Hi sir,
I am newbie in price action trading. But I am highly interested. I am getting bored with indicator trading system. I think indicator basis trading is so subjective. But I feel objective trading in price action.
I have read already all of your previous posts. I have got many ideas about price action.
Will you help me to learn price action trading ?
If yes, can you give me answer of my some questions ? I need them to clarify from you sir.
My questions are…
What should I have to learn for price action trading ?
How can I place stop loss ?
How can I place take profit ?
For exit, Do I have to stay in front of the chart ? or, when can I take decision to exit ?
What time frame are best for price action ? I have heard that D1 is best. H4 can be used ?
If I trade intraday chart, Should I mix some tools more to confirm ? If yes, then Please remark them.
Thanks in advance. I hope you will teach me from deeply. I am waiting for your answer.
I dont think Johno is here to show you how to use your station Shining, we all had to learn how to place entries, stops, limits ect by ourselves.
When It comes to learning price action, from my personal experience signing up with Johno would be your best bet, if you cant for any reason I would say follow this thread and try learn.
Trading daily time frame is the best way to start. Open a demo Acc. with Pepperstone or Fxpro they uses NY Close charts, Practice with MT4 demo, on how to place orders with stops and t/profits in place, Play around with your MT4 charts and learn how to place support and resistance lines (horizontal only) , learn how set up profiles for your major pairs that you want to trade and go through all the free stuff at Forex School Online. This will take some time, but is worth the effort when you need answers to problems, quickly just Google and use you-tube there is lots of stuff to show you how to set up MT4 charts. Looking at 4 hour charts is ok especially trading demo and learning PA, you must know Mt4 inside and out and show yourself to be constantly profitable on demo before risking real money, you will require a trading plan and money management strategy, to build yourself a small business, a good mentor is essential.
Firstly, I would like to say a million of thanks to John’s effort in giving out excellent guidance and help to PA enthusiast!
I have been following this thread since last week and just finished reading from the very beginning to the last post! It was indeed eye opening thread and definitely it is going to be my turning point in my trading journey!
I would like to participate to discuss PA with you guys here. The AUDUSD caught my attention but I’m unsure if I’m having proper PA interpretation. Below is the chart with S/R plotted and my PA interpretation:
As you can see that this particular currency pair has been in bullish trend since Nov’11 until it reached the major resistence level (somewhere 1.0850) - the red line. The bullish trend is losing steam as it faced difficulties in breaking through the resistence level and it starts moving downwards and forming lower lows. This could be signal for potential trend reversal from bullish to bearish.
However, I’m having dilemma at the moment where:
(a) I’m not sure whether I should wait the price to break through the support level (yellow line) and wait for retracement to rejoin the new downtrend on any PA at swing high. And as per the John’s teaching, we should always trade with the trend for higher probablity of winning.
(b) I’m not sure whether should long this pair as you can see that there is 2 bullish pin bar formed on support level turned from resistence level (yellow line). These two bullish pin bars formed at support level could be signals for long as it could be (i) reversal bullish pin bar at swing lows of previous uptrend & (ii)they are obvious and BIG
Hey spongybob
Defo agree and that’s how I like to trade PA at swing points. However I see the daily consolidating the past 4-5 days. And the 4hr pin has formed at the support of this range rejecting previous support.
What do you make of this tight consolidation on daily frame at support?
Hi Spongy!, thanks for the feedback.
The main things that convinced me about this was:
-> the bearish bar’s body matched the preceding bullish bar’s body almost 1:1
-> formed at a great swing point
-> ALTERNATIVELY, price could break support! Then i would be looking for it to pull-back and test if prior support will be resistance, and hopefully give PA to go short in that case.
PS: the 2pinbars you mentioned ( 1 pinbar on my chart ) are not as big+obvious as they can(should) be. Since an upswing would be a reversal of the current downward trend, it would need to be REALLY decisive (i.e REALLY BIG/OBVIOUS) to show that price wants to reverse from the strong recent downtrend
Sweet [ Although i don’t trade Inside Bars myself, their whole topic just honestly confuses me…as in they could signify reversal, but could also signify continuation…so i just leave them out altogether… ]
I also did not ‘see’ the pinbars on EURUSD (i watch the pair, but i’m not a ‘fan’; i have more GBPUSD trades than EURUSD trades, personal preference). Though even if i’d have seen them, i don’t think i’d have taken them. The 2nd pinbar looks more like a pinbar, but that upper wick just didnt go with my ‘gut’ on simple/big/obvious/slap-in-the-face (even though it may probably work out, since it’s rejected an important S/R level).
Nice observations on this pair. Price has also retraced to around the 50% Fibo level as well in this current uptrend. I don’t particularly hang my hat on Fibo’s but it is another tick in the box.
If a really cracking PA signal developed here, like if that PB had been a whopper I would’ve been looking to go long as well. As it is I am probably looking to get more bearish on this pair and have my zone highlighted to look for shorts.
Having said that if you took a long from the level price is at nice you could bank some nice profits before changing tack and looking to go short from the area I have highlighted!
For those of you looking at what a 2 bar reversal should look like I have an example that Johnathon has highlighted. Not sure if he has posted it on this forum.
Remember like all PA we are looking to trade them from swing points (it is number 2 in the 1-2-3 sequence) and both bars, wicks included, should be the same approximate size. It is not just enough to have a bull bar followed by a bear bar.
