Forex Price Action

Paddy re GBPAUD D1 ,on axitrader it also englufed … not by much but it did… orders placed here also…

how about this walker?



nose of pin is small but i think it is at confluence of fib-61 and support!

yer, too small josh…

ps you when the boss sees all them wriggles and squiggles you gonna be in the sh!t lol :18::18::18:

Josh look at the pin at the highest swing high where you have drawn your fib from and then compare it to the one you asked about…

And yeah, try removing all the crap and smile at how nice the charts are to look at :slight_smile:

Hello,

I am finding a lot of people have difficulty drawing up correct support and resistance levels. Now this is super important because in Forex the “Holy Grail” is support and resistance.

Like everything try to keep things as simple as possible and the charts as clear and uncluttered as possible!

Firstly you only need two lines, not the hundreds you see on many charts. The first should go above where price is and the other below. SO all you want to mark is the next resistance and support. We are constantly re-assessing and if a level breaks then you will take 1 line of and replace with the new S o R.

As I said try and keep it very simple. Look for the major swing points and levels. Instead of thinking of these levels as just lines, begin to think of them as supply and demand zones. These support and resistance zones in the past show where price has found supply and demand in the past and where they are likely to in the future.

The next trick is to mark all your levels on the daily charts. The daily charts are a ton clearer and will show the more imrportant levels. These levels on the daily chart should be the levels you look to trade on the intraday charts such as the 4hr chart as well. The last thing to take into account is big round numbers. These can act as S/R levels also.

My EURUSD daily chart is below using what I have said above. My first levels is below price and is also bang on the VBRN of 1.300. The second level is the resistance above price.


Safe trading,

Johnathon

Against such a strong up-trend! Would prefer to see price break through higher and look to get long on pull back to old resistance/new support level.

Please take all that rubbish of your charts. Your chart is a big mess and hiding the most important thing “Price”!

I wanted to post about your use of the Fibo. You are really stretching how it should be used. Like all things Forex the fibo should be used as simply as possible and when people have to stretch to make it work, it should not be on the chart. The fib should be used from the most recent swing points to another. Once retraces have happened in between the fibo becomes much much less likely to work.

The other thing is for traders out there who are newer to price action, they should not be using the fibo at all. Until price is learn to be read and traded, the fibo will just confused.

We only want to use the Fibo as another point of confluence and not as a singular tool to find support or resistance. If a setup formed at a fib number but has nothing else in it’s favor such as S/R then it is not a high probability trade. We need to find more than just a fibo or more than just a random candle setup at a fibo level.

Safe trading,

Johnathon

Hi guys!

I was just wondering if you would have taken this trade? Is it considered as a retracement? Or do I have my S/R line drawn on the wrong area?


Thank you for your help! :slight_smile:

A ton of people will take it but I don’t think it is a deep enough retractment, the next level down would be perfect. That level on a 4 hour with good PA would be ok (I think)

Hi all!

Here’s a chart of GBPCHF H4:


Few more minutes til candle closes, is this a valid pin bar? :slight_smile:

Thanks again!

yes it was a good set-up

Is there a PA signal? - Yes (Bullish Pin Bar)
Does the PA signal stand out? - Yes
Is the trade with the trend - YES (Buy signal on an up trend)
Is it occurring at Support / Resistance - YES
Is the PA signal occurring from a retrace of the trend? - YES (occurring after a pullback from a up trend)

The only thing that would have made me hesitate is that the Support line was defined so far back in time.

Would like to hear what Jonathan says about the support area.

Russ

Thanks for your insight, Russ!

No problem. Not saying I’m right either but just my interpretation. Like I said, the SR level was set way back in time but it should still be valid. I don’t think it could be called a Major SR level though. One thing I didn’t mention that was pointed out is that the pull back was not very far. I don’t know what the rule of thumb is on that but I understand needing room for the trade to develop before hitting resistance.

Here is a post I found a few minutes ago. I think most of us would benefit from reading it again.

http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-117.html#post345588

Russ

Nice thanks for the link, cleared things up for me.

Johnathon, I am new to posting to this thread, but I have read up to about the first 100 pages. I am still having problems designating support and resistance lines. My question is from your example above, why is the area at 1.30645 not considered support? It seems to have a lot of common points. How do you distinguish an area such as that from the area you marked. When I try to put in my lines I always seem to have “too many”.

Also is it better to go off of bar highs and lows, or opens and closes, or which ever has the most common areas? So far this has been the hardest part for me to grasp.

Thank you for all of the work you and the others have put into this thread so far, it has been great to follow and has given me a little bit of hope that I might find something that actually works.


Hey guys! I don’t know what to think about this one… It formed a pinbar on previous support/resistance but right ahead we got another support for price. What do you guys think about it?

Hi Jonathon,

I would just like to ask if we take trades on double pinbars (although first pinbar isn’t exactly one, since it didn’t close within the candle before it; but let’s just say it did and is a valid pinbar)? And then the second pinbar closed excatly like how it is in the picture. Do we take it? Also let’s pretend the trouble area (red arrow) doesn’t exist. Cause from what I understand, PA has to stick out, and if I’m correct with what I am seeing this pinbar wouldn’t be sticking out from the rest since it is close to the pinbar before it. But nevertheless still a valid pinbar.

I guess my question is, if ever this pinbar closes this way, is this considered still as sticking out and would we have traded it? Thanks.

Would like to hear from Johnathon as well but I think that IF the first pin bar was valid and there wasn’t a trouble area (meaning it is at a good swing high) then you would still be trading the first pin bar regardless of the second. However you would not be in the trade yet as the low of the first pin bar has not been broken and would not have triggered an entry.

Russ

Hi grock

Here you go, enjoy!

Price Action Holy Grail - Support and Resistance