Hi,
I want to start this thread because I like [B]price action trading[/B]. There are two good threads about it but I don’t like them. So I decide to start my own. [B]I don’t want to learn you, be your mentor or something like this[/B]. If you want to know something about Price Action you should use Google because there is so many articles, books, pictures and videos … not all of them are good but there is everything.
Why I don’t like the threads … because there is nothing new … everything you can find on the net and you don’t need to read this threads. There is lot of people but they talk usually about nothing … there are over and over again same question like “What is Pin bar? What is trend line? Why this broker? Why New York close charts? My chart doesn’t look same as yours…” Jesus over and over again but when there is possible trade … noone write nothing, no pictures, no discussion … nothing. Sometimes someone write, that he has great month and he earned 10% of his account … who cares? I hate this posts … if you are not able to post your trade setups when you take it and discuss about it then i realy don’t know what are you doing here. You waste your time to read this threads when you are so good. On the other side if someone write that he has horrible month and during this month post no picture of his trade and don’t discuss about it … I realy don’t understand. Maybe I am little bit harsh :).
People must [B]discuss all their trades[/B] if they want to learn something. And that is why I want start this thread and maybe something like [B]online chat[/B] (ICQ, Skype or something like this) where people can discuss about their trades and their analysis. There is nothing like open discussion on these price action threads … people talk but not about important things (if you read these threads there were some trade analysis on the beginning but on recent page is in fact nothing … when there is no trades traders should talk about technical market analysis but they don’t). [B]I think that if you spend one year with this kind of discussion and talking about your analysis with other competent traders … then you cannot have any problems with trading.[/B]
I will post there only my pictures analysis of 28 forex pairs and potential trades. [B]We can discuss.[/B]
[B]Please don’t ask basic question[/B] like I post above. [B]If you don’t know what is price Action you should start with Forex Price Action and Price Action That matters and the best place where to start is School of pipsology (or something like this) on this website.[/B]
If you do this … congrats … you have basic skills :).
People must always start from begining and [B]I don’t want to explain basics in this thread[/B].
Lets talk about managing trades, drawing trend lines, supports and resistence, finding chart patterns …
Sorry for my english
Thanks
OK, now start with trading :).
I use chart patterns (look at picture below) to realize what happens in this pair and what is most likely to happen.
Look if you know that on daily chart is formed [B]head and shoulder pattern[/B] then is realy bad idea to go long if you see pin bar on 4H chart … that is the basic idea … always start with higher TF and go lower. You must see the whole picture (I show you waht I mean in market analysis later).
Next important thing is candlesticks patterns.
I use Pin bar, 2 bar reversal, outside bar (in fact it is all about [B]“V shaped PATTERN”[/B]). It is very easy to understand (look at he picture below)
If I see this pattern on significant level and so on … then I take this trade.
Using SL, TP and entry points is the most important and I think that is different in every trade and that is why we must discuss about it. I personally never move with SL. I don’t place it to BE because if I take the trade I strongly believe that the signal is so good that will work and if I move with SL then you broke the significant level and destroy the pattern. (If you place SL above pin bar and then you place it below because you want to be at BE you destroy the strength of the pin bar and his significant level). I move with SL only if I believe that there wil be strong trend so you can achieve R:R 1:5 and higher but that is not very often. Same I use only one TP in my eyes it is natural to place your TP to logical level. Why try to find another 2 or 3 other levels where to place another TP. It is not easy I always try to trade the easiest way. But that is my idea … and how I said I want to discuss about in in specific trade.
Summary:
[B]I don’t move with SL (only if I think that there will be strong move)
I use only one TP (again vhere to place it is always about specific trade)
Decite where to entry is always about specific trade[/B]
[B]Price action must be always large[/B]. How large? Well I always think about it in this way: If I believe that this “strange” bar see a man, who has absolutely no idea what is Pin bar but he notice to it, then it is good pin bar. it means not only large bar but the bar must be distinguishable (must stick out of other bars). There is lot of pictures and articles about it. The same things are of course apply to another candlesticks patterns to.
Never take a trade when you cannot reach [B]R:R minimal 1:1[/B]. If you see S/R zone which is closer … you are right (don’t try to find another more significant level) and don’t take this trade.[B] Never trade over S/R lines.[/B] Your SL should be place on this lines. Take it easy. Don’t over complicate things.
My opinion to trading psychology. Even if you have never trade you should start trading on live account with real money (of course with money that you can lose). if you trade on demo you don’t know what is trading with real money. You don’t know the emotions when you win or lose and so on. In my eyes the best thing what can happen to you is lost your first trading money. Then you realize that trading is not fun, you learn what is it lose money and you will be stronger if you draw a lesson from it. Of course maybe better is earn a million in first trading year ;). Anyway I have always problems when I lost trade … and if someone wrote to the thread something like “Jesus this was great trading week I earned 15% of my account” then I hate the world.
Look at it in different way. People always learn more from mistakes and if you can discuss about them you can be great trader and who cares that you lost 1000$ when you started with trading. Most great traders lose their first money.
Nadal won 9 Roland Garros titles and who cares that when he was young (10 -12 years) he lose almost every tenis match. He learn and now … he is The King of Clay.
I want to be great trader. What about you?
Lets do it!!!
Hi thanks for the post.
Question for you when you say you input stop losses at the entry of the trade is that also accompanied by your buy or short order? Also do you enter at market price, or do you place entry orders a few pips below/above the daily high/low once you’ve seen your price action set up?
USDCHF
definitely looking for long position on retracement to level 0,9000 (I am looking on daily, 4H and 1H charts). Of course … lower timeframe = looking for bigger PA signal, there is maybe good idea to move SL to BE because we can expect big move higher. it is all prediction and I don’t look at fundamentals but if it will happens it will be trade with big potencial. on weekly chart is bearish pin bar but if price make a move like on my picture … pin bar is no longer significant (will be broken)
You must remember that there is spread in price, so you should move SL not exactly to entry level but to level, where you will be break even if the price go against your position. It is really frustrating when you move your SL exactly to entry point and at the end you are not at 0 but -1$ because of spread.
I take market price on 1H charts because there are faster movements.
On 4H and 1D charts I almost always use buy/sell limit. I don’t like buy/sell stop orders in this tipe of trading. On other threads they very often use stop orders but in my eyes it is not the best idea because you lost lot of pips. if you look at charts, there is almost always shadow on both sides of the candle so you can have really big advantage when you know how to use limit orders. Look at the picture below (how you lost value of the trade only by using stop orders)
Only small move with entry level make huge different in R:R ratio, with limit order you can achieve bigger R:R ratio. Of Course sometimes you lost and someone who place stop order will not in trade but I think that limit orders are better more aggressive but … I like them 
Hi Bambino,
Congrats on your new thread. I like your introduction, it’s lively, provocative and enthusiastic!
One or two things I like to share with you.
First of all, I know you from Johno’s thread and as far as I concern you started your PA journey there. And lots of new peeps start there, which is why it is filled with loads of basic questions.
Secondly, you mentioned that threads like Johno’s or Aaron’s are filled with stuff that you can find all on the net. Which is not untrue. However isn’t it better that it is all accessible in one place. It sets some sort of a benchmark.
Lastly, you mentioned that nobody shares any trade ideas. Which I disagree with. Lot’s of traders share their trade ideas and outcomes. It is very difficult to call a trade and then be at the mercy of the market and get judged by sideliners on it’s outcome. It sometimes becomes some sort of a pride war. So you could understand why not every trade is discussed, it can be quite stressful.
Ps: Demo is a must, if you cannot produce profits on it, there is no point going live really.
I wish you all the best and good fortunes!
Hi,
I agree with you that that it is better when all information are in one place and of course when you can ask someone who know what he’s talking about. I never want to said that Aaron’s and Johno’s threads are about nothing they are great but in some ways they are “rigid” for me. I realize that the best way (for me) is when you post your ideas and someone is helpful to discuss about your ideas and compare it with his own. Maybe I am little bit uncomfortable with the roles “teacher” “student”. I believe that everyone can learn from everyone. Of course if you start with this type of trading you must have teacher but you can learn only basics and then should make a step forward (every trading style is unique even if the all use price action trading). In my eyes the next step is start talking about your ideas with people who knows what is price action trading about.
My idea is something like open discussion for people who trade price action and want to know opinions of someone else. i don’t want to talk about definitions of trend, pin bars, support and things like that. I want start something like live trading thread where will be analysis like: “OK I am looking at EURUSD and I want to see this action and if it happens and I will se PA signal I will go short because …” something like I posted above. I don’t say that the my analysis is good I will be very happy if someone say “No that is not good analysis there are nonsense you don’t realize that there is this and this and that is why you are wrong” if someone post this reaction I will remember it and I don’t make the same mistake again.
That is the basic idea. I am not sure if it is clear what I mean. 
Demo trading is a must for someone who don’t have a trading plan and need practise in counting position size and of course to build a self-confidence. In fact you must believe your trading strategy if not then don’t trade live.What I mean with real trading is fact that it is different from demo trading even if you use same strategy. Emotions in trading are killing your account. I trade demo and I was really profitable but in live trading … Jesus the start was so tough not because I don’t know how to trade but because I was always looking at graphs move with SL because I don’t want lose money, move with TP because I wanted small profit and don’t risk what I earned so my R:R vas 1:0,3 … so many mistakes which I never made on demo because I don’t trade with my money. So yes demo is a must but it is more game and not trading (in my eyes). So if you are profitable on demo doesn’t mean that you will be profitable live when you start. You shouldn’t be sad or angry that you are not profitable from beginning. It is all about experience and you get them mostly in live trading. Or I think it because for me trading is 80% about psychology and you cannot learn it on demo. But I agree that demo is a must.
Yeah discussion about trading can be really stressful but it shouldn’t be. You should be comfortable with every trade you take and in that case you can talk about it even if you lost this trade (cause you know that it is part of trading). Much more difficult is to be objective because people tend to argue really hard and are not able to admit mistake but as a traders people should have open mind and be able to talk logically … I hope :).
What is more … trader in my eyes must made an analysis of the market before he take a trade. The analysis is not about “Jesus on GBPCHF is Pin bar i must take it” it is more about thinking that there is a support and if there occur PB I will take it if there will be good R:R … and this analysis it is not question few minutes before the trade but hours, days, maybe weeks before it.
I take a trading like a game about predicting futures not about looking every 4 hours to graphs and searching pin bars and the say "Oh there is pin bar? what a surprise what is it doing here? well I must trade it " and trading all of them … no you shoud be able to do analysis to the future … or I think it
So much writing with my horrible english … it is cruel for me. And it must be really cruel for you to read it. Sorry
GBPUSD
I wrote to the picture only 2 possibilities but there are more potential trades. There can be signal on level 1.7000 to go short but I don’t like this potential trade because you will go against strong uptrend and will be trade to trend line.
Next possibilities is that the price will go up and then retrace to trend line where can be a signal to go long. In that case we should be aware of level 1.7000 and don’t trade across this level. On 1D chart we probably don’t get good R:R but if we will be looking for signal on 4H or 1H charts there can be still enough place between signal and level 1.7000 to go long
Question is how the price will interact with the trend line … we will see
Hope it makes sence
Usdjpy
Love your analysis. I’m on this train!
David
Ok here is my analysis of USD CAD 1D chart, for me this it not so clear I will be very happy if you post your suggestion
Maybe we can take a bull signal on the support of falling wedge but I don’t like this idea I never take this type of trade
AUDUSD
broken trend line actually doesn’t mean that the trend is end and will go in opposite direction … that is wrong idea
broken trend line means that the trend is going weaken
trend line is something line measure how strong is the trend (you can find better explanation on net
if price break last support there will be tripple top pattern and it is one of the strongest signal to go short
USDJPY update
EURGBP analysis … right now I don’t see any reason why to go long … south is only one possibility. Pair is in downtrend in last 10 months
I just decide to write something little about trading based on analysis on 1D charts because most traders absolutely misunderstood this concept. Lots of people think that trading on lower time frames is more profitable because there is lots of trades … on 1M charts you can make hundreds of trades in one day I don’t agree. In my eyes there shouldn’t be big different in gain if you compare scalping and trading on 1D charts. Or maybe there can be different but in that case I bet that 1D charts are more profitable.
Why?
Firstly if you trade 1D, 4H,1H charts you can trade lots of pairs (30) bu with scalping you can focus maybe on 4 -6 charts? I don’t know I never use 1M charts for anything.
Secondly with higher time frames increase their relevance.
What that all means? It means that scalper make profit because of volume of trades and traders on higher TF make profit because of accuracy of their trade.
Why I use trendlines, S/R zones chart pattern only from 1D chart and use them on lower TF (4H, 1H charts).
That is easy … because of mess. If you see head and shoulder pattern on 1D chart and after 1 day you see reversal head and shoulder pattern on 1H chart what will you do?
I don’t know.
I don’t want to answer to this question.
I don’t want to face this hard question.
I don’t want to doubt.
Use only 1D analysis and use it for lower time frames. Support line from 1D chart is more reliable that resistance on 1H chart. Easy use things that are more reliable.
If I must choose to trade great pin bar or great resistance line I will always choose resistance line … it is much more important than price action signal. Price very often reacts to S/R zones and don’t create PA signal but only in few cases create working PA signal which is not on S/R zone, trend line or something like this. Knowing where are important levels is a must for PA trader.
I think that with this strategy you can achieve ratio between winning and losing trades about 6:5 maybe I am to pesimistic but I don’t believe someone who tell me that he win 9 trades of 10. What is on our side is risk:rewards ratio. With using 1H charts it can be 1:3 in average on 4H charts 1:2 and on 1D charts 1:1,5 … that is just my estimate I never count it.
Why I use volume and stochastic oscillator in my charts.
Volume: you can find tons of books on net how to use volume as indicator for your trading. For example higher volume in bar which break through channel mean that this breakout is more reliable than if there will be bar with lower volume. That is nice but in forex trading not that easy. If you trade stocks the volume is basic indicator but in forex it is more complicated. In forex are trading sessions, trading hours, there is lots of different intervals where are different volumes. Volume in hour when open New York is much higher than in asian session. But what to do with it? If you want to be precise you should compare each bar volume not with previous bar volume but with previous bar volume in same time it mean compare 15:00 bar only with 15:00 bar from previous day and so on. It is really complicated and I don’t do it. I use volume indicator only for filter (look at picture below). Based your trading strategy on volume indicator is not good idea (or it is really hard to do it right way) in forex trading, if you trade stocks than it is different story.
So I use volume indicator as additional source of information which tell me which bar don’t trade.