I know that Johnathan say’s to trade in the direction of the trend and this trade wasn’t, but what I wanted to know is: - Was the 1hr BEEB a solid BEEB and a valid signal?
Hello Dudest) Thanks for the answer its so well detailed and easy to understand.And no need for the apologies i understand you got other things in your life.Just one thing is not clear in case of the presence of the BRN at the support area does the bullish PA candle needs to close above the BRN which means the bulls are in control and they are rejecting the lower price level?
You were trading with the recent trend on the one hour chart. We are looking at the chart we are trading for the current momentum/trends.
This was a super good level to short but very average BEEB. Very small and would have been better if engulfed the previous few candles as well. As it were it was stuck in price and not very commanding. The smaller the time frame the larger and more obvious the setup needs to be to avoid false signals.
Nice setup but where was the previous resistance area where the support breaks the resistance so we consider that the BEEB was formed at the logical resistance area?
remember one thing… if the level(R\S) u marked is important …then u can see the PA signal in lower time frames also…here we need to observe is…the area must be well respected in the past. thank u.
Scenario A -> same here (i.e, uptrend = higher highs and higher lows from left to right)
Scenario B -> same here (i.e, downtrend = lower highs and lower lows from left to right)
Scenario C -> same here (i.e, it is ranging)
For ending of trend: IMHO, not possible to ‘know’.
Best way to ‘gauge’ I think (using pure price action) is when the opposite starts happening to the highs and lows and when S/R’s start being broken in reverse direction
E.G: uptrend may be slowing down when:
price starts making lower highs and lower lows, AND
price starts breaking support, and not breaking the old support/new resistance upon retracement
Note that if the old support/new resistance was broken on retracement, then that could indicate that the uptrend was back (esp if again that support was tested and held).
==
Also, how much data should one plot on a chart in terms of number of hours/days/weeks/months before applying the concepts mentioned at A), B) and C) above.
Johnathon stresses on keeping things simple. Whatever time-frame you are on, the info on that chart in-front of you is sufficient to show you the [B]most recent trend/swing[/B] (which is what we are interested in)
==
Hope the above makes sense. That’s how I look at it.
In-case it doesn’t, throw up a chart and we can slice it up together until it makes sense
On AUD NZD the pin bar closed 3 pips below the previous bar’s low. So it’s almost a valid pin bar (smaller than the previous bar though).
On oil the space between the 2 key levels is smaller than the size of the pin (there wasn’t a substantial pullback). But it’s with the trend (so bigger potential to break the resistance). I’m not sure what to do in these situations.
Mmm, on weekly chart I have a pin bar… I prefer to wait see where will go the price if it break 1.59233 Im go short, other way is to continue up and if it break the resistance at 1.62163 then will wait for pullback.
I am new to forex and trading in general but I have been reading a lot about it over the past few weeks.
I have been working my way through the school and also browsing the forums and think that from what I have read in this thread PA really appeals to me. I have gone though the first 30 pages of this thread and it has been very interesting but my question is this, should I keep reading or would it be more beneficial to just strt reading the new posts as they come.
Thanks Johnathan for making everything sound so simple to understand.
