Good trade, in fact its a great feeling when your TP gets hit. I loved this thread, my trading method is also pure price action but I mostly use daily time frame. However I’m also interested in H4 time frame as I’ve done some trading on this before.
Thanks FXCrisp,
I trade daily TF mainly too, and as part of that, i will sometimes drill down to 4H and 1H to see if i can get an entry in confluence with what the daily chart is telling me.
Good trading. G
Hey gforce,
Although it worked out this time, these are really not the type of high probability pin bars we want to be playing. The level you are trading from is super, but as you can see, the pin bar is not large and obvious and it does not stick OUT AND AWAY from price, which are 2 requirements for tradeable pin bars, but rather forms completely inside that 2 bar. If you were to continue to play these, over time you will see your account deteriorate because it is not high probability nor does it signify the order flow that makes pin bars profitable. Glad to have you in here though and am looking forward to see more from you!
Here’s a quote from Johnathan that really hit me and I think it will help you as well:
“We cannot get sucked in to feeling good when a trade wins knowing that it was a trade we should not be in.”
Best,
Joey
Hey Joey,
Thanks for your feedback and the welcome. You are right, the PB doesn’t stick out away from price. I have read that here a few times. Time for me to write up a simple set of trading rules and stick it next to the computer. Much appreciated. All the best. G
Dear All…Greetings of the season!
Im still not able figure out which to follow. Any Advise is appreciated. I am looing at daily time frame and it gives me a different thing and when I look back to h4…its gives me another idea. I have attached the snapshot of what I think. sorry If I am wrong.
my feeling on the daily is that its going go up and on the h4 it going down as I see a beeb.
Hi,
Your conclusion is correct, and this is not uncommon. My advice would be don’t trade until the charts line up
hey buddy thank you.
one more thing I would like to ask…when you said…“wait until the charts line up” you mean to say…that both the charts says the same story? or I wait until the current bar closes or anything else that I should consider?
Thanks and regards,
Alex
Hi Alex.
You dont need the current candles to line up, on 1 chart each candle is 1 day and on the other its only 4 hours.
1 of the systems I use is the 3 ducks system, which I found here.
It uses 3 time frames, each with a 60 sma. When all 3 time frames tell the same story, ie price is either above or below the sma in all 3 time frames, then it is time to trade. If only 2 line up we stay out.
Hello heartyalex,
With this method, what we want to be focusing on is the current momentum. Looking left to right on both charts, we can clearly see that price is trending down. Your analysis on the daily chart that price is going to move up is an assumption and we never want to assume where price will go but we want to stack the odds in our favor for which direction price is most likely to go. That being said, the higher probability play would be to look for short trades to jump aboard the current momentum.
An important thing to remember, also, is that each time frame will have its own trend and we need to treat each independently. The only exception to this is if we have our daily level marked and are looking for price action on the intraday time frames to get us on to the next move.
I personally would only be looking for short trades in this type of market since the downtrend is so strong.
Also, from the look of your chart, I do not see a valid engulfing bar since the bar you are referring to does not completely engulf the previous bar. Hope that helps you a bit!
Safe Trading,
Joey
Hey all, VERY newb trader here… I’ve got a whopping 1 paper trade under my belt and maybe 3 days of online reading.
I’ve been reading through this thread and I have a question… I understand that we set our resistance lines using d1 as a rule, then look for nice set-ups on shorter time frames and manage the trade on whatever time scale we used to initiate the trade. My question has to do with a two bar reversal, because the 2BR is essentially a PBR that formed over two periods is it worth considering trade management for that scenario on a longer time scale? Would there be any advantage or disadvantage?
Thanks
Welcome Hearty Alex and Wheels.
There will be sharper FX minds along to answer ur question i’m sure Wheels, but generally you would manage your trade on the time frame you entered/are trading, with stop loss, take profit target/s all decided upon [B]before[/B] you enter trade.
Wow. Market just opened here. Lot’s of volatilty on USD pairs, with price jumping around like crazy. Will wait for market to settle down before looking for trades. Looks like a few potential opportunities ahead this week.
Good trading all.
Off and running for 2015. Pending order set to short 4H PB with downtrend. 2:1 RR. A bit of traffic to the left, but hopefully space enough to push through. All comments welcome. Good trading. G
Great looking pin bar ! Though that is one scary looking bullish candle on it’s left 
Hello All
On the premise the daily chart shown below of the NZDUSD closes later with a great looking PB, can I ask for some commentary on your take of this price action set up?
The trend is down, so we would be counter trend trading, but the level highlighted is proving very good support - with similar support dating back to July 2013. On the Daily view it doesn’t look like a Swing Low (you have to go to the 4hr for that).
Just keen to see how other Traders would play this…
Many thanks, James
[QUOTE=“jamesbh;675147”]Hello All On the premise the daily chart shown below of the NZDUSD closes later with a great looking PB, can I ask for some commentary on your take of this price action set up? The trend is down, so we would be counter trend trading, but the level highlighted is proving very good support - with similar support dating back to July 2013. On the Daily view it doesn’t look like a Swing Low (you have to go to the 4hr for that). Just keen to see how other Traders would play this… Many thanks, James <img src=“301 Moved Permanently”/>[/QUOTE]
I would be more keen to wait for breakout of the box, either below the support or above the resistance.
I’m not good at range trading, but i’m guessing that since there are several minor S/R in between the major S/R, the price action has to be a large one for it to be high probability, and also for it to break through the minor S/R.
Just a side note, your last few candles look different from mine in my chart. I’m using IC Markets, what is ur broker? Wondering why the difference… Sorry can’t paste my chart here since i’m replying in my mobile.
Thank you for the quick reply, and yes good spot, this is FXCM and they currently have an issue and are not displaying data from the 29th, 30th & 31st…
I would agree with tranceaty on this one. Price is winding quite tight as of late and I will be watching to see which direction price is looking to break. I would be more keen on looking for short trades since the overall trend is down and price has been consistently making lower highs in this range. If price is looking to break higher, I will need to see a break and retest of the relevant highs before I jump aboard.
Safe Trading,
Joey
This may well go north James, but for me, trading is tricky enough, especially countertrend, no matter the signal. I would be stepping back and looking to trade with the trend when PA presents a signal, but this is just my current trading plan.
Regard’s, G
Order filled and have hit first trouble area around 1.0500 as expected. I note a nice PB rejecting resistance forming on the daily, so if this remains the case when candle closes in 1:15mins, i’m confident of price pushing through trouble area. (not current live chart above)
Good trading. G
