Thanks there Jonathon. Anyone watching and shorting this trade? Is this a valid S/R line? GbpNzd H4
Hi Sicnart,
Yes, Iāve queued (sell stop) the trade for GBPNZD down trend, supp->rest with BEEB on H4.
Regards,
Toyogo
How did your candlestick measuring go with this one? BEEB big enough?
Hi Sicnarf,
It is a down trend and support turns resistance. The BEEB bar(73pips) is 124% of ATR(14) - 73/59. If you see the top 10 largest bars over the range of 50 bars (127, 117, 106, 103ā¦ 79), the average is 98pips, so it is 73/98 = 74%. i.e. it is about 74% of the average of top 10 largest bars. Thus I think BEEB is big enough!
Indeed, Iām asking Bhops how to qualify āa large barā. see post #3060,
Regards,
Toyogo
Interesting question for which I donāt tend to have an interesting reply. I just tend to do it by sight and from experience now. A bit like fiboās, I can tell a pullback is at 50% or 61.2% pretty much from sight.
However if you are just beginning out trading PA having a measuring stick like your calculation isnāt a bad idea especially if you use it in conjunction with an ATR because as we know some pairs are more volatile and heavily traded than others.
Could be something for you to play around with and make a part of your trading plan.
As for the GBP/NZD the signal isnāt big enough for me. However it does form a nice 2 bar reversal with the previous Bull candle which in itself forms a kind of Hikakke (false break) pattern from that current little box of 10 or so candles.
Personally if I donāt get the signal on the 4 hourly I want I will now just sit back and see what kind of candle the Daily prints out. If this thing does move back down in all probability on Monday I will have a nice PB or BEEB looking back at me.
Because yeah agree with everyone else it does look like a really nice level to play at.
There is no hard and fast rule. The more obvious the signal the better which also means the bigger they are the more obvious they are going to be.
The main thing is people donāt get into the habit of trading reversals that are tiny and thinking the marking will turn. Stick to the very obvious.
Johnathon
Hi guys, anyone looking to go long on these two? My zones correct?
And also weāre not taking this trade since the pinbar didnāt close within the previous?
Just regarding the Eur/NZD my charts donāt show a Pin. But even if they did, scrolling out for a moe why would you want to trade against such a strong trend?
Ideally you want to be looking for pullbacks to get short. there is no need to try and fight these kind of waves when it much easier and far more profitable to hope on when the trend is going your way.
The EURNZD is in the middle for me and not somewhere I would trade from.
The AUDNZD I am still in from the daily trade but that level is better than EURNZD for a 4hr trade.
And no we do not trade Pins that are not pins. You donāt have to ask as every time it does not form correctly you can safely assume no matter how good it looks we are not trading it.
Hope this helps.
I have just made a new article that a lot of people have asked for. It covers the whole subject of trading from the correct areas i,e: only buying low selling high and trading from the correct swings etc. I am not going to add link here to keep mods happy but you all know where you can find it. This will be good now as every week when I find myself answering this question I can simply send them there.
Safe trading all and good week had by most in here!
Johnathon
Hello guys,
look at this chanceā¦ the nice PA form at the resistanceā¦ take a look bro
regards,
willy
Brother its against the daily trend so wait and be patient.
But Wildanz was talking about 4H-chart, not a daily, on 4H we have a clear down-trend (lower lows + lower highs), on daily up-trend (the other way round), so why do you mix two timeframes?
Itās been pointed here so many times to enter and manage the trade on one TF, and on 4H this would be taking it from a swing high, right?
The most we should be expecting from a PA signal is to get to first trouble area, so what is wrong with this trade idea apart from the bar not being closed at the time of posting! and now effecting in EB not closing in the lower 1/3rd of the bar?
If it closed as a proper BEEB it would be tradeable in my humble opinionā¦
Could someone throw a bit more light on the above analysis please?
USDCHF H4
Fil.
Yeah, but, imo, daily trend should be the priority. For example, Iām drawing all the res/sup lines on daily TF as well as determine the bias of the trend. For me H4 TF is only used for PA signals if I donāt see any on D1 TF. Ofcourse if I enter trade on H4, then I manage it on H4 (S/L and T/P).
Richard
I agree with filipl that the trend in the 4hr is down so you can take that short BUT looking at the Daily, you have to treat it as a retracement down of the daily (BTW, Iām talking about the[B] very near term[/B] trend of the Daily not the primary nor the intermediate), so it is still valid, just be wary that the move to the downside might not be that extended. Just set your TP to the previous high, a little bit lower than the line jui25 posted.
Hi Richard this is exactly how I trade it too. I mark the relevant zones up on the Daily and will drill down to the 4 Hourly if price reaches these zones. Iāve marked out what I see is as the relevant Daily zones. Below:
Now if I then drill down to the 4 hourly price is in the middle of nowhere and certainly not at a zone Iād personally like to play.
Hi Johnathon,
Can you please help to explain time frame issue and illustrate how to trade different time frame? We are here (in this thread) trading mainly 4 hourly and daily time frames which have triggered a lot of discussions and confusions. You have mentioned that we should trade each time frame independently but some how they are closely related.
To me, I agreed with bhopsās method that we use daily time frame (higher one) to determine the S/R levels. If there is no daily PA signal, then we go down to 4 hourly to look for PA signal. Those S/R levels determined at 4hourly time frame shall only be considered as a minor S/R level for marking multiple profit levels (T1, T2ā¦) or stop loss levels.
However, if we trade 4 hourly time frame, the SL, target must be set using 4 hourly perspective otherwise the target may not be reachable if we use the daily one. Thatās what I understand by ātime frame independenceā.
Pls comment on it!
Regards,
Toyogo
Although I think you have pretty much got most of this yourself and although I am not Johnathon here is my take on it.
In using either the 4 hourly or daily to get into a trade we are often using the SAME levels which we have most commonly marked off the Daily chart.
But you are right even if you are using a level marked off the Daily but end up taking a trade off the 4 Hourly we would then chart our targets off what we are seeing on the 4 Hourly.
But lets take the USD/CHF for example, if I do end up taking a trade from the 4 Hour charts wouldnāt it make sense to trade it off a zone that has also got some historical significance on the Daily as well? That just makes it twice as powerful.
I think we do agree on this but I just wanted to enforce what you are saying.
Yeah. We donāt use Stochs or Trendlines :18: But hey if you did dabble in those things along with the Bearish Convergence I guess you would be looking to get short.