1.2820 …d’oh(message must be 10 characters minimum)
Hi Johnathon,
Thank you for sharing your valuable thoughts with us. I am certainly learning a lot from you & I do really appreciate it.
Yes, I certainly see your points, human analysis would be more sensitive but on the other hand, computer can gather all necessary details (that human some times could forget just a bit of it) and analyze much faster. The program can scan all the pairs (4H to weekly) & it will have time to analyze (long term charts) and give you an alarmed signal (e.g. similar to Autochartist program). This suggested program can do the followings:
- Analyze the quality & strength of Pin / engulfing bars (e.g. a long wick pin bar can certainly has an effect to reverse the trend).
- Read any big round numbers nearby & will take it into consideration in the computed analysis.
- When a pin or engulfing bar appear, it will automatically draw line/inspect/ check (whatever you want call it) to analysis if there is (inside/out) resistence/support levels that are touching more than one point ( the more points of course, the stronger R/S levels) , and if a strong R/S levels are detected, it will then give validation to the PA signal (whether it is with or against the trend – In addition, the possibility percentage for the trend reverse).
- Check if any bounce on MA (8, 20, 50 EMA), or trend line
- Check Important pivot levels
- Check Swing high/ Swing low possibilities
- Check Fibo levels
And perhaps you can add to it " Head & Shoulder" pattern as another PA signal
The same program will detect possible TP, SL levels as well
The program should also give you (according to analysis of all fed technical information) a rating to the suggested trade (A, B, or C quality).
This program should scan & give you an alarm when an opportunity appears, you will then use the human analysis to determine if you will take it or not. In this case you will only attend to your computer whenever you get that quality A+ signal.
I know this is not easy to conclude, BUT it would be certainly worth it if it can be made.
I Look forward to your valuable comments
Hello Johnathon,
What do you think of this situation in EURNZD Daily & how would you deal with it?? Thanks
For me this is a “Do not trade”.
The price is stagnate on the line you drew, but we would need a pullback (preferably to the 1.57810 area) to look for a short in the direction of the longer term trend.
The way I see it right now is you would be selling low instead of selling high.
That’s just my 2 pips.
May the pips be with you!
According to this method that we are using here, there is no trade for me. I can’t see any PA.
Richard
Thanks for your remarks, I certainly take your points into consideration. Thanks again
Thanks Richard, I didnt take the trade anyway because I wasnt sure if that was a two bar reversal or not. Would you mind explaining to me why you wouldnt take this trade. Thanks 
Eddie
Sure Eddie, I’ll try to explain how I read this chart (altho I’m still learning myself). 
Reasons, why I wouldn’t take this trade:
- I would be trading straight into the support line (@1.9550), but we want to go short from swing high and long from swing low.
- IMO, there is huge traffic before (the red marked area).
- I can’t see any obvious PA signals (PB, engulfing bar, 2BR) from swing high (@1.9680). Actually, there is none at the moment.
GBP/NZD H4
Hope this helps,
Richard
Hi Eddie,
I believe the second part of your question has already been addressed, regarding [B]2 Bar Reversal[/B] - it would form a Pin Bar after blending into one candle - this is the easiest way for me of distinguishing 2BR from not a 2BR. Two bars are usually similar length +/- few pips depending on the TF and the 2nd bar closes in its last 1/3rd of a length signalling a strong buying/selling will.
More details on PBs, 2BRs & EBs on the first post of this thread.
Really worth reading.
Fil.
Richard and Fil,
Both answers have been extremely helpful. I appreciate you both taking the time out to help my thought process. Thanks again
Eddie
Hey Pips ahoy…this trade we discussed, coming back to it with you. I think the only thing was the pin bar was not so large, but the reaction of the BRN, is quite obvious which could give us more validity to the pin which is of average height to the other bars. Price is down about 300pips now, check out the image again, just for learning purposes
Hei!
Can anyone make this clear for me please:
USDSGD H4
If I took a short position at the green marked zone (after the price breaks through the big BEEB low), would it be selling straight into the support line? Does it even counts as a support line (@1.2576)?
Silly question, think I know the answer, but still I got some doubt (dunno why).
Richard
It’s not a swing high or a pullback, so it’s not an A+. To answer your question, however, it is a support line, but your chart view here only shows it being rejected once, so it is fairly weak at the moment… i would zoom out and check the daily TF to see the relevance of your support
The “support” line is drawn according to H4 TF, I’m usually not doing like that, just wanted to understand this situation perfectly. I always draw sup/res lines on the D1 TF and then I switch to H4 to look for a signal if I don’t see it on D1 charts.
Richard
Hi Rich 
I have my support line marked around the same area as yours.
I’ll sit on the sidelines for this one, and wait for a deeper pullback to happen ( in the form of the 'ol 1-2-3 ) in order to consider going short (after PA confirmation)
Cheers!
PS: nice clean charts you got there!
Hi fergiebom,
Not 300 pips Price is currently less than 100pips from the high of the ‘pinbar’ ( @ ~ 1.2405 )
PS: average signals Do work out from time to time, but make a habit of taking them and you’ll take a whooping in the long run.
Cheers
The AUDNZD has again fired a large PA signal (pinbar) on the Daily.
However, I will wait and see if price will continue to climb up to the more proven S/R zone and look for PA there if the resistance holds
Is this a B set up? Because pin not big enough. I entered this trade yesterday. I used a ruler. The ruler is to determine if my PA is big enough to trade the PA. Got this one right. I am 50 pips ahead. Any comments.
Lasr week my audnzd entry was not triggered. Thanks to this thread because it was a continuation up.
