okay so like everything: Try and keep it simple. I know you will see people with 1,000 lines on their chart but the idea of price action is to keep the chart clean so we can see and read price!
You only ever need two lines on your chart at any one time. They are one above price at the closest resistance and the on below at closest support. Think of it this way: Why have 10 different lines on your chart? They have to break either the closest support or resistance first. As price does break levels you can re analyse and remark your charts.
Please let me know if this doesn’t make sense…
Okay so here is the chart from above on USDCHF. You will see two lines. One for resistance and one for support. Price is now sitting on support and a bounce higher would not suprise. If price does go higher then the resistance marked will come into play. If this support breaks I will look again and mark the next support level. See chart:
Dudest!!! And I thought you were really coming along… Yes it may work out but…
Okay so indtead of me always pointing out why trades people are putting up are not A+ I want to ask you to please look at this setup and give me the 2 main reasons this is not a good trade??? This will help you I think…
Well done. As I said I don’t watch this pair as too exotic for myself. Can you tell me how you are playing as I can’t see the levels etc? And what sought of RR are you aiming for?
( i feel that’s still a compliment…even though i know what’s coming next…
Yes it may work out but…
Okay so instead of me always pointing out why trades people are putting up are not A+ I want to ask you to please look at this setup and give me the 2 main reasons this is not a good trade??? This will help you I think…
On further thinking, not A+ because:
Pullback has not yet happened after support was broken (had it formed on a swing high following a pullback as Bryce said, that would have been better.
And as always just because this is not A+ does not mean it will not work out! I am not saying it will not work, i am saying over time they lose more than they win.
Okay for me:
Way to small compared to previous candles. Very small and indecisive,
Not formed at a swing high but rather a low. Trading from a low will mean you are trading into support and we must trade away from these levels.
I will copy paste what I wrote in another forum as I have no time to elaborate regarding R:R.
The risk reward is not an issue if you identify correctly the FCL. Simply because 90% of the time a valid SPA price action setup will give you the chance, at least to break even, at the relevant FCL. Anyway, the only thing you can control is your capital exposure(risk) therefore, do this right and let the market to manage your profit(reward).
I will add more to the subject when my time allows me…
And as always just because this is not A+ does not mean it will not work out! I am not saying it will not work, i am saying over time they lose more than they win.
True, you have proved this in the past. And thanks for reminding us again ( lesson: average setups lose more than they win over time
Okay for me:
Way to small compared to previous candles. Very small and indecisive,
Not formed at a swing high but rather a low. Trading from a low will mean you are trading into support and we must trade away from these levels.
@Way to small compared to previous candles: you’ve told me that before (!), wonder why i keep forgetting it => big & obvious it should be, right?
@Not formed at a swing high: makes sense. I think i’m understanding better why we look for pullbacks => because they create swing highs (in this context)
Yes the BEEB was rather large and obvious! Nice post and yes your are getting there. Next after you have learned exactly what makes A+ comes the hard bit and managing trades to maximise profit whilst protecting capital.
I still don’t quiet understand the difference between engulfing bars, inside bars, and 2 bars reversal.
i do understand with the engulfing bars, but not with inside bars n 2 bars reversal, coz they are like pretty much the same with engulfing bars.
Could you give me a little bit explanation with examples?
Don’t be to rush to answer my question, I know my questions sounds like silly and very basic, maybe i’m the only one who ask this in this thread hahha… an maybe it’s a little bit to late after so much pages in this thread…