in the trade Aud/Nzd 8H, PB from resistant area
this is the Setup I was waiting for, i will try to enter on Monday opening. usd/cad Daily chart Pin from Support,
thanks Xtromist. what is your openion about USD/CAD setup i posted…
I actually got in that one too. Got triggered early Friday. Except I got in a little earlier and on the H8 chart I believe. Or it might have been the H4 instead of the daily. I would check but I can’t access my platform since trading is closed for the weekend. I don’t mind holding it for the weekend contrary to Nick’s ideologies.
I don’t quite like this one. Not much of a preceding trend.
force199,
My advice as a relatively new trader is to stick with one and master that system/strategy. Learning a variety isn’t going to make you a profitable trader. I started with that “Cowabunga” that you see everywhere on this site. It was more rule based and I wanted something more “pure” which led me to naked charts. Went through JFox’s, NFullers’s, CCapre’s, JKruger’s strategies. They all had their own spin on PA all fundamentally similar. Ended up liking Nick’s the most because his was very simple. And his strategy doesn’t have much to it.
JFox’s strategy is to trade pinbars and engulfing bars… but I knew there were more reversal opportunities in the charts and wanted to take advantage of them rather than stick to predefined candle formations.
NFuller’s… I don’t know. I really don’t. Couldn’t stick around. As I mentioned before, the paid course was nothing new from the free content. He also preaches predefined candle formations like pinbars, inside bars etc. I think JFox was taught by NFuller anyway. Similar style.
JKruger’s “Price Action That Matters” thread on this forum is also similar as he was taught mostly by JFox. But I may be wrong.
CCapre’s strategy is all over the place (not necessarily in a bad way). He teaches to trade predefined candles, candle formations, and advises trading lower time frames (I hate it) as his system is more statistic based so the more the merrier. I’d argue his course has the most content that’s also the highest quality compared to the other mentors. However he’s one of those people that only show mostly perfect examples in his trade videos, which is important to have because you need a benchmark but if the majority are them are “perfect” then it’s hard to learn. If anything, he helped me alot with the psychological side of trading more than anything.
Another thing that also seems to be common with all these mentor except for maybe JFox is the 50% retrace entry on candles like pinbars. Long story short–place an entry at the 50% fib retrace level on a pinbar and wait for it to trigger. I found that I lost more money to the trend continuing on after my entry was hit and also losing alot of trades because I didn’t hit my entry at all. And I don’t know, maybe Nick teaches it in his advanced course and maybe he can change my opinion on it if he does but otherwise trading on confirmation (at the low/high) works beautifully for me.
I think what alot of those mentor do wrong is place more emphasis on the candle formations (pinbars etc) than they do the actual S/R levels. Which is a huge trap that’ll make you lose money. Nick B actually posts his levels on his website and that almost forced me to go place them on my own charts. And in doing that I learned how he places his levels and how I should place mine (although his videos on S/R are pretty good too). His strategy all together is alot more about the level than the candle which I appreciate.
It’s all finding a strategy that resonates with you and just putting it to practice. Out of all the ones I’ve been through I stuck with Nick’s. I wouldn’t worry so much about profitability-- I’d argue that all these strategies are profitable. It’s more about the person that uses it rather than the strategy itself.
Hi Sallu,
I’ve also spotted this USDCAD setup, I was just wondering on yours and Xtromists take on entry as according to Nick’s rules (point 3. below), we should still wait for a confirmation candle after the indecision candle.
IE: Identify that the next candle after the indecision has a higher close than the open/close of the indecision candle and a higher low than the low of the indecision candle.
Also, I have found that setups that build up on Friday don’t always follow through on Monday, because traders seem to have had time to re-think what they were doing in the last week, take a breather, etc. Hence Monday mornings nearly always being slow in forming a decisive direction.
BUY TRADES
- Identify an indecision candle on a support line.
- This indecision candle must have been formed on the support line after a preceding trend from the previous support line. EG Seller’s were in control all the way, before reaching the stalled candle.
- Identify that the next candle after the indecision has a higher close than the open/close of the indecision candle and a higher low than the low of the indecision candle.
- Place the pending entry 2 or 3 pips above the close of the candle after the indecision candle.
- Place the Stop Loss 5 to 7 pips below the support line, depending on currency pair. Ideally the SL should be below the low of the indecision candle. But this makes the risk:reward much wider, and therefore, riskier.
- The first target is usually the high of the preceding trend (high measured by candle body, not wick).
Thanks for the advice Xtromist.
I’ve pretty much mastered the 3 Ducks system as it is so simple. Normally I would give the same advice to others, but because of what I do in my work life, I’ve been doing extreme multi-tasking for several years and have become very good at learning different things without mixing them up. But I do appreciate the advice.
Like you I was also confounded by the 50% entry rule, and when I checked PIN formations on the live charts and the action that followed it didn’t make that much sense to me either.
All the best. Have a good weekend.
I didn’t see the part about the entry. My entry was on the H8 chart rather than the daily. See the picture below.
1 – Strong preceding trend. All bearish candles from the resistance to the support level. Starts off with smaller bearish candles near the resistance. As it gets to the middle between the support and resistance levels, the bearish candles increase in size. And toward the end, near the support level, you see a long wick testing that level, then a smaller bearish candle after that. Almost perfect. Shows the bears are losing control and a change in control to the bulls may occur.
2-- Right above the number 2 is the first bullish candle of the bearish preceding, right at our support level. This is arguably an inverted pinbar or a doji depending on how loosely you define those formations. Most importantly it’s a sign of indecision. Exactly what we’re looking for.
I place my entry above the high of that first bullish candle and a stop below the low. Roughly a 30-35 pip stop.
For my target, I set it just before the next resistance level. However, there is a psychological level in the way of that. So I have set a price alert to let me know when(if) price is at that level so I can see how price is reacting to that level live.
3 – Price heads down and shoots right back up (this formed a nice pin bar on the daily chart). As it shoots back up it triggers my entry.
As I mentioned before, this trade was triggered early on friday and I held it over the weekend. It is kind of in limbo right now (Not moving up or down) but that’s OK because it got triggered on a friday, nothing major happened on the weekend and the banks are closed today (Monday) so it really hasn’t had a chance to move. The problem comes in tomorrow (Tuesday)…
Canadian and US news are to be released tomorrow morning (EST)–one of which is considered to have high impact. I’m most likely going to either close it out before the news for likely a small profit or a small loss, or I will tighten my stop and monitor it live to see how price is reacting to it. I have not decided yet.
Thanks for the step by step walkthrough, really useful. It really shows how your mind was working.
I’ve been waiting for the price to break above the PIN high on the daily, but now my IC Markets demo has frozen I’m just gonna go to bed : )
1 – Strong preceding trend. All bearish candles from the resistance to the support level. Starts off with smaller bearish candles near the resistance. As it gets to the middle between the support and resistance levels, the bearish candles increase in size. And toward the end, near the support level, you see a long wick testing that level, then a smaller bearish candle after that. Almost perfect. Shows the bears are losing control and a change in control to the bulls may occur.
2-- Right above the number 2 is the first bullish candle of the bearish preceding, right at our support level. This is arguably an inverted pinbar or a doji depending on how loosely you define those formations. Most importantly it’s a sign of indecision. Exactly what we’re looking for.
I place my entry above the high of that first bullish candle and a stop below the low. Roughly a 30-35 pip stop.
For my target, I set it just before the next resistance level. However, there is a psychological level in the way of that. So I have set a price alert to let me know when(if) price is at that level so I can see how price is reacting to that level live.
3 – Price heads down and shoots right back up (this formed a nice pin bar on the daily chart). As it shoots back up it triggers my entry.
…
Canadian and US news are to be released tomorrow morning (EST)–one of which is considered to have high impact. I’m most likely going to either close it out before the news for likely a small profit or a small loss, or I will tighten my stop and monitor it live to see how price is reacting to it. I have not decided yet.[/QUOTE]
Good call. My entry/stop is more risky. If you’re taking it on the daily then you might run into an issue with the RR being relatively poor depending on where you put your stop. The issue is that it’s a pretty large pin bar and ideally you would want to place a stop at the low–but that would offer a RR that would not justify taking this trade. However if you do take it and place a tight stop, price may revisit/retest that support again and potentially hit your stop. This is a similar situation to Nick’s most recent video here. But good night :).
GBP/JPY Pin bar reversal from Resistant area, placed Pending Order to enter from 50% level of the Pin Bar, or break of the low of the Pin Bar.
pending order on the break of Pin Bar High, targeting 1R only. this pin bar is quite small but its from daily support area.
Sallu,
I would get into the habit of placing your targets based on price action rather than that RR indicator you have. Placing targets based on that RR indicator is very arbitrary. Instead, look for minor S/R levels and psychological levels as price is most likely to react to those levels.
I completely agree with you, Its very good thing you reminded me
what is your edge ? you risk 72p with the hope of making 122p. you need to be right a lot of times to make a profit trading this way and from what I read some of the best traders in the world are only right about 60% of the time.