20 Pips Daily using 5 Minute Charts

[adamjn]

Ok, I am not very good at explaining things, so I hope this comes across simple enough. I will get straight to it.

We are looking for pin bars, 2 bar reversals and Engulfing bars on M15 and M5 charts on the JPY pairs and GBPUSD.

So I am going to use EURJPY as an example as this is the pair I trade.

Load up the M15 chart, draw your support and resistance lines on it and establish the trend, I use no indicators for this, if price is falling, its a down trend, if price is rising, its an uptrend.

EURJPY M5

Once you draw your S/R Lines on the M15, go to M5 and adjust them to line up better. I also make use of trend lines within the chart as you can see above.

So, once all that is done, you just need to wait until a valid signal forms at your line.

Pin Bar Requirements

-Wick 2 Times the length of body
-Pin Bar must stand out
-The pin bar must be a good size compared to previous candles, meaning if the previous candle is giant, and a tiny pin forms, chances are, it will not work out.

2 Bar Reversal Requirements

-Must open near low of previous candle
-Must close very close to high of previous candle

Examples

The signals must occur at a swing low or swing high, other wise it’s invalid.

You should be able to grab 20 pips or more per day using this, if you get in to the trend at a good place, sometimes 40-50 pips.

You need to be aware of reversal patterns though, double bottoms, higher lows and higher highs, 1,2,3 pattern…

Stop Losses and Take Profit Levels

My stop loss is placed 3.3 pips above high/low of signal candle and I enter on the break of the candle

Take Profit is at the next swing low/high, where I close half my position and move my stop to break even and let the trade run.

[moneyferret]

Is this something you have already used with good results in your own trading? Or an experiment?
In either case, good luck to you, best of success!
Pls keep us informed.

[Heaveneze]

I Have to try this strategy

[adamjn]

I use this everyday, the main trick is only go with the trend, I forgot to mention that in my post.

It does work as long as you mark your S/R levels properly, I get a trade nearly everyday

Is this something you have already used with good results in your own trading? Or an experiment?
In either case, good luck to you, best of success!
Pls keep us informed.

[adamjn]

Here is actually a nice trade that I took yesterday, and I am in a trade now on USDJPY H1 chart, I couldn’t see anything on M5 or M15 so went for the H1 setup.

Yesterdays M30 Setup on CADJPY

Todays H1 USDJPY Setup

There are a series of pin bars and basically rejection candles on todays H1 USDJPY chart, all the candles are telling me that higher prices are being rejected and price wants to go lower, so I placed a sell on the break of the pin bar.

[adamjn]

NZDJPY Bearish Engulfing Bar M30

I have my orders set for this trade, 3.3 pips + spread away from signal candle. (just been triggered as I write this.

I am going for 40 pips here, with a stop loss of 30 pips.

[Heaveneze]

So u mean u only use Pin Bar and 2 Bars Reversal to analyse all your trades ?

[adamjn]

The signal I take mostly is the pin bar, but if I see a very good setup for an engulfing bar, I will trade it.

The 2 bar, I take it also, but the way I look at it is, a 2 bar is basically a pin bar when the 2 bars are combined, you have got to take into consideration the previous bars when doing this too as you could have a tiny pin and massive bullish bar…

So u mean u only use Pin Bar and 2 Bars Reversal to analyse all your trades ?

[Heaveneze]

[QUOTE=“adamjn;548248”]The signal I take mostly is the pin bar, but if I see a very good setup for an engulfing bar, I will trade it.

The 2 bar, I take it also, but the way I look at it is, a 2 bar is basically a pin bar when the 2 bars are combined, you have got to take into consideration the previous bars when doing this too as you could have a tiny pin and massive bullish bar…

[/QUOTE]

Awesome, i think i have to look into this strategy as well…

[AmishBuggyFX]

I came across this thread and love your simplicity in teaching price action. I hope there will be trade examples posted here. I see that the thread has been untouched for a couple of weeks.

[rackala]

My SL and TP r according to rules?

[kummi90]

Looking forward to follow this thread, and watch examples!

[adamjn]

@rackala

My SL and TP r according to rules?

You missed the trade here and bought in too late, thats probably a bad idea in the long run as you will loose profit.

I will get round to posting more examples later on this evening.

[adamjn]

Here is a trade I have just taken on EURUSD M5, a pin bar is also visible on M15.

I missed the entry, which should have been on the break of the pin, so i entered on a small retrace.

There is clear RIS Divergence on M5 and on the M15 chart hinting to me that this will be a good trade. Lets hope it is a winner.

IMG Url: http://puu.sh/53J9J.png

[adamjn]

Here we have another pin bar, this time on XAUUSD (Gold)

I have entered the trade on the M5 chart on a break of a low, though the Pin on the M30 looks very nice, lets hope it plays off well

By the way the indi I am using is TMA Madlen incase anyone is interested. I am just using it to find upper and lower price bands to look for a nice PA signal at.

IMG Url: http://puu.sh/53K3S.png

[adamjn]

I haven’t really updated this thread, but I have fully changed the trading style, I am now using volumes to help me make decisions on the trade.

They way I am using the volume is this, if the PA signal has high volume, then that gives me the all clear to take the trade, so if price was falling, then a pin bar forms and has high volume, that tells me that buyers are present in this area and the pin bar will be valid once the high is broken.

Here are a few trades I took today.

NOTE: I am using a template from another system, I do not use EMA’s, apart from helping define short term trend direction.

If anyone likes this trading style, message me, maybe we can improve it somehow? Skype?

Big Img - http://i.imgur.com/B7B4Ze9.png

Big Img - http://i.imgur.com/XRKagjx.png

Big Img - http://i.imgur.com/3dj8zQG.png

Google Sonic R thread to find the Indis I am using

[adamjn]

Here are 2 trades I have just entered.

USDCHF M15

In this you can see there is a nice pin bar rejecting the daily pivot, all the candles around this area have nice high volume, and mostly long upper wicks showing selling pressure. My target is 26 pips, the recent low.

EURUSD M15

As we can see, price is making higher highs and higher lows, a clear upward move, so I am looking to buy at swing lows and close out at swing highs.

As we can see here we have high volume in the lows, and a nice pin bar has formed right on the daily pivot with high volume indicating buying. My take profit for this trade is 33 pips.