the USDJPY above.
regards
Nadeem
The USDJPY was a simple false break of a key level. In other words there was a proven resistance that priced moved up to and then produced a false break of the level and forming a very obvious Bearish Engulfing Bar.
thanks.
regards
nadeem
Gold has produced a Bearish Engulfing Bar at a previous resistance area on the daily chart.
If price is to break lower from here we could see previous support come into play in the next week.
Regards,
Johnathon
Iâll keep my eyes peeled on this come Monday. The signal is nice and big and leaves price some space to drop with really clear defined profit targets.
Now of course we donât know what the outcome of this trade will be but this is why I love price Action trading. Nice clean charts free of indicators and trading raw price.
Nice spot.
Hi,
I have been looking at your discussions and videos, thanks for the great info and discussions. I have a couple newbie questions:
-
When I compare your charts to mine, I notice there are differences in the details. Bars are slightly different, sometimes a rising bar on yours is a falling bar on mine, wicks are somewhat different, etc. I am using OANDA charts, but I know many use MT4. Is this variation normal?
-
When you are reviewing your charts, are you looking for the pattern and then confirm with support/resistance, or vice versa, or both?
Thanks.
Hello Galileo,
all questions are welcome. We were all new once and we are all new compared to someone else (Buffett) Haha.
Yes my charts are MT4 with a 5day candle and New York close. I use NY close candles as NY is seen as the unofficial close for forex markets around the world for the 24 hr period.
I do a lot of daily time frame trading so it is important to get the best info which the 5 dasy close NY candles give.
The difference you are seeing is the candle close time on all time frames such as 1hr, 4hr and daily. Price is still doing the same thing, however it is being represented differently in the shape of the candles. In other words if price is going up on your charts it is on mine however if your 4hr candle closes now and mine in 3hours time we are going to see very different things.
As for the second question. I plot my levels where I think price will react in a certain way. I then wait for price to reach this level and give me a Price Action signal to confirm my thoughts. So for example I may plot a support area and when price gets there I look for a long signals of this support to get long. Make sense?
Hope this helps. Safe trading,
Johnathon
Thanks for the super-quick reply. I thought timing of the chart data must be related to the variation. But I didnât realize there is not a âstandardâ time reference, e.g. New York close. I guess the indicators (patterns) are relative, and I may see patterns that lead to a move that donât show up on your charts due to timing of the data.
But it would be nice to see the same patterns. For example, the USD/JPY BEEB pattern you discussed wasnât as obvious on my chart (lacked the tall upper wick) I tried changing my timezone to New York (GMT-5), but I still have offsets in the start of the candlesticks (actually the patterns are unchanged, just the timestamps changed). For example, the daily bars are labeled as 21:00. For the 4-hr chart, the bars are set to the 0100, 0500, 0900, etc. time stamps. Should I be looking at other chart systems that allow me to shift this to be consistent?
Sorry, I know this is somewhat off topic.
Thanks.
Hey thatâs cool. I can guarantee someone else is reading this and thinking the same thing.
You can not set the timing of your charts. You can change the time you see however the broker decides on candle make up and closing times.
The other option is if you want to see the NY close signals I see, is setup a MT4 demo account which costs $0 and then you can monitor setups on demo and keep placing trades on your other broker.
Let me know if you wanât to do this and Iâll put you onto the correct demo as once again not all MT4 companies use the same candle close time!
Johnathon
Looking like the EURNZD may give us an opportunity to short soon if Price Action presentsâŚ
Safe trading,
Johnathon
Price Action Trading
Johnathon,
I noticed you often watch crosses like EUR/NZD. Is there a reason? pair behavior?
Do you always try to go with the trend, or do you watch for reversals as well?
Thanks
Hello Gal,
I watch a ton of different pairs. The ones I have shown here are just whichever ones I am watching at the time. Yes I always try to trade with the trend. Then within that trend I look for logical pullbacks
So the EURNZD I did end up shorting. I was up over 1.5/1 Risk Rewar as well and ended up getting stopeed at break even on the trade.
This was all from the same area I highlighted from the chart in my previous post in here. I will post a zoomed in chart of the EURNZD showing the trade of the small pin bar. This will not show the great area that the previous post will so to see the key area this was from please see the previous posts.
Here is a chart of my live sell below. I was up over 1.5 RR and locked in to Break Even to make sure no loss as I always do. I was looking for a little bigger kill on this particular trade here.
Safe trading,
Johnathon
Gal,
also Pin bar (pin bar reversals) and Engulfing bars are both reversal signals. This is why it is so key where you play them from i,e swing highs and lows etc. I donât have time right now but super important.
But just keep in mind find the area first and then find the Price Action.
Just judging the candle and resistance, that is a good looking setup indeed. Since there is such a nice upward trendline in place, if I were playing this I would play a break of that trendline.
Just my 2 cents
Thanks for sharing your ideas in the forum.
Heya thanks Jay,
I donât pay too much attention to trend lines myself but I donât have a problem with other using them. This one gave me a chance to take profit of the table and move to break even with in half hour of being in the trade.
You will see on the chart below a really obvious support area that I have marked. It was here I first targeted and was also worried price may turn so locked in profit and moved to BE. I was surprised how quickly price exploded to this area!
See chart:
Questions welcome
Safe trading,
Johnathon
Hehe following some explosions similar myself today!
Yeah sure enough it went down, tagged the support, and put in a pretty big doji after, failing to close below the trendline as well.
Are you planning to play it long if it breaks through that resistance level and follow the trend up?
Hey I donât doubt that for a secondâŚ
But when I say I donât us TL I mean I havenât seen the TL you are referring to at all.
Are you able to flick a chart up so I am better able to see what you are explaining please?
And no I wonât be entering long when it breaks higher. I donât take straight breaks. If it breaks and then retraces to this level I will be very interested to see what happens if this makes sense?
Hey thank in advance for that chart.
Johnathon
1 Like
Okay letâs see if these attachment pictures will work (havenât tried here at BP before).
Note the charts I used were hourly and 5 hour so I donât think the trendline lines up as nice as on your 4hour one shown.
Daily chart would suggest the resistance at 84 is quite strong, and a break would be significant for sure. Notice the very nice Head and Shoulders pattern as well.
Cheers
Jason
Hey great charts! They worked very well indeed!
I very much agree if a break higher happens a move could be quick to 85⌠How you looking to play this. AS I am not I would love to know how somoene else looks at things?
Regards,
Johnathon