Forex Price Action

Hi All,

Some food for thought.

There is always this battle between winning trades and losing trades and the inevitable outcome on Traders account/s.
Just to make things more confusing you see what you thought to be a quality trade going south and the less quality trade that you never took or didn’t invest much in turns out to be the runner.

Can you relate to that? It happens to every trader from time to time. Thus once you see those self destructive emotions coming up telling you that you are wrong or that you can’t grasp the system, you got to stop and remember. Go back to basics! The fundamental aspect of you engaging as a trader and picking a specific system.Remember all that enthusiasm you had in the beginning,endless hours of back testing,inquiring and solution finding. It worked back then and I guarantee you it will do so in the future. In the years to come as a trader these minor pitfalls will only be a fraction of your career.

Hope you found it useful,wish all the best.

I call it a day.

Cheers

Really nice trading Chisha! Really solid pre-trade marked levels is also what stands out as well. Now what first stands out to me about this trade really clearly is a few things.

1: This pin is super clean and sticking down and away from all other price. This is how they should be and when people are always asking or I have to show them when they post their pins stuck back in price not sticking away from price; this is a solid example of pin sticking away from price rejecting a support level.

2: There is a close resistance level overhead.

3: If price can move through this close overhead level, there is a clear room to move into the next logical level which also provides space and could also provide a solid level to move stops up underneath to protect stop as a barrier to start cutting down risk on the trade.

Once price broke the pin we can see price did move straight into this overhead area and did reject it with a bearish rejection candle. Once it made a second move and gained the momentum to push through this area it pushed onto the logical target that you had identified in your post.

Great trading here with this one!

CHFSGD 12HR CHART


Safe trading.

Johnathon

Yes how great is it Dudest is back in this thread and he will be round now hopefully as much as he use to be he tells me!! :35:

If anyone would like to ask any questions about anything that is not of a public nature and not to do with what we are doing here then they can do it either through my email or through babypips. We have gone through over 1,400 pages keeping the discussion to price action only and away from anything to do with course or membership and I intend to do the same.

Johnathon

Price has finally broken out on the S+P 500 daily price action chart. This is inline with the trend and now present traders with the chance to trade with the trend if price works it way back to the price flip support area, Traders could also play continuations if they know how if price does not look like it is going to make it back to the price flip area.

S+P 500 DAILY CHART


Safe trading this week all! Keep an eye out tomorrow for my new video I will be releasing. I will post in here for you all discussing secrets of candlesticks and price action and talks about things such as key candle closes above/below with candle closes, not marking charts with line charts & other tips traders can read through their charts.

Johnathon

Regarding support and resistance lines,you do have to wonder sometimes if its just the human mind seeking logic that we put any s/r line in.Try this on your chart ,put a line on your chart randomly (with your eyes closed maybe) then check if price has bounced of it,I bet you find it has in a few places.So this begs the question are we just fooling ourselves to think there’s a logic there when none exists.Don’t get me wrong I’m not saying I’m definitely right,its just after 3+ years spending large amounts of time looking at charts I am beginning to wonder if I’m trying to find logic in an illogical situation .I know a few people will jump up and down saying I’m wrong but are they really consistently right (I’m pretty good at recognizing the BS merchants now) or have they had a few lucky wins only to lose it all on the next trade.If your a true thinker and not a blind follower there’s nothing wrong with asking these questions,you’d be a fool if you did’ent really.Is it a case of the kings new clothes,(google it if you don’t know the song). I know Johnathon will have an opinion but he has got an axe to grind after all.Saying this though Ive probably learnt more from his thread and method than any other Ive looked at so Id have to thank him for that.Im just not sure Its enough.

Damn man, that’s a pretty logical insight into S/R and everyone has a right to question anything.

Psychologically speaking, humans tend to gravitate to organizaing things that seem to work together. In this case we see this happenning at S/R levels, grouping swings together to form S/R. I do believe that if you randomly place a line on your chart, you would definitely see areas that bounce off of this line and that it would make it thus seem logically placed.

This seems especially true when you move down in time frames AND when you zoom out of larger time frames. The more “information (candles)” you SEE (rather than contained! Ex. Daily), the more chances you would hit this “logical” level at a certain point in time. Maybe not at the recent swings, but definitely at a certain point in time. So yes, that insight is definitely correct in its own right. If you were to do this same tactic however on a larger time frame or zoomed in on the Daily, I would suspect it would not hit as many and as accurately.

I really liked that not everyone is a sheep in here :slight_smile:

Nice insight, Buster.

Actually that is one of the reasons why we use a clean chart and down to two S/R line ONLY when we analyze the chart using FSO method. Heck, a senior like Bryce has no problem to simply draw ONE S/R line ONLY in his personal strategy!

It’s a no secret that there are so many possible S/R lines in any chart. Some S/R lines are major lines, but most you see with your ‘randomly drawn line’ is simply minor S/R lines that you should not even bother when you think about your trade setup. It’s difficult for newbies or when you are not consistently profitable yet, but as you gain more experiences and consistencies in your trade, you will also gain the abilities to value the strength of your possible S/R lines.

BTW, you can be critical about anything, but I strongly suggest not to use somewhat denigrating words like ‘BS merchants’, ‘blind followers’, ‘fool’, and ‘sheep’. If you are not satisfied with Johnathon’s teaching after all, by all means you are free to leave and start your own Price Action thread yourself.

Just my 0.00002.

Hahaha I’m pretty sure we were all blind sheep once upon a time…

Besides, I’m sure it wasn’t meant to harm the thread’s quality but rather to point out for example, that some people come in here to take trades that they see other members post up, without questioning if it fits into their methodology, just because it comes from a reliable source.


usdchf weekly beeb what’s your opinion???

Lots of big support up ahead! You’d probably run into a lot of “wait time” if it does go down.

I expected better of you wm247 so I will refrain from saying in this instance, “so here we have the first BS merchant out of the woodwork”

I don’t think he meant it like that either…can we go back to how nice AUDCAD and AUDUSD is going to be real soon? :slight_smile:

Well if you want to continue derailing the PA topic in this thread, then I’m out. I have seen enough [B]keyboard warriors[/B] at many babypips threads, so if you expect me or anybody here to take your flaming bait, I rest my case because it shows everyone here about [U]your true intention[/U].

Let’s move on to the [B]REAL[/B] PA discussion, shall we?

I want to hear your opinion first. What do you think, is it an A+ trade setup? And why do you think that way? What are the pros and the cons of your trade setup?

Don’t be such a drama queen WM I’m not derailing any thing I’m just questioning things as any thinker should,if your going to blindly follow something someone says with out question dosent that tell you something.I’m unsure how far advanced your trading knowledge is so there’s the rub you could be just another wanabe for all I know.My true intentions are to learn and make money nothing more nothing less,and I repeat Ive learnt more from Johnathon’s forum than any other I’m just(as I said ) not sure If its enough.This is why there has of been of late an exodus to another forum (including yourself WM) .Because of the very few tradeable setups we see with this method it would seem untenable unless huge stakes were involved which most of us (I guess) cant afford,so while I think Js concise method is excellent the traceable setups are too few and far between,so could you (Johanathon) include another thing in to give us more setups somehow.

Buster - I like to question the ‘why’ of price, the very question you posed I asked of many, always without a satisfactory answer.

The nearest answer that made some sense to me was by a long term trader who said that as a clerk, back in the old days his job was to pile the paper orders on his desk, then when price reached a level he would have to pair those orders.

There were times that he would have, for example, many more buy orders than sells, price would move up after matching the orders that he had, and some buys would be left behind. He noticed often as price worked back down - right to the orders - then they were matched with the new sells - desk cleared, price back up and no buy orders left.

So now when I see price coming back down to a previous buying point (support) I think of those unmatched orders from last time. ( I also look at the ‘rate of fall’ and the reason for the price increase - but that’s a different story.)

Just a way that I look at it :slight_smile:

Thanks Coach! I’m following the system, I have developed a strong money management plan & continue to work on my psychology so I’m winning consistently.
1 million dollars after 1 million trades :59:

[QUOTE=Forex School Online;553583]Really nice trading Chisha! Really solid pre-trade marked levels is also what stands out as well

The fine line for Johnathon is how to keep members happy and not pee them off with discussing too much in babypips. I am sure if he had it his way he would discuss a lot more in here, because in the members area and courses there are more setups taught and traded such as continuation and breakouts etc

Traders in here are not are even aware about these setups taught in the members area because Johnathon makes sure members keeps them in the members area and so traders outside and in here in just assume and think that what they talk about in here is that’s all there is, but what is talked about in here is only trading reversal signals.

Yes it is great to have an inquiring mind, ask all the pertinent questions, however go
back to the start of the thread & just read through & watch the first few videos. Where
are the S/R levels? Are they random? As though they had just been thrown on the chart?

Of course the O/P is not going to give you all the answers, why do you think that is?