Forex Price Action

Eur.Usd is risky to trade with Greek election ahead…but is this long wick in the weekly chart signalling price rejection downward?


Thanks

Hi fxpgaila,

Saw that your entry was triggered. How did you manage this trade?
I hope the partial profit didn’t turn into loss (given the reversal)

Cheers

Aloha Ariffx :slight_smile:
I have preferred broker Pepperstone (5-day, New-York close charts)

Cheers!

Hello Johnathon Fox I agreed with you that my set was not an A+ set up bcoz the pin bar is just a small bar. But am glad that I did not close the trade as u have advice me not to, since the direction was not certain. My profit target was reached at 1.2639 with about +124 pips from entry Now the price is reversing is it advisable to go short. I cant figure out a short setup for now. shown bellow is my E/U 4H chart



Hi sepramfx

Do you honestly like your charts like that?? I must be getting old! :30:

Hi

To all of you, tell me which broker you use to live trade?

Cheers

Hi again Ariffx,

Thanks for posting Weekly EURUSD chart! (would not have bothered to check). Below is my OPINION
[ Disclaimer: opinion below is NOT trading advice and is purely just that, an opinion ]

I’ll start with the price action hypotheses (as stated by Johnathon earlier in this thread) that I also hold to:

Price Action candles are thought to already have the news and fundamentals of a currency pair factored into them. In other words whatever the news does it is already showing us on our charts. Of course at times new announcements will make price react a little more than usual, however price in most cases will already be showing us the way it before the news release.

As the little guys in the huge market that is Forex we do not have anywhere near the knowledge of the big guys so give up on trying to trade based on what the news is telling you. By the time you have found out what the news has done the banks and big players have made their millions (if not trillions) and closed their positions. All the while your are still working out whether you want to go long or short based on the new announcement! Forget it! The Price Action will reflect exactly what has happened in the news and fundamental, so as long as you know how to trade price you will never have to worry about following the new announcement or fundamentals.

The long wick you have mentioned on your charts is similar to what is on my chart, and is a classic “hanging man” / “inverted pinbar” [ NOTE: The candle still has about 11hours to go, so it could change in that time ]. BUT if it remains an inverted pinbar, it could be saying alot! Why?

=> Normal pin(nochio) bar: price actually wants to go in the direction OPPOSITE to its long tail
=> Inverted pin(nochio) bar [aka hanging man]: this one tells the truth, price wants to go in the direction of the long tail

From Babypips School (single candlestick patterns): Lone Rangers - Single Candlestick Patterns | Japanese Candlesticks | Learn Forex Trading

The hanging man is a bearish reversal pattern that can also mark a top or strong resistance level. When price is rising, the formation of a hanging man indicates that sellers are beginning to outnumber buyers.

The long lower shadow shows that sellers pushed prices lower during the session. Buyers were able to push the price back up some but only near the open.

This should set off alarms since this tells us that there are no buyers left to provide the necessary momentum to keep raising the price.

Charts

=> Weekly: inverted pinbar at resistance
=> Daily: price at resistance (previous support) after pullback



From the foregoing, it would seem to me that price is wanting to go down from the ~ 1.2642 resistance.

Now, I honestly don’t have any entry parameters for a hanging man ( like I do for a pinbar ). Since this is on the weekly, I’d look to the daily and 4-hour for other PA clues confirming a bearish action. That said, in times of high volatility (e.g US Non-Farm Payroll), it may be wise to not be in a trade containing the affected pair. And from all the buzz going around, Sunday’s event (Greece election) could cause pretty serious volatility/spikes before price corrects

On the whole, I’m no prophet but if I’m reading price correctly, resistance will either be broken and we’ll be looking for pullbacks to enter the (new) uptrend OR (more likely) resistance will hold (read: Greece will get anti-bailout government, portending more problems for the eurozone) and price will rocket down in the short-term.

Alternative views most welcome and encouraged :)!

Safe trading,
Dudest

Hello,

I think you may need to go back and read my replies to you. I have and exactly what I said was:

[QUOTE=]
I couldn’t tell you which way this will go so don’t close it because of what I said. If I had to lean one way I would guess it could possibly go higher back into resistance.[/QUOTE]

So little unsure where you thought I wanted you to close the trade? As all who read this thread know I can never give trading advice.

Just a few things I thought I would check with you. Were you running a stop on this trade? The Pin bar you posted about had it’s lows quite clearly taken out and so would have been stopped if you had the stop running below the low? I had hinted that the pin you were trading was not a good setup and in the chart below you can see the lows were taken out.


I stated in my previous messages to you that the Pin you were trading was very small and also not of support. You will then notice after your setup formed another bullish rejection bar formed. This DID form of support but we didn’t talk about that as that hadn’t formed when you were posting.

The last thing I also really wanted to say is I hope you don’t get into a habit of playing these very average setups. As I said in thre quote above I can’t possibly know which way the market will go but what I do know is that whilst you can get away from time to time playing really average setups like this Pin over time you will lose far more than you win. If making money consistently from forex was as easy as picking any random pin that’s not formed at a support or resistance everybody would be rich!

Safe trading,

Johnathon

highly appreciated my friend…looking forward to hear more from you

Eeeh…not to be a wet cloth Machal, but brokers having 5-day NY-close charts have repeatedly been mentioned in the posts of this thread, and Johnathon likes his thread kept on topic; discussion on brokers will do exact opposite. For your benefit (and others) [ and also because i answered Ariffx on his broker question ], I will put the links to two of the posts below:

-> Post #687: 301 Moved Permanently

-> Post #821: 301 Moved Permanently

Cheers,

I don’t understand how do u? Do I like it like that? How?

Sensei speaks… Bullish Engulfing Bar Sends EURUSD Higher

The best play at the moment may be to sit aside and wait for a decisive move either way. Once price has moved through or away from this resistance zone it will be much clearer what side of the market is best to trade on.

Hi,

What do people think of this BEEB on XAUUSD H4?


Hey all,

I have just written something that I think some in hear may like. Click here: [B]Price Action Holy Grail - Support and Resistance[/B]

I hope everyone has a top weekend.

Stay safe,

Johnathon

1 Like

Dudest, this is to answer your question on my USDJPY trade

Close any yen trade 1-2 hours before high-impact JPY news like those in today asian session.
I tried to not to discuss any news to respect the thread starter’s intention to purely discuss price action on S/R levels.

Hi Traders

I have a little question about the BEEB and the BUEB.

I have read on one of Johnathon’s articles that they should be traded at swing points. Now my question is if they are also
reliable if we trade them on retracements meaning normal key horizontal levels with the TREND? Or should it be a on swing level?

I don’t know exactly if Johnathon uses dynamic Support and Resistance levels on his charts, but I do so. And If price retraces back into the Dynamic S/R levels, there we can also trade the BEEB and BUEB.

What do you all think about it?

Thanks

Hello,

BUEB formed on fibre but it’s straight into resistance, leave alone?


Thanks very much for this. I guess this is specially meant for me it really opened my fx eyes and fx mind do have a wonderful weekend.

Price closed below the resistance; will be interesting to see what happens next week.

Nice weekend y’all


Yes. Trading from retracemenets in a trend is the best way.

No we dont use anythging other than proven support and resistance.

If you go through the first part of the thread you will tons of examples of taking engulfing bars from swing point that are retracements in a trend.

Hope this help