Just wanted to recap a few setups that were discussed in here.
EURNZD DAILY
This clearly shows why we look for the first levels and why we do not trade into key areas. I know a few in here took this not quote pin bar setups and can learn from this…
GBPNZD DAILY
This highlights the point I was making about this setup being at the incorrect swing. Because this pin is at a low and not a high it is trading straight back into the swing support level. We talk about this a lot but when trading pins we are trading reversal signals. That means we must be picking price to reverse. This is also why it is critical to trade from the right swing areas. So whilst this may still go lower from the pin, the example has been made showing how if someone entered this pin from the low and not the high they are trading into the swing support area. As we can see price has hit the support and found bulls. Time will tell what happens here and whether this does work out great, but over time trading into areas of S/R will in the end lessen the chance for trades to work out.
GBPUSD 4HR
Price is now at a critical level. Waiting to see if the bears enter here and look to take price on the next level back lower. If this resistance fails we have 2 more critical levels with the next coming in around the round number of 1.5800.
Please look at the below image. I got the marked PB as a good setup as It was also rejected by a major Support. It was also with trend ! Plus good R/R … But I got stopped !! it even did not reach the FRA. SO i even could not move to BE level.
everything seemed to me good and tradeble. can anyone tell me why this setup was false ???
Support? Yes. With the trend? No. Sticking out away from price? No. The biggest problem with this pin was it was not at the low and sticking out away from price.
The image below shows what would have been better… This is using the same chart but now with the pin at the low instead of set back in price like your pin was.
Thank you so much Johnathon for your explaination. I think I got the concept in a wrong way , a bit. I thought the best Pin is the one which kisses the key level and turn aorund . But as far as what you are telling here the best Pin is the one which attacks the key level and stab into it for some pips and then TURN AROUND. yes ??? did I get it right??
I took this trade as with the rend because I zoomed out just one click in MT4. This is a very common problem for new traders Mr Johnathon. it can be very subjective that which trend should be taken. ! I suggest you based on your knowledge and experience give us a so-called standard amount of zoom or something like this. this may make it easier for us to pick the given trend. it is just an opinion .
I supposed it was with the long-term trend.
Yes The pin bar was rejected by the Support line . But is not the it the exact thing we are looking for or may be I misunderstood the whole concept???
is not the rule ?:
"[I]A valid Buy PB signal is the one which is rejected by a relevant Support . it means that sellers reached a major support and buyers jumped in with a remarkable momentum!! therefore we see a rejected pin bar at closure time of the session. "[/I]
I am quite new to PA system . I read the first 50 pages for more than 3 weeks one by one . I am reviewing all the example pictures you have uploaded every morning :). I have been really trying to get to the right direction . But still have problems to spot the A setups. I also planed to do backtest of the market.
I would appreciate if you give me some advice.
Hossein I trade this PB too, and I wonder where was my mistake.Johnathon expain it before. I think the PB must be the lower bar of all before and must close in the previous bar.Compare your chart and his and look the other bars around PB in Johnathon’s chart.I hope to understand it right…
P.S. Sorry for my bad english
For the AUDCH PB on 4 hr.
Am i right to say the pair is in a range since early october 2012?When the pair is heading to the top of the range we are in upward trend and when it rotates back down after rejecting the top top of the range we are now in downtrend,is this correct?If this is correct then we can say the trade was against the trend within the range?Wow!!!Someone please make me understand.I think range trading is the challenge here.
The market has its three conditions.Up trend, down trend and range. Now on the daily chart AudChf is on range between 0.9440 and 0.9880.We can wait the trend when price brake down or up level.Now trade wasn’t against the trend. In some thread Johnaton says we musn’t trade in a middle of the range.Now we with hossein do it and this was a mistake.I think we must wait to break low or up level or trade (not for novice) the down level of the range if PA tells us to act.I hope to help you
I agree with your view on this potential trade setup but just wondering if the 4H higher low leading to the current test of the resistance level has any bearing on a perceived shallow fall?
Actually you are right . this is very controversial and confusing. I took notes from the first 50 pages of the thread. Once Johnathon wrote : " in trending market we trade at pullbacks, in range market we trade in swing low / high." but the problem is how to recognise and distingushe these two status of the market from eachother. when you take a range market , most of the times it is a part of a bigger trend.!!! what I mean is we have too much subjectivity in the term of lableling the market. it all depends on how you look at the picture. As I suggested to Mr Johnathon, maybe having an experienced based rule for ourselves can help us for solving this problem.
I think the level of zoom is covered by saying: according to this method, “we are swing traders on 1D charts”, so 3-years worth of data is well too much, while a week or two is defo not enough. Every pair is different, you require different amount of “zoom”, but just enough to recognise recent swings and verify whether it’s a trending or rather a ranging market as according to this, you use different trade management techniques.
Fillipl, Johnathon’s simple method is look left of chart to right and a kid should be able to tell the trend. ex GBPUSD 4H, EURUSD 4H/daily. GBPUSD daily I think a bit tricky, looks like a range that has broken KHL so now looking for pullback with a PA confirmation.
it even did not reach the FRA. SO i even could not move to BE level.
