Forex Price Action

Okay,

so firstly can we please just for the sake of simplicity and just so everyone can stay on the same page stick with the same terms. I think if we do this it will avoid a lot of confusion and questions being asked 1 thousand times over.

So the 4 main price action signals we will begin to trade are;

1: Pin Bar Reversal
2: Engulfing Bar
3: 2 Bar Reversal
4: Inside Bar

There are some others but we will stick to these as this is more than enough and to be honest all I really concentrate on these days anyway.

Okay so as for the USDCAD, you state it is a downtrend so why would you want to trade against it? So when you ask if it is A+, I can answer this by saying when trading agasint the trend a trade can be a good trade but never A+. Yes I do trade both side of the market i,e: with and against the trend however the majority of my trades are with the trend.

I suggest for new traders ALL their trades should be with the trend. If people follow this one strategy (which most do not) they will be very happy!

Okay so to analyse the daily chart for you. We had the tiniest little not quite pin bar. Yes price has now gone higher but not a good setup whatsoever. Way way to small! Please keep this mind forever: Big Candles = Big momentum! People get scared when they see a really big pin or engulfing bar. I lick my lips as I know the bigger the setup the bigger the market is telling me something!

Now the pin you have highlighted on the 4hr chart is a better setup but still not a great setup as against such a strong trend.

This market has hit a proven support area that you have highlighted clearly on your daily chart. Price has now found support and bounced. I wouldn’t be suprised to see price go higher from here. I would in fact like to see it go higher. Why? Because then I can look for price action at a key resistance level to get short in line WITH the trend. With me?

Okay so for an example of a better setup on this chart I have attached a chart below of the same USDCAD 4hr just a little previous. A nice Pin Bar WITH the trend.


Safe trading,

Johnathon

bhops,

Thanks for shearing your thoughts…
A question… ? What about general trend? On Daily chart the trend is UP, or…? So in this case you are going to take the trade against the general trend?


Sorry yeah I should have made that clearer it was the 4 hourly.

Yes I treat each time frame separately. Price has been bullish but if price breaks down and cannot back above that former support then that would be good enough for me to short IF I got a nice big bearish PA signal.

Hey yes I did post or rathe copy and paste from one of my article about this but instead this time I will just give you the link and you can go and read. You can find here: Pin Bars intro

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Welcome Lucariga,

and look forward to more of your posts!

Johnathon

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Johnathon,

Thanks for the lesson ! I think I start to get it…!

Vahagn

Ah,… I see

Thanks

I see one of your 4 setups is the inside bar, yesterday you said most inside bars fail

The gap filled nicely after the IB

Forget nearly all the IB’s.


Yes I didn’t say all IB’s fail I said forget most of them. The reason being is traders new to PA trading will get into a lot of trouble with the IB. The reason they get into so much trouble is because literally 50 IB’s form everyday! If we trade all of those we are going to take a hiding!

For me to take an IB it has to be perfect and form part of a story. New traders don’t understand this story and just see an IB and play the break. What mostly happens is they will get stopped on the many false breaks.

So when I asked you to forget them I was trying to steer you down the right path. You will be far better served first learning how the other setups work as they are more commanding and then over time leanring how the over price action story can be formed.

I do hope this answers you question Spongy. Please let me know if not…

Johnathon

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Fair enough Johnathon, I was going against the trend there.

For this thread I will in future stick to PA with the trend. If I find an IB at a S/R level is it ok to bring it up in future?

You can bring up anything you like! We are here to learn and help each other and I wan’t to have all on board who are interested in learning how to trade.

safe trading,

Johnathon

I see AUD/USD starting to trade in a range, trend is up so preference is longs.

Looking for PA at blue area support, pin bar, engulfing bar ect :8:

IF price reaches the resistance level again and fails to break I will be range trading both directions.


Hi!

Questions regarding attached GBPJPY Daily,Weekly charts

-> Are my S/R levels at the (approximate) right place? ( please share yours )
-> Is this an example of a double-bottom formation (meaning price could possible keep rising in coming days/weeks?)

Thanks!




You’re there or there abouts.

The lines you have marked are good but what about the 122.65 area? The area I have a line and marked the blue?

See chart:


So how many members do you have Johnathon?

Do you only chat about your 4 PA entries in your members section?

Been on your site and looks interesting, care to teach an old dog new tricks?

Nice range to trade, preference shorts


Hey spongy,

we chat about most everything Price Action. Yes we have a live setups forum where we discuss live setups.

I don’t wan’t to turn this in here into that though, and I would prefer to concentrate on people learning in here and to be honest creating something without the usual rubbish that you find all over the net!

1am my time here and I am pooped. Now off to bed.

Safe trading all,

Johnathon

I dont mean to be a pain in the bum but I find it really hard to see your candles or the setups on your charts. I am not asking you to change your colours or anything like that but could you possibly either zoom in on 1 chart that shows the setup or (even better) make the candles bold with the colour. For example fully green and fully red. Okay if not, just as I said I can’t really see what you are trying to explain.

Thank you.

Night,

Johnathon