I don’t think there is a right or wrong answer to this but I’ll tell you how I do it.
I wait for price to get close to the zone I have marked on the Daily. I tend not to play the 1 hour chart but I certainly play the 4 hourly. So in this example I wait for price to get near the zone you have marked and if a large BEEB on the 4 hour occurs at this level I will use it to jump in.
If not I wait until I see the Daily play out and maybe it ends up making some nice PA to get me short. Either way I wait until it gets near that relevant zone marked off the Daily. Makes sense?
I find those zones that you mark off either the Daily or even the Weekly carry more weight that zones we mark directly off our intraday charts.
Hi Johnathon. Suppose you see similar setups in two currency pairs at the same time (for example, you may see an inside bar form in the EURUSD and the USDCHF as happened yesterday). Do you trade both pairs on their own merit i.e. if your risk management stipulates you risk 2% per trade, do you risk 2% on the first pair and another 2% on the second pair? Or do you split your risk and trade 1% on each pair? Or do you simply trade the pair that provides the cleanest setup? I’ve been leaning towards the latter but am interested in your view. Thanks!
I have been travelling all day and now just got back into the office. There is about 1,000 questions in here and as usual I will attempt to answer all very soon after I have taken care of other priorities and seen to my members etc.
As for charts. I use New York close charts. I have had a few email/msgs about this so below I will put the link for all to see.There are a few brokers that do this. I also use MT4 as it is simple and can do most things.
To download a free demo of the charts you can go here: [B]NY CHARTS[/B]
Hi there I am new to the world of Price Action & I would love some pointers…. I am fairly competent with reading charts so I understand most of the examples given in the posts. But I have some huge holes in some of the real basics……
First & foremost, Time Frame. What chart should I be looking at?? Most of the examples given are on the 4 hour. There are some on the 1h & 12h & Daily. Is it fair to say that I should not try to trade anything less than 1h, & as a beginner should I stick to the 4h?
Pairs. What you are teaching is pattern recognition, so I understand it can be applied to any currency pair, but are there any safer bets, any that behave as anticipated more often than not??
Candle Sticks What are the important candle stick formations to look out for?? People talk about Pin bars & Engulfing bars are there any others? What are valid examples of these.
Hello and welcome. As I have said above I don’t have the time tonight to answer questions in here, but I will when I can tomorrow. Have you read the first few pages of this thread? These first pages explain a lot that may help you. Also two basic articles on Price Action which I have put in here a few times can be found here: [B]Price Action intro[/B] and S[B]tarting your Price Action trading career[/B]
Hope this helps you. Now of and will be in here at NY close morning time for me and i will begin to reply to the backlog of questions.
-> Is it with the trend? YES (downtrend)
-> Is it occurring at a relevant Support or Resistance zone? YES (support turned resistance)
-> How big is the PB? TAIL extends much higher than previous bars; body is within previous bar
-> Is the PB from a pullback within a relevant trend? YES
-> Conclusion: good probability for success
AUDCHF -> PA signal seen: bullish engulfing bar (BUEB)
-> Is it with the trend? YES (uptrend)
-> Is it occurring at a relevant Support or Resistance zone? YES (resistance turned support)
-> How big is the BUEB? STANDS OUT from surrounding (previous) bars
-> Is the BUEB from a pullback within a relevant trend? YES
-> Conclusion: good probability for success
Here is CADJPY chart we discussed 2 days ago. Note that price did not close in the last 1/3 of the candle to make it a tradeable BEEB. Also by price closing well of it’s session lows it was indicating that the end of session found bulls back in control.
This smallish pin did work out however def not for me as way to small and I was looking for a bigger pullback. In saying that it was with strong trend.
So don’t beat yourself up. This is a learning trade that heavens knows I made a heap of when I was learning what I should and shouldn’t trade. Hopefully after this post you will realise a few things for next time.
Okay so the reason this was a never trade setup is because of the size and just lack of conviction. Strictly yes you could call it a pin bar as it did have a wick that was 2/3 size of the body and yes it did open and close with in the previous bar but on the chart below have a look at the size of some of the other bars compared to this tiny little bar you chose to trade.
Notice the very nice LARGE and obvious pin at the swing high and see the difference between the pin you chose to trade?
The last point is notice just how bearish this closed. Okay so pins don’t have to close a certain way but in this case the close of how low it finished was a clear warning sign. To make my point if this had of closed and finished with a bullish close the bar would look completely different and be telling us a different story. keep in mind it is all about what price is telling us and what story we are being told about the level and the price action. In this case price was telling us that it had no conviction it wanted to go higher.
Once again do not beat yourself up and instead look at this as a blessing. As I say repeatedly these sought of rubbish pins form all the time and the are sucking in traders all over the place. It is your job to be better and more selective.
This does happen from time to time and mainly on pairs like the JPY’s. In other words if one JPY forms a pin quite often most of the others will also.
I either do one of two things.
1: I pick the best setup depending on-
The best area to trade from
The cleanest PA
The trade that will give best risk reward
2: If i cannot choose between two then I open both trades and halve the risk. So for example If I was going to trade two JPY’s and my normal trade size for one trade was 2%. Instead of risking 2% on each trade (example figures) I would risk 1% on each of the trades and would be trading two pairs but effectively only risking the amount of one trade.
You sound like you are getting confused. The best way to stop this is keep things simple and try not to over think things. Really!
Okay so your first chart looks good and you are starting to build a solid base to watch for price action. Your next step after decising you want to short and you know the area you want to get short is to either wait for price action on the 4hr and daily chart.
Until you have become profitable on the daily and 4hr charts for many months please for your own good stay away from the 1hr charts and below. They will eat you alive with there whipsaws.
All you must do now is watch and wait for price to retrace to the area you have marked. If price gives you an obvious signal to short on the daily or 4hr do not wait, enter the trade based on your plan as the market has given you what you want. When I say do not wait I do not mean enter straight away, I mean do not wait for something else to happen.
This make sense?
So for me I will attach a USDCHF 4hr chart of what I am looking for. This is a live chart with price added onto it, so you are seeing the exact same area that you have pointed out only I have added some price to give you an example of what an A+ trade would look like in this example before it happens.
The GBPCAD trade was just trading into too much traffic for me. At first it did get my attention however trading into that many layers of support can be difficult. In saying that it would not have been wrong to enter and If i had I would now be out. I either would have taken 50% or just been stopped at full break even. The reason being is of how I anage trades. i am not going to go to far into this as It can get difficult and I think its best if we stick to spotting trades ( at this stage at least) but after the pin broke lower it went to the most recent support area. When this was hit I would have either taken profit or moved whole position to break even. I would have done this to protect capital and as I said there is stacks of support to get through. Saving capital is number 1!
As for the AUDCHF, it has not broken higher yet but it will be interested to see what it does when if it does. This is with the trend and should look to go higher if it can get a riggle on…?
