And this is frankly the toughest part of learning this method, but…if you can master sitting on your hands and not giving your money back to the market then when those A+ trades come you will pick them off and watch your account grow and grow.
Back in the private forum Johnathon did a really interesting exercise compounding a small amount of money based on 18 holes of golf. I think it was doubling your bet after each hole.
I forget what amount he started out with but it was small but after 18 times of doubling up the amount by the 18th hole was staggering.
It does take time at the start when you are beginning with only a small amount but as it grows so the size of your trades grow at a much faster rate.
Master this discipline and you are along way there.
From chart 1 and 2, which trend to follow ? as chart 1 tells to go short, while chart 2 tells to go long. My analysis: i consider to go long if the price hit the bottom (e.g line 3) with perfect PA signal or if the price breaks higher and retraced to new support (old resistance) combined with PA signal.
Whaddya think about the Point A, Chart 2?
How to trade PA signals in tight S/R ? (look chart 3, Point C).
How to apply PA in sideways trend ? as it’s dangerous to trade at the important key areas (major S/R) except it was backed with perfect PA signals. Is it better to wait the price break higher or lower and take the trade at retracement area combined with PA signal ?
How to identify and protect against irrelevant PA signals ?
Hope everyone willing to help and comment, since i am still newbie. So, i need to learn more and practice
On third chart (GU, H4) price is between 1 and 2 lines so wait for break this level, next nice pull back and PA sign. This pin bar fill all space to trade in your chart but on my chart this is even not a pin bar.
(1) Price climbed into an S/R zone (resistance) and a BEEB (bearish engulfing bar) was formed at the swing high (with price consequently falling lower)
(2) Price pulled back into the S/R zone (now support) from a higher point, and formed a BUEB (bullish engulfing bar) at swing low (with price subsequently climbing higher)
I’m currently waiting for price to pullback to the same S/R zone (old support / new resistance) and form a bearish PA signal (e.g pinbar, BEEB, bearish 2BR) allowing us to short from the level.
I may ask a question, what is your winning ratio using PA, and do you trade only A+ trades? I go through charts, and i can see number of other, more questionable opportunities, do you pick those as well? Could you post some? Do you usually work around SR lines, or do you happen to jump in a middle of strong trend as well.
How do you work in this very volatility out there, i am affraid to touch eur/usd for past few days.
There will be some action here. What do you usually do, wait for the next candle to confirm the direction? What if it will be doji? Wait for another one?
Hi Dudest, I do like the look of your trade plan, thanks for posting.
If the scenario goes as planned, would you take the first signal that appears at the S/R area or could we expect a retest which may jeopardise our stoploss?
Its a strong S/R area so I think I’d take the first signal, is that your view too? Keep up the great posts!
Thanks guys, I just realised the retest would be likely if price breaks up through the S/R line, giving us a possible long opportunity, but less likely if its a good sell signal as this would be with the trend.
