Understanding Price Action by Chris Capre

Very slow market today. Cannot identify good setups to trade. :20:

I’ve just identified a good setup to go to sleep and trade tomorrow :44:

Hello Perry,

Yes, today is a US holiday, so the US markets are closed for MLK day - hence the slow movement.
Likely nothing until at least Asian session.

Good time for study & practice though. I’m not trading, but working on a new article for today so stay tuned.

Kind Regards,
Chris Capre

Dang, best quote i’ve heard today thus far :slight_smile:

Hello Traders,

With the US Markets closed today for MLK day, price action has been slow, so will not make any moves till London starts spinning the tires. But am looking at Gold which is in a range that should break soon (likely tomorrow). Chart below, but the key levels are clear so watch for intraday price action triggers off each level. Any of these that fail likely will translate into a breakout pullback setup so stay on guard. Remember, a failed signal is new information, and possibly a new signal as well.


Good Hunting!

Kind Regards,
Chris Capre

Lol… Today market is unpredictable. For an example EU. 40+ pips down & again up. Spikes all the way. Very dangerous at the moment. :eek:

Good to hear you are working on a article. I saw some of your articles from the web and hell lot of useful information there. You have covered many areas such as trading psychology, various strategies, trading styles, etc.

When the market seems unclear at first, sit patiently on the side observing.

Oftentimes, from confusion arises clarity if you are patient enough to sit and observe.

Kind Regards,
Chris Capre

Hello Chris,

Hope you are doing good. I saw one of your newly published article on your web and that was a very nice one. I created a separate thread to show that article with an intention to help newbies. Hope You are OK with that. You also can check this thread on the below link. Please publish more articles.

http://forums.babypips.com/newbie-island/50558-trading-not-fashion-contest-great-articl.html#post445068

Ha - seems we are playing tag now…just found that earlier and responded as I thought I was hallucinating this morning when I woke up and noticed the article.

Good to know I am not seeing things from not having my breakfast yet :-ooo

Kind Regards,
Chris Capre

How did you end up doing today Perry as the market offered some great opportunities on Silver, EJ, EU and a few others?

Kind Regards,
Chris Capre

Thanks for asking. Well I missed some opportunities and normally I don’t trade days like today with high volatility. I learned so many lessons in the past.My trading psychology not yet developed to trade during these times. So I would like to stay away from these kind of market situations. But I hope you got some nice pips. Happy pipping.

Hello Traders,

While a majority of the pairs have remained range bound, I have been focusing on Gold as of late, which is forming a pre-breakout squeeze on the 4hr chart.

Looking at the chart below, the pair has definitely come up against a clear resistance level in $1695 which has rejected the market several times since the 17th of this month.


You will also notice the 20ema carry and pin bar rejections on both sides. And now the squeeze is forming, suggesting a breakout is imminent.

I favor the upside, but am open to a failure of this and shorting as well towards $1684, but we should have our answer either today or tomorrow imo.

I’ll also have a few more posts of how I traded yesterday on the EJ and EU and banked about 100 pips during a range bound environment so stay tuned.

Kind Regards,
Chris Capre

Can you explain a little about your pair of XAU/USD. I looked up XAU and it said it was Phil gold and silver sector. How is it you playing against USD? Thank you for posting. This is interesting. I do see the squeeze yoyu were talking about. Good luck.

Hello Sono,

I am not sure what you mean about the 'phil gold and silver sector.

The XAU is the symbol for Gold when trading it vs. the USD. Most brokers (outside the US) have this available via a CFD, particularly on MT4 and other platforms.

In terms of how I am playing it, I’ll look for a breakout pullback setup if it manifests. Otherwise, i’ll watch intraday price action for a price action reversal signal to fade it back towards $1684.

Hope this helps and glad you are enjoying this thread.

Kind Regards,
Chris Capre

Hello Traders,

Gold just showed its hand, and is now testing a critical $1683 support as mentioned. If this breaks down, then we should see a further unwinding to 75 and 67 where I would consider getting long on the latter.

Note the bearish outside bar on the 5m chart which started a new counter-trend impulsive price action move, which then led to a series of bearish impulsive moves, followed by corrective moves.


Pretty clean price action on the 5m.

Kind Regards,
Chris Capre

Hey Traders,

Although I’m not totally convinced the GBPJPY has formed a short term bottom, it is showing some signs of it near term with a few pin bars and a HL (higher low) off the recent 139.50 area. First hurdle is 141, but after that, all clear for about a 100pips.

A failure below 139.24 opens up 137.90.

Chart below:


Kind Regards,
Chris Capre

Hi Chris, I can’t remember where you said this, but you mentioned somewhere the probability of an impulsive move being followed by a corrective move was 60%, is this correct? as I’m having trouble finding where you mentioned it :confused:

Thanks for the levels. I love to trade yen pairs.

Nice to hear that you took 100 pips on EU pairs. Unfortunately I couldn’t identify the direction properly. So I didn’t try any trade.