Forex Price Action

GJ, H4
Longer Trend


Shorter Trend

GU, H4
Pinbar


My questions:

  1. 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.
  2. Whaddya think about the Point A, Chart 2?
  3. How to trade PA signals in tight S/R ? (look chart 3, Point C).
  4. 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 ?
  5. 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 :slight_smile:

Regards,
Marcel

Hi, I attach chart how i see this.

You do not use New York close candles. Install demo from Pepperstone com and u will see little different candle which we use here.


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.


Hope i could help, Cheers

Hi people,

Just another example to highlight the concept of buying low/selling high (and also a ‘short’ opportunity I’m waiting for)


(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.

Cheers,
Dudest

Hi Marcel,

For #5 question, Johnathan has written a great article about fake PA signals:

Price Action That Sucks Traders In…

Cheers

Neat charts dude :)!

Thx for the feedback, dudest and machal.
just another simple question, does the wick’s direction of pinbar has something to do with your analysis?

Hi Guys ,

I posted a 2 Bar reversal few days back for AUD/JPY… That trade is now 200 pips up. Thank you Johnathan for showing light on PA…

Latest graph attached


Great stuff mate! Very well played indeed!

Hi Guys, Hi Jonathan,

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?


p.s: i am amased with this thread. its a light in a tunnel for me.

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!

Hey, of course u should take if u see PA sign but we must waiting what chart show.

Cheers

Whoa! good stuff Hemant :slight_smile:

Hi Philwest,
I agree with Machal. If a big & obvious PA signal appeared at that level, I’d jump right in!

Cheers

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.

Hi guys,

Just to let you know that I have joined FSO in order to better my price action trading and take it to the next level.

For obvious reasons I will not be posting on live trades or trade management as these are discussed in the members’ forum & would be unfair.

I however will continue to contribute as much as I can, and look forward to more great learning and interaction with the great traders in this thread :slight_smile:

Cheers!

2 Likes

GODSPEED BRO!

have you tried jonathans PA on live trading?

Hi Pamboys,

Yes, I have been live trading Johnathon’s method for 3months now, big difference in profitability and attitude

Cheers

Assuming I have the funds at the end of this month (after an expensive house move!), I think I’ll be joining you! I have exactly 12 months to the day (Happy Birthday to me!) before I retire from the forces, and have to be absolutely convinced that I can hack this!

Regards

Andy

Anyone have any thoughts on this pin on the NZDJPY D1?

The pin is big and obvious and formed at a nice level. However it is counter the recent trend and the BRN at 63.00 is right around where the entry should be.

This is what my lines mean:
Dashed red line = SL
Dashed purple line = entry
Dashed green lines = TP points
Solid pink lines = S/R


NICE!! … Last two days i begin to test this on my live and STICK to this system religiously , for two days i endure not trading hahaha!

as for now still waiting for the right setup…

I also want to join FSO, soon :slight_smile:

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anyway anyone looking at this chart?
AUDUSD