risky business—pinbar following a pinbar
Here’s a trade I’ve taken on the USD/CHF 4hr. Yesterday saw the pair retrace 50% of its recent downswing, which also tied in with an area of S/R at 0.9200.
There were a couple of bearish pins with decent sized tails rejecting the 50% and 0.9200 area which I took as a signal to short.
I put my stop above the pin highs, entered upon a break of the pin and placed a target at the next significant area of support. What do you think
Take it to 38.2% fibo thats the so called trouble area
1.Two bars are very small compared to bars before them.
2.The first green bar is not a pin (Don’t close in the bar before)
3.We have 3 higher lows.
That’s a not clear signal for me.
What do you mean trouble area? Yes there’s a little ‘traffic’ around there, but would the trade still not be valid? Price is rejecting a ‘round’ number (0.9200), a good swing retracement, decent price action candles and in line with the current trend?
There are only 2 higher lows?
For me, the PB looks insignificant. but the BRN 0.9200 should also be considered. And it looks like the PB was formed a bit above the KHL. So It’s no trade for me, but who will know where the market will go. Good luck.
EJ
I looked at that trade too. I didnt take it because price hasnt been below that level much before. It went below may to sept 2011 but thats it. Too close to the lowest ever low for me.
Dont know if this is the correct way of looking at it, im still a newbie, but thats what put me off.
Off-topic… BRN comes to forum (700 page), I will wait for confirmation… 
i base all my trades mostly on fibo lvls ,then i look for convergence…if its a fibo lvl that i wanna trade into, i will consider it thoroughly. also someone mentioned of the pin not being a+ either…
Hello!
First of all i would be glad if someone can answer my question posted on page 684 (post #6834). You obviously missed it 
To continue…
Yesterday BEEB formed on AUDUSD H4 chart. It seemed a good setup for me: large BEEB, recent downtrend + pullback at swing high.
The trade went straight against me and hit my stop loss.
Did i miss something?
thanks,
DC
I didn’t use fibo levels until now but I drew them on a chart and it seems they really act as support/resistance. The only thing I don’t understand from this thread too well is support and resistance. I find them too subjective. Hopefully the fibo levels will help me to draw more correctly support and resistance. What do you mean by “then i look for convergence”?
sorry. convergence between obvious s/r levels and fibo levels. if you can place them close to each other, u need not look any further, thats where the price will stop to “reconsider its further move” .in a major news free day anyways, it’s quite likely to.
Just to clarify. That bar does close within previous the bar.
nvm that…u didnt update the pic
I spotted this as well and thought it looked pretty good, so would like to hear what the pros have to say. I wondered if it struggled as it went though a round figure of 1.0300
- for me the BEEB is not at a swing high.
- it’s not a pullback
- it’s not formed at any KHL or resistance.
that’s just my opinion
EJ
This is covered extensively in this thread and also in first lot of pages. I have also just made another new article on this and it is Rule 1 when trading reversals. The first thing you look at!
When trading reversals you need to pick price to reverse… So trading a BEEB at a low is not looking for price to reverse but continue.
It means it is not a swing high, not sticking out, is not from a value area and you are entering when others are taking profit and leaving.
Look at where you entry is on the chart. It is at the extreme low of recent price on this chart, and not up high. Your picking a continuation and not a reversal and whilst continuation trading with EB’s can be done it is not something we cover in here because it is a lot more difficult.
Safe trading,
Johnathon