Forex Price Action

[Forex_School_Online]

@jayjonbeach

I’m just updating the situation here I posted back about 10 pages in the thread. Charts above from that post. Here is how I am playing it, quoted from about 9 pages back

Here are the updated charts, notice there was another smaller successful Head and Shoulders on the 2nd chart a ways back:

Heya,

Yes price did break out eventually like we thought it would.

I don’t have time to post much but I was about to post about this.

On the daily EURGBP I would like to see Price Action to go long where I have highlighted the chart!

Regards,

Johnathon

[Forex_School_Online]

I will be back around UK/US session tonight my time and will answer all the questions that are here when I am back.

Johnathon

[jayjonbeach]

@bhops

Hi JJ, yes Gold is definitely getting interesting.

I’ll attach a chart of how i would play it using Price Action. Bear in mind i am a very conservative trader and like to really stack the odds in my favour when taking a trade.

Firstly we can see that Gold appears to have resumed it’s bullish run so taking longs on the Daily would be in line with the overall and current trend.

Price has now moved up and tested what has been a fairly relevant Resistance zone. Rather than merely playing the breakout I will look for price to move a bit higher and then rotate nicely back to test the former Resistance and see if it is now acting as Support.

Hopefully we will then see a large Pin Bar or Bullish Engulfing Bar at this level as a signal for me to get in long. I’ve marked this level off my Daily time frame but when price rotates back to this zone I may even dial down to my intra-day 4 hour charts and see if I get a relevant PA signal.

I know Johnathon sometimes will go down to the hourly but for me personally 4 hours is as low as I like to go.

Attached is the chart, it is pretty self explanatory but if anyone has any questions just fire away.

Yeah, that there is a MASSIVE HEAD AND SHOULDERS Bottoming formation, with the “relevant zones” you have marked being the all important neckline, which broke about 10 minutes after I posted about it.

I am already long, and play these things much more aggressive since many times you do NOT get a pullback. Once it closes over the Neckline, which in this case was 1760, and on hourly normally good for me, I jump in and go for the ride.

I’m also not a big candle trader, too many times they turn out unreliable. I do look for hammers at the bottom, and shooting stars and/or hanging men at the top, but don’t take trades because of them. There has to be at least a couple more reasons, hopefully 3 or 4, on why I would take the trade and I certainly don’t wait for a candle to do it when the other things are in place. If the candle is there, at an important juncture, that is great and just puts another thing in your favour but for me personally, its one of the least important things I watch. Just my style that has developed over the years.

Cheers

p.s Note there is decent resistance at 1780 and it has already shot up to there and bounced off as I write this and put up what Johnathan would call a “pinbar”. It is also once again outside the BB and now heading back in. I won’t be at all surprised, if the whole thing reverses right here and and starts heading down, PAST the now the 1760 support level (I have a few reasons for my thinking here) and makes the whole thing a BIG fakeout. Just how these things go sometimes. At any rate, 1780 was my first target, I took 25% off the table, and moved my stop up to just under 1760 (it was already close, moved it closer). If it breaks above 1780 and closes above on the hourly, I will likely add to my position. If it breaks under 1760 and closes under it on the hourly, I’ll be shorting it.

[Forex_School_Online]

Yeah, that there is a MASSIVE HEAD AND SHOULDERS Bottoming formation, with the “relevant zones” you have marked being the all important neckline, which broke about 10 minutes after I posted about it.

I am already long, and play these things much more aggressive since many times you do NOT get a pullback. Once it closes over the Neckline, which in this case was 1760, and on hourly normally good for me, I jump in and go for the ride.

I’m also not a big candle trader, too many times they turn out unreliable. I do look for hammers at the bottom, and shooting stars and/or hanging men at the top, but don’t take trades because of them. There has to be at least a couple more reasons, hopefully 3 or 4, on why I would take the trade and I certainly don’t wait for a candle to do it when the other things are in place. If the candle is there, at an important juncture, that is great and just puts another thing in your favour but for me personally, its one of the least important things I watch. Just my style that has developed over the years.

Cheers

p.s Note there is decent resistance at 1780 and it has already shot up to there and bounced off as I write this and put up what Johnathan would call a “pinbar”. It is also once again outside the BB and now heading back in. I won’t be at all surprised, if the whole thing reverses right here and and starts heading down, PAST the now the 1760 support level (I have a few reasons for my thinking here) and makes the whole thing a BIG fakeout. Just how these things go sometimes. At any rate, 1780 was my first target, I took 25% off the table, and moved my stop up to just under 1760 (it was already close, moved it closer). If it breaks above 1780 and closes above on the hourly, I will likely add to my position. If it breaks under 1760 and closes under it on the hourly, I’ll be shorting it.

Are you using NY close charts? If so are you calling the bar on the 4hr a pin? Just seeing if I am looking at what you are looking at.

Thank you

[Vahagn]

Hi everyone!

Guys, could you, please, tell where you are looking Gold charts? I can’t find it on MT4 !

Thanks

Vahagn

[bitizhu]

Hello Vahagn,
Find New Chart -> Metals on your MT4. The Gold is XAUUSD.
Cheers

[Vahagn]

Hello Vahagn,
Find New Chart -> Metals on your MT4. The Gold is XAUUSD.
Cheers

bitizhu,

thanks for quick reply!
in my MT4 New Chart I only can see Forex…?!?

[bitizhu]

Check this PrtSc

[Vahagn]

@bitizhu

Check this PrtSc

Thanks for your post,

Who is your broker? I use FXDD and Alpari MT4… non of them have metals section !?

[bitizhu]

the Broker is FXDD

[Vahagn]

the Broker is FXDD

I use FXDD demo… maybe they don’t have metals on demo?!

[Spongybob]

Hey bhops and Johnathon

Hope to see you in your members section very soon. Doesnt seem like anyone in this site is too bothered about PA, well guess thats the 95% :54:

[bhops]

Hey bhops and Johnathon

Hope to see you in your members section very soon. Doesnt seem like anyone in this site is too bothered about PA, well guess thats the 95% :54:

Hopefully over time we can convert them from this indicator crazy existence they lead :20:

[Vahagn]

Is this could be a potential long entry set up, if price test back the support and form a BUEB or PB?

[Vahagn]

…or on this one…?
USDCHF Daily

[bhops]

@Vahagn

Is this could be a potential long entry set up, if price test back the support and form a BUEB or PB?

Yes ideally in these kind of set-ups we look for price to bust through a certain level (in this case resistance) and then rotate back for it to turn into support and give you a confirming PA signal to go long.

More often than not price WILL return to these levels and you will get a chance to play a pullback at a value zone. Patience is needed but keep this on your radar.

[Vahagn]

Yes ideally in these kind of set-ups we look for price to bust through a certain level (in this case resistance) and then rotate back for it to turn into resistance and give you a confirming PA signal to go long.

More often than not price WILL return to these levels and you will get a chance to play a pullback at a value zone. Patience is needed but keep this on your radar.

Thanks bhops,

…lt’s see …

[Vahagn]

On this one, for example if on the Daily chart in the end of the day we get a Pin Bar, could it be a potential short trade? PB on the resistance…

…or again wiser would be to wait the Price go through the Resistance, and pull back to Test it…

I have a bit of a hard time with this ones… there also is a PB on 1H chart

[bhops]

@Vahagn

On this one, for example if on the Daily chart in the end of the day we get a Pin Bar, could it be a potential short trade? PB on the resistance…

…or again wiser would be to wait the Price go through the Resistance, and pull back to Test it…

I have a bit of a hard time with this ones… there also is a PB on 1H chart

To be honest I wouldn’t trade this purely because the Price Action isn’t big enough. Overall you are trading with the trend but when price hits a really noticeable level like the one you’ve marked we generally prefer to see a LARGE PA signal to confirm us to go short.

This is something that Johnathon is particular in favour of, he really advocates trading those large bars as they tend to give the most reliable signals.

That’s not to say this trade won’t come off, but personally I would sit on the sideline and wait for a more compelling signal.

However I must say your levels here look well marked and I think you are really beginning to grasp the concept of what Johnathon is trying to teach in this thread.

[teb5108]

@Vahagn

…or again wiser would be to wait the Price go through the Resistance, and pull back to Test it…

I definitally would not go short on that one as it just broke the resistance although thats just the way I trade. I would be looking for a pullback to that previous resistance (now support) to go long (not the point you pointed too but the one below it.) Off course if it breaks the one you pointed out I suppose you could look for a long off of that point too, but it is not as strong as the lower.

Also on the 1H chart you posted it is in an obvious uptrend and thus you should be looking for longs there as well.