Because everything moves in waves. Strong down, short up trend then move longer down.
That being said, I would NEVER buy the retrace, I would wait until it happens and comes into my area outlined for a short.
Please critique my thinking on this:
EUR/AUD, D1 TF. Overall trend is down. Have NOT seen a reversal upwards at current time, however, if it does; if a strong reversal sign occurs at one of the white circled areas (give or take horizontally), and we wait for confirmation, would that be a good time to short it?
I cannot post a link yet, so Iāll try this:
[IM G]http:/ /i46.tinypic.c om/2nl72as.png[/ IMG]
Edit: Oh, you can attach stuff.
Edit2: One problem I see so far is this may be a bit too large of a TF and timespan to be trading over? (ie: a few days?)
i will be eyeing the first level nearest price as that seems a logical pullback area for this time frame. if it goes past that, the only option is to wait some more to see what price does
Hi Johnathon,
Thank you so much for putting a lot of efforts and time in this valuable thread. Iāve been reading this thread in the last couple of weeks, and eventhough I havenāt finished reading it, canāt help posting some questions:
- Most of the time, I can see in your charts you trade with the trend. Do you trade using PA when the pairs are ranging?
- You said you wanted to see a decent pull back to enter a new trade. Could you clarify how much a pair needs to pull back? Moreover Iām a bit confused in here. When a pair is trending, and the pull back is shallow, I think the momentum of the move is strong and that shallow pull back means there is a good chance the move will continue. When a pull back is deep, then the momentum is weak, the risk of the move being stalled or turning around is bigger.
- In the chart below (AUDJPY H1), do you think that pin bar is enough to short (after testing the red line a few times)
Thank you very much.
Hello,
you can use PA to trade with trend, against, in ranges etc etc
The idea of the pullback is this: When trading price action reversals we need to be picking price to reverse. The signals we talk about are not contination signals. For example we nee price to be going up then get a bearish pin that signals price is going to reverse and then we can trade back lower. Make sense? This also creates space to trade into and we wont then be trading straight into S/R.
The Pin is okay and it would not be wrong to trade it at all. For me because it is on the 1hr chart I would like it bigger and more commanding. Also note price was trading right into support so if you took this please take note of this level. The other thing is trading with the short term momentum is much more favourable and taking longs on pull back here would be a good play!
Johnathon
Hi Guys,
AUDJPY 4 hr chart has a Bearish Engulfing bar. I am new at this so if somebody more experienced could confirm this it would be better.
Jonathon,
Why do you consider 1.0500 a major support for USDCAD and not 1.0000?
USDCAD Bust Through Support
On EURCAD I drew it on 1.28 - again, very different to yours.
EURCAD Looking For Shorts
I think my biggest problem to this moment is drawing S/R at proper levels.
Could you throw a bit more light on it, please?
Fil.
Hi Johnathon thanks for your reply. I do completey understand this risk stays the same. Thanks for clarifying.
plutus
Hi Jonathon,
Very nice! It did bounce but as I write itās begun to slide again. Where are you planning to set your exit?
I did not personally take it but if I did it was pretty clear price was trading into support and where it has bounced from would have been a logical area to start thinking about capital protection.
Johnathon
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Safe trading to all,
Johnathon
Thanks J!, going through it now
Came across this today, deep, has made me think and re-thinkā¦
(goes with what Johnathon has always said about waitingā¦)
āAddicted!!ā by Janice Dorn, MD, PhD. FSU Editorial 05/28/2010
Cheers
That actually was a pinbar in the chart I am trading (GMT+1). I took it and closed half of my position at the line below when I noticed price was losing momentum (almost doji candle, and also I knew at the beginning there is some support in that area so I monitored this carefully), then moved stop to BE. Until that news candle stopped me altogether. hehe. Sorry if this is OT just wanted to show how i took that trade. 
i drew my s/r lines for usdjpy on the daily so this beeb was forming in the middle of the range
daily
4h
What do you think about usd/cad?
Is this a good setup?
This is a 4h chart
Uploaded with ImageShack.us
With zoom off last candles
Uploaded with ImageShack.us
Hello Johnattan? What do You think about pinbar on H4 GBP/USD?
Can this be a good reversal signal to the upside? It formed on a solid support line. Thanks
