Forex Price Action

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

Looking now on MT4 I guess there was nothing wrong with this trade… I feel bad because I didn’t jump in! The pair is GBPCHF H4.


Thanks Spongybob, I have read that article and it makes a lot of sense, but I guess my question is more how do you pick which level is more appropriate than another area. I was hoping I could gleen something out of his or anybodys answer in that particular situation. When I look at it, it seems that the 1.30545 level could be a very relivant level. I was wondering why it is not.

I don’t have charts in front of me but I think you are referring to the level which is very near to the current PA level on the chart. I think it isn’t considered because if the price only pulled back to that point there would not be enough room for the trade and it would not be entered. You must always think to have room for the trade to move a good amount before hitting any resistance/support.

Russ

Hello,

a couple of things to remember. When marking our levels we are looking for the two most important levels that we would trade from. These are one below and one above. These levels are to be key levels that we could expect price to hold at or reject.

Now something that a ton of people do not realise with marking support and resistance is how much info we can gain from price closing above or below a key area which then flows on to how we mark a level. Many are unsure whether to mark up the tops of candles or the close areas and this is where a bit of experience and chart time come in but I can try and help all the same.

If we have a resistance level that price goes to and pops through before falling back lower and closing below, we can learn that the resistance level is still holding. Now if price goes up and closes out then it is broken. A lot is riding on the close. Why? Because many times order will push the market through only to make a false break of that level and close back through it. The example I will give of this is the EURUSD chart and the VBRN of 1.300. Notice how many times price moves up and pops through to test the VBRN before closing back below. We can see that this level was holding and so marking the top of the candles does not apply. Clearly the VBRN is the important level as the market could not break through. This is where many would go wrong in marking their level. We need to think about price as a whole chart and what others are doing. Then we can see that price did break through and close above at which point the VBRN level was broken. Now if price retrace back to the VBRN I will be looking for it to hold as new support.

EURUSD DAILY CHART WITH VBRN


Safe trading,

Johnathon

thanks Mr.Johnathon…earlier i am also having the same doubt…but as i thoroughly reading ur and others post i got it…

any how …once again thanks for ur nice explanation…

think this will help you…

the one u pointed is not having long wick and which is not at the top or top of the session


I have NY close charts with fxcm and I’m seeing those same bars.


It not a Pinbar , i think it Dragonfly Doji .
Also if you order Sell here you have R:R 1:1 it too small .

Hi,
Anybody looking at this setup. Im not sure if it is A+. 2 bar reversal. within the trend and at the swing high. Any comments?


Hi guys n gals,

Been away for most of the this week, and have had some catching up to do on the posts, good job on the info sharing.

Two things I’d like to add my voice to:

  1. My thoughts on GBPCHF pins:

Apart from helping me read the PA story, these pins do not say “trade me!” to me.
And if something looks suspect, I stand by and watch price unfold; there is no obligation to trade.

On H4, the last of the pins is formed at a level relevant to H4 (IMHO). But still the price story does not look right (compare with last 1-2-3 just to the left on H4).

Until price gets to more significant levels ( i.e, daily zones ) and shows something plain and obvious, I’m watching from the sidelines.

  1. S/R levels

Mr J has given two excellent responses (as always)

My last response to an S/R query was in this post, it may be of additional help:
http://forums.babypips.com/newbie-island/48482-its-still-not-obvious-me-2.html#post417747

Cheers!



Hi bygjj!, long time :slight_smile:

GBPAUD D1: great level! (1.5400) but currently I see: progressively higher highs, and higher lows, so I’m wary of shorting…[ esp since the 2nd bar of the 2BR shows signs of rejection at its bottom…]

( my opinion, not trading advice ).

Cheers!


Why is the level I marked not obvious to you?

GBPUSD H4: Price ended up breaking out to the upside. Now watching whether price will pull-back to former resistance and give nice bullish PA

PS: Same scenario for EURUSD.

Cheers!



Yes, I got busy with the new work. Thought you were not going to comment. Your comments are always welcome. I still get confused with the 2 BR hehe. Anyway I might just have to trade conservatively. In the 4 hr i spotted a BEEB. TY

Hallo OMF…,

If you are referring to your post #5614: the level you marked is approximately similar to the marked level on my H4 chart (your level is abit higher). If I was looking for PA on H4, that’s where I’d look.

That doesn’t mean either of us is right and the other is wrong. The picture just does not add up to me (I don’t see decisiveness/direction), and I wanted to explain why I’ll be watching from sidelines…

Did you short off the pinbar(s)?

I hope the new work is going well my friend :), thanks for the kind words.

Also saw the BEEB on the H4, but IMHO, it’s not formed after any trade-able sort of pullback, thus no space to trade into

Cheers


I hope so too. My entry is about to be hit, What trade are you on right now. Im still on the NZDUSD. It is going well.

Hi dudest , give me some pair to i have more orders in weeks :smiley:
my chart