No trick question. It formed a almost Pin on the 4hr chart and that’s what I thought you wanted to go long?
If I only managed to catch it, but am unable to watch charts at work. if the PB is not broken by the following bar I will look into it at 6pm my time, around 1pm NY time.
Thanks for the heads up Jonathon!
Fil.
Took this 2 bar reversal today on Gbp/Aud 4 hr.
Not sure if you would call it an A+ set up, but pretty pleased with the outcome
Martin
Dudest has covered this in previous posts and he was entering this one.
Hei there!
I would have liked if the engulfing bars closed more bearish/bullish than they did, showing stronger momentum.
Richard
I am hesitating on 1D & 4H charts, will pass for today and see what tomorrow brings. It looks like a PB but:
- did not close within previous bar (no idea how you treat 1pip difference and I’m not experienced enough to judge at this moment)
- and on my charts the body is more to the middle than to the top of the shadow.
I noticed that if I hesitate, it’s a good sign not to take it, if it will shoot up, there will be more occasions in the future.
Fil.
We have an interesting setup on eur/usd 1D chart - engulfing bar.
What do you think? Is it A+
Pros:
- along with the trend
- significant support level
- similar and confirmed setup on 4H chart, 3 bars ago
Cons:
- engulfing bar is not really that large
As you have already placed the order, are you looking for confirmation from fellow thread readers that you have done the right thing?
Personally I am looking for price to retrace back up to the lows of 28 June… if that happens, and then look for price action. The BEEB that has just finished is not hugely convincing as you stated.
Question for you, should you ever consider a setup an A+ if there is a ‘Con’ listed?
I’m no expert, still learning myself but this reminds me of myself a couple of months ago, when I only needed the faintest excuse to get myself ‘In the market’.
Hope it works out… certainly looks across other pairs that the USD is getting a bit of breathing space.
GG
I would only take this from a retrace.
May the pips be with you.
hey …im already in on this trade…if you look there is a bearish engulfing bar on the daily…but there is an earlier one on the 4 hour…the price is trending downwards…
and im in the pips at the moment.
but i always expect that things may change …so be ready to pull ouot your pips at the snap of a finger if the going gets tough.
just for your benefit…this is by no means an a+ TRADE…
IF IT WERE
the bearish englufing bar would have occured at a swing high…this is occuring at a swing low. (your selling right into support which under normal conditions is a big NO NO)
but imtook it for my own reasons.
plus for it to be even more convincing the bar would be a bit bigger, the one on the 4 hour is bigger.
the reason i like this trade is i trade the cable and fiber continously…and i feel that price is going lower anyway…but im ready to bail at the snap of a finger.
other pairs i generally only look for A+ set ups.
but they dont come that often…and i like to trade every day the cable or fiber.
good luck
I’m take this trade too.
I think it is a nice setup.
The engufling candle is not large, but the price is in a important and obvious resistence zone.
OK Guys let me have a go at this one as it has provoked a little bit of debate.
Many many many pages back I likened trading PA according to what Johnathon is trying to teach as like baking a cake. In order for the cake to stand the best chance of rising we need to have all the ingredients present.
In this case a key ingredient is not there and that is the pullback. We wait for pullbacks to swing high’s and swing low’s as they represent the best value areas to buy from.
The other ‘con’ as has been pointed out is that the signal is not very large.
Here is my take on where I want to see the ‘action’ take place:
At the end of the day this trade could well work out because you are trading with the trend and as correctly noted price has broken an important level.
For this to be an A+ trade we want to see price rotate back see if former Support will now act as Resistance, which is our extra confirmation and then bang! hopefully with some nice PA we are in and with the odds stacked that much more heavily in our favor.
As I say this is not a bad trade and there may be other forums/teachers who would advocate this trade but in staying with the value’s that the OP is trying to impart this wouldn’t quite make the cut, nor would the BEEB on the 4 hour a little bit earlier.
When trades have been scarce it is tempting to get into these types of trades but we really do like our pullbacks in this thread!
Patience = Profits
Hope this helps,
Bryce.
Hei!
Exactly my thoughts! 
Richard
Hi Johnathon
Just a quick question
I’m really getting on well with your thread and think I’m probably going to join your trading course as yours has been the only advice that has given me any success.
The thing I find hard to deal with is just sitting back and waiting for A+ opportunities as I am itching to place a trade and feel I am missing something. I know you have previously mentioned 6-10 trades a month, would this be for each pair or just across all pairs?
many thanks
Martin
Hi Martin,
I’m not Johnathon but I have a pretty good hunch as to what his reply to your question may be.
It is this ‘itching to place a trade’ that kills most new traders’ accounts.
Every time and without exception.
Most people can grasp the ideas of Support and Resistance and Swing High’s and Swing Low’s but what kills their trading is their discipline to let the average trades go by and only wait for the A+ ones’.
The good news is we have all been where you have as far as emotions go so what you are feeling is pretty natural.
The day you are able to dial down the emotions to almost zero and treat winning and losing trades as the same you will be a long way to getting to where you want to be as a trader.
It is natural to feel some emotion, we are not robots after all, but if you can remove as much emotion as possible and treat trading as you would any other business you will be good to go.
I know we do try and stay away from talking about the course in this thread, but for what it is worth Johnathon has done a whole section on Trading Psychology which I know many of the new (and old) traders have found really useful. And I know many PA courses stay right away from this subject, but it is [I]really[/I] important.
Now to answer your question! He trades around 6-10 trades per month, [I]total.[/I]
And let me ask a question in return. Would you prefer to make 10 trades per month and win 8? Or would you prefer to make 25 trades per month and win say 14?
And compounding your account which do you think will make you the most money?
I know the answer to this because I have tried both ways! Haha.
And lastly here is something (not from Johnathon actually) that has stayed with me all my time as a trader and something which I think is super important.
Read it a few times and let me know what you think:
“There are 3 positions you can take in the market. Long, short [I]and not entering at all[/I].”
Safe trading,
Bryce.
I Like this one! very good advice when you understand it!
thx
David
Thanks for the reply Bryce
All makes perfect sense
Regarding the ‘3 positions’, the ‘not entering at all’ is just as important as long and short and can potentially have more impact on your account balance, however this is the hardest one to master.
regards
Martin
very interesting thread, i must admit i am now tossing up joining the course also. the idea of plain charts i really like.
Bryce/Johnathon if any placing 6-10 trades a month, what % risk (or R:R) would you be trading with?