Forex Price Action

[Vahagn]

@Forex_School_Online

So this one worked out quite nicely as quite often PA with strong moves will. In saying that getting into the habit of trading these will cost you. There is a reason a lot of people after trading Price Action will often say that they found the candlesticks to be unreliable. The reason for this is the areas they are playing them from and the price action signals themselves are rubbish setups. We can’t get into rubbish setups and then blame the candles. The difference between someone who thinks candles are letting them down and the other person who makes every month from them is the trader who makes money has learnt to be very selective in their trade selection. They have learnt over time to only play the best setups. Not every candle they see that remotely looks like a pin bar etc.

Okay so this would have been killer trade if it pushed higher into the value area. We must remember the pin bar is actually called: The Pin Bar Reversal and when we are playing reversal signals we are looking for price to reverse. Because of this we need to pick them from swing point or in other words we don’t want to trade a bearish pin from a swing low like this chart. We are looking for price to reverse so to go short we need to see a pin after price has gone up. Hope you are staying with me here as this is important.

Okay so look at chart below and I have manipulated the chart to show what would have been a killer setup.

This chart below is the same chart as you have only I have “added” some price to give you an example. Notice now the difference how we are trading for the price to reverse? Hope this makes sense.

lastly the reason I say be careful trading pins that have formed without a pullback is other traders look for these signals as the exact opposite as what you are thinking. For example you may see a bearish pin bar that forms at a swing low (instead of swing high). This is actually an inverted pin and a reversal signal that price is looking to the opposite of what you are thinking anhd in fact looking to go higher.

I have attached an example of what I am explaining below.

Safe trading,

Johnathon

Thanks Johnathon for explanations!

Vahagn

[Forex_School_Online]

@bhops

Fair enough whatever works for you.

I was drawn to Johnathon’s style of trading because it was very similar to the same philosophy as my own which is pretty much to look for prominent horizontal levels and then wait for corresponding PA signals to confirm the trade.

And I’ll always wait for a retest rather than playing a breakout. If price continues to scoot off so be it. There are enough pairs to watch and if I look at the 4 hour and the Daily that will give me more than enough opportunities to get my 4-5 good
I guess it all comes down to your appetite for risk, how trading PA fits your personality etc, there is no wrong way and right if you are consistently profitable. As I say if it works for you great but equally what I do works for me.

Ok so my further 2 cents to clarify some points. Yes what Bryce has said does also clarify how I also see things.

I NO NOT look for head and shouters, pennants or anything similar. And even when they are bought to my attention do I even then pay attention to them or trade with them either. This does not make them in any way wrong or any less Price Action though and some people have there whole method based around them. Who the heck am I to say I have the one and only way to trade? I can say this. I have found a way that works. That is simple on one hand but on the other has a lot involved and takes learning. It will and I have seenit many times over help people and clear their head although it is not the only way!

The simple way my mind works makes me think about these two things when I trade: 1: Where are they key supply and demand points (i,eL Support and resistance) and how can I mark them? With S/R line 2: How can I use Price Action (traders behaviour in price) to guide me at these same level to make money? Learning and trading reversal signals matched with supply demand aeas other traders are doing same thing as me!

As for the last point I am also against having disagreements in forums also but price does eventually go back to test levels (even if it is after 5 years) over 80% of the time. Normally it doesn’t take time but price nromally does go back! This does take a patience some that some don’t have and I understand why people would be into taking quick breaks instead of waiting.

Here is example on chart of what I am saying of the break and then eventually a retest… This is what I am looking for. A strong move out with the trend. A pull back or retrace ad then solid Price Action (in this case a pin bar) to get long in line with the trend,

See chart:

Safe trading,

Johnathon

[Vahagn]

Hi everyone!

Are we looking for the reversal in this zone ???

…if yes, then is this a correct BEEB on 4H chart ?

[Vahagn]

…and what about this one…?

Was it a right setup?

[Spongybob]

Yes its a bullish engulfing, but look at the risk/reward setup, resistance is very close

[Spongybob]

If you look at my last chart of GBPUSD I drew support lines and said to watch for PA, you need to always look for the next level of support or resistance and make sure you have a good RR.

[dudest]

If you look at my last chart of GBPUSD I drew support lines and said to watch for PA, you need to always look for the next level of support or resistance and make sure you have a good RR.

Hi Spongybob,
What was the PA signal(s) in the above GBPUSD?

[Vahagn]

Hi Spongybob,
What was the PA signal(s) in the above GBPUSD?

Was wondering also

[Vahagn]

Yes its a bullish engulfing, but look at the risk/reward setup, resistance is very close

Thanks, I see… and what about the other chart wit BEEB ?

[Vojin71]

Hi all. I like this forum I would like that I join.
Also look EURGBP and think that the main trend tired.
I recorded IB + BEEB . I think it is a good start for a counter trend on 4H.
RR is also good. I took this. I’d like to know what others think about this trade ?

[Spongybob]

Hi dudest

I took the break of the pin bar, it was a rather small pin bar but was in a good support area, one could of also entered the break of the mother bar that had multiple inside bars.

Take note all the charts iv posted I did BEFORE it happened.

[Spongybob]

Nice lines, Im looking for a retracement to long at that support :51:

[TomSmith20]

I was reading some of the graphs and I found it very difficult to understand. But the other graphs was clearly explained. Overall, nice topic.

[Forex_School_Online]

I was reading some of the graphs and I found it very difficult to understand. But the other graphs was clearly explained. Overall, nice topic.

Hello Tom,

don’t worry I am trying to work this out as week speak to try and get the forum back on track to teaching simple Price Action. I am sorry to all who have messaged with questions and hoepfully I will get this thread cleaned up and back on to how we were trying to teach a few days ago.

Make sure you watch this thread over the next few days as it will be going back to how it started with teaching new traders the art of trading price action on raw and simple charts.

Safe trading,

Johnathon

[Forex_School_Online]

Hey all,

the idea of this thread is to help all traders to begin to learn how to trade raw price only. I will do this in a simple manner. If you are confuesd please read the first page and then jump to then end and post with us.

If you have any questions or comments please post them.

If however you have a question regards your broker please post in the relevant other threads.

If you have another method you believe in, then please start your own thread and post your ideas in that and we can follow you.

In here will only be simple Price Action, and all conversations to do with it.

Thats so everyone can benefit!

I look forward to a really good week this week and I will post about it in here so stay tuned

Safe trading,

Johnathon

[Ang101]

Hello

Im sorry to say this Jayonbeach, but I have to agree with Tom, the other charts are simple yet yours I really struggle with. Please can you keep it like Johnathons and the rest

No offence, its just easier to follow

[Ang101]

I love the way you make it so simple

Hi dudest

I took the break of the pin bar, it was a rather small pin bar but was in a good support area, one could of also entered the break of the mother bar that had multiple inside bars.

Take note all the charts iv posted I did BEFORE it happened.

[Forex_School_Online]

Just an update to the USDSGD daily pin bar.

I am out with nice profit however I still know some people are short looking for bigger kill on this one which does seem likely as the trend is overall down.

I am strict with MM however other traders may have elected not to move to break even or take profit like I did but hold for that bigger target. Only risk traders have trading this way is watching your profit turn to loss sometime which I rarely do as I like to take profit as the market makes it available.

[Ang101]

Thank you for that Johnathon, its irritating when forums end up completely off the topic

Hey all,

the idea of this thread is to help all traders to begin to learn how to trade raw price only. I will do this in a simple manner. If you are confuesd please read the first page and then jump to then end and post with us.

If you have any questions or comments please post them.

If however you have a question regards your broker please post in the relevant other threads.

If you have another method you believe in, then please start your own thread and post your ideas in that and we can follow you.

In here will only be simple Price Action, and all conversations to do with it.

Thats so everyone can benefit!

I look forward to a really good week this week and I will post about it in here so stay tuned

Safe trading,

Johnathon

[Ang101]

Johnathon

Is Spongybob also a member of yours, he seems to trade very much like you

Im really enjoying this thread, please keep it up.