Bent Forex Price Action Trading

Trading Discussion Trade Journals
1

About Me
I’m 20 years old, currently studying finance at Ryerson University in Toronto, Ontario, Canada. I began my trading career with penny stocks but soon transitioned into forex in 2012 and have loved it ever since. I started out like everyone else, pretty inconsistent–making no real money but not losing much either. In 2013, I had hit the lows of my trading career–Just as I thought I got the hang of it, my emotions got the better of me and I ended up blowing my account that also included money that my family “invested” in me. I felt defeated but at the same time, challenged. I was determined to get back into the market. In a short span of a few months, I had raised enough to repay my family and to fund another account. Having learned from my mistakes, I came back a much better trader. And now here I am.

Introduction to Trading Method
The primary focus of this trading method is trading price action context around support and resistance. It has been developed with experience and influence from various mentors, primarily Chris Capre at 2ndskiesforex.com.

Goal
My goal with this thread and my blog is to share my trades, both the wins and the losses, with the forex community and hope that people find educational value in them. I want to encourage growth for new traders as well as facilitate discussion with more veteran traders.

Price Action Signals to Trade
There are no particular signals (candlesticks or formations) I look out for. I mainly trade role reversal levels with the trend and ranges. It is all about support/resistance levels and price action context.

Indicators
Only the 20 EMA. It is a commonly used moving average among traders. It acts as either a dynamic support/resistance level or a reference point for those less volatile trends.

Time Frames
Daily to get an idea of the prevalent trend.
4H for general analysis.
1H to fine tune entries, stops and take profit levels.

I’ll occasionally trade intraday when I have the time. Usually 15-30min charts.

Pairs Traded
EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, USDCAD, NZDUSD, EURGBP, EURJPY, GBPJPY, USOIL, SPX500, US30, GER30, XAUUSD.

Risk/Position Sizing
I risk 1% of my equity per trade.

Stop Loss & Take Profit Rules
All dependent on recent and historic price action. There are no set rules. The aim is for a tight stop which ultimately gives us a better reward.

Entry Rules
Also all dependent on price action. I’ll most likely enter on or slightly before a support/resistance level.

News Events
I tend to avoid opening new trades before a major news event like a speech, NFP or interest rate announcements. If I am already exposed in the market, I may adjust my stop based on what I think the volatility will be like.

Documentation
I have an excel spreadsheet that I log all my trades in but all trades are posted on my blog or this thread.

Losing Trades
Generally after about 3-4 losing trades, I don’t trade for the rest of that week.

Weekends
I have no problems holding trades over the weekend.

Other
My broker is FXCM (I highly recommend them) and I use Trading Station as my platform.
This trading method will change over time as I develop as a trader.

Performance
February: +19%
March:

Live Price Action Account Performance
Bent Forex System by NBent | Myfxbook

Demo Breakout2 EA
Breakout2 Demo System by NBent | Myfxbook
Will open a live account if I am satisfied with the results over a few weeks.

Feel free to ask any questions in this thread or contact me HERE.

Feedback would also be great :). Thanks!

1 Like
2

Is this option of Oil ? i read some news about it. i ever trade with it. i analysis it sometimes. but my analysis seem ineffective. so i learn more about it. where do we read information about Brent ?

3

That attachment was an accident. Will be uploading trades in a moment. Oil has been very choppy as of recent and has been quite volatile. So I’ve been avoiding trading it.

4

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This is the first time in a few months that I had longed EURUSD. The pair has been in a prevalent downtrend for the better half of 2014 but has plateaued into a range between 1.1280 and 1.1425 short term or 1.1500 longer term. Both bears and bulls have had several attempts to push price away from this range but both had failed. So since neither side has control, you play the range. My method is to trade only with the trend so in the case of EURUSD, I would want to primarily trade it short. However, since price has been stuck in the range for some time now and both sides have established S/R levels, I am confident going long while in this range. I saw the preceding bearish move leading up to the 1.1280 support level had been pretty weak so I had set my long entry at that level. I set my stop just below the low on the 28th~roughly a 25 pip stop. Price only protruded my entry by 3 pips before it rallied 80 pips on the next 4H candle. I had set my take profit at around the 1.4400 since price touched that level 3/3 times this month. However, the bears took control before price could reach my exit so I had to manually exit for a less optimal exit at 1.1354. Still a profitable trade yielding 2.5 times what I risked.

Looking back at it, the only thing I would’ve done differently is exited sooner. There wasn’t anything wrong with my planned take profit level even though it was a little aggressive. There was a good 12+ hours of data that hinted that the bears were pushing back at the resistance level. Every consecutive wick at the resistance level after the huge 80 pip candle made lower highs (see picture below). This should have been my signal to exit.


Entry date: 2/20/2015
Pair: EURUSD
Entry: Buy @ 1.1282 (Pink dotted)
Planned stop: 1.255 (Red dotted)
Planned take profit: 1.144
Exit: 1.354 (Green dotted)
Pips: +72
Planned RR: +5
Actual RR: +2.5
Exit date: 2/23/2015

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The Canadian dollar has been on the decline for some time now–not so great for me since I live in Canada. Regardless, we can still profit on these declines. Earlier in the year, price had broken the 1.2380 handle turning the previous resistance into support and being a trend trader, I was looking for long opportunities at this support. This support level had offered 3 previous buy opportunities (highlighted in yellow), 2 of which I was able to take advantage of and was looking for another. However, there was a slight concern as price headed down toward the support level. When price initially broke the 1.238 (lower blue line) level, it shot up all the way toward to 1.28 before the bears pushed back. Then the bulls mustered up enough buyers to attempt to break this 1.28 level but fell short and were stopped at the 1.265 level (upper blue line). What this ultimately means is that there was a lower high formed that hints the possibility of a trend reversal.

Lower Highs


Luckily, right after the bearish push back from the 1.265 level, it’s as if the bears almost disappeared. The candles became smaller and smaller as the bulls made their presence known, making me more confident in going long. I looked at how price reacted to the support the previous 3 times and set my entry at a level where it was likely to be hit. My stop was set right around the lowest point that price managed to get to at the support level. My take profit level was at the most recent swing high but not exactly at the top of the candle because price doesn’t always stop exactly at the level. Very happy with this trade. Yielded 6.6 times what I risked.

Entry date: 2/20/2015
Pair: USDCAD
Entry: Buy @ 1.2395 (Pink dotted)
Planned stop: 1.2355 (Red dotted)
Planned take profit: 1.2659
Exit: 1.2659 (Green dotted)
Pips: +264
Planned RR: +6.6
Actual RR: +6.6
Exit date: 2/24/2015

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This trade is very similar to trade #1 - EURUSD. AUDUSD has been declining but recently got caught in a range between 0.785 (upper blue line) and 0.775 (lower blue line). I prefer trades with trend but in a persistent ranging environment, my bias short term bias switches to neutral and I look for trades on both sides. Regardless, AUDUSD gave us an opportunity to trade with the trend. Pretty self explanatory trade. Price bounced off the range support with no significant bullish strength so I was confident the range resistance would hold and the bears would push it back toward support. I set my entry at a level that price would likely hit based on previous price action. My stop was just above the second highest wick of this range–why the second highest? because if I placed my stop above the highest wick, my pip risk would’ve nearly been doubled and therefore significantly reducing my reward. Additionally, if you take a look at the candle that went beyond my stop level earlier in the month, it appears as if that candle (long wick on both sides with a small body) could have been a result of a spike in volatility, maybe from a news release. Nonetheless, the stop was at a solid level based on price action. My exit was pretty standard, just above the support. My entry was triggered, price stalled at the resistance and headed down to hit my take profit level in about 2 days. This trade yielded +4.1 RR.

Entry date: 2/20/2015
Pair: AUDUSD
Entry: Sell @ 0.7839 (Pink dotted)
Planned stop: 0.7859 (Red dotted)
Planned take profit: 0.7758
Exit: 0.7758 (Green dotted)
Pips: +81
Planned RR: +4.1
Actual RR: +4.1
Exit date: 2/24/2015

7

Good results,
Good thread,

Will follow as it looks like a good learning opportunity.

I am now committing to pure price action trading. I have been trying different methods and all seem to work. But price action seems to work in all market conditions.

I was going to make my own journal, but this journal is way more than I could do.

Keep it up

8

Hey,
I really appreciate the feedback. Thank you. And yea, just find a method and keep at it. Practice is what’s gonna get you to consistency. This kind of price action does work in all market conditions but some of the other price action threads in the holy grail forum don’t. Particularly the ones that wait for candlestick formations like pin bars to form. Those are very primitive trading methods–very limited and not very flexible or versatile. You gotta trust price and your S/R levels.

Going to release a market commentary probably later today for what I’m going to be looking out for this week and why. Hopefully that will also have some educational value.

Thanks again :slight_smile: and all the best on your trading endeavors.

9

EURUSD – Breakout To The Downside. Trade Role Reversal Level.

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EURUSD has broken out of the range I talked about in trade #1 – EURUSD to the downside. Since the pair is no longer in ranging conditions, I will be looking to sell with the trend. The 1.128 acted as our support when the pair was ranging but now has been broken and will act as resistance–a role reversal. If I see a weak pullback to this level I will be looking to sell this pair.

AUDUSD – Play The Range!

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AUDUSD attempted to breakout to the upside but was pushed back down by the bears, putting it back in the range that we profited from last week. As long as price is stuck between 0.775 and 0.785, I will continue to play the range both long and short. The weaker the price move is approaching either level, the better–we don’t want to trade against strength.

USDCAD – Buy At Support.

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As mentioned last week. USDCAD has established a strong support level at 1.24. Being in a bullish trend, this is the level I will be looking to get long at. Again, the weaker the preceding move, the better.

10

nice commentary

Anyway you could further describe what you mean by approaching levels with strength/weakness.

From what I understand, if price is moving towards resistance and it shows smaller candles with lots of upper wicks then thats a good sign it will bounce off based on how you trade?

11

I’m basically trying to predict whether a certain level will hold or not based on the price movement approaching the level.

There are better examples but I tried to find a recent one. This one is from AUDUSD last week.

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Weaker moves (or corrective moves) aka number 1 have:
-smaller candles
-more wicks
-greater mix of bearish and bullish candles

Stronger moves (or impulsive moves) aka number 2 have:
-larger candles
-less wicks (candles close near the highs for bullish and near the lows for bearish)
-generally one color candle.

Number 1 had a low-medium strength preceding move so the resistance held while number 2 had a very strong preceding move so the resistance was broken.

12

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GBPJPY has been in an uptrend on the weekly/daily chart for thousands of pips now–naturally I will be looking for longs. The pair had established a resistance at around 183.5 that was later broken by the bulls turning it into a support level aka role reversal level. This level had supported price twice before and I was looking to take advantage of a third bounce. My entry was placed just above the support level where price would be likely to hit it. My stop was placed below the lows of the previous 2 bounces. My exit (not marked on this chart) would have been at the recent highs, just below 185. A few hours after my entry was triggered, price had reached my stop and the bears continued to push price down far beyond it. There was nothing wrong with the trade–we just can’t be right all the time.

Entry date: 3/4/2015
Pair: GBPJPY
Entry: Buy @ 183.68 (Pink dotted)
Planned stop: 1.83.5 (Red dotted)
Planned take profit: 184.98
Exit: 1.2659 (Red dotted)
Pips: -18.1
Planned RR: +7.22
Actual RR: -1
Exit date: 3/4/2015

13

% Gain in Febuary 2015: 19.11%

This figure includes some other trades in Febuary before this thread was started.

Myfxbook

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This was my comeback from trade #4 on the yen pairs. After a quick scan of the EURJPY daily chart, the prevalent trend is bearish so I go down to the 4 hour charts and started looking for possible trades. I had noticed EURJPY had established a support/resistance level around 133.5. After 2 bullish bounces from this support level, price had broken through the level and price often comes back to a level after breaking it to retest it. I placed my entry (with trend–short) just below the resistance level. My stop was a plentiful yet tight 30 pips. The reason for the stop size is difficult to explain as there are no set rules–it’s more of an art than it is a science and is a skill that is developed overtime. My take profit level was placed where price had started to slow down after breaking the 133.5 handle.

This was a very strange trade and some may argue that it was rather “lucky” which is not a term commonly used in forex. After spending 12-16 hours at the 132.5 short term support level (where my exit was placed) price shot up, hit my entry and retraced all the way back to hit my exit, all within 28 minutes according to Myfxbook. Normally I look for weak pullbacks to a level before entering but price shot up very aggressively to trigger my entry. If I was actively looking at the charts at the time of this bullish aggression, I likely would’ve cancelled my entry since there was a much higher possibility of the bulls breaking this resistance.

On the flip side, the bears pushed price back to the 132.5 level very swiftly after my entry was triggered. If I was there at the time after my entry was triggered, I would have placed my exit level much farther away in anticipation of the bears breaking the 132.5 and continuing the decline, which actually happened. But a +3.7RR gain in less than 30 minutes, who can complain.

Entry date: 3/3/2015
Pair: EURJPY
Entry: Buy @ 133.45 (Pink dotted)
Planned stop: 133.75 (Red dotted)
Planned take profit: 132.45
Exit: 132.45 (Green dotted)
Pips: +100
Planned RR: +3.7
Actual RR: +3.7
Exit date: 3/5/2015

15

Good trades!

16

EURUSD – Sell on weak pullbacks

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EURUSD recently broke the 1.11 key support level and continued to lose ground. Looking to sell on weak pullbacks to role reversal levels to get in with the trend. Either the 1.100 short term resistance or the 1.11 long term resistance are my primary sell areas.

NZDUSD – Looking to get in short

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NZDUSD sold off very impulsively the past two trading days so I am looking to get in on weak pullbacks with the daily trend. My primary sell area for this pair is the resistance level at around 0.7425. If price does not react to this level, another possibility is around 0.745.

EURJPY – Rejoining the bears

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I’m looking for additional profits after last week’s EURJPY sell trade. EURJPY continues to sell off aggressively so I am looking for weak pullbacks to the resistance just above 132.00 to rejoin and continue to profit from this pair.

EURGBP – More selling

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More selling. Like the other EUR pairs, EURGBP is continuing to lose ground and yea, you guess it, I’ll be looking for shorts. The primary level I have my eye on is the 0.724 level that previously acted as support (role reversal level).

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This is the first trade on the hourly chart that I am posting on my blog/this thread, and a pretty good one at that. GBPJPY had been selling off for the majority of last weekend so I was scanning for opportunities to get in short. I recognized the 181.5 level to be a pretty solid S/R level and this seemed like a promising level to try to get in with the trend. Without much hesitation, price broke through this support level, turning it into resistance (role reversal). After the impulsive selling settled, the bulls initiated a weak pullback to the 181.5 handle–exactly what i was looking for. For the pin bar traders out there, a pin bar formed at the resistance after the weak pullback. Additionally, where this pin bar had formed was just at the 20 EMA which acted as a dynamic resistance, adding to the synergy. My market order was manually placed at around the 20 EMA. My stop was just above the recent high (pin bar) and my exit was where the bullish move began. The result had been 3.9 times what I had risked.

A great trade–the only thing I would’ve done differently is moved the take profit level lower as the bears quickly pushed price down after my entry. However, this trade was placed at around 5am and there was no way I was staying up longer to watch this trade develop.

Entry date: 3/12/2015
Pair: GBPJPY
Entry: Buy @ 181.64 (Pink dotted)
Planned stop: 181.86 (Red dotted)
Planned take profit: 180.81
Exit: 180.81 (Green dotted)
Pips: +83.9
Planned RR: +3.86
Actual RR: +3.86
Exit date: 3/12/2015

18

Starting to experiment with EAs on a VPS I have. Running FXCM’s Breakout2 EA on a demo account for a few weeks to see performance and will eventually transfer some funds into a live account if I like what I see. Might be some inconsistency in lot sizes this week as I will be playing around with the settings.

Breakout2 Demo System by NBent | Myfxbook

I will post performance reports at the end of each week in this journal.

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USDJPY (4H) - Significant resistance at 122 - Continues to be supported.

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Price rallied toward the 122 handle and was rejected by a strong bearish presence. However, the bears were not able to push price anywhere significant and as soon as price touched the 120.65 level, the bulls immediately forced price back up, indicating to us that price continues to be well supported in this bullish trend. Will be looking on weak pullbacks to support.

GBPUSD (4H) – Non-volatile downtrend – Sell on pullbacks to role reversal levels or 20 EMA.

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Cable has been in a non-volatile downtrend. Price has been selling off right at or just before the 20 EMA and at role reversal levels. Price has pulled back to a role reversal level at 1.4850 which also has the 20 EMA acting as resistance and additionally, this level has acted as significant support back in 2003 and we have broken below it. Rallies are to be sold in anticipation of cable continues to be sold off.

USDCHF (4H) – Buy as we return to pre-SNB shock levels.

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USDCHF is rallying with very little signs as weakness as we approach pre-SNB shock levels. Look to buy to support. Right now, the 1.000 level is a very attractive area to buy since it has acted as support previously and is a psychological level (round numbers). Look to buy on pullbacks to the 1.000 level.

20

what moving averages do you use?

Edit: sorry i didnt realize you wrote out everything in your first post.
but i love whay your doing here. very informative