Forex Price Action

I am already short of the weekly trade I have covered in here at length the previous week. To read more and why just go back a few pages.

Pretty simple setup.

See chart:


Johnathon

What do you mean your exposure would have been too much?

The risk on all open trades added together. So if i have 4 open trades and each trade is risking 2% that is 8% exposure. There’s probably another term for it that’s just how I define it.

No that’s fair enough. I thought you may have meant that, and I was just checking.

Wow you have 3 or 4 open trades?

You care to take us through them? Would be much appreciated.

Johnathon

Haha no I only have 1 open right now. That was just an example. The most I ever had open at one time was 3 I think and honestly that’s hard enough for me to handle. I’m not very risk tolerant and usually only risk about .5% a trade, but was risking about 3% on one and that’s why I didn’t take the EURUSD trade.

The one that’s open right now is a long on CADJPY from 82.90 with take profit at 83.90. I already moved to BE at 83.40 and took half profit so I’m a happy camper for the day :stuck_out_tongue:

Here is a pic of when I took the trade (4H). My reasons were pretty simple, perfect bounce off a support with a bullish engulphing candle. Also correlation with other JPY pairs was very good which is something I found almost necessary with JPY (except USDJPY). I entered at the break of the marked 4H candle. It’s so much higher because I pay a pretty bad spread for this pair.


Here it is now



=> Trades taken:

–> GBPNZD H4: 2-bar reversal at support


=> Trades watching:

–> GBPCHF H4: headed towards major resistance


–> AUDSGD D1: currently at a major support


–> GBPUSD H4: BUEB may be forming at support (candle not yet closed!)


–> GBPJPY D1: hitting major resistance (which happens to on a nice Big Round Number (?) of 130.0 )


Looking good dudest

No surprise why price is flirting that resistance. The concept of pending unconfirmed S/R saved our capital. Marked in yellow is another one. How price will go there is unknown. I expect A-class setups among a few pairs but I will wait for the day close, you never know…


Hey looks like your now cleaning up so well done! I would just caution for the future to sticking to only trading engulfing bars that engulf a minimum of 1 candle. This setup was not an engulfing bar as the highs were not engulfed.

In saying that you picked an awesoem area and with the nice recent upmove so nice trade.

Johnathon

Heya nice charts Dudest,

I would just really encourage you to look for pullback within the obvious trend 9 time out of 10.

The only other two things are what is you spread on the AUDSGD? This can have huge spreads and spikes.

The GBPUSD was discussed in here earlier this week. Price is stuck in a range and until it breaks either way it is going to be hard to do anything. Once price breaks out it will give us a better picture of what we need to do. I just posted about it here: GBPUSD Stuck in a range

Other than that your charts look pretty good. If you can, I would try and analyse Price Action of the daily charts. This is much easier and when you have marked your levels of the daily chart you can then go down to the intraday looking for price action at the same levels you have marked.

The daily chart rules!

safe trading and nice post,

Johnathon

Okay so I am confused as to what you are doing now?

You were looking to short the what you called a bearish engulfing double top I think and now what are you looking for? When I asked in previous post you outlined that you wanted a bounce to this area we are now at and then to short. Are you now short?

Sorry for the questions but I am getting confused of what you wanted to do in previous posts and now?

Thank you for your answers,

Johnathon

Hi Johnathon,

I posted some graphs which are on page 50 on this thread. Is it possible if you can throw some of your expertise on that :slight_smile: whenever you have time. Just want to learn the right way…

Thanks
Hemant

Thanks for the tip John! I’ll definitally keep that in mind from now on

Hello Hemant,

sorry I missed these I normally go through each post. We posted at the same time and this created a new page which I then went on to and completely missed these posts from you.

Okay so the first chart is a BUEB however we need price to close in the last 1/3 of the of the candle or the body to close in the top 1/3 of the candle. This did not close as strongly as we would like and did not fit the rule above. What was especially nice was the size. Now I talk about the size a lot but basically when we are looking for reversals we need to see a large reversal candle to give us a big clue price wants to change direction. The Pin here was much bigger than the candles before it that were forming on the way down. So that was a much better looking price action.

Are you using different time platforms? as in two different time close?

Safe trading,

and remember to stick to only trading the very obvious setups!

Johnathon

No. This is not big enough and does not stick out anywhere near close to enough. I know the market has gone higher from here but that does not matter. The result is a product of the processes and we need to only trade the best as overtime only the best will get us anywhere.

Notice how small this pin was compared to some of the large candles that formed when the market was coming down? We need big and obvious candles to reverse a market.

We also need to see the pin stick out from everything around it. See recent daily pin on AUDNZD.

Safe trading,

Johnathon


So I was looking through the charts for daily setups and the only one that remotely stands out to me is NZDUSD. I’m not going to take it because I’m too uncertain. It’s to close to resistance for my liking and it seems like the trend is more down than up although I cant really make up my mind. Any thoughts?

NZDUSD Daily

Hi Johnathon,

Thank you for the reply.

Yes I just started using two platform as the PA you are using in this thread is NY close time. One platform is just for charts and other to trade. If I find some good provider for trading who also uses NY close then I will shift to them but as of now I am using charts from different provider and I trade on different platform.

Thanks for throwing light on BUEB . As I am learning PA , it will take me sometime to figure out the A+ setup but hopefully will get there.

Thanks
Hemant

Heya,

we don’t have to trade and more often than not the day will involve no trading. This makes the difference between the good and the bad. Do you always have to be in a trade or can you sit on your hands saving your capital in wait for the killer setups?

I am unsure what setup you are referring to on the NZDUSD and for me there is nothing around today that even slightly takes y interest so no trades.

Safe trading,

Johnathon

Hello,

okay, thats good. Stick to watching the NY close and not watching both if that makes sense. We only need to watch price on one lot of charts and not over analyse things by involving more charts.

A lot of people do this, watching for setups on NY close and placing trades on the broker of their choice, so if you are happy with your broker there is no need to change.

I do have a broker who has the correct charts who I trade live with but for many years I operated how you are.

If anyone is not liking their broker I urge you to change as there is so much competition these days with some really great brokers who also use NY close for there charts.

Johnathon

Hi dudest and everyone ! Just to say that I have had a crazy last week… had no no time to post. But I follow the thread with a bit of delay with very big interest!