Confirmation of price action

You can use Fibs but it’s not an essential. It’s just an easy visual indicator. Essentially, you just want to see a candlestick formation form on one of the middle lines of the Retracement tool. Honestly, you can eyeball it just as easily really.

Mate… thank you a lot… Just one more question, you only look for hammers? or any reversal pattern regardless the number on bar involve (i.e. engulfing). One last question, any chance that you can advice where to find some good material about it

Thank you very much in advance

Cheers

I only trade hammers and engulfing bars. I trade on a daily time frame so I really don’t need anything more than that and they are two pretty high probability patterns.

Here’s a couple of links that I liked when I was learning.
‘Pin Bar’ Forex Trading Strategy | Pin Bar Definition | Learn To Trade
Understanding Engulfing Patterns | eToro Online Forex Trading

The key to trading reversals is to ensure you’re actually going in in a spot where a reversal is likely to be recurring. One mistake I see people make a lot is trying to trade a “pin” that formed in the middle of sideways movement. The formation is just one signal that needs to present with others to denote a possible trading opportunity.

THANKS FOR THE ENGULFING PATTERN LINK ITS REALLY GOOD.
sAMSARA

Thank you very much mate :slight_smile:

Here’s a couple of links that I liked when I was learning.
‘Pin Bar’ Forex Trading Strategy | Pin Bar Definition | Learn To Trade
Understanding Engulfing Patterns | eToro Online Forex Trading

Thanks for posting that. It helps a lot.

Here is an article on how to trade engulfing bars, which may help you understand them better.

Forex Candlestick Patterns. How To Trade Outside Bars

Thank you mate :slight_smile:

Hi prince.I would like to suggest that you check out information on candlestick patterns on confluence levels then you will see that price action is only taken when at confluence levels which means- where two or more things meet.
For example it is wise to only trade the hammer on support and resistance levels,Fibonacci levels especially 50 percent,on a moving average on a trend line etc otherwise it is deemed useless as a price action.Please goggle and see what you find and let me know.I do understand your frustration.
It takes patience and attention to details

1 Like

Hi guys, well last week I’ve been busy reading and understanding the whole idea of price action, my weekend was doing back testing not only for the purpose of checking past performance but mostly because I want to see for myself how it looks like, trying to create some sort of rules to filter some of them. I have to say that I only had time to check the AUD/USD 4H and learned a lot. I decided that i’m going to follow only 3 patterns for the next few weeks (doing some) forward testing.

These signals are : Inside bar, outside bar and pin bar

Right now for instance I can see confluence on several pairs. Patient as Samara said, and self discipline AND risk management is everything to endure in this business.

I’d like to share something i found as a potential filter and see if anyone agree or disagree:

I found that gaps (not a really thorough back test though) might works as a signal for closing any open position, is this just occurred by chance or it is actually a good filter? I’m doing things correctly? S/R of course also works as so but I guess there shouldn’t be any debate on this, right?

I also found that sideways just increase risk when opening a position if I’m only using these 3 signals, maybe another one or just simply let it pass and live for another day. What’s your approach when sideways appear

On the other hand, don’t know about your broker but I’m testing a live micro account using GFT and there is a new feature just as from today. posting pictures in, nice I gonna use it to create my own threat for trading journal purpose

Anyway, I puled the trigger because of a inside bar, breaking the trendline is something still not sure how to work it out. R=1:2 (because I entered late, usually it should be 1:3) but should entered 8hrs ago

cheers guys

Chart EURJPY, H4, 2013.07.29 08:10 UTC, GFT MT4 Powered by BT, MetaTrader 4, Real - MetaTrader Trading Platform Screenshots

What you see in a chart time frame is generally relevant from that point of view?