Dudest,
While watching PB videos i had a doubt related to entry point.
Do we make an entry 5 pips above/below the wick (high/low) in a PB?
I did made an entry at the open of the next candle after PB…
in one of the video, Mr. J is making short 5 pips below the wick…
Aariff
Hello,
this question has already been asked by someone else but the context was unclear so I think it was overlooked.
The question I have is the following:
How do we handle contradicting signals?
Right now there are 2 examples
EURGBP Daily vs Weekly
Looking at the D1 we see that the short term trend is up and price has retraced to a good level forming a pinbar. However looking at the W1 we see that the medium term trend is down and price has retraced to a good level forming a 2BR.
GBPCHF Daily vs Weekly (not as good as the other example)
Looking at the D1 we see that the short term trend is down and price has retraced to a good level forming a pinbar. However looking at the W1 we see that the medium term trend is up and price has retraced to a good level forming a 2BR.
Both pairs seem to go in the direction of the weekly chart.
Both Stop Orders were not triggered, so there is no loss. But if we wouldve traded the Weekly signal we would already be in profit by now.
So my question again: Which signal do we trade? Do we set Pending orders for both directions? Or do we take the weekly signal as there is 5 times as much information in the candle?
niX.
Really you don’t have to differentiate between a BEEB, two bar or pinbar reversal signal. They all signal the same thing: Price went up, then a little while later it went down strongly enough to take back all that upness.
a pinbar does it in one candle, a two bar comes down by the same amount as it went up but across two candle time periods, and a BEEB goes down by more than it went up, across two candles.
(and of course the opposite direction for bullish signals)
what you are looking for is a signal that says “Price has gone the other way strongly enough to keep going”. The stronger it reverses, the more likely the momentum will keep it going that way for a while.
In the pics you posted the 2 bar is also a BEEB… I call it a two bar when you see two almost identical candles of opposite colour next to each other.
Hope this helps
Mr Johnathon,
I fail to see the “KEY” s/r level to have gone short off your engulfing bar on your CADJPY D1 chart. ?
The way I see it the D1 trend is “up” since pivot point low > 1st june … so shouldnt we be looking for …or have been waiting for >> pa that "sticks out’’ to go long and join the trend from the area where price is atm…?
cheers pw
The result is you learn how to read the price!
Hi nix, don’t get concerned with multiple time frame analysis, each time frame is independant of one another and has their own levels etc so if trading a daily chart we don’t even need to be thinking about what’s happening on the weekly.
Your are correct in saying signals on the weekly are more powerful as there is more information contained in the signal, I would say in that situation if a tradable opportunity presents itself then just trade what you consider to be the better setup.
Also I will just say if you are taking multiple setups where one of the pairs is the same (ie in your case a eur/gbp trade and gbp/chf trade) don’t put all your eggs in one basket!
Hope this helps
Steve
Hi Johnathan,
I have not got enough post counts yet to send you a message. I was wondering what brokers you can recommend that have a NY candle close?
Thanks
fxdd, pepperstone, fxpro, fxcm market scope.
Okay I have been following this thread for sometime now and I love price action trading because it eliminates all of the indicators and riff raff. But issue I’m having this week and have also had in the past is lack of quality signals. If I do see a good signal it is either at a swing high or swing low going with the trend.
My question is if a trader plans on using FOREX as a main income stream how can a price action trader maintain a consistent return in times like I’ve explained. Are there periods where some dont trade for 2-3 days and try to make up for those days when a valid signal arises?
Any comments, opinions or feedback will be greatly appreciated
Thanks for the help I shall check them out. FXPro is 00.00 EST Time for daily candlestick though.
Yes proper capitalization is also another key element I left out. What would be good capital to invest initially 10-20k? With a 1-2% risk system or would more capital be need initially?
Definitely I am demo trading for 4-5 months and I will have the capital to start with atleast 10k. I feel that starting undercapitalized is a major issue for traders and sometimes why they do no see the upside in trading. They either earn minuscule gains or risk absurd amounts trying to turn 2k into 40k in a year. I work approximately no more than 4-5 hours a day on my reg job and that is a very long day for me so I have the time to invest my mind into trading.
idude,
Extract from Johnothon’s article -
“The 2 Bar Reversal is similar to the engulfing bar in that they are both reversal Price Action signals. The main difference between the 2 Bar Reversal and the Engulfing Bar is the 2 Bar Reversal does not have to fully engulf the previous candle or bar where as the Engulfing Bar does have to engulf at least one previous bar.”
In BEEB - The second candle should engulf the first candle.
Thanks
Hemant
Oanda is a good one. Very low spreads
Pretty much.
An engulfing bar has to engulf at least one previous bar but 2 bar does not. They can look completely different.
Check charts below for what I mean in difference:
Johnathon
Oanda is a good broker with low spread but it is not having NY close.
For newyork close, use pepperstone, FXDD, FXCM etc.
Yes indeed. I misunderstood the question, i usually say gmt + 2, one of the purposes for that is to get rid of the sunday candle. But for daily charts i use a demo account with ny close.
EURGBP daily trade triggered SL 
Hey!
What signal did u trade? Can u show a pic please? Where did u enter and why?
Richard
