Forex Price Action

[QUOTE=“Forex School Online;543167”] Apparently it’s not as clear as what I thought it was… That section of my site is only a market commentary. I don’t personally take those trades. I post setups in there every single day after the market has closed 5 days a week and there are some very average setups some days, but I still post them up. I would not post them up if I thought people actually thought I was taking them myself. I personally only trade the very best setups and these do not form 5x a week obviously.[/QUOTE]

It’s still begs the question, is what market deal is describing a part of your rule set or not?

I’m glad Johnathon wrote this,it amazes me how people write “don’t trade demo but live as demos just not the same”,surly if you cant be consistently profitable on demo how is trading live going to help,perhaps they think live will make them try harder I don’t know,its just demoralizing,so I think stick to demo until you feel you’ve got a grip on it for as long as it takes even if it 3 years or more.

Good morning from USA west coast fellow to all you great traders, another great week is starting. :19::19:

If your not careful I will have to get you to go back through the first 50-100 pages :18: JK

VBRN’s take into account always regardless if there is support or resistance or not. The 1.000, 1.4500, 1.600, 0.900 etc for different pairs.

BRN’s I need to see S/R at least minor to take into account, but if it is just minor, then I will take into account, but some people have taken into extreme and then they can never make a trade because there is a round number with every trade.

The best way to do it is when marking support/resistance is I will normally look for the closest round numbers or big round numbers. So if I was going to put my support level at 1.2039 for example I would then slide it up to 1.2050. All my charts are set like this to the round numbers if they can be out of habit. Sometimes it can’t work, but most times it does.

Johnathon

Very clever.
I’ll implement that too.

Cheers

yes I did’ent think of that ,good eh

[QUOTE=“Forex School Online;543201”] If your not careful I will have to get you to go back through the first 50-100 pages :18: JK VBRN’s take into account always regardless if there is support or resistance or not. The 1.000, 1.4500, 1.600, 0.900 etc for different pairs. BRN’s I need to see S/R at least minor to take into account, but if it is just minor, then I will take into account, but some people have taken into extreme and then they can never make a trade because there is a round number with every trade. The best way to do it is when marking support/resistance is I will normally look for the closest round numbers or big round numbers. So if I was going to put my support level at 1.2039 for example I would then slide it up to 1.2050. All my charts are set like this to the round numbers if they can be out of habit. Sometimes it can’t work, but most times it does. Johnathon[/QUOTE]

Haha, that was what I was looking for. I do appreciate the in depth explanation. I still may go back over the beginning pages, it’s been a long time since I went through them. Since this is a method with clear cut rules(which is what makes it so easy to learn and follow), I want to make sure I’m not talking in contrary to the method.

Always good to hear from you Johnathon!

We are here to help out other and no skepticism taken wrong) Since Jonathan answered a question very clearly and it shows it,s his rule i am following it,s not my own rule.
I am not qualified enough to make my own rules LOL ))

A good morning to you also from the great state of Iowa!

It’s definitely something I am going to look into now. It’s easy for a person to throw in some of there own personal trading style into a great method like this. I always want to make sure i’m talking the actual method and not a personal preference. It’s understandable though, a lot of us cut our teeth on other trading methods and had to wade through a river of crap before finding something of great value like this. And some of the things learned end up sticking with a person for a while, whether bad or good. I started off my trading career in 2002 with a book called “How to make money in stocks” by William O’Neal. And from then till now countless books, articles and methods. I know I have picked up a few habits and rules along the way, and am trying to get completely over onto Johnathons method.

Lets start to talk about setups in next week. I think USD/CAD weekly is still valid, but i didnt spotted any other interesting setups, please share.

Mind the gaps baby!

Thanks for your input Adam,
Maybe it’s just me that has tunnel vision, but I trade recent swings and very very rarely zoom out a year of data to verify a Setup.
I wouldn’t say 1.4000 is a no mans land after all price did retrace from it. Can’t argue that Eur/Cad is quite debatable though.

ps: don’t need MAs mate.

Thanks again for your input

Cheers

Hi everyone. My 2nd month demo came out with a small profit.
6 trades - 2 profit, 2 break even, 2 lost

Please note that the numbers I marked on some charts are pips and not actual $money

Gold pin bar - break even


USD/SGD engulfing bar - break even


(Not posting charts for set ups beyond this thread, I included them for summary purposes)

NZD/JPY advance set up - lost.
Made a mistake of placing real orders instead of pending orders.
So I closed them immediately and called it done. The lost was tiny but I’ll call it a losing trade.
A reminder to be careful.

NZD/CAD advance set up - profit

CAD/CHF pin bar - profit


EUR/CAD engulfing bar - lost.
Ending this month with a full stoploss :x


More to learn next month!

You’re welcome, always like to make a post every now and then :slight_smile:

I trade the swings too, the reason the chart is zoomed out so much is because my screen is 27" lol, so if i zoom right in the bars are about 2 inches wide :confused:

Yes, price did retrace from it as we seen previously, but do you not think due to the gap, price dropped so hard? Personally if PA forms on a gap like EUR/CAD, I wouldn’t take it, as price USUALLY always fills the gap over the next days before continuing in the direction it was initially heading.

Sorry, MA’s are just on my chart as they are a thing I take into consideration when looking at a setup… just forgot to remove it :slight_smile:

Everyone has their own opinion on a setup, that was just mine, hence not taking the setup, but I can see why it looked juicy.

Cheers

Hi Panupat:
Thanks for sharing your results.
A couple of comments:

  1. Six trades per month is more than the overall average of the most experienced in this method, so it would be worth evaluating whether all were A +.
  2. CADCHF although ended well, it wasn’t a PINBAR (didn’t close within the previous candle).
    Good luck and all my best,

Nice input, mselva! But to be fair, it’s possible in one month to suddenly have many A+ trade setups, and in the other month to have few setups if any. I have seen traders with 10 A+ setups in a month, only to have like 2 A+ setups in the following month.

Glad to see Panupat, my brother-in-arms is also doing well here. We joined FSO at almost the same time. :wink:

Agree with mselva, you still need to improve your A+ criteria, Panupat. I only entered one trade so far after joining FSO, and it ended up with full profit. The reason for that is I only focus in basic trade setup at D1 chart at this point, so my option is kinda limited. :smiley:

Agree, Krugman. The temptation is always there. The actual method in this thread is only the one approved by Johnathon at FSO. There are lots of great methods outside FSO, but even greater numbers of crap to be honest. I’ll stick to Johnathon’s method through and through at this point as we are wandering in a brave new world of Forex here.

[B]Offtopic[/B]: Hey, I also have read that O’Neil book! CANSLIM is good stuff, although I don’t really like the way O’Neil heavily advertises his newspaper and website as you read through the later pages. The best investing references is ‘the Intelligent Investor’ by Benjamin Graham and ‘One Up on Wall Street’ by Peter Lynch, imho. :wink:

Thanks Aaron & Willy for the informative posts :slight_smile: Those explanations clarifies my confusion.

I think I will give this method a shot with daily AUD/USD today. Please correct my newbie ways if it is on the wrong track. Especially my S/R lines, lol. I just looked at the area with most high or low hits and find the nearest whole round number (Again, I’m waiting for someone to correct my analysis :D)


This is based on my subjective view of the chart. Please correct anything that is wrong :slight_smile:

I saw a 1-2-3 formation, which supposedly initiated an uptrend. Also we could see from the upward slope. If I’m on the right track then a pullback is happening as we can see from the chart.

So my theoretical trading plan is:

  • Entry Price: 1 pip above the last candle that touches the support line if it forms any type of bar taught in this thread, otherwise no trade.
  • Exit Price: 1-3 pips below 0.9600 (line drawn from weekly chart since my newbie eyes can’t see any resistance on daily chart, lol)
  • Initial stop loss: 1 pip below the marked #3 point, i.e. at 0.9222 (according to my FXOpen chart)
  • Trade management: half at 0.9399, the rest at original exit price

Surely waiting for a comment from Johnathon and other experts :slight_smile: Thanks a lot guys!

Cheers,
Alvin

It seems like you’re in the right track, Alvin! I’m always glad to see the new member really show how much he or she wants to succeed in this business. :wink:

In short, it looks good for a beginner. You have correctly identified the possible S/R line, although I see there are several possible closer S/R line that you can use there.

The buffer there needs to be much higher than 1-3 pips. Krugman, for example, always puts up to 10-15 pips buffer in Daily chart! You can discuss more with him why he chooses that particular number as buffer.

I want to say more, but I’m afraid I’ve talked too much at this point. Seniors like Krugman and Kasravi, or even FSO Officials like Johnathon and Dudest should be able to give you more accurate feedback here.

Cheers!
~Willy