Forex Price Action

Again, whilst I don’t speak from experience of a seasoned trader that is earning a primary income from trading, I speak from the experience of someone that has only just (after 2 years) stopped chasing trades and looking for setups out of nothing. Stick to the daily time frame, and be happy with 3-10 A+ setups across 10 or so pairs per month.

Once you can discipline yourself to do this… your trading (as I am sure mine is) will improve 10 fold.

GG

nice one pamsboys…
i am really waiting to hear from what johnathon bhops or dudas think about this one.
for me i have looked at the daily chart and the 4 hour chart.

here is a pic of the 4 hour chart.
im not sure about my resistance line.



from my 4 hr usd cad chart it looks like there is a pin bar trying to penetrate unsuccessfully resistance.
and then there is this current indecision bar.

i believe that at this stage any trade would be a short. so you are selling away from resistance.
but i like it i dont know if this is what johnathon classes as A+…maybe this is a B…id like to hear other people ideas on the matter.

i think wait for current 4 hour candle to close and maybe consider entering as price retraces back beyond the bottom of the indecision bar…or if johnathon doesnt think highly of it then just forget it…and wait.

only problem why i dont think it is A+ is because you would need a long stop loss just in case prices try and push through resistance again.

After reading again some of the post here(samples of A+ trades) i notice its not a A+ because it lack of space… if it breaks heavily downward and return to the previous support and form a pin bar … i think thats a A+ trade …

also A+ trades can be spot easily :)… try to look at some post here like the samples of A+ its so obvious and simple :slight_smile:

Hey, I’m not Johnathon or Dudas but i can post what i think about this chart. The price stuck in blue zone and we must wait for break support or resistance and than wait for good pulback and nice PA sign. Than will be A+ setup. For now i do not know what is this and where the price go. Wait for price move and let the market decide of direction. In this method patience is a virtue.

Cheers.


Thank you. I was looking at these charts just to practice the techniques being discussed. I will try to post screens to keep the focus on the charts till I improve my post count to be acceptable for a generous response.

Hello,

there is no trade here at all. Firstly we don’t have a Pin Bar because pins need to open and close within the previous bar and secondly and most importantly this is at a LOW and not at a high like it should!

We do not sell from a low and hope to buy lower. We buy low/sell high, and sell high/buy low!

Pin Bar’s are reversal signals which mean when we use them we need to pick price to reverse. Because of that we need to pick them from swing points. So basically when we are shorting like here we would need price to be going higher and then form a Pin Bar. We would then be picking price to reverse lower.

Here the pin is at a low and you are picking price to go from a low and hope to go lower. Does this make sense? This is vitally important.

Below is an example of a bearish Pin and what I am talking about. Notice price went higher and then at the swing high formed a bearish Pin Bar? This was not at a low.


When trading from lows you will always be trading into traffic and support area and never have any space to move.

As I always say I have no idea if this will go lower or higher! So if your in a trade don’t do anything because of what I have said. Simply take this in board and learn for future trades so you don’t get into a habit of these. Whilst you can get away with these rubbish setups occasionally, over many months and years you will be flogged!

If you have questions let me know.

Safe trading,

Johnathon

Heya,

glider is jut trying to help and what he said is very true.

Continue to post charts and ideas and if you have questions let us know and I will get to it for you.

Have a good day everyone.

Johnathon

thank you so much for that johnathon …i actually thought i understood the principle of when to buy and sell…and clearly i had it all wrong.
now i get it …and hope to soon be posting good trades that are A+.
i can see how that point is absolutely CRITICAL.

CHEERS MATE.

Hi everyone,
i’m newbie in forex trading and i began following the thread since couple weeks ago
well, after i read about 30+ pages, i found out the topic and content discussed in thread were very intresting.
Besides, it gave me lot of knowledge.

I have applied the new things l learnt from this thread in my demo trading and the results was very awesome.
i felt this way and style of trading suit me well.
However, as i tried to apply into my trading, i encounter bunch of conditions which confused me
Therefore, i would like to seek help and opinions also comment from exprienced trader here.
Since i can’t proceed further if my hestitation haven’t been solved yet.

I will post it after i finish editing the charts

Regards,
Marcel Jonathan

(sorry for my bad english :p)

with my new outlook i have scanned my charts and only 2 are worth a 2nd look
cable daily . which has an indecision bar at a high…therefore it is potential ‘sell high’
only problem is from what i have read…it is not massive bar.


then there is the AU daily.
which has another indecision bar at a high…therefore potential sell high.
again problem is it is not massive.


i ended up taking the australian trade…
it looked likea turning point and a lot cleaner than the GU…in that i dont feel it will bump into too much support on the way down.

because price has shown on 2 us pairs i feel confident.
the trend is downward …so i feel even more confident
the right position …sell high …makes me even more confident
only thing is the decision pin is not massive…but i looked back on this price action and price DOES SEEM to turn on a small indecision candle exactly like we got here…

so i would class this trade as an A .
and i took it and hope i made the right decision

EDT
sell @ 1.01697
stop loss @ 1.02247
take partial 50 percent profit @ 1.0118
letting the rest roll on as long probably for a day or two…depending

the three pa setups being used exclusively with this method are:

  1. pin bars
  2. 2 bars
  3. engulfing bars

with the very occasional and not recommended for newbies inside bar. any other type of pa signal like indecision bars are not part of this trading method, although they are discussed in a few other current price action threads

having said that, and according with this method, there are no potential trades that can be found today as of this writing. i am still learning too that there are weeks where nothing will present itself. it’s just a matter of getting used to the frequency of a+ trades in conjunction with learning how to spot them

edit: d’oh! just now seeing your next post, good luck!

ok pips ahoy.
thanks for the update…
ill keep the trade running…but yes your right…the only things discussed are those mentioned and 2 bar reversals.

right ill keep the indecision bars under my belt…hope it doesent bite me in the butt…this trade.
thanks anwyay for clarifying…
thats what im here for …to learn.

btw johnathons youtube channel has 16 videos so far that really do a good job of explaining just about every type of scenario with his method. i downloaded them all and i also saved all of his articles from his website. everything in the videos and the articles is so straight forward and well explained. as a newbie myself, i highly recommend it!

thank you im gonna get them all…
by this time next week…i should be fully up to speed hopefully.

And this is frankly the toughest part of learning this method, but…if you can master sitting on your hands and not giving your money back to the market then when those A+ trades come you will pick them off and watch your account grow and grow.

Back in the private forum Johnathon did a really interesting exercise compounding a small amount of money based on 18 holes of golf. I think it was doubling your bet after each hole.

I forget what amount he started out with but it was small but after 18 times of doubling up the amount by the 18th hole was staggering.

It does take time at the start when you are beginning with only a small amount but as it grows so the size of your trades grow at a much faster rate.

Master this discipline and you are along way there.

AUDUSD Daily

Look for bearish PA @1.0223, reasons:

  1. Previous key support
  2. Line-up with fib50


GBPUSD H1

Look for bullish PA at blue line!


Hey,

Let me quote the statement of Jonathan: [I]“why trade when market is in indecision when you can trade from big and obvius PA candles”[/I] end of quote :slight_smile:

Cheers

GJ, H4
Longer Trend


Shorter Trend

GU, H4
Pinbar


My questions:

  1. From chart 1 and 2, which trend to follow ? as chart 1 tells to go short, while chart 2 tells to go long. My analysis: i consider to go long if the price hit the bottom (e.g line 3) with perfect PA signal or if the price breaks higher and retraced to new support (old resistance) combined with PA signal.
  2. Whaddya think about the Point A, Chart 2?
  3. How to trade PA signals in tight S/R ? (look chart 3, Point C).
  4. How to apply PA in sideways trend ? as it’s dangerous to trade at the important key areas (major S/R) except it was backed with perfect PA signals. Is it better to wait the price break higher or lower and take the trade at retracement area combined with PA signal ?
  5. How to identify and protect against irrelevant PA signals ?

Hope everyone willing to help and comment, since i am still newbie. So, i need to learn more and practice :slight_smile:

Regards,
Marcel