What do you guys think of this? Aud/jpy daily.
Unsure what you are looking for here. There is no BEEB but rather in IB. Price is in a jam and not where we would want to see it.
If you are going to trade reversals we need to see them stick out by themselves from swing points. This is stuck in price and boxing area and not sticking out.
This one is a bit like gambling that could work out. We have a bearish rejection Pin bar that is hinting of rejection of higher prices. Whicherver way price breaks we would look for a move in that direction. If price can break the box lower we will look for price to break short and if higher then vice versa.
The gamble could play of if the lows break but it is 50/50 and there is no edge here for PA trader.
Good luck,
Johnathon
AUDNZD DAILY CHART
thank U Mr.Johnathon…nice explanation…it is really helpful for us to learn how to trade in this kind of situations…
hi friend…i diont trade that SGD-JPY…BUT
on ur usd-chf…i m having my r\s level little bit higher…i want to see price to retrace to that level to get PA signal…
Appears to tick most boxes…only downside i can see is trading into strong support @ 7950 vs where stop needs to be placed. Also the size of last week’s candlestick is only slightly bigger than the average weekly size candlestick. perhaps enter small position and add to it if closes below the 7950
Nice work on checking weekly charts !!
Hi Njokie 
IMHO, the level is great for shorts ( top of range ).
May end up working out, but the signal is suspect for me, did not close strong (bullish rejection shown by long lower wick)
A pass for me.
Cheers!
Agreed. Blend that together to make a pin and it has a very big lower wick which we don’t like because the wick on the lower side is hinting at rejection of the lower prices. In other words price went lower and rejected moving back higher to close of the session lows.
If price breaks lower there is high chance price falls straight into 0.7950. Then what happens? Support holds and price moves back higher.
We have now seen a higher low which worries me because momentum looks to move higher.
Here is the question that needs to be asked; is it worth the risk to put this trade on with the support so close? For some it will be and others not.
EURGBP WEEKLY CHART
Johnathon
If price breaks lower from the BEEB there is high chance price falls straight into 0.7950. Then what happens? Support holds and price moves back higher??? Or continues falling?
We have now seen a higher low which worries me because momentum looks to move higher.
Here is the question that needs to be asked; is it worth the risk to put this trade on with the support so close? For some it will be and others not.
EURGBP WEEKLY CHART
Johnathon
does this bearish engulfing bar have a great chance as its also almost a pin on the right direction?theres was higher price rejection
Thank you for your explanation. My thought process was the the overall trend is down as you can see it mid August to about mid October. Then it bottomed out and retraced back. I was looking at the top of that retracement to go back down. However, it seems to me that you are looking at like the trend is up and that’s why it would be against the trend. I see your point and thanks for your time.
puzon
That BEEB goes against everything we do in here because of where it is formed.
Heya,
I was not talking about the trend because before I look to the trend I notice other things that make it a no trade as I explained in previous message. For a trade to be a quality setup it must have a few core factors such as:
- Stick out away from price and obvious
- Form at key areas
- Not form in a ton of traffic
- Not be sitting on support or resistance (like this is)
- etc etc etc
Before looking to other things as to whether or not this would be a great trade, the first thing I see is there is no signal to start with. What you are referring to as an BEEB is an IB. Then we straight away see it is formed in a box as previously explained and then we notice that price is sitting on support.
If this was a BEEB we would then notice that the signal does not stick out and scream at us.
If price breaks lower we would look for the next support to come in around 1.2570 and then if it continues lower the recent lows much further lower. If price holds at this support the next resistance would come in around where we can see the false break pin bar fail to break through around 1.2670 area.
AUDNZD DAILY CHART
EXAMPLE CHART - This is an example of a BEEB sticking out from a high and being pbvious. Noticed not formed with price sitting on support and there is what we call space.
Safe trading,
Johnathon
Thank you very much for a very thorough explanation!
puzon
One more question though… I thought that engulfing bars are to be sitting at resistance or support as they are reversal signals. Am I missing something here?
puzon
Yes we want them to be rejecting a support or resistance, not trading into them. We need to trade away from key S/R level and not into them.
Hi guys 
I don’t post much but I am a keen follower of this great thread.
I want to bring your attention to the Monthly GBP AUD.
I see a pin bar at the swing high, nicely formed, indicating to go short with the long term trend.
(I’m not really set up to post charts, but it should look pretty much the same on regardless of your chart software)
To be sure I should wait till the candle closes, I know, but Im setting a pending sell stop looking to ride this for a while.
Comments very welcome