Forex Price Action

[Spongybob]

NZD/USD opened today with a huge gap, price is attempting resistance for the third time.

Will the gap be filled now that resistance is holding? We have an inside bar

[Forex_School_Online]

Here we have USD/CAD, its currently trading in a range since early Feb.

At the bottom of the range we have an inside bar, followed by a pin bar then current bar tried breaking the low. Is this a fakey bar setup? Very possible!

You mean the Hikkake pattern?

Hikkake Chart Pattern

[Spongybob]

Yip :8:

But I like to call it fakey as its SIMPLE!

[Forex_School_Online]

Let’s keep it the the really obvious Price Action.

Let’s ask ourselves this. If there is thousands of price action traders out there today why is there so few that make money?

It all comes back to trade selection.

Forget nearly all the IB’s.

Stick to the really obvious Price Action that sticks out like a sore thumb. So what if you only make 3-6 trades a month! They will be 3-6 winners a month.

I am serious! If you want to be a winner at PA trading you have to do the opposite of the next guy and that is pick better trade than them.

Johnathon

[Vahagn]

Vahagn,

here is a quick article that explains the make up of bullish and bearish engulfing bars a little better that may help you understand a little better. Engulfing Bare Intro…

Safe trading all,

Johnathon

Thanks, already checking !

Vahagn

[Forex_School_Online]

Not much round tonight for myself.

I will be back around come New York close or an hour after or so in the morning my time.

Safe trading to all and many pips to all!

Kind regards,

Johnathon

[Forex_School_Online]

Oh Kool just making sure on the same page as I personally don’t trade it.

Safe trading and night.

Many pips to you,

Johnathon

[Spongybob]

You are 100% correct Johnathon

Select your trades wisely. Im just trying to give people an understanding of PA at important levels, I havnt traded any pair today.

Happy trading all, Iv got a beautiful woman to entertain :32:

[Vahagn]

You are 100% correct Johnathon

Select your trades wisely. Im just trying to give people an understanding of PA at important levels, I havnt traded any pair today.

Happy trading all, Iv got a beautiful woman to entertain :32:

I wish you a Good luck !!!

[Vahagn]

Johnathon,
could you explain the Pin bar, please…I am not sure to know it right. Is it the Hammer candle?
Thanks

[dudest]

Hi peeps

What do you think of this one?

-> GBPUSD H4
-> Uptrend, followed by pullback (on resistance level), followed by (what i see as a ) bullish engulfing bar (BUEB) [also on the resistance level]

[dudest]

XAG/USD 4H

Saw the first BUEB yesterday, thought to wait, wish now i’d taken it
On to the next resistance…

[dudest]

@dudest

XAG/USD 4H

Saw the first BUEB yesterday, thought to wait, wish now i’d taken it
On to the next resistance…

Still for XAGUSD:

Double-checked on daily chart => there’s a bullish pin bar on 16th Feb. Pin bar nose going right through the (now) support, and signifying reversal to bullish side, which is same as the trend before pullback.

How i would have entered it ( corrections most welcome! )
BUY: 33.64 (10 pips above pin-bar high)
SL : 32.53 ( 10 pips below pin-bar low)
RISK: 111 pips

1:1 => 111 pips => exit @ 34.75

Think it’s still worth entering…

What do you guys think?

[Vahagn]

@Forex_School_Online

I will copy and paste a little bit for you in here. Then ask any other questions you have;

THE PIN BAR

The Pin Bar is a Price Action formation that can be found on any timeframe in any market. The Pin Bar or full name Pinocchio Bar, is given its name because the signal is lying to the market or tricking traders that price is going one way when in fact it is reversing back the other way.

The Pin Bar and in particular the better Pin Bars are the bars that stick out and are very obvious. The less well defined Pin bars and smaller Pin Bars are generally the trades we don’t want to be trading.

A Pin Bar must have:

• Open and close within previous bar

• Candle wick minimum 3 times the length of the candle body

• Long nose protruding from all other bars (must stick out from all other candles)

Bearish Pin Bar example

Pin Bars can be traded in all sorts of markets. Pin Bar formations are reversal signals. Often you will find Pin Bars are the signals that are produced when an existing trend is changed.

Bullish Pin Bar Changes the Trend

Pin Bars can also be traded with the Trend

Okay so that’s the basics the full article is here: Pin Bar Intro

Please keep in mind not all pin bars are created equal or just as powerful as one another. You will see people trying to play pins all the time. What is most important is where they form and the overall story they are telling. The pin itself does’t tell us a whole heap but formed from a key level is another story.

Safe trading,

Johnathon

Thanks a lot Johnathon

[Forex_School_Online]

@dudest

XAG/USD 4H

Saw the first BUEB yesterday, thought to wait, wish now i’d taken it
On to the next resistance…

Hey all,

Okay so I have to say this once and then I can be done with it. I will help as much as I can in here. Please people do not get peeved with me or send emails to me because I haven’t done something you like etc I am a super busy person. I want to build this thread and help as many people trade Price Action succesfully as I can. I believe in trade and believe in PA 100%. I did not invent anything I am teaching in here. I learnt everything I know from someone or something else! Yes I have put personal spins on things to suit how I like or how I personally see the market but there is no inventing the wheel here! Anyone who claims to invented anything price action wise is nearly almost always telling lies!

People must also understand this will also always come second to A) My trading and b) my members, but I promise I will always eventually get around to answering as best I can. I may not post live as that’s not fair on my members but I will help as very much as I can! I also love helping and the convos.

Okay so Dudest I will asnwer the GOLD BUEB question first and instead of giving answer I will give question! I think making you think could be more beneficial sometimes!

Have a look at my chart below. That bar looks similar to the bar you are calling a BUEB doesn’t it? Who are in control here? Would you confidently say the bulls are going to roar higher? Would you say this is screaming at you WOW this wan’t to go higher? If you could pick one trade would you pick this to go higher?

PS: You have already come a long way in just 24 hours after not even knowing what an engulfing bar was!

[Forex_School_Online]

@dudest

Hi peeps

What do you think of this one?

-> GBPUSD H4
-> Uptrend, followed by pullback (on resistance level), followed by (what i see as a ) bullish engulfing bar (BUEB) [also on the resistance level]

Okay so this one positive: With the trend, and yes it is a BUEB.

However neg’s: Not at a pull back (substantial pull back), Trading straight into key area or previous resistance.

Okay so it wouldn’t surprise me to see it go higher just because of the trend however traders do not want to get into the habit of trading these average signals into trouble areas.

See my chart. You will notice the area you would be trading right into and also where I have highlighted for a better pull back area for longs.

Johnathon

PS: The area you will see on my chart I have highlighted to go long doesn’t look logical as the chart is zoomed in. if you zoome your chart out and mark 1.5700 you will then see the area I am talking about.

Safe trading,

Johnathon

[dudest]

@Forex_School_Online

Hey all,

Okay so I have to say this once and then I can be done with it. I will help as much as I can in here. Please people do not get peeved with me or send emails to me because I haven’t done something you like etc I am a super busy person. I want to build this thread and help as many people trade Price Action succesfully as I can. I believe in trade and believe in PA 100%. I did not invent anything I am teaching in here. I learnt everything I know from someone or something else! Yes I have put personal spins on things to suit how I like or how I personally see the market but there is no inventing the wheel here! Anyone who claims to invented anything price action wise is nearly almost always telling lies!

People must also understand this will also always come second to A) My trading and b) my members, but I promise I will always eventually get around to answering as best I can. I may not post live as that’s not fair on my members but I will help as very much as I can! I also love helping and the convos.

Okay so Dudest I will asnwer the GOLD BUEB question first and instead of giving answer I will give question! I think making you think could be more beneficial sometimes!

Have a look at my chart below. That bar looks similar to the bar you are calling a BUEB doesn’t it? Who are in control here? Would you confidently say the bulls are going to roar higher? Would you say this is screaming at you WOW this wan’t to go higher? If you could pick one trade would you pick this to go higher?

PS: You have already come a long way in just 24 hours after not even knowing what an engulfing bar was!

Thanks for the feedback Johnathon.
I think i see what you mean.
In the pic i attached, and also in the one you’ve attached, the smaller body shows that the bears and bulls are fighting, and it doesn’t scream that bulls will roar up,…actually, looks more like some sort of fighting indecision… Thanks for the thinking question.

PS: I hope you didn’t think i was peeved at you, or that i was blaming you… I understand that you have your own things you’re doing, and also that your members come first. Sorry for any offence…

[bhops]

Hey guys it’s been a minute and I can see that this thread is really moving along!

I just wanted to post up a couple of Engulfing bars on the AUD/JPY 4 hour chart and show Price Action at work.

A couple of things, first just keeping it simple trading with the trend and waiting for pullbacks to get long.

On the 1st BUEB I had to be careful of some looming resistance overhead and moved to BE as soon as it got hit. Typically there will always be some levels you have to be aware of and this is where trade management plays its part.

On the 2nd BUEB we can see that that overhead resistance then turned into Support and gave us another lovely BUEB to get long! Really really simple stuff.

[Forex_School_Online]

@dudest

Thanks for the feedback Johnathon.
I think i see what you mean.
In the pic i attached, and also in the one you’ve attached, the smaller body shows that the bears and bulls are fighting, and it doesn’t scream that bulls will roar up,…actually, looks more like some sort of fighting indecision… Thanks for the thinking question.

PS: I hope you didn’t think i was peeved at you, or that i was blaming you… I understand that you have your own things you’re doing, and also that your members come first. Sorry for any offence…

Hey mate,

no you took me the wrong way. I wasn’t directing at anyone.

Anyway let’s get right back to price action.

Yes as you said the bar you pointed out on gold is more of an indecision bar than a bar that is telling us it wants to go higher. So yes it worked out but don’t kick yourself for nit trading that. In fact do the opposite and pat yourself on the back for not taking such a rubbish setup! We need to get into the habit of taking only the best setups!

Okay so when trading engulfing bars we want the price to finish in the last 1/3 of the direction we wan’t to trade. So for clarification please see the chart.

So in the following chart we have a Bullish Engulfing Bar. Notice it closes in the top 1/3 of the candle. This is what we want.

Johnathon

[Forex_School_Online]

@bhops

Hey guys it’s been a minute and I can see that this thread is really moving along!

I just wanted to post up a couple of Engulfing bars on the AUD/JPY 4 hour chart and show Price Action at work.

A couple of things, first just keeping it simple trading with the trend and waiting for pullbacks to get long.

On the 1st BUEB I had to be careful of some looming resistance overhead and moved to BE as soon as it got hit. Typically there will always be some levels you have to be aware of and this is where trade management plays its part.

On the 2nd BUEB we can see that that overhead resistance then turned into Support and gave us another lovely BUEB to get long! Really really simple stuff.

This is some really awesome trading! They could both be classed as 2bar’s or BUEB!

Nice work