It seams a lot of people in here are looking for the really hard and complicated ones and missing all the easy and simple ones. This was a nice setup on the EURUSD 4hr charts and the same as the last couple of A+ trades have not been posted by general public in here.
I took this but got shaken out by the third candle (bullish pinbar) from then entry (pinbar) candle. so when it went down a bit i closed it immediately. then it just plummeted down really hard.
Is it correct that i stay in the trade no matter what until i get stopped out where my stop is?
Today’s back down into the support area of EUR/USD was confirmed by yesterday’s candle also. The daily chart technical’s has posted on another thread early today.
I noticed it, but wouldnt go near it. For me this would be a gamble.
lack of decision in previous candles
no confirmation really
i would get stopped using 1:1 RR ratio /next candle/, wouldnt wait 24h to get 50 pips /i know your view on measuring in pips, we need to do it somehow/.
This setup reminded me my brave beginnings when i thought that if pair did it already, it will do it again
Same folks, different strokes.
Johnathon, could you roll out your view on it please. I am actually a bit confused - from you i learned to watch out for simple straight cut setups, and this one smelled from a distance. To me at least.
It’s a shame I don’t have many opportunities to look at 4h charts at work… I don’t take many trades on them, so I do not post them either.
I have to admit, it caught my attention, but I was looking at it as a PB at first glance (deceiving long wick…) so not closing within prev candle was a NO for me; only when looking at it for the second time at work I realised it was an EB but it was too late as I interpreted the bullish PB (2nd candle from your arrowed signal) as invalidating the trade - the price has reached the first support and turned around so I saw no point entering it so late.
Jonathon, have I misinterpreted it?
Hi Bob,
it looks to me more like a 2BR, not the Engulfing Bar
looks to be bound within a recent range and just rejected for the 3rd time a strong resistance with a solid PA
the bar finished in 1/3rd (even 1/4th!) of the second candle and it looks similarly strong on the 4h chart
it broke additional S/R ~1.567 on it’s way down
It looks safe to me, I will be setting orders to go live on Monday, but my TP will be a bit tighter than your 2:1
I see some opportunity from NZDUSD, USDCAD, and GBPUSD. i have draw the support resistance line from the Daily time frame and i waited to see the PA there. and today i found the PA opportunity there.
hope any suggestions for me … thanks
Do you think you may be looking a little to far into things. This was a very simple and obvious setup to be honest that I was personally on and I know a lot of the members were also on. I have seen a lot of rubbish setups posted in here recently and this was very simple.
There was a clear bias in the market to the downside we were trading with, there was a pull-back and a very obvious and proven resistance level. Then we had some really small bars showing indecisions followed by the BEEB which confirmed the trade.
I would personally take this setup 100 out of 100.
Hi guys. I’ m a new trader and i really want to follow the simple PA path in the future. I want to ask you something specific. When the price action is moving lets say up, but the volume (sign from OBV or AD indicator) or the movement’s strength (sign from RSI indicator) aren’t following (i take the case of possible market manipulation), can i just rely on chart reading? Is the price action movenent fake? Can i understand this fake movement by just reading the chart? It really troubles me, so any help would be very much appreciated.
If you want to learn to trade Price Action get rid of ALL indicators. As you can see from this thread we use no indicators and we make money from watching and learning how price behaves. Indicators are simply not needed at all. Everything you need to know can be found in what the price is doing.
Thanks for the quick responce. That is all i wanted to know. It’ s a same that so many people are suffering from indicator conflicts, not being able to see a clear chart on the screen…
hey killbee…
i think those indicators are a waste of space anyway…
if forex ran from a centralised exchange then they may reflect true volume and the like…but those indicators are just based on who ever your broker is hooked up to …and trust me…that isnt even a reflection of 1 percent of the FX industry…so it is only a really really rough guide to volume…
price shows you true volume…
and you cant beat a clean chart.
no distractions.
I did not take this trade for the reason of uncertainty. Great explanation. Would be looking for this setup in the future. I guess I still have a lot to learn. thanks for the input.
Hi Everyone,
I’m new here and relatively new to Forex, and am looking to learn trading price action and getting away from indicators,so thanks very much to Johnathon for starting this thread and the free education >> very much appreciated Johnathon…
In reply to filipl’s remarks to cyberbob222’s post regarding Daily GBPUSD short >> agree it’s a tad short of engulfing and is a 2br , also its a pivot top pattern, and with the help candle addition it forms a nice bearish red pin bar…will be looking at taking a position in morning… ( am on east coast of oz)
thanks fellas
