Hey guys,
Iâm looking at USD/CAD weekly, and I might make a buy here at this pin bar when the market opens and get confirmation. However, Iâve been reading around, and I canât grasp the rule where the close of the pin bar has to be within the previous candle. Are we talking about the body, as in, it can close within itâs wicks?
Let me know what you guys think.
i have read through the FSO article and iâm still not clear about marking the resistance and entering trade. Do u guys marking based on daily and later spot the trend based on other timeframe then make the entries? sorry for bad english, still learningâŚ
i guess within the body of the last candle before the pinbar and enter the trade when the next candle break the highest price from pinbar. :22:
Hey Apple,
Essentially a pin bar is valid as long as it closes within previous barâs range (body or wick).
other criteria is taken into account such:
By the way, read the last 2-3 pages,that pair has been discussed.
Cheers.
Hi fazliy,
I am not sure if I understood you correct,but if you are asking on what timeframe we draw support and resistance then;
We draw our support and resistance lines based on the daily chart.
Once we see a setup on the daily we trade and manage it from the daily chart.
But if you see a setup based on a lower time frame than daily. Then you trade and manage your trade based on that time frame.
That means you identify your market structure and trade entry and exits based on that lower time frame.However your support and resistance lines are drawn from the daily chart.
Hope that helps.
Cheers.
super quick reply, thank u so much !
Hi All
I think it would only be polite to introduce myself.
I first discovered PA trading in 2008 at the J16 forum but didnt follow it for long and soon turned my back on it, I returned to it when I found this marvelous thread in about July this year, since then I have read it on a daily basis.
I have recently started reading from page 1 and have now got to page 40.
The fantastic mr fox makes everything more simple and easy to understand.
Have a good weekend everyone
and profitable trading.
Alan
I just wanted to share my thoughts on this because I thought it was a pretty interesting strategy, and one that I used live on Friday and was able to bank extra cash.
Hereâs the GBPAUD D1 PB:
My order was filled 10PTS above the break of the PB (3 xâs is the candle where my order was filled). Within the following hour, price moved -20pts a few times:
I went down to the 15M chart, and saw price stalling at previous resistance. Time that with tonyroâs post, and I figured Iâd test his strategy out. Needless to say, the chart tells the story. 20 PTS to be made of each bounce with smaller-sized positions, whilst leaving your âconfirmed positionâ open, but in the RED at times.
Iâve seen price retrace quite deep (sometimes almost to the 50% level of the signal candle). I know thatâs not a strategy employed here, and one you even worked out yourself with Krugman, but, logically, this âmodified-additional strategyâ can work. If we are still setting buystop/sellstop orders w/ +10 pip buffers, and the order gets filled, what is wrong with opening fractionally sized positions if price retraces deep against you? I understand that additional risk is being imposed, and, that sometimes price might not retrace (which is why we use pending orders).
But, if your order gets filled @ the proper level, and moves against you, what are the major drawbacks of managing the position using the 15M chart above to clear 60 points off the table. (We like to manage the position of charts where we found the setup, but, for scalping lower TFâs are needed). Or, even keeping those additional positions open, and simply adding to profit. If fractionally sized lots are purchased, the additional risk is minimal, and, if the position gets stopped out, it wouldnât be too far of a journey since price had already retracedâŚ
Personally, I cleaned up pretty nice using this method on Friday. Each decline I saw and reversal, I opened small positions and closed them toward where my initial entry was. If we âknowâ price is going to move up, what are the drawbacks of opening additional, smaller sized positions if price initially moves against us? Canât that be seen as getting a bargain, especially if Price initially broke that 10 pip buffer, filled our order (confirmed our presumptions), and then dropped back?
This is obviously a much more advanced way to manage a trade that involves you to be sitting in front of the computer, riding the price rollercoaster.
Any additional thoughts would be appreciated here on this matter. Thanks team!
-BC
Hi Big,
I will put more time thinking on about what you are saying.
Meantime, arenât you over exposing yourself with re-entries?
And something else came to my mind while I was reading ,which you actually mentioned too, is that riding the price rollercoaster.
Which could be nerve wrecking, simply because price doesnât bounce in a easy to read way all the time.
Cheers BC.
Hi Alan,
Welcome to PA thread, the real deal.
Looking forward mate.
Cheers
Mate, congratulations for bagging additional profits. You can never get upset for more money in your bank account, canât you? 
However, I think your method does not really fit what we want to accomplish here as a swing trader. Câmon, letâs all be honest here. Going to 15min chart to manage a trade that you opened at D1 chart? Thatâs way an overkill, mate. We are swing traders, not scalpers. One of the reasons we go to D1 chart is because we choose NOT to care about whatâs happening in the next 15 minutes.
Now, I do not say your method is wrong. Far from it, if itâs really REALLY good, you need to open a new thread yourself to discuss it with like-minded individual traders and especially scalpers, but to be honest, your method here is something that Johnathonâs clearly not advocated in this thread. Good luck, mate!
^^nice
just to clarify about the weekly charts in regards to what i said earlier⌠after a strong reversal signal like 2bar, engulfing bar, pinbar, the market typically does not retrace that much before going in the projected direction. if you wait for a signal that is preceded by a good run of at least 3-5 candles, you have higher probability that price will not retrace on you than if you were trading the daily chart
also, when it comes to weekly, pa spec does not have to be as exact as if you were on the daily, it just doesnât. if you donât believe me check it out for yourself. go through some charts and look at a strong bull or bear run followed by a reversal signal, most often there is minimal retrace and sometimes the pa spec was not technically exact
Have been out of touch with charts as well, was catching up yesterday as well as today.
GBPAUD D1 pin: IMO, though the area was great, the pin wasnât (doesnât stand out).
Would also have been better if the body was as the S/R, with the tail sticking out below
That said, good job to those whoâve protected capital/taken profit! and best of success to those still in.
Cheers
.
also, to further explain my earlier post about zooming down for entry. this is a technique called p.a.s.t. swing trading, google it.
what it basically is is trading either engulfing bar or pinbar reversal signals on the weekly (without indicators), but, when it is time for entry, when you zoom down to 1 or 4 hour you can see a universal pattern that happens all across the board, the trendline breakâŚ
here is an example on the cadchf. we are looking at selling after the weekly pinbar. this picture was taken after the fact, where price had fallen as expected:
now, on the following monday, normally we would just make our entry at the close of the pinbar(you can enter on candle open/close on weekly and not candle high/low). and in that case we would adjust our risk based on a fairly decent sized stopâŚ
or, if we have the time, zoom down to in this case the one hour. this universal pattern of trendline breaks is playing out and you can see many places to enter after the monday open (vertical line):
what this does, is, it allows us to enter at the break of one of those trendlines, with a stop of say only 20-30 pips! how much leverage can you use now? lol. much more than if you stayed on the weekly. you will notice also that when price breaks a trendline it moves quickly away from the entry point and continues downward each time. this means not only can you get in on this âweeklyâ long term trade with the same risk you would have otherwise had, but you can very quickly move to break even. now you are in a risk free trade with much more leverage than had you stayed on the weekly
Cool,
What has that got to do with FSO Price Action trading?
I know itâs the weekend and we all want to chill, but seriously mate you are confusing a lot of newbies and others with that post.
Cheers.
Hi Pips Ahoy,
I know youâve been around for quite a long time at this thread, in fact you are amongst the first generation of PA traders with dudest if Iâm not mistaken.
I appreciate that you are generous to share your swing trade strategy here, but please by all means put that in a separate thread if itâs not really related to Johnathonâs Price Action strategy. Just like Kasravi said, you are confusing lots of members here. No offense, mate.
no worries brahs, just wanted to drop a gem one time in here for those that might want to try it :53:
Hi ABC,
These setups have been discussed about 3-4 pages ago,you might have a look.
No harm in it.
I have a general question regarding Usd/Cad weekly pin, it seems confusing since some peers mentioned it did actually close within previous candle and some said it didnât.
Cheers.
[QUOTE=âbigcheefer30;537416â] I just wanted to share my thoughts on this because I thought it was a pretty interesting strategy, and one that I used live on Friday and was able to bank extra cash. Hereâs the GBPAUD D1 PB: <img src=â301 Moved Permanentlyâ/> My order was filled 10PTS above the break of the PB (3 xâs is the candle where my order was filled). Within the following hour, price moved -20pts a few times: <img src=â301 Moved Permanentlyâ/> I went down to the 15M chart, and saw price stalling at previous resistance. Time that with tonyroâs post, and I figured Iâd test his strategy out. Needless to say, the chart tells the story. 20 PTS to be made of each bounce with smaller-sized positions, whilst leaving your âconfirmed positionâ open, but in the RED at times. Iâve seen price retrace quite deep (sometimes almost to the 50% level of the signal candle). I know thatâs not a strategy employed here, and one you even worked out yourself with Krugman, but, logically, this âmodified-additional strategyâ can work. If we are still setting buystop/sellstop orders w/ +10 pip buffers, and the order gets filled, what is wrong with opening fractionally sized positions if price retraces deep against you? I understand that additional risk is being imposed, and, that sometimes price might not retrace (which is why we use pending orders). But, if your order gets filled @ the proper level, and moves against you, what are the major drawbacks of managing the position using the 15M chart above to clear 60 points off the table. (We like to manage the position of charts where we found the setup, but, for scalping lower TFâs are needed). Or, even keeping those additional positions open, and simply adding to profit. If fractionally sized lots are purchased, the additional risk is minimal, and, if the position gets stopped out, it wouldnât be too far of a journey since price had already retraced⌠Personally, I cleaned up pretty nice using this method on Friday. Each decline I saw and reversal, I opened small positions and closed them toward where my initial entry was. If we âknowâ price is going to move up, what are the drawbacks of opening additional, smaller sized positions if price initially moves against us? Canât that be seen as getting a bargain, especially if Price initially broke that 10 pip buffer, filled our order (confirmed our presumptions), and then dropped back? This is obviously a much more advanced way to manage a trade that involves you to be sitting in front of the computer, riding the price rollercoaster. Any additional thoughts would be appreciated here on this matter. Thanks team! -BC[/QUOTE]
The main goal is to enter trades as price is moving âinâ your direction and not against it. You are essentially pyramiding into a losing trade, you never want to do this. If you are going to pyramid into a trade, do it as it is winning and firing off fresh PA signals. By entering on the break of the PA you are essentially saying you are only getting in the trade with the highest probability of winning in your side. You might say that you will only open half of your risk at break and half at retrace, but if it doesnât retrace then your winning position is only making you half profit. If you are opening up small positions that donât mean much, then why even open them up at all? If you start opening your retrace with larger positions then you will most likely start over risking. There are a ton of different scenarios with retracement trading, but not of then provide you with the edge you will get from simply taking your trade at the break, and letting it hit take profit targets or getting stopped out.
The other problem is you are going to start getting away from the primary goal of Mr Foxâs method which is simplified trading and stress free trading. You will inevitably stress over your trades more and have to micro manage your losers more.
You may squeeze out a few pips here and there but I am sure you will see over time it is less profitable. Iâve said this before, there are advanced stop loss methods that if learned can help lower your stop distance and cut losers short earlier, that are much safer than pyramiding into losing positions.
