Forex Price Action

Its not with trend, its certainly not in a range. Therefore, its not an A+ signal.

Hey abc,

I like your analysis, and thanks for coming back to me on that.

There’s one key point you missed though, one that cuts across all setups.

The setup must close in the last 1/3rd of the candle in the desired direction. That is, it must show resoluteness / strength.

In this case we have BULLISH pinbar. The original H8 candle has open and close near the MIDDLE of the candle >> does not inspire confidence that price wants to go long. Compare with the (MOD), and note the difference.



.

He said that he doesnt trade monday [B]intraday/B trades. However if you found a [B]DAILY[/B] signal on friday, you certainly can put pending order if the spread is not huge :slight_smile:

Gd job with the Mod, ill probably trade that haha

Yeah im not trading just observing. I think the pound has more strength to come.

Well, when you put in the pending order no matter what day it is, if the spread is not huge, when that order gets executed we really don’t know what the spread is going to be at that time. What happens is , it might get executed at braking news or at slow time in the market, in other words the only way to secure a reasonable spread is when you pull the trigger.

[QUOTE=“abc2005;522738”]HI
I’ve a question .we spotted a trade on gbp/jpy . I remember mr johnson said (not very sure) that he doesn’t trade monday morning till the European market opens .
correct me if I’m wrong ,so we shouldn’t place the pending orders during the asian session and we should wait until Europe market opens and then we place the orders.
is that correct ?

Thanks[/QUOTE]

I don’t remember him saying that. I believe he has said that he doesn’t trade the 2-3 hour gap between when the broker lets you place orders and the Asian market opens. By the time the Asian session opens, volume has picked up enough to tighten the spreads.

Hallo Tony,

Just to clarify:

We don’t trade intra-day setups formed in last 8 hours of Friday --> (could have been formed due to profit-taking, etc, hence not reliable)

A Daily setup on the other hand has been formed across ALL sessions during the day (Friday) and thus is still a valid and reliable signal

When it comes to setting pending orders for the Daily setup on Monday: there is VERY LOW liquidity in the first hour of the week after market opens. This causes the spreads to widen, and can trigger a FALSE ENTRY. So best to wait for the market to settle ( 1-2 hours ) before setting pending orders on Monday morning.

Cheers

[QUOTE=“EternalNewB;522739”]

Thank you for your answer I however don’t have a thousands let alone to trade with in forex, all I had was 300 usd that I could afford to lose.

of course I could have bought my FSO membership but then I wouldn’t have had any capital to trade with so I opened a forex account with the money and planning to slowly grow it to get my FSO membership[/QUOTE]

I also started with 300$. While its doable with that little capital, it takes some serious self control to grow. Since even a micro lot with a large enough stop can be a lot of risk. At around 1000 it gets easier to manage a trade. You can stick to a lower risk % but still have a large enough position to have multiple take profit levels, and spread out the risk.

Hallo Mideel,

We don’t trade the inside bar, period.

Yes, stop runs happen often. You will come to realise that Johnathon’s method of placing the stop beyond the high/low of the setup - coupled with the fact that the setup is formed at key S/R zone - provides a [B]superb buffer[/B] to our stops [in essence, a way of “placing better stops”].

For a masterly summary of stop hunts and the reasoning behind placing better stops, see here:

FOREX Statistical Research Center/Stop Hunting" – What is it?

FOREX Statistical Research Center/Placing Better Stops

[ Author: Scott Percival ]

Cheers

Thank you for your reply, I have very good self control and I am not in a hurry at all, I don’t take trades with more than $5 usd so I am sticking to MM rules. I honestly don’t have any other options since rule 1 was to get money you can afford to lose and, for me, it was 300. when/if it grows to 1000 then we will see :smiley:

Hope to be able to learn from you guys

Hallo EternalNewB, and welcome!

Remember the quote from the movie “Shooter”? – “Slow is smooth, smooth is fast” (military saying)

The things you need to do to “make some money” ( in reverse order ):

[B]2.[/B] Read pages 1-50 of the thread ( a must )

[B]1.[/B] Familiarize yourself with our 3 prime setups:

The pinbar: Pin Bar

The two-bar reversal (2BR): The 2 Bar Reversal

The engulfing bar: Bullish and Bearish Engulfing Bars Introduction

Cheers

Hallo,

We stick to one T/F ( the one with the PA signal ).

Checking three T/F’s with this method only adds confusion.

Cheers

I didn’t really get the support I expected from all your long time students

:slight_smile:

It is often said that we don’t care about news expect for the NFP. However, it is hard to ignore that the market is trying to position based on QE tapering soon or not and this makes a lot of US based news have the kind of effect only the NFP normally has.

Can we really ignore the whole thing or do we have to take this into consideration at least until there is a clear direction ?

I know Johno will reply to this when he’s able but in the meantime, allow me to chime in.

Yes, we really “ignore the whole thing”. Think about it, there’s news coming out EVERY DAY, which are you going to follow? And before it’s “news” to the public, don’t you think the market movers have already set their positions?

Major point: price action is all about FOLLOWING THE TRACKS of those moving the market. That’s what pinbars/engulfing bars/2BRs at KEY LEVELs are, tracks. Factored into these (and other ‘tracks’) are the events/news that caused price to move in the first place. And we have habitual human behaviour to thank for that. Of course, the actions of all trades around the world are not 100% predictable, and that’s why we’ll never have 100% wins. But we don’t need 100% to be (very) profitable ( no-one does ). The edge brings us ahead over a large sample of trades.

PS: NFP we avoid coz: highly predictable price spikes that can take out SL on USD trades only for price to continue in original direction.

Cheers

Hey buddy,
yes you’re right. We do not trade intra-day setups when the market opens on Monday, we wait until the big guys come in (The US & London session). But we do trade daily setups.

And what happens on bank holidays?

Thanks bro. I always welcome constructive criticism :slight_smile:
We need to go see what’s on the other side :slight_smile:

[QUOTE=“Kasravi;522786”]

And what happens on bank holidays?[/QUOTE]

Then volume usually looks like the Asian session.

The only time we choose to stay out of the markets is during NFP & of course we don’t trade intraday when the market opens on Monday morning & we don’t enter intra-day trades during the last 8hrs of Friday.
Other than that if we understand the price action and a setup presents itself we pull the trigger. I stand to be corrected if I’m wrong.

Thanks dudest,

I also got a private answer from Johnathon and it was very much the same. That’s good news then, it makes things a lot easier.

For the support from long time students thing, you are one of the few who answered to some of my posts but all my questions on actual setups remained unanswered, and I started taking it personally. :slight_smile:

Yves