Forex Price Action

[davosaan]

I have it marked here on the daily

[AliArslan21]

If you take the indicators off, it’d become much easier for you to spot S/R zones, Jonna was against all these crap indicators.

[missjolin]

Where can you see that I used the indicator?You don’t seem to understand my question, but thank you for the answer

[missjolin]

NZDUSD 4H
Is this A+ deal? S\R is on the daily chart, but this is a contrarian trade, but this S/Rhas been tested many times before, so can this trade be done?

[davosaan]

I think he means the yellow and black Moving Average lines that are on your charts mate. As Ali said, Jonathan was against using those and it does help clear up your charts if you remove them. Do you use those to identify the trend?

[fzz123]

Did you entered that trade? I didn’t find a good PA signal until it was way below the zone

[AliArslan21]

It was meant to be Moving Averages,they are indicators in generic term.

[fzz123]

@Forex_School_Online

Hello,

this is where all the skill and knowledge come in. Even a monkey can place a winning trade but only a skiiled trader can manege their trade and make money consistently. I don’t want to go into it too much in here as:

1: It can be quite difficult to learn and people still don’t quite have basics down yet,
2: I would prefer to help people first learn the basics of how to find the right trades and what areas they should trade from,
3: Not fair to my members

As Bhops said though using the price is what we can do. As I am always saying price is always telling us something and we as traders have to open our eyes to realise this.

So this trap will sound familiar to a lot of people: Trader enters trade and the trade goes onto be a nice winner. This trade hasn’t reached a risk reward that the trader wants to achieve such as 2/1 RR so they hold onto this trade. What then happens? the trade turns around and the trader watches this trade go back to become a loss and the trader gets stopped out.

The trader in the above example is left stunned, in fear mode and thinking that some sought of magic just turned the market.RUBBISH!

When we enter a trade price will go to an first area of what we is a possible stall or reversal area. I call these first support and first resistance area or FSA and FRA. When price gets to this area traders can do a few things:

• Move to break even
• Take full profit
• Take partial profit and move remainder to BE
• Do nothing

Now these first areas are everywhere. What has happened to the trader in the example above is price has gone into them being a winner and hit the first area where price will stall or reverse. These are not big support and resistance levels but rather bar highs and lows that make a small support or resistance area. The hard part for the trader is beginning to recognise these and the PA story, but the even harder thing for the new trader to do is do something when price does reach these areas.

Okay so stay with me, as I said this can be hard to learn as most people have heard of PA but not actually how to manage trades…

I am going to use a chart below as an example. In the chart below we have a pin bar. When we know we are going to enter we look now for the first supprort area. Notice how the recent bar highs and lows make this area up for us? What happens then? Price goes straight to it and respects it. Now for reading the PA story. Notice the last bar on the chart. When price broke above this FSA we know old resistance should hold as new support and look exactly where the bottom of the last bar went to… Yep that’s right, nearly to the pip to this same area. We could use this knowledge by knowing once price broke above this level we could move our stop up knowing that price would have to break this new support to go lower again.

I hope this helps you out. I am going to stick to helping people in here work out the basics before moving onto this subject. there is so much else to learn about first about finding and entering setups before people need to worry about trade management.

Safe trading,

Johnathon

Since the course is currently closed and I couldn’t find any guidelines to that matter in this thread, what should I do? Perhaps someone who was a member could explain that, or show where we could learn more about it, I would highly appreciate that.

[bhops]

No I always take any intraday trades off levels I mark up on the Daily.

[bhops]

For me price was sitting right under the daily level that had been broken so i would’ve stayed out, even though this did go on to print off some pips.

[bhops]

What’s your actual question bud and I’ll try to help out.

[fzz123]

It’s about trade management (the active part, not position sizing) and maybe other aspects of trading that might be important (only who is trading for years would know what are these aspects, I don’t), that Johnathon didn’t reveal at that time because of his students in his course and etc…
I recently joined this thread and already studied all the key concepts, but maybe some things may have gone unnoticed by me so that’s why i’m asking…

[bhops]

Trade management is the toughest part of trading. Ideally we want to see if we can hit a 70% + win rate with a 1/1.5 R:R

[bhops]

Just a couple of charts to look at.

[fzz123]

Thanks for the update… I was waiting for a retrace back at D1 Resistance at AUDUSD, do you think it’s valid if it gets there or it’s yet too close AKA without room to breathe?

[davosaan]

I wasn’t a member but here are some articles that Johnathon wrote about trade management that could be of help

Forex Trade Management: 3 Quick Tips To Managing Your Trades

How to Manage Your Forex Trades: Quick Guide

How to Correctly Position Size Your Forex Trades

[missjolin]

OK, I see. I don’t use the moving average very much. I just put it on it. I misunderstood it

[bhops]

You could look at that level, especially on the intraday charts where you get more ‘room’ to play trades back down Short.

[bhops]

I know Johno didn’t especially teach rising/falling trendlines but they can be a useful tool to have in your tool kit.

Here is how we’d trade one on the EUR/GBP. First my trendline is marked off the Daily charts. Price moves up slowly getting squeezed and drops off Resistance via a PB on the Daily.

Then all you need do is pop down to the intraday charts, in this case the h4 and wait for a break of trendline, followed by a retest and then look for some Price Action to Short. In this case an Inside bar. Pretty simply stuff.

[AliArslan21]

Thanks Bryce