Forex Price Action

Actually the setup worked well as far as a counter-trend trade I would have expected if I took this trade myself. :smiley:

Without further ado, this is what I think went wrong with your trade:

  1. You entered this when the candle had not been fully mature yet, didn’t you? A big no-no. Never enter at market order, always enter at pending order. I learned this the hard way myself. :17:
  2. You’re taking a counter-trend trade with that smallish pinbar as your entry bar. You’re a one brave man, Darth. But if you want to enter a CT trade, keep in mind that you need to have a much more powerful entry bar to ensure price really move to the direction you want.
  3. Your TP is too ambitious. You should have identified a lower possible trouble area, maybe around the previous lower low or Round Number like 1.91000.
  4. You have been losing a lot this last few days, so that should have told you that you are not ready to even go live or take any timeframe lower than Daily tf or even take another counter-trend trade setup. Please focus on Trend trade in Daily tf and higher tf at demo account for now. Keep this is mind: trend is our friend till the end.

Just my 0.00002.

Nice reminder, Mario!

Some of our fellow members have started their own thread when they believe that there are important issues in Forex that they also want to discuss but only in their own terms. You can check their thread also, like the thread from Krugman or Kasravi.

Always keep in mind, though, that just because they are formerly (or still) active members of this thread, [B]they do not necessarily strictly embrace the way we at FSO do our trading in this thread[/B]. Krugman, for example, always claims that he simply ‘builds on top of what we at FSO already know’, but I will take his claim with a grain of salt. In his Price Action thread, Krugman emphasizes a highly rewarding trade, but at higher risk than we normally embrace at FSO (in short, much higher RRR). Remember that we at FSO embrace a high probability with low risk trade, while Krugman embraces a totally different concept. Later Krugman even admits that his winning rate is actually really low (can be so low to 20% Win Rate in his bad month), but it is justified with his insanely high RRR (can be 1:20 in his best of the best setup).

Now, Krugman is an excellent mentor himself, and I know from my old discussion with him that he really is passionate about Price Action way of trading. But keep in mind that outside FSO thread and website that Johnathon Fox himself has created or officially embraced, you must always take someone’s claim about FSO -whether it’s built upon what we’ve learned or any similar claim like that- with a grain of salt.

Just my 0.00002.

Hi ENB:
Take into account that the GAPs not always will be “filled”. Most of the time it will act as support, which already did in this case. Bears wants to re-take control but they lost the momentum. Price is in consolidation and although there is a BEEB, price wasn’t able to close below the current box.
I suggest you wait for a signal to guide you about the new direction once price leave the box.
Good Luck.

Whats the difference between just a normal s/r and a KHL?

What would characterise a KHL?

Hi Dudest,

Yes, I have been on the quite side for a while. Thank you for your kind reply which I highly appreciate. Yes, I do see the pinbar at a swing high ( I feel so anyway). I also think that the opposite double pinbar on weekly had a stronger impact (which I didn’t see till later). It is certainly very helpful to know my mistakes. Thanks again

Hallo G,

KHL (key horizontal level) refers to a MAJOR S/R, as opposed to just any S/R on a chart ( in context ).

Ideally, the normal one/two S/R’s we draw on our charts are KHLs ( that’s why they are on our chart, they are the key levels )

The differentiation becomes stark especially when a chart is choppy, and there are several S/R’s on the chart, and one wants to highlight the major ones.

For example, in a ranging market, the KHL’s would be the TOP and BOTTOM of the range, with other S/R’s in between being the minor ones.

Hope that makes sense!

Cheers

PS:

I’m guessing your next question would be: how to identify KHLs (?) :slight_smile:

And the answer to that would be:
—> the main two levels on your chart are the KHLs.
—> the STANDOUT ZONES on your chart are the KHLs

Nothing to get confused about :slight_smile:

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So now the importance of staying with your plan becomes evident [ regardless of what dudest or anyone thinks about your trade :slight_smile: ]


Cheers!

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Analysis:

A good number of times, gaps are NOT filled, so don’t count on that as a ‘confluence’

A good number times, gaps act as S/R, so the BEEB is sitting on a potential S/R

The candles prior to the BEEB have failed to close below the level --> support holding

Lastly: the area happens to be around the RN 1.5900, which if you zoom out will see has acted as S/R before ( in this case, support )


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Thank you again

I always draw my S/R lines too high or too low :frowning:

Thanks you for your review. My 1st reason to enter was for the previous daily candle pb. But you learn from your mistakes and no matter how long you have been trading for you still make them as we are only human.

On a plus note my gold and silver trades hit there tp and made back all the losses I have had. So now I have learnt an important lesson and I’m no worse off.

Yep I stayed in and it hit my tp. I was also riding gold too. Yay.

Is it me or does the silver chart look like a double bottom?

The AudCAD is climbing to the VBRN of 1.000. Looks like a great place to short. I’ll be watching this like a hawk!

You and me buddy!


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Yaaaay! :35:

@double bottom: doesn’t quite look one to me… though I normally don’t place much premiums on double-bottoms and such (and don’t have them in my trading plan)…

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Uhm, not true, your S/R’s usually look good to me!

The key here was to remember that gaps tend to act as S/R, and not mix TF’s (“weekly gap has not yet closed”). Also to see what the wicks of the previous candles were doing ( i.e, that the candles where not able to CLOSE BELOW the level )

Cheers!

And if you don’t do what he said, you will make Uncle Dudest really sad. :frowning:

EUR/USD 1HR PINBAR


I’m taking first profits.

Cheers

Dudest, thanks indeed for your support.
As newbie, I miss with some abreviations. Some reference guide to help me?

i took profit on Gold around 120 pips. i dont plan to let the trade run too much on reversal trade

Talk of prophecies!

Good on you Johnathon, hope you pocketed plenty cash.
Or maybe you are riding it further down. nonetheless enjoy the triumph.

Cheers