Forex Price Action

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

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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!

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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.

I probably would’ve looked at playing on the AUD/CHF 4 hour if I’d been around. Sorry if that offended you.

Nice spin candle on trend line in usd/cad
I’m long.

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Heh nothing offended me :slight_smile: but we talking about PA Johnathon method so yes the price can go down now but this is too risky - better wait for strong support level and enter long - of course if i understend enought his method.

Cheers.

Hey Machal,

go easy on Bryce. Hahaha, He’s one of my senior traders and been with me a long time :cool:

Johnathon

Today i saw someone on babypips chat that is on short and he is absolutly sure that price go to 1.0140 (this is not trade sign) :wink: Read Johny last post: “now is not the time to be going low to low or high to high”.

What i want to write is that the people are not sure where the price go because there is no strong sign to trade long or short. This PA method is about strong signs to sell or buy and we all must look for them which is: [B]Play with trend[/B] and [B]Big PA at important support or ressistance level[/B].

that my 0.02 cents

Hey Johny, I will buy your course in next month so u can expect one more member forum. I promise that I will be polite :21: and keep learning :22:

:slight_smile: cheers