Forex Price Action

[Monema]

@amero considering the size of the preceding candles that pin looks a bit small and I don’t see engulfing bars on the other two charts?

I think he wanted to say that it looks like a pinbar instead of an engulfing bar on the USD/JPY.

[Radicledog]

Hey amero,

Nice to see you here in the price action thread! I have to agree with the other posters, those are not valid price actions signals. I know when you first start to learn about pinbars and engulfing bars you really go looking for them and see them everywhere and want to trade them all! I actually think that this is part of the price action learning process, I’m still learning too

Look at the charts and videos that Jonathon has posted again, then compare them to the ones you just posted. I think you’ll see that his setups are all very obvious, jump out in your face setups. The hard part is training yourself to wait for those kinds of setups!

You’ve come to the right place to learn about price action, Jonathon and company are the real deal!

[Forex_School_Online]

Thanks Johnathon for sharing how you trade.
im just going to be direct, on your website if i join, are other members posting what trades they are about to get into?
and do you post every trade you are about to do, and when you’re going to get in, where your going to place SL and where your going to take TP? so i can do all the trades you do?
thank you so much Johnathon.

Heya,

we like to keep this thread for PA convo only and keep other stuff out of here to keep thread rolling along nicely for everyone. I will PM you with your answers.

Safe trading,

Johnathon

[Forex_School_Online]

@amero

(ok really hoping the picture worked otherwise = AUDUSD,H4)

Ok I’m looking at the pin bar on resistance around 1.02578 ?

Entry: 1.0220 (just below the low of the 2 pins)
Stop Loss 1.03 (bare minimum I am willing) which at £2/point is 4% of my account - however, I may increase it to 150points to stick with my target of SLOWLY reducing my stop losses… but we shall see - I’ll be waiting for your insights
Target: 1.012 - Target of 100points or £200 at this stake

Ok so eurusd, this looks like a bullish engulfing bar… a big one! any help on how to attack this?

However, I dont believe this is a viable trade becasue entry would have to be at the next short term resistance at 1.271 and the target would have to be reasonable so the next resistance at 1.283 - let me know if this is accurate

Finally USD JPY Daily this also looks like a bullish engulfing bar
but I have no idea how to trade it and even if to trade it as the next resistance could be at 80.554

Let me know what you think as I’m eager to contribute

Hello and welcome,

okay so we never trade on Monday from the last 4hr candle of the week. The last 4hr candle is made up of hardly anyone trading and the people that are trading are just covering and exiting positions for the week. many false signals. So Monday morning trades should be no lower than daily until the big guys wake in the UK/US. This would have gapped above those toniy pins anyway making the trade invalid.

What I will say about the others is the area is the number one most important thing when looking for a trade. Think of it like this: To make a winning trade we need others to agree with us about the direction of the market and bid it higher or lower for us to make a winner. Keeping this in mind we need to enter at areas that others are likely to buy/sell. The last price action signal is just what we use for confirmation to enter. This gives us the trigger and helps define our risk for a trade.

The area is number 1!! It is everything!

You should always have your S/R lines marked before looking for PA and not the other way around. People when they find the PA signal first and then go looking for the S/R to match up will end up convincing themselves that price is at a good level.
Mark you levels and then wait for price to give you a signal to enter at them.

Safe trading,

Johnathon

[amero]

Hey all, Thanks for the helpful comments - I think I will take a re-read and then try again

[dudest]

Would you mind explaining why?
My understanding was that if we play longer Time Frames (1D), the swings would be wider, therefore they would require larger stops (in pips); while playing on the shorter TFs (4H), R/S would appear more frequently requiring narrower SL. Unless you’re playing 1D swings from 4H TFs?

Please forgive me if we’re entering MM too deeply in here. If so, just let me know.

Fil.

Hi Filipl,

Because i made that post before joining FSO, i will explain it from the point of view i had when i made the post.
NB: the SL (as I explained it) was NOT 10pips below the entry price, but 10pips below the SETUP LOW
I got the idea out of an introductory pinbar tutorial i found when starting out on price action.
This was how I did it for all setups whether on H4 or D1, and it worked for me.
Sorry i can’t go past that; hope the above is clear.

Cheers!

[dudest]

Hello and welcome,

okay so we never trade on Monday from the last 4hr candle of the week. The last 4hr candle is made up of hardly anyone trading and the people that are trading are just covering and exiting positions for the week. many false signals. So Monday morning trades should be no lower than daily until the big guys wake in the UK/US. This would have gapped above those toniy pins anyway making the trade invalid.

What I will say about the others is the area is the number one most important thing when looking for a trade. Think of it like this: To make a winning trade we need others to agree with us about the direction of the market and bid it higher or lower for us to make a winner. Keeping this in mind we need to enter at areas that others are likely to buy/sell. The last price action signal is just what we use for confirmation to enter. This gives us the trigger and helps define our risk for a trade.

The area is number 1!! It is everything!

You should always have your S/R lines marked before looking for PA and not the other way around. People when they find the PA signal first and then go looking for the S/R to match up will end up convincing themselves that price is at a good level.
Mark you levels and then wait for price to give you a signal to enter at them.

Safe trading,

Johnathon

Goodstuff sensei!

[bygjj]

Just want to ask. What time in EST does pepperstone 4hr ends?

[dudest]

Just want to ask. What time in EST does pepperstone 4hr ends?

Well…uhm,
-> The current 4H candle closes in about 20mins ( 1200H GMT+3 )
-> In GMT/UTC time, that is: 0900H.
-> EST is GMT-4, so that will be: 0500H
[ Essentially, EST is currently 7hours behind the current time showing on Pepperstone MT4 ]

Note: I assume this is more for your own convenience and not whether or not the Pepperstone charts are NY-close or not…

Cheers

[bygjj]

Thanks for the info. Getting confused with my live and demo account since they dont have the same time frame. A while ago I saw a chart with a pin bar I thought it was already closing in 5 min . I posted the chart in here.That was 4 AM EST. I was wrong. The pim bar moved after 4 pm. So I deleted the post. I really appreciate you answering petty quesions.

[dudest]

Thanks Johnathon for sharing how you trade.
im just going to be direct, on your website if i join, are other members posting what trades they are about to get into?
and do you post every trade you are about to do, and when you’re going to get in, where your going to place SL and where your going to take TP? so i can do all the trades you do?
thank you so much Johnathon.

Hi Christina, all,

These are good questions. For quick reply, I’d recommend mailing to Johnathon directly at this email [ <[email protected]> ] ( coz sometimes BabyPips has restrictions on whether you can PM someone based on post count, etc ). So you’re assured he can also respond back to you ( and in good time ) when you send direct to his email.

Cheers!

[dudest]

Thanks for the info. Getting confused with my live and demo account since they dont have the same time frame. A while ago I saw a chart with a pin bar I thought it was already closing in 5 min . I posted the chart in here.That was 4 AM EST. I was wrong. The pim bar moved after 4 pm. So I deleted the post. I really appreciate you answering petty quesions.

No problemo mate…
I could be wrong but i think with daylight savings: since you SPRING-fwd and FALL-back, before you moved the clock forward, the 1200GMT+3 candle was ending at 0400EST (GMT-8).
Do you have a new H4 candle now? (started 30mins ago?)

[brinkfx]

the candle is ending 4 o clock est…but right now in new york they use EDT wich is GMT -4
remember it is summer in new york too.

anyway if you using pepperstone…its all good you can rest assured you got the right charts…or any package that is GMT +3 …rest assured you got the right charts.

[nctrades]

What do you think about this setup, a rejection candle on a suport zone anda a trend line zone.

[dudest]

@nctrades

What do you think about this setup, a rejection candle on a suport zone anda a trend line zone.

Sorry nctrades, I do not see any setup here (which is the “rejection candle” ?)

Johno’s method says:
#1: Key S/R zone
#2: Then: BIG OBVIOUS PA signal

In this case, we are trading level rejection without bullish PA confirmation…
It may probably work out, but it’s not this method. So i’ll pass.

Cheers

[plutus123]

Hi guys I have recently found this thread and am coming from more of an intra day background. My biggest problem is the inability to manage an “scalp trade” I have a method that works but I also have a full time job. Swing trading and position trading will help solve this problem. I can scale my method to the larger timeframes but am unsure of how to place stop losses on a 4 hr? Is there a general rule? Or do you just place stops based on ATR or recent swing high or swing low? I realize it’s a matter of controlling risk and you can do this by trading smaller lots – which means smaller profit until you gain confidence. Anyone out there with information on how to manage your stop on a Daily, 4 hr or 1 hr chart?

[bygjj]

dudest,
The pin bar I saw was not convincing. Anyway here’s another setup has not entered yet. Any comments

[Forex_School_Online]

dudest,
The pin bar I saw was not convincing. Anyway here’s another setup has not entered yet. Any comments

Train has left the station. This is of and gone. Don’t gp chasing trades. I promise you many more will form!

[dudest]

dudest,
The pin bar I saw was not convincing. Anyway here’s another setup has not entered yet. Any comments

Hi bygjj!

My thoughts:

The level looks ok ( rejecting 1.2900 BRN )

The pinbar is not quite at swing high though

The pinbar did not close within the previous candle (compare high of previous candle -vs- close of pinbar)

There is much choppiness on the way down, potential danger.

Will probably go down in the short-term, but would keep me awake at night if I took it (coz of reasons above). So I’ll pass

Cheers!

[bygjj]

Train has left the station. This is of and gone. Don’t gp chasing trades. I promise you many more will form!

Thanks Johnathan and Dudest for sharing your thoughts.