Don’t we have the ATR to do it for us? Why did you have to write an MT4 script for that? Unless I’m confusing it with something else?
Hi Richard,
Don’t you consider below points?
BRN 1.29 rejected
with the uptrend, looks to me like a simple retracement to 50% fib
confluence with an S/R zone which was approached several times in the past on this level
BUEB with the trend
I totally agree - it’s far from the bottom of the “range” but it still looks solid to some extent with all that confluence (at least to reach first trouble area of around 1.3), doesn’t it?
It’s actually just RN (round number), big round numbers are like 1.2500, 1.3000 etc. Haven’t really used fibbo trading with this method, but seems it makes sense.
I was using ATR but it averages all bars over a range including large and small whereas my program only select the top 10 largest bars over a range. I only want to see those “large” bars!
Your resistance R2 is not so significant (minor resistance) whereas R1 is more significant and it is a support turns resistance line. Furthermore, it is now on a strong up trend after break the support, so you are trading a counter trend setup - beware of a higher risk implied. Moreover, the BEEB bars are relatively “small”, usually I would like to see a “extra large” PA candle bar especially for counter trend setup!
I have one question that I couldn’t find the answer for yet in the thread pages (granted I only reached page 70:))
The entry point and SL is determined by the price action signal
entry: at the break of the signal
SL: at the high/low of the signal
My question is…is there like a general guideline of how many pips above/below the PA signal should the entry/SL be placed, because I don’t suppose it’s right at the high/low as this would probably generate some fakeouts or early stops.
So, generally it seems that there is a 10 pips buffer zone that is being used.
On another note, I just want to thank Johnanthon for starting this thread and in doing so, allowing me to discover PA trading after only 2 months from starting my forex journey.
I think I will become a member of his website very very soon…as it is more and more clearer that PA is the way to go…therefore I want to make the best of it.
I took it too…mine was actually a 2BR as I use oanda…got out with 1/2 position at the massive resistance ahead.
Price seems to be struggling now at that level. Moved the remaining to BE.
OK so it wasn’t a BEEB because it doesn’t engulf the previous bar and if we want to play it as a 2 bar reversal you have to ask yourself the question (as Dirty Harry might say) do I feel lucky? Because overall it just isn’t a LARGE enough PA signal to trade (IMHO.)
A nice zone but if you remember me and my cake analogy you need all the ingredients one of the most important being LARGE PA.
Fil I was short on the WEEKLY PB as well on this pair. Ultimately I decided to cut my losses and exit for a smallish loss and play the Daily BUEB.
Now in a way this goes against everything being taught here because I acted on an opposing signal from a smaller time frame!
I don’t recommend this for anyone starting out. In my defence all I will say is that possibly experience has maybe given me an extra instinct of when to cut my losses.
It is important to plan the trade and trade the plan but at the same time being flexible in your trade and having the ability to react to price changing is also important.
I guess my point is to anyone looking at this pair, if you are on the wrong side of it or missed out on taking the daily BUEB don’t beat yourself up about it, this was one of the trickier pairs to play in the past couple of weeks.
Was lookin at that trade for a loooong time (@BUEB on D1) and couldn’t convince myself to take it, because I didn’t like the support area it retarced from, but seems I have to learn more and more about these areas.
Firstly if you didn’t feel 100% about it you did the RIGHT thing by staying out. Congrats for that. To use the old cliche ‘better to be out of a trade and wishing you were in it than to be in a trade and wishing you were out of it.’
Only one of those scenario’s will lose you money and that (not losing capital) should be your first priority even a higher priority than winning 'money.
Now the 2nd part hopefully may help you. You mentioned that you want to learn more about these ‘areas’ and I want to concentrate on that word for a moment.
I see some people here din’t take the trade because price hadn’t retraced back to their S&R line. I’ve drawn an example.
I think at times traders can get a little too caught up in wanting price to hit their line to the pip. If we look at that area as more of a ‘zone’ then we can see that the pullback was very relevant. Also, and I know we don’t bang on too much about this, but it was at a 50% fibo retrace as well.
