ElectroFX Pure Price Action Trading

[SIM0N]

Looking forward to following this thread, nice simple explanations so far.
I am very keen to learn to read confirmation candles better. I started off with a demo account then thinking I was ready, went live. I soon realised that although I was able to pick retracement areas quite well, I would continue to enter trades randomly hoping to catch more of each move. Needless to say it wasn't long before my small account was wiped out and I am now back once again to trading demo, determined to learn a more disciplined and controlled approach to my trade entrys.

[dxchen]

i have read all your post, not bad trading with TL.
people lost because they didn't trade larger TF, and they scalping most of the time. If they look through larger TL, they know the current trend, they most probably can make some pips. if market reversal, we have SL to preserve our capital.

[DreadTrade]

Great thread. I am a fan of using naked charts.
I'll try your system with forex tester.
Can I post my trades and their results here?

[grudovz]

Great thread. I am a fan of using naked charts.
I'll try your system with forex tester.
Can I post my trades and their results here?

I would greatly appreciate it; even more so if you could PM me or mail

Still have not bought the tester and have no reliable way to backtest strategies...

[Lordofpips]

Try reading Al Brooks, he's quite the expert....I found that his methods translate quite well from futures Fx, just have to increase time frame out such as 1 hourly charts rather than 5 minute charts.

[anishfx]

Great thread, i shall be around.. Thanks for the info..

[efxpa]

Contact me for a free video course... same goes for anyone following this thread because I am not sure when I will feel like typing alot again Like this thread and then PM me

Great thread, i shall be around.. Thanks for the info..

[efxpa]

It seems I take too many holidays and have never really got back to this thread If there is still anyone following this one then post away and I will do my best to continue it some more.

For now let's start with a little chatter about the concept I have outlined so far and try and pick up where I left off. The best way to describe this style of using price action to trade would be "Evidence Based Trading". NO guessing, just reacting to the the evidence available to you. By this I mean proof of an area of Support/Resistance existing and then proof that the area is once again holding with good market structure behind it. This evidence based approach is then also used to judge the risk/reward potential before you enter the trade, which therefore also then gives you your Stop Loss and Take Profit if all systems are go. This does not mean you will win all your trades but it does mean you will win more than you will lose and it also means that you will usually have larger profits than the losses. Tipping the scales well in your favor.

So, thus far we have used the non-repainting naked price action evidence that you can see on your chart for the following:

1. To understand the current swing flow/market structure
2. To decide on the next potential areas of SR that the current swing flow could turn
3. To get a trigger at one of those SR areas so that you can confirm the area is holding
4. To then get your entry point and judge your risk:reward to make sure it is even worth it
5. To naturally then have a pre-planned unquestionable stop loss, take profit and break even point.

Certainly it is never easy to explain things in words but I will continue on next with some more pictures that explain each of these points even more than the ones I posted in this thread previously.

[efxpa]

Let's understand my previous post with 2 images now, the first is a look at the main market swing flow of this H4 chart scale (Green-Swing1), the next is a zoom further in to look at the faster scale of swing activity and structure (Turquoise - Swing2).

So, thus far we have used the non-repainting naked price action evidence that you can see on your chart for the following:

1. To understand the current swing flow/market structure
2. To decide on the next potential areas of SR that the current swing flow could turn
3. To get a trigger at one of those SR areas so that you can confirm the area is holding
4. To then get your entry point and judge your risk:reward to make sure it is even worth it
5. To naturally then have a pre-planned unquestionable stop loss, take profit and break even point.

There are many more trades on this chart than I have pointed out in the picture but let's start with these really obvious ones to cover a variety of them... all based on evidence.



In this first trade you see an area created by swing 2's high returned to after a swing 2 lower low.
The swing structure shows you a down trend on that Swing 2 scale and a lower low was just made.
The area was reacted to very precisely and a nice pinbar formed.
So now before you enter the trade you know several things.

• It is not following the trend of swing 1 but it is following the trend of swing 2 so all of the management decisions will be made with swing 2.
• The previous swing 2 high gives you the area you are trading and therefore your stop loss.
• The break of the pinbar gives you your entry point.
• You now know your risk and the most conservative reward you can assume will be a higher low on swing 2

So as you can see without guessing you are just reacting to what is happening and the evidence laid out before you... the area of resistance was created, returned to, and reacted again via that pinbar to prove that you are not alone in thinking that is a good area. You now have the probability of the trade working out well in your favor.

The trade is also worth it on the risk:reward side of things because you really can expect a lower low on swing 2. If you do then 1:3 risk:reward is available but for the conservative trader this fact means that targeting a higher low is very safe indeed. The conservative higher low will still yield you 1:2 risk:reward.

As the Trade progresses more evidence shows you an area that it stalled at being broken and a safe time to lock in a 1:1 level of profit in case your target is not met.

I will go over Trade 2 tomorrow

[gs8888]

So it's basically, We wait for the previous swing high or low to be taken out to consider market flow is bearish or bullish ? Which then comes to HH LH structure at key levels ?