The gap filled nicely after the IB
Forget nearly all the IB’s.
Yes I didn’t say all IB’s fail I said forget most of them. The reason being is traders new to PA trading will get into a lot of trouble with the IB. The reason they get into so much trouble is because literally 50 IB’s form everyday! If we trade all of those we are going to take a hiding!
For me to take an IB it has to be perfect and form part of a story. New traders don’t understand this story and just see an IB and play the break. What mostly happens is they will get stopped on the many false breaks.
So when I asked you to forget them I was trying to steer you down the right path. You will be far better served first learning how the other setups work as they are more commanding and then over time leanring how the over price action story can be formed.
I do hope this answers you question Spongy. Please let me know if not…
Johnathon
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Fair enough Johnathon, I was going against the trend there.
For this thread I will in future stick to PA with the trend. If I find an IB at a S/R level is it ok to bring it up in future?
You can bring up anything you like! We are here to learn and help each other and I wan’t to have all on board who are interested in learning how to trade.
safe trading,
Johnathon
I see AUD/USD starting to trade in a range, trend is up so preference is longs.
Looking for PA at blue area support, pin bar, engulfing bar ect :8:
IF price reaches the resistance level again and fails to break I will be range trading both directions.
Hi!
Questions regarding attached GBPJPY Daily,Weekly charts
-> Are my S/R levels at the (approximate) right place? ( please share yours )
-> Is this an example of a double-bottom formation (meaning price could possible keep rising in coming days/weeks?)
Thanks!
You’re there or there abouts.
The lines you have marked are good but what about the 122.65 area? The area I have a line and marked the blue?
See chart:
So how many members do you have Johnathon?
Do you only chat about your 4 PA entries in your members section?
Been on your site and looks interesting, care to teach an old dog new tricks?
Hey spongy,
we chat about most everything Price Action. Yes we have a live setups forum where we discuss live setups.
I don’t wan’t to turn this in here into that though, and I would prefer to concentrate on people learning in here and to be honest creating something without the usual rubbish that you find all over the net!
1am my time here and I am pooped. Now off to bed.
Safe trading all,
Johnathon
I dont mean to be a pain in the bum but I find it really hard to see your candles or the setups on your charts. I am not asking you to change your colours or anything like that but could you possibly either zoom in on 1 chart that shows the setup or (even better) make the candles bold with the colour. For example fully green and fully red. Okay if not, just as I said I can’t really see what you are trying to explain.
Thank you.
Night,
Johnathon
Hi Spongybob,
Unfortunately, i can’t see your chart or levels clearly…
Could you please save the chart as a picture ( File > Save As Picture ) and re-attach?
Thanks
Hey spongy,
jast lastly talking about IB. Using that NZDUSD 4hr as an example of just hour tricky they can be to play. Okay so most traders play Ib the stock standard way of taking the break and then placing the stop the other side. Although price did go lower on the NZDUSD a trader who potentially played the trade would have been stopped when price faked them out. This was the point I was trying to make earlier. They can be really dangerous when not played correctly. Don’t get me wrong they also can be awesome but I would much rather people start to learn to play the other PA before trying to implement IB. Even though the trader in this example picked the corrcet direction they still would have lost.
Anyways,
I am def off to bed,
Johnathon
Sorry guys, lets see if this is better.
About IB, I personally place stops above the swing high, not the IB bar.
Hi all,
I’ve been following this thread and finally have some questions to resolve before I dive in more.
First of all, pertaining to trend. How do you go about identifying a trend and how strong it is? I’ve seen people say you go up a level and see the direction over a period of time/number of candles. For example, if i am looking at 1D timeframe then I go up to 1W and use that level to spot a trend. I also see people say just use 1D and identify the trend by seeing the direction over a certain number of candles (let’s say 25 previous candles).
Also, is it best to use a line I draw myself(subjective) as a trend or some EMA/indicator that is more “objective” so that it can be more in line with what other traders might use?
Lastly, with regard to engulfing candles. Is there a cut and dry definition of an engulfing candle or it depends on who is giving the opinion? I believe I’ve seen people say that the body of the engulfing candle should swallow the previous candle including the highs and lows. I’ve also seen that the candle just needs to swallow the body of the previous candle. Are both true but the one that swallows all is a stronger signal?
These questions are necessarily for Johnathon so any guidance is greatly appreciated.
EJ
Trend is simply the passage of higher swing highs & higher swing lows in a bullish ascent & the passage of lower swing lows & lower swing highs in a bearish descent on whichever timeframe you’re observing your data from.
Opinions are divided as to how many swings are required to confirm a trend, but in order for a fresh trend to be considered genuine, the previous swing would need to be taken out followed by a further swing high & low (going up) & vice versa (going down) in the new direction.
One method of determining the strength of a trend is by measuring the depth of any overlap between the impulse (or primary) wave & the correction (or secondary) swing.
As an example here’s a 4 hour chart of the nzd/jpy.
The view that the op has given is an accurate description of what an outside bar represents.
Try not to reinvent wheels or add layers of confusion when studying & absorbing information. It is what it is, same as inside bars or tweezer bars etc.
Don’t lose focus of what he’s delivering in the context of the technical geography. These candles are being shown & advised to be traded at very specific technical area’s of the price chart. I would suggest you fovus more on where these candles are setting up rather than attempting to dissect the structure of the candle.
Spongybob if it’s Ok I will take this question. Seeing what Johnathon was posting on here I will admit I have joined his site. It’s very good, an extension of what is on these threads.
The forum is good and seems pretty ego free which is a big plus where I’m concerned.
As he says nobody is trying to reinvent the wheel just put it together into one cohesive package with his particular slant on it.
The reason I mention this is he sent me an e-mail last night (I was asleep at the time) and as he saw me contributing to this thread again he asked if I could keep an eye on it as he is sometimes very busy and doesn’t always have the time to answer people straight away.
Please note I am NOT here to promote anything but more to help him keep this thread going as I am now familiar with the style of PA he likes to trade. Of course he has more experience than me but I will try and answer questions where I can and help people out. I really believe in the principles of Price Action trading and have been trading this style for about 2 years myself.
as you can probably see from when I joined babypips I have been interested in Forex for a number of years and then about half way through my travels stumbled upon Price Action and have been a convert ever since as it was the first style of trading which allowed me to consistently profit over time.
I think it is the best and easiest way to trade and it’s great to see new people joining this thread and asking questions. Hopefully we can keep it going and show people the power of PA!
Sounds like you know a thing or 2 about PA yourself? Hope to se you on this thread on a consistent basis and we can discuss some PA trades as they come up.
Thanks Bryce,
yes I wanted all to know Bryce is a Senior trader of mine. I mainly wanted people to know this because he knows what he is talking about and when I can’t answer in here and he does for me please listen to him as he knows what he is talking about.
Johnathon
Thanks Spongy,
looks much better. Thank you!