Forex Price Action

I hope this is not off subject of this thread but I would like to hear your opinion, recently I ran into, kind of, an argument with another member that also has also his own forex training school about price action on any time frame, he just canā€™t understand as to why many of us claim that the higher the time frame the more reliable the signal is, now I never became profitable with lower TF like 1H and lower but I became quite profitable when I changed to higher time frames. Johnathon prefers the higher time frames like me and most likely he feels the same way I feel about reliability of higher time frames but this guy claims that this idea of higher time frames are better for pa is just pure gospel here at bp. So I would like to know what has been your experience trading the higher time frames here, have you noticed a difference trading Higher TF with price action, I certainly did!

Indecision candle and not a clear bear rejection.

This has a lower wick which shows bulls also come into this one.

We need to see obvious clear entry signals.

I agree with the level looks for for price to make move back lower into obvious support, just donā€™t want people to start trading indecisions candles and getting burnt. Whilst This looks like it may work out trading indecisions candles is just that; trading something that is not decisive. Would rather wait for an obvious and decisive signal from the same great area.

Johnathon

Ok firstly guys/gals please do not call me master. I am a trader just like you all. Johnathon or J is fine, or whatever you like to be honest, but no sir or master etc We are all traders in here.

Okay ss has been said you should not have ever been in the trade because this pin was not confirmed by breaking the low. This is a main rule that is covered at length in the first 50 pages of this thread.

Please read these first pages and you will save yourself a lot of time and money.

Johnathon

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Please can you read the first 50 pages of this thread. This will save you a lot of time and money and answer these sorts of questions for you.

This will then keep the thread on track, and not going over questions that have been covered previously.

You will also find the more you bring to the table the more people will be willing to help. People will help you no end if they can see you are making an effort to help yourself.

Safe trading,

Johnathon

Heya,

okay so I had to clear this one up.

Marking levels on the daily chart and using these same levels to trade on the 4hr or 1hr is very different from taking a trade on the daily and then managing on the lower 4hr chart.

Marking key levels on the daily and trading from these same levels on the 4hr chart is a good thing to do. This will ensure you are trading from good quality areas on the 4hr chart.

We do not however enter a trade and then go down the charts to manage the trade. For example If I entered a daily setup I will manage it on the day chart. If I enter a trade on the 4hr from a level that I marked using the daily chart I will still manage on the 4hr as that is the chart I entered on.

So basically; when managing trades including stops, targets etc always use the chart you took the trade on. When marking levels, mark them on the day chart and use the same levels to enter intraday charts.

Safe trading,

Johnathon

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Yes master trader sir :stuck_out_tongue:

Can this recent EUR USD bearish engulfing on H4 be considered as a valid retrace entry signal?


Anyone see signals for entry this evening? Becouse I didnt... :? Before 2 days I opened my first real account but first trade wasnt good, I lost 80$ from 500ā€¦ (maybe I shoudn`t entry sunday to monday) now I wait some good signal to make up the ballanceā€¦ Any ideas for this evening, or soon? Im waiting EUR/USD for pullback an PA signal, but this will be I think thursday or friday

Me neither. Juncker messed it up.

ā€œVi veri universum vivus vici.ā€

But, if we get close with that strong bearish candle, Iā€™ll think twice before going long again.

ā€œVi veri universum vivus vici.ā€

what u guys think of PB at 1.0525 on 12H AUDUSD.though the pin doesā€™n stand out from the rest of bars ,but by definition it perfectly fits. and 1.0525 was an area of s/r in the past.

If you are already making excuses for the trade I think you know the answer.

Thinking this way is the reason accounts get blown.

Looking for trades to make lost money back will not end well.

You need to let that go, and then let the market come to you. If you go to it and start making up setups you are going to lose more.

Johnathon

Strongly agreed with what John said. This is exactly what happened to me last time.

I was too eager to win back the money I lost, and I ended up forcing trades and losing more and more.

Itā€™s human nature and I took quite a while to overcome it. Now I become a more matured trader and I do not get emotional when I have losing trades. Iā€™m willing to let it go and wait for another setups to come. Now I trade far lesser than before where I have <10 trades a month. It helps to reduce volatility on my account and generate more consistent result each month.

Anyone see signals for entry this evening? Becouse I didnt... :? Before 2 days I opened my first real account but first trade wasnt good, I lost 80$ from 500ā€¦ (maybe I shoudn`t entry sunday to monday) now I wait some good signal to make up the ballanceā€¦ Any ideas for this evening, or soon? Im waiting EUR/USD for pullback an PA signal, but this will be I think thursday or friday

I can see that you risked about 16% on one particular trade ($80/$500) which I think is highly [B]overrisked[/B]. It will create huge tense on your emotion and It will likely lead you to revenge trading. I suggest you to reconsider/restudy your money management plan by risking lesser % on your account. For me, I never risk more then 3% of my acccount size on a trade. This helps alot in reducing volatility and drawdown on account.

Hope it helps and good luck in your trading.

Anyone also look at EURGBP daily?
Please give me some input for this one. thanks
EJ


EJ, Same level. Also looking at your buy 1 entry but not sure if there is going to be such a big pullback.

AUDJPY looking interesting too and coming down to support around the 92.40/92.50 region. Still need some kind pof PA to get in. I like these with trend trades :slight_smile:

Good morning all guys, Iā€™m trying to learn all the teachings of the SUPER MASTER Johnaton (:59:)ā€¦ watching his free videos and readings his articles and this topic.
English is not my mother language, so I can easily have misunderstood some things, especially in videos. Iā€™m sorry since now for my bad english andā€¦ hey guys, be patient with me :8:
Iā€™m trading PA with different results since 2 years, so I have some basis on PA. The hardest thing for me to learn is to anticipate swings High/Low BEFORE they happen and not AFTER.
I wanna show you an example Iā€™ve found on J videos:


J said, if I understanded well, that the 1st BUEB is not a trade because is not formed at a swing low and the 2 is a good BUEB to take. Why?
My definition of SWING LOW: Is a candle with, at least, 2 candles before and 2 candles after it, both with higher lows (fractal)
For me the 1st is forming at the end of a retracement and is a fractal, so, in my opinion, the 1st is exactely like the 2nd and both are swing lows.
What am I missing?
Which is the difference between the two?
How can I know Iā€™m trading a swing low WHEN IS FORMING and not AFTER?

Many thanks to all guys especially to Johnā€¦

Yep looks solid area to get long on daily to meā€¦

Firstly do you realise why we trade from swing points? We need to enter at value areas and trading from the corrects swing points not only allows us to enter at value, it ensure we are not entering straight back into a swing point of S/R. The other main reason is because the price action signals we use in here are reversal signals. This means that to go long we need to be picking price to reverse from a swing low back to a high. Once again this ensures we are not entering into key levels of support or resistance.

If for example we enter a bullish Pin Bar from a swing high instead of a swing low, we will be entering picking price to go from a high and then to continue higher, rather than from a low to go to a high. We would not be entering from a value area, we would not be picking price to reverse, and we would be entering back into the swing resistance. The best way to explain this with chart below:


We cannot simply class a swing as 2 candles. If we have 2 inside bars price has not really moved and will be in the same placeā€¦

These are very easy to spot in real time. You simply just need to take into account what I said above. Are you trading and picking price to reverse or continue? Are you entering from value or looking for price to continue?

The next thing you need to think about is why we enter at value. Yes the first two reasons are so we are not entering straight into swing high and low support or resistance and also so we are picking price to reverse but there is another reason and it is so we are not being entered at rubbish areas where the flow of the market is taking profit and exiting and we are entering.

It is very common for traders to enter from areas that are either very high to go long or very low to go short. in other words instead of buying low and selling high, they will buy high and hope to sell higher. The problem with this is often they will be put on the wrong side. The chart below explains this; (forgive quick drawing).


Lastly your english is great. I admire all those that speak another language. I know we have a lot in here. i struggle with just the one at times and i will always cut some slack for those speaking in another language.

Safe trading,

Johnathon

Thank you, both, you and John, you are right I have to be more patience and I shoud decrease the risk. I think humens are learning from they mistakes, I think I edifying from this case, I hope next time to emerge

Thaks again :slight_smile:

Oh, I almost forgot, we shoudn`t open position on friday and sunday after midnight right even we have signal?