? Or continuation of the current downward momentum? Look at my chart as I am already awaiting signals, but been confused about going against the momentum as you said earlier on this topic, and avoid loses, or expect a rebounce on the low, as we are "ranging".....
Thanks again for this amazing thing you are doing here: