Couldn’t help posting one picture that I wanted to show you, my first long term position using PA! So proud of it, although I couldn’t stay longer, because I panicked as the price stopped moving…
So I took the pin bar you can see on the EURCAD daily, I took the pips that the purple vertical line shows and I got scared as the price stopped at a previous resistance level. I took the half of the position at 1.3923 and I trailed a little then I closed everything.
Tell me what do you think about this one
p.s. Thank you Johnathon for the useful information!!!
the problem is this , you spotted a wrong SR level , actually I think you just saw the 0.9500 and you made this level as a S/R level . S/R levels and key levels are the most important things and If they combine with psychological levels , make them perfect .
this is the right place of S/R level and there is nothing to trade now .
Safe Trading
You may wanna consider to be over cautious on counter trend (CT)trading,the pin didn’t form on any recent resistance.
We are very fussy when it comes to CT trades, but you had 2 very important things in your favour;
1- a huge pinbar
2-lots of space to move,minimum noise.
A good advice ; always plan out where you wanna take profits and possible scenarios that will make you close your trade.
It saves you from baby sitting.
You are analyzing it the correct way…everything is in place, But…but…
that what you call a congestion wasn’t simply that let me explain;
Usually when you see lots of candles cluttered together you may call it noise.
However looking at the daily chart you would have noticed price was winding up in that area, Engulfing bars one after another.
Now that tells us that, that area is a black hole! Meaning stop losses are most likely getting hit.
It is an area of interest in terms of a break out but not a pullback/reversal.
This is very important when looking at noise areas. They are quite dangerous.
You had the right approach,just missed the reason behind that area.
thanks for your help guys! however, i’m very confused now! i’ve got a metatrader 4 account with ig, can i change the settings on that to correlate with NY close charts or do i need to open an account with another broker?
I am not quite happy with the level either, if you look back to the last high on the 14th of last month, basically the same thing happened, price dropped a bit, then rallied again to form a stronger 2 bar reversal signal at a higher point. I am not too sure if I will take the 4 hr pin, just going to wait and see what happens.
I don’t have an opinion on that particular setup but remember that if your trade hits SL, it does not mean that you have missed something If more than 50% of your trades hits SL, then you have missed something (assuming you have at least 1:1 RR ratio)
i’ve downloaded a FXCM demo account as suggested by adamjn and i’m now signing from the same hymn sheet! i’m still going to use my IG account to place the bets as the spreads seem a lot smaller. is there anything wrong with doing that or is that something that most people do?
I spotted the S/R line on Daily TF . switch to daily and you’ll identify it easier .
now , we’ve got a 12h pinbar too , for me it’s a good setup .
If you check the daily TF , You’ll see from left to right the market direction is down . So I’m trading with the trend .
It’s not triggered yet .
GBP/Jpy is good . we’ve a key level and It could can a good setup .
