Price Action That Matters
Page 1 of 375 1 2 3 11 51 101 ... LastLast
Results 1 to 10 of 3744
  1. #1
    Join Date
    May 2013
    Location
    Iowa, USA
    Posts
    1,387

    Default Price Action That Matters

    Welcome to Price Action That Matters!
    Last edited by krugman25; 08-01-2016 at 04:02 PM.

  2. #2
    Join Date
    May 2013
    Location
    Iowa, USA
    Posts
    1,387

    Wink Schedule and Rules

    Quick Navigation (links to key articles and discussions)

    Method Basics
    Article - "Step 1: Identifying a Trend"
    Article - "Step 2: Finding Key S/R Areas"
    Article - "Step 3:Watching for Price Action at Key S/R Levels"
    Article - "Part 1: Retracement Techniques"
    Post - "The 5 Star Rating System"
    Post - "Pairs I trade"
    Post - "Trading Rules For Pinbar, Engulfing bar, Inside Bar, Morning/Evening Star, 2 Bar Patterns"

    Price Action Candles
    Video - "How to Identify Market Structure and What a Pin Bar Is"
    Video - "Price Action Pin Bar Tutorial #2"

    Price Action Patterns
    Video - "Price Action Flag Pattern Tutorial"
    Post - "Bearish Flag (Entry/SL Techniques)"
    Post - "Broadening Top"

    Support/Resistance
    Post - "Noise On the Charts"
    Post - "What Time Frame To Apply EMA's"

    Trade Management
    Post - "Warning Signals DURING a Trade"
    Post - "Take profit techniques"
    Post - "How to Move Your Stoploss"

    Money Management
    Post - "Fixed % Vs. Fixed $"
    Post - RR Calculation

    Trader Psychology
    Post - "Reduce Emotional Drain From Trading"

    Market Psychology
    Video - "Why Pin Bars Form"

    Trading Plans/Journals
    Member Contribution - "Sample Trading Plan: Template #1"
    Member Contribution - "Sample Trading Plan: Template #2"

    Notable Chart Analysis
    Post - "Pin Bar H3"

    4-5 Star Chart Setups
    Post - "USDSEK - Double Bottom Retest + Inside Bar False Break - 4 Star"
    Post - "CADCHF - Rising Wedge Pattern - 4.5 Star"
    Post - "GBPCAD -Multiple Pin Bars - 4 Star"

    3 Star Chart Setups
    Post - "NZDJPY - Resistance Turned Support Pin Bar - 3.5 Star"
    Post - "GBPCHF - 2 Bar Reversal - 3 Star"

    Misc. Articles
    Post - "Why most Price Action Guru courses DO NOT work"
    Post - "What To Do When You Are Losing"
    Post - "Times When PA Trading and Retracements Don't Work"
    Post - "The Affect Of News On Price"
    Post - "When Price Stalls Right Before TP"
    Post - "To Trade Or Not To Trade During News"

    FXCM FAQs
    Post - "Removing 20 symbol limit"


    Upcoming Articles:

    Part 2 of Retracement Entry Techniques
    Trading Inside Bars
    Trade Management

    Rules

    I want to make sure this doesn't become a run-away thread and lose its value as an educational tool in price action trading, so I want to lay out a few rules and try to focus on the most important aspects of price action. I will also try and create a standard set of terminology to use for the sake of keeping the thread as uniform and easy to read as possible. The rules of the thread will continue to develop and grow as things unfold here. To make it simple, if it isn't in the approved list, then we won't discuss it. If you think something should be added to the approved list, then please private message me about it and I will decide if it should be added.

    Topics Discussed Here
    1. Price Action Candles
    2. Price Action Patterns
    3. Finding Key Support/Resistance Areas
    4. Volume Analysis
    5. Managing Risk/Reward
    6. Stop Loss, Entry, Profit Techniques
    7. Trade Management(Pyramiding Into/Out of Trades or Holding Flat)
    8. Money Management Methods(Fixed $ and % Risk)
    9. Trader Psychology
    10. Market Psychology


    Things we DO use:

    Price Action Candles(in no specific order):
    *Pin Bar
    *Hammer
    *Inside Bar
    *Engulfing Bar
    *Two Bar Reversal
    *Morning Star/Evening Star

    Price Action Patterns(in no specific order):
    *1-2-3 Reversal
    *Bull/Bear Flags
    *Ascending/Descending Triangles
    *Ascending/Descending Channels
    *Double Tops/Bottoms
    *Triple Tops/Bottoms
    *Bull/Bear Rectangles
    *Rising/Falling Wedges
    *Pennants

    What Matters(S/R key areas) (in order of importance):
    *Horizontal S/R
    *Diagonal S/R (same as a trend line)
    *Channels
    *Fibonacci (50% and up)
    *EMAs(8, 21)

    Things we DON'T use:

    1. News - we only keep our eye on major news events to track potential trade risks
    2. Indicators(other than specific EMAs) as they don't provide any extra benefit to trading price
    3. Any price action candles and patterns not listed here
    4. Pivot Points
    5. Fibonacci levels below %50


    Other thread/method requirements

    Trade Requirements:
    1. A valid price action signal must have formed, this provides the entry signal
    2. These price action signals must have formed at key S/R level(s)
    3. The trade must provide at minimum 1:1 RR, preferably 1:2 or higher
    4. The signal must not have formed in a choppy or noisy area of price
    5. At a minimum the candle must be the size of the previous candle, or fairly close


    Chart Requirements:
    1. Candlestick charts only
    2. Must be New York close
    3. Can only show thread approved PA candles, S/R tools and volume.



    Trade Quality Measurement(The 5 star system): As long as the trade requirements are met, the setup is now "tradable". Not all trades that fall within the core requirements are of considered high quality though. I tend to filter out trades I deem as lower quality, and I may increase or decrease the amount of money I risk on a trade depending on its quality. It's important to have a system of rating the quality of your trade. Here we will utilize a 5 star system. A 1 star trade merely falls into the core requirements but may have other poor qualities increasing the risk of the trade. A 5 star trade is one of highest quality, is a perfectly formed price action signal with great RR and very little resistance along the way. Although most trades will fall in the 1-3 star range. Remember that measuring the quality of a trade can be very subjective, so if you don't agree with someones rating of a setup, you can respectfully ask them to expound on why they gave their setup a certain rating.

    Name:  Star Ratings.jpg
Views: 17105
Size:  24.9 KB

    Personal Trade Filters:
    After I find a trade that meets my core requirements I then run it through my personal list of filters that are apart of my trading method. For you as a trader, your filters may include no counter trend trades, no inside bars, or avoiding NFP. You may also filter out trades that are too low in quality(I.E. 1-3 stars). There are many filters a person can use to make sure they are taking the highest quality trades with the best edge. Here we will teach you about all of the dynamics of a trade and then you can make an educated decision on how you want to filter your trades.

    Timeframes: 30 minutes and up

    Approved Currency Pairs: Price action occurs on all financial instruments such as currency, precious metals, indices and stocks. I am not picky on what currencies I watch as they almost all produce good price action. I don't try and get to know the currency or the news behind the currencies, I just want to be watching for price action signals at key PA levels. Finding price action generally takes less than a minute on any candlestick chart.

    Trade Posting Requirements: You are allowed and encouraged to post questions, join discussions, answer questions and post trade screenshots. When posting information about a trade you "must" have a chart showing the trade being discussed with stoploss, entry and take profit clearly labeled. You must also post your opinion of the quality of the trade using the 5 star rating method. This is for your benefit because it will help you begin viewing your trades as unique and of different quality. Others will also benefit from this because they can ask you why you are rating your trades a certain quality. This will help create healthy educational discussions about trade setups. You must also provide at a minimum, a simple list of pros and cons of the trade you are posting. Remember though, the more detailed your analysis is of the trade you are posting the better. Not only will writing the commentary help you learn, but thousands of others will also read your post and learn from it.
    Last edited by krugman25; 02-20-2014 at 01:12 AM.

  3. #3
    Join Date
    May 2013
    Posts
    17
    Wow how encompassing and fantastic this thread sounds I can't wait to see what comes of it.
    -I've heard a lot of people use the 50 EMA as dynamic S/R, but can you explain why you use the other moving averages?
    -What TF's do you trade and why?

  4. #4
    Join Date
    Jul 2013
    Posts
    16
    cool, I'm impressed. I'm a Christian, husband, dad, mentor, manager, trader, in that order - mentor barely deserves to be in there because I have so little to teach, but I have tackled other peoples' problems with them a few times...

    As a trader, I have tried it all... I love entropy and chaos theory and the way it can describe creation, so technical trading and fractals etc was my first shot. I failed because the market is too complex, as is the human condition (greed / fear, etc). I have started to realize price action (especially in analyzing the daily candles) is an accurate description of the psychology of the larger population, and it all falls into place. I did pay to sign up for dnb forex price action but every discussion helps to understand, so I hope this thread will go far.

    Whenever you help someone, at worst you learn about what you're doing and at best some good comes of it for both of you. I'll be following this thread with interest.

  5. #5
    Join Date
    May 2013
    Location
    Iowa, USA
    Posts
    1,387
    Quote Originally Posted by charlietrading View Post
    Wow how encompassing and fantastic this thread sounds I can't wait to see what comes of it.
    -I've heard a lot of people use the 50 EMA as dynamic S/R, but can you explain why you use the other moving averages?
    -What TF's do you trade and why?
    Your the first poster, congrats! Welcome to the thread. I think it will become a great hub for people wanting to learn price action. The 21, 50 and 100 EMAs I believe are the most widely used and the market often reacts to these levels. EMAs themselves are just ways for people to measure to strength and direction of a currency compared to what it has done historically, but enough traders use them and trade off of them that they really can become key areas of S/R in there own right. The 21 EMA is mostly a short term EMA, and really shines in a strong trending pair. It can help you jump the momentum at the best price. The 50 and 100 EMA are more longer term EMAs that a longer term traders tend to watch. Again this is proven by how often price reacts to these levels.

    I stick to trading H1 and higher although I can't remember the last time I took a H1 trade, primarily H4 and D1. To understand why I believe 1 hour is the lowest you should go you first have to know what is moving price at any given moment, which could be news stories, day traders, EAs, banks, large corporations converting money, etc. There really are a ton of things that move the price around. Going lower in TF is like taking a magnifying glass and amplifying the effects of all of the little things that move price. Everything I just listed is noise, and as PA traders we don't care about any if that. We are watching for areas where the overall supply/demand is shifting among investors. We receive those signals from false breaks that occurs at key levels. The key support and resistance levels tell us historically where the market supply and demand has shifted, and the price action false break give us the actual signal that momentum is shifting. By zooming out of the market we are smoothing out the noise and seeing supply and demand at its purest. An 8 hour candle encompasses a whole trading session and tells us how price started and ended in a given session, a daily signal gives us a better idea of the price story as all of the worlds major markets have weighed in on the price in that candle. At the end of the day we don't care if corn crops are down in South Africa, or if Apple converted 5 billion USD to CHF, or the jitter from a million EAs auto trading, all of this will kill your account because all of these little noisy things will stop you out. We just want that pure price action and to be trading with those shifts in supply and demand.
    Last edited by krugman25; 10-05-2013 at 09:49 PM.

  6. #6
    Join Date
    May 2013
    Location
    Iowa, USA
    Posts
    1,387
    Quote Originally Posted by UncleSteve View Post
    cool, I'm impressed. I'm a Christian, husband, dad, mentor, manager, trader, in that order - mentor barely deserves to be in there because I have so little to teach, but I have tackled other peoples' problems with them a few times...

    As a trader, I have tried it all... I love entropy and chaos theory and the way it can describe creation, so technical trading and fractals etc was my first shot. I failed because the market is too complex, as is the human condition (greed / fear, etc). I have started to realize price action (especially in analyzing the daily candles) is an accurate description of the psychology of the larger population, and it all falls into place. I did pay to sign up for dnb forex price action but every discussion helps to understand, so I hope this thread will go far.

    Whenever you help someone, at worst you learn about what you're doing and at best some good comes of it for both of you. I'll be following this thread with interest.
    Hey Steve, it sounds like you are already starting down that journey of learning price action. For some people it is the first thing they ever learn and for others it's a long road of indicators and systems. I hope this thread can become a good source of learning PA for you. I do think there are some great "pay for" methods out there, but they are few and far between. I hope it is worth the money. Overall I have found very little that pay for systems/methods offer than I wasn't able to find on my own doing some google searching. My ultimate goal is that free sources of price action education become more common, such as this thread and the blog I run.

  7. #7
    Join Date
    Jun 2013
    Posts
    31
    Hey Kurugman,

    I have always admired your intellect on PA. And willingness to give newbies your wisdom. I have been into forex for little more than 6 month now and luckily happen to start with PA after finishing babypips school.

    Being a pupil of PA. I would like to get the knowledge it doesn't matter which teacher it come from. My ultimate goal in forex journey is to understand PA and then trade whichever PA way I will be comfortable with.

    Furthermore, I would suggest you keep a few reserved post at the beginning of the thread so in the future if this thread takes off there is somewhere where you can post important information.

    Hail PA.
    Cheers,

  8. #8
    Join Date
    Mar 2013
    Posts
    295
    Wow. Nice to see that you have your own thread. I am the follower of Mr. J thread and always hope to learn more new things.

    I personally did use morning/ evening star . And hope to learn more about flag pattern here.

  9. #9
    Join Date
    May 2013
    Location
    Iowa, USA
    Posts
    1,387
    Quote Originally Posted by boynep View Post
    Hey Kurugman, I have always admired your intellect on PA. And willingness to give newbies your wisdom. I have been into forex for little more than 6 month now and luckily happen to start with PA after finishing babypips school. Being a pupil of PA. I would like to get the knowledge it doesn't matter which teacher it come from. My ultimate goal in forex journey is to understand PA and then trade whichever PA way I will be comfortable with. Furthermore, I would suggest you keep a few reserved post at the beginning of the thread so in the future if this thread takes off there is somewhere where you can post important information. Hail PA. Cheers,
    Hey Boynep, it's good to see you here! There is no doubt that PA is all you will ever need to know to become a successful trader. While it is fairly easy to learn, it takes a lifetime to master. I like to believe that I am just getting started in this journey, and have plenty of room to grow and perfect my trading. With your experience in PA I think you could could provide a lot of value here. I hope to see you around more.

    I was going to try and create a 3rd post and reserve it for when the thread grows but by the time I finished the first two posts people already started commenting, haha. Oh well, I have my first post for introductory and my second for rules and guidelines.
    Last edited by krugman25; 10-05-2013 at 11:38 PM.

  10. #10
    Join Date
    May 2013
    Location
    Iowa, USA
    Posts
    1,387
    Quote Originally Posted by shane View Post
    Wow. Nice to see that you have your own thread. I am the follower of Mr. J thread and always hope to learn more new things. I personally did use morning/ evening star . And hope to learn more about flag pattern here.
    Shane thanks for stopping by. Johnathon has a great thing going over their and it is a beast of a thread but I felt it was to restrictive, both in the method he teaches and the fact the tread is only the absolute basics. I will get a feeling for things here once the thread starts moving but I think we can strike a good balance for both beginners and the more experienced traders.

    I love the morning/evening star setups, especially at the lower timeframes(1H and 4H). The high and tight flag is my favorite pattern and helped me achieve a 1:18 RR for a profit of 95% a few months back. That high RR only happened because two high and tight flags formed during the trade and signaled me to not only keep the trade open but helped me to decide to pyramid into more positions. I closed the trade with twice the positions than when I entered, and my account had almost double in 4 days. It was price action at its best!
    Last edited by krugman25; 10-05-2013 at 11:40 PM.

Forum Sponsors

Similar Threads

  1. Price action
    By allinger in forum Free Forex Trading Systems
    Replies: 11
    Last Post: 05-29-2015, 03:34 AM
  2. Figuring entry/exits..Price action, S&R's
    By ahefner33 in forum Newbie Island
    Replies: 3
    Last Post: 04-26-2013, 11:37 AM
  3. Near Term Price Action Indicates Reversal Potential
    By DailyFx in forum The Analyst Arena
    Replies: 2
    Last Post: 03-16-2013, 12:55 AM
  4. Replies: 0
    Last Post: 06-22-2007, 06:11 PM
  5. Replies: 0
    Last Post: 05-11-2007, 05:21 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
"He is foolish to blame the sea who is shipwrecked twice."
Publilius Syrus