I think that has already broken through support, which is now acting as resistance. So trading that 2BR would be trading right into that S/R pivot zone??? Just thinking out loud as I try better to understand all this. I think I would like to have seen the top of that 2BR touching the S/R line rather than the bottom.
i thought it was the best trade for this method presented today.
i wanted to catch it on a retrace but i was sorting out my charts…iv just found out about setting up profiles on mt4 today.
until you pointed this out …i didnt even have the chart up on my profiles…
so i missed it …but i think it was an A trade…
hopefully some meaty stuff will happen next week.
Initially i hoped it will go straight down to previous pull back level, but after it started shrinking from 25pips down to 15, i closed it and called it a weekend. I generally dont like trading on fridays, currencies may slow down and loose volume. It is very noticable after London close.
I ll make it my habit to post any arising setups that are worth attention, this way we can all discuss it and gain confidence. Although some guys on this thread mastered it already Well done.
I have been studying and testing PA for a few days.
Opportunities i see on charts are rarely A+
I am just curious, how many trades do you guys go into using pure PA, lets say on a weekly basis. My judgment supports trading action very rarely.
Since i began learning forex, and overused indicators and other magical tools, i made a decision to learn PA, thats how i fell into this great thread. And i must say, this is the most effective method i used by now. Candlesticks give great signals, although i used to get up to 80% profitable trades in the past /when using million coloued charts/.
Fair play to Jonathan for sharing his knowledge.
I agree that I don’t think you’ll see too many trades using this method, 6 - 8 a month is what I believe, and there may be weeks that go by with no trade. I’ve only been demoing this for about 3 weeks now, found price action somewhere else before I came across this thread. At first I wanted to take every pinbar I saw… I can tell you that won’t work! Good thing it was fake money I was playing with. After reading through this thread I have a much much better understanding of what I should be looking for in setups. I didn’t see any trades this week, so I was beginning to question whether I was getting too conservative.
dudest hinted that there wasn’t too much in the way of setups this week, so I’ll keep watching… plus we have this thread to post what we see. I like seeing good and bad setups, I think you learn from both.
Just something to think about for the weekend…
EURAUD Daily
Recent Trend is down, so I’d like to see some price action around the yellow line at 1.26 telling me to go short, will it happen next week??? Are my S/R levels in the right place? I guess I’ll just have to wait and see.
The candle marked in purple color is a pinbar, correct? while the blue ones appear to be indecision bar right? and according to Johny’s PA, this setup is risky to be traded and more likely a rubbish setup, isn’t it?
from what i have learned…
in your top chart…the first circled pin bar…is not exactly on the swing high…plus it is long but it does not stand out too much as it is not on the total high of the swing…on top of that price does not close within previous candle body…so it is not a proper pin bar
your second circled pin bar.
that is occuring near a swing low…so you would be traading straight into support …so that is not good…as we want to BUY LOW…SELL HIGH…and this is a selling signal…plus this pin bar body is not quite 3 times shorter than the wick …so it is not a proper pin bar.
your third circled pin bar …is more of an indecision bar…the lower wick is long …about half the size of the upper wick.
although this looks great…trading such set ups in the long run may lead to losses…so it is not A plus and not a pin bar.
question 2 …dont understand.
question 3
the pin bar in question …the body of the pin bar does not close within the body of the previous candle…plus the so called pin bar is facing into traffic it does not STAND OUT…so i dont think johnathon would think that is a grade A TRADE…and would just skip it completely.
question 4 and question 5.
i think johnathon waits for better set up than trading in sideways trend…as there can be a lot of traffic…this is also true for tight ranges…why not sit and wait for a better signal.
anyway that is my input to your questions…they may not be correct by johnathon…but i have answered them hoping that i am getting to grips with this system…take them with a pinch of salt.
Hi, I have the same S/R levels that you have. I have 2 scenarios in mind, depending on PA around 1.26 as it could go either way.
Will go short if good signal first ( A ) or long ( B ) if price breaks up through 1.26 then pulls back and finds support and gives a bullish PA signal.
Hi. 1. I would switch to the daily timeframe, and wait for the range to break either way then look for PA at relevant daily S/R levels.
2. I would prefer to wait as you said
3. Its an inverted pinbar at a swing high, not good. See FSO article about spotting fake/poor signals.
4,5. if range is on 4hr chart, same as 1
hi guys. very interesting discussion happening in this room. i really enjoy it & learned a lot from here. I quick question. It seem that we need to hold position overnight where additional cost in “SWAP” need to be taking care of. How do we manage this?
Yes, personally I have s/r levels marked on my daily charts and will look for price action there for trade opportunity. I’ve highlighted the ranging as seen on your 4hr chart also but will just be observing the break of range.
You can open an account with zero commissions, although I don’t know what your worried about most brokers charge only a few dollars per each 100,000 traded or each standard lots on most pairs so not much big deal.
Well done.
