There are plenty of other price action signals to trade other market structures that we use… We do not only trade reversal signals. So we can also trade markets that are continuing or breaking out we also trade price action breakouts and continuation signals. This allows us to trade all market types including ranges, trends, continuations, breakouts, boxes etc all with price action.[/QUOTE]
Thanks Johnathon - is the training and support for this all covered as part of the members area?
I was wondering, this large green bar on the daily chart of the GBPUSD, is this a bullish engulfing bar, or something…? It just seems rather large and “in your face”, to me
Is it an bullish engulfing bar? YES, it bullish and it is fully engulfing the candle before it
The next big question is: is it at swing low or swing high?
We need to be buying LOW and selling HIGH. For BUEBs, we enter when price breaks the HIGH of the BUEB. For me, in this case, that would constitute buying high.
A higher probability play IMHO would be to wait for price to retrace on lower time-frames and look for LONG PA there.
Hi [B]johnathon[/B])Today i read your post about NZDJPY on your site where you stated that gaps can be a high probability trades.Well i clearly ignore trades on monday open with gaps because the missing price action confuses me.Can you please enlighten me about how such trades are called high probability trades?Did you take that NZDJPY trade?
By the way it looks like the markets are getting normal and few pairs are breaking out from the choppy areas.
Hello Friend,
to answer your question, both those candles are BEEB because they engulf the preceding candles completely (with their wicks and all).
So the answer is yes we should think of those candles as BEEB because they have really big shadows that engulf the preceding candles.
No we shouldn’t ignore them because they are closed near their lows. This is of course taking into consideration the entire price action story:
1 Are they formed at strong resistance
2 Swing high
3 With Trend (assuming you’re playing a trending market)
4 No FTA close by etc
I liked the setup, it was a BEEB at a swing high with trend. It could of been a little higher to make it a better KEY level although that level is getting blown away currently.
Where you could of saved your trade though is by what Johno teaches and it is IMHO the most important part and thats management. I took the trade and moved my stop to BE once I identified a possible support area where price could turn.
price is now at where i would have drawn my s/r line, using the line chart on the daily. then i would move to 4 hour. i say it was a proper trade just taken too early. maybe it will bounce from this level now will have to see
With the size of the candle just closed I would not look for any shorts in this zone. It might pull back and find support to continue is strong move up.
I’ll answer your question like this: I try to only trade markets that I understand (this is easier said than done because sometimes I just find myself entering trades that I have no business being in). When I am having trouble marking key support & resistance levels I stay out because I don’t know what the market is doing. Also if I’m not sure about a setup I stay out.
This trade might or might not work out but I’m staying out because I’m not confident about it.
Please realize this is my personal opinion & should not be taken as trading advice. If you’re in this trade I wish you success!
Thanks for quick reply.
as I said I am not sure about this one too. so I’m not going to trade it. I’m just curious to know about the shadows(for learning only). should we consider shadows reasons for our decisions?
Hi pedramslhr,
to quote Johnathon “when trading engulfing bars, we want the price to finish in the last 1/3 of the direction we want to trade”
In this case, i would like the close of the BEEB to be lower - it may be in the last 1/3, but it is not obvious. Also, i consider this 4hr to be in an uptrend and would need to see a bigger PA to convince me it had turned.
Just my tuppence worth.
…We look for gaps to act as S/R and that’s what has happened here…
I read the NZDJPY article as well, and Johnathon did NOT say that gaps can be high probability trades; he said “gap closing trades can present high probability trades when they line up with support and resistance.”
In the NZDJPY trade, the gaps lines up with S/R and then a pinbar was formed. There’s nothing new here.
(i) Gap = S/R (key horizontal level)
(ii) Pinbar = PA signal
Hope that explains it. I know when Johno comes back in, he’ll tackle it as well.
hey eveyone
a question about timezones . My broker timezone is Eastern European Time (EET) Standard Time = UTC+2 (Summer Time = UTC+3)
and I think these candles are not good for this way of trading .
I’ve opened and account in FXpro ans asked them about the timezone . this is the answer :Please note that the time zone set to the MT4 platform is set to GMT+3 and that is not possible to change
so this is not set to new york either.
which broker I can open a demo account that its timezone set to Ny ?
If I want to trade in live account , Can I analysts on the demo account and trade on my other broker real account ?
The Broker of my real account is also not supporting New York closing candles.
That´s why i use Axitrader as a demo account for analysing and spotting Setups and then I set the orders on my live account.
