Forex Price Action

Ok great. There just a few things you haven’t answered from my previous message. Please firstly forgive me if I am wrong as you clearly have a lot more knowledge of MT4 scripts and EA’s.

As I said in the previous message the key to placing good Price Action trades is building confluence around a trade. Basically if someone was to enter every pin or every engulfing bar they would be flogged and repeatedly. The trader however that trades with sold confluence such as trend and S/R will do far better.

How do we get an indicator to tell us that price is rejecting a good enough S/R area to place a trade? or that it is trading within a trend? How do we get an indicator to tell us price has pulled back a decent amount?

I understand you can make an indicator tell you if some form of PA has formed but as I said this is near on useless.

Seeing if there is a trade should literally take now longer than 30 mins per day. This is enough to check each daily close and then 2 x 4 hour close candles that close during the UK/US sessions.

If you are going to make a whole heap of mini indicators can I again ask what on earth is the point? When I can do the same but more efficiently with my own brain?

I have seen many try to reinvent the wheel and each time I wonder why… when the wheel was invented such a long time ago. Nothing we are doing here is new! but it works. Why the need to change anything? Or try and make something?

Lastly as you said yes stops and trade management do change from trade to trade. The reason you can’t input this into an indicator is because sometimes the stop is based on what price has done around the PA signal. For example instead of placing the stop above or below the pin bar you may use relevant support and resistance.

As I said in the previous message I hope you find what you are looking for and create a whole heap of mini indicators that alerts you to what everyone else can already see.

Safe trading and all the success,

Johnathon

@ForexSchoolOnline

I am new in the world of PA… I will post some of my charts to compare and get helped… My question is
how many pips do you make approximately in a week/month?

@fx7days
How many pips did you make this month and which pairs do you trade?

An indicator can be programmed to monitor several conditions simultaneously. It could monitor your pin bar, S/R area, watch for trend, or whatever specific criteria you are looking for. You only need to define clearly what each of the conditions are in a logical format.

Seeing if there is a trade should literally take now longer than 30 mins per day. This is enough to check each daily close and then 2 x 4 hour close candles that close during the UK/US sessions.

If you are going to make a whole heap of mini indicators can I again ask what on earth is the point? When I can do the same but more efficiently with my own brain?

I have seen many try to reinvent the wheel and each time I wonder why… when the wheel was invented such a long time ago. Nothing we are doing here is new! but it works. Why the need to change anything? Or try and make something?

That’s magnificent if you can view several charts with different currency pairs, go step-by-step through all of your rules to qualify your entry, and place one or multiple entries. Then come back in xx hours and get out with profit. And you do this all without clear entry exit rules for each condition you are looking for in the market. I admire what you are trying to do, except it is confusing without any type of consistency and specific rules.

Lastly as you said yes stops and trade management do change from trade to trade. The reason you can’t input this into an indicator is because sometimes the stop is based on what price has done around the PA signal. For example instead of placing the stop above or below the pin bar you may use relevant support and resistance.

As I said in the previous message I hope you find what you are looking for and create a whole heap of mini indicators that alerts you to what everyone else can already see.

Safe trading and all the success,

Johnathon

As I said before, you can create several conditional statements to cover each possible “what if” that your trading plan entails. For example, “if price has done ‘x’ around PA signal, place stop above/below pin bar level. If price has done ‘y’ around PA signal, then use detected support/resistance level.” You don’t have to be a programmer; this requires clear rules of engagement. There are core aspects of a trading system that remain the same: entry detection, actual entry(ies), and actual exit(s).

This has nothing to do with making EA or indicator. The core point is about having a logical trading format/plan/etc. Once you have that, the next step when you are ready is to make EA or indicator. I was actually interested in what Johnathon may have developed, but find it extremely difficult to follow with no clear rules.

Hello,

thanks heaps for your reply. I am beginning to think that this thread or method of trading possibly just isn’t for you. As we know we are all different and we all see things differently. Some people are far better suited to different methods and some are suited to PA.

By the sounds of it you are after rules that fit every thing the market does. The best way to do this is probably find an indicator, black box system or signal service that just gives buy and sell signals and then informs you have to manage the trade etc.

I am very sorry we can not give you what you seek and you are more than welcome to stay in here and contribute but I feel that we are on very different wavelengths and by that we are getting way way of track here and into water I don’t wish to go in this Price Action thread.

I am looking to now get this thread back on PA discussion and will post further PA comments very shortly.

I wish you all the best in your trading endeavours,

Johnathon

Hey all,

I have just written an article I have been wanting to write for a while now to explain to people exactly why no method or individual trade can be relied upon to be 100% correct. Traders will say “oh I know nothing is certain” but they have no idea why and the next time they see an A+ trade the will be the farm. Hopefully after reading this they will see things from a new point of view and actually understand why trades and methods/systems no matter how good can never be 100% correct or certain!

Safe trading,

Johnathon

I was personally taken out at profit on some and break even on the rest on the trade a lot of played on the BEEB on the EURGBP last week however if some are still in and looking to manage a little less tightly, one possible way to play is instead of leaving your stop and risking a full loss you could slide the stop down to being above the bearish rejection candle that formed on Firday.

This is def not trading advice!!

Is anyone still in and if so how are you managing it?

EURGBP DAILY CHART


Hello, what u think about pin bar on H4 XAG/USD is not too small? I think it’s on good resistance level. Maybe someone can post chart because i can’t now. This USD/JPY that i wrote in last post it’s going good. I’m on break even right now.

On eur/gbp i TP on 0.8010 but i started from 0.8075 on H4.

Cheers.

@Dudest:
-> Thur 24th: closed portion #1 (partial profit) at 0.8004
-> Fri 25th: portion #2 taken out at new SL of BE+19pips

Hi.
What do you think about this trade.
The price rejected the resistence zone.
The last 4h candle break’s the lows off last 2 doji’s candles.
There is also a nice down trend momentum

Uploaded with ImageShack.us

Uploaded with ImageShack.us

This is my favourite setup.
Nice Down trend like we can see on Weeakly tf.
And on 4h chart we can see a nice spin candle in a important resistence zone(old suport)
I’m short!

Uploaded with ImageShack.us

Uploaded with ImageShack.us

I have to say something that is driving me nuts not in this thread but all over the net with many price action traders.

As traders we need to be getting in at value areas. What does this mean? it means we should buy low and sell high, Or sell high and buy low. Pretty simple right? Apparently not.

What we don’t want to do is try and get into the market once the move has been made or in other words short from the bottom or buy at the top.

WE NEED TO ENTER AT VALUE AREAS… We can not expect to being consistently profitable if we are entering at areas that no1 else is.

This means that if buy high and try to sell higher the chance that price hits resistance and turns is very high. The same if you buy from a swing low and try to sell lower.

When you enter from value areas example: Buy from swing low and exit at swing high, we do two things: 1: We give our trade somewehere to trade into i,e: space and 2: We increase our chance of having a winning trade.

I have said this many many times and I keep repeating it because a) I care and b) you don’t have a shot in hell of making money time and time again if you are entering trades from areas that are not value.

So I will give some example…

The first is of a pin bar. Notice this bearish engulfing bar the trader is trying to sell low (from swing low) and then trying to buy back lower. As I said above the chances of this hitting support and going high (stopping trader out) are high…


Now for the second example I am going to give the very revent trade most traded around here on the EURGBP. this was also a Bearish engulfing bar. Now notice here price was at a swing high? We were selling high and buying back low. We were entering at value! This gave us space to trade into!


If anyone doesn’t understand this please post your questions please… I would much rather explain something over and over again until someone got it than to not to and people lose money trading bad setups from rubbish areas.

Lastly I have to say of course these setups will occasionally work!!! But they will not over time. You will be whipped and smashed. Whilst you may get away with a few trades from bad areas trust me when I say you can’t get away with entering from rubbish areas forever. The market will get you! So stop now and start entering from value!

Very lastly, especially watch out for pins that form at the incorrect swing low or high i,e: a bullish pin from swing high rather than low. The are actually inverted pins and signals to go the other way. These east new Price Action traders up. You have no reason to be caught out now.

Safe trading to all,

Johnathon

1 Like

Awesome charts and posts NC,

the AUDCAD went lower for you and is now stalling and could go either way… PA was not convinging enough for me to enter at all but area looked solid for shorts.

GBPNZD is a bit of a sell from low and buy back lower. For me to enter I would need a much greater pull back to enter at a value area where I would expect others top also short from.

Solid area to short from on the weekly but the 4hr (for me only) just does not represent a high enough probability of a winning trade.

Don’t get me wrong I think this will eventually go lower but whether this small pin from a low is the catalyst for it I am not sure yet.

Good luck and I hope it falls lower for you,

Johnathon

Thanks for your opinion Johnathon

Most of the pairs seem to be consolidating for a while. Is this a signal for trend reversal ?

Nope. It is a sign they are coming back to value areas (hopefully) so we can jump aboard as the trend continues from the pullback area.

As you will see from a previous post on previous page now is not the time to be going low to low or high to high and the market is starting to pullback to some really nice areas.

Keep tuned…

What does everyone make of the AUDCHF 4hr pin?


Thay sell but we wating for pull back and possible long enter on @0.9400 ???

Yeah that’s a fair call!

I liked it but was looking at my charts too late to play it.

Sorry but what u want play? We waiting for pull back we do not trade this pin bar now.