Thank you for clearing that up Johnathon…
cheers
pw
I have an entry order for this all ready to go. There is also a good setup on the EUR/CAD daily chart (2 bar reversal)
Good to hear!
Just a quick note to be cautious about. I have a rule where I won’t leave pending orders open over weekend because of the wide spreads that occur at the open of the new week (which is on Sunday afternoons for me). I’ve gotten a few pretty bad fills by having a position open up right as my broker opens the week for trading. I usually wait until I see the spreads narrow before I consider entering.
Very good point. It is a demo account, but I want to do this right. I’ll hold them until later Sunday afternoon. Market opens at 3 pm for me.
That’s exactly where I’m expecting a reversal. This is the EUR/CAD pair? I have it as resistance on the daily and the 4h.
I plan to place a sell order just below 1.2400 and far enough to hopefully evade issues with a stop raid.
Hello!
A very tempting PB that I just saw on GBP/AUD pair:
GBP/AUD D1
It’s showing clear rejection from a proven res/sup line as well as closed below the round number (@1.5200). The overall trend is bearish.
Feel free to comment.
Richard
Hi toyogo,
For a bullish 2br to be valid is it expected to take out the high of the previous candle?..
It looks a bit wimpish to me … and in addition to that it is also an inside bar …:59:
cheers pw
Toyogo.bmp (594 KB)
Yes CADJPY not a 2 bar as does not stick out.
Johnathon
I too am watching this pair with great interest… going to watch it for awhile tommorow - I will probably set an order for 1.5220 if all is good…
[
QUOTE=FaRS;389399]Hello!
A very tempting PB that I just saw on GBP/AUD pair:
GBP/AUD D1
It’s showing clear rejection from a proven res/sup line as well as closed below the round number (@1.5200). The overall trend is bearish.
Feel free to comment.
Richard[/QUOTE]
[/QUOTE]
Why 1.5220?
Hi Johnathon,
I recalled the 2BR article from FSO that CADJPY has fulfilled the condition. Pls explain which part is “not stick out”!
[I]The 2 Bar Reversal is similar to the engulfing bar in that they are both reversal Price Action signals. The main difference between the 2 Bar Reversal and the Engulfing Bar is the 2 Bar Reversal does not have to fully engulf the previous candle or bar where as the Engulfing Bar does have to engulf at least one previous bar.
The psychology behind the 2 Bar Reversal is quite simple. For a bearish 2 Bar Reversal the first bar must go up and close near the sessions highs. This makes the rest of the market think that particular pair is breaking out higher, but this is a lie. When the second bar opens it whips back lower and fakes out the market, taking traders stops along the way. The second bar must then close near the session’s lows and preferably below the first bars open.
[/I]
Regards,
Toyogo
The 2 bar as you know is simply a pin bar that had Been made over two sessions instead of one like a pin. As I explain on that little clipping you just put up price needs to go higher or in this case lower to test an area and close near the lows. The second candle then whip back higher and close up near the highs.
Now this 2 bar that you have highlighted does not go lower to reject or test an area. It barely breaks the lows of the previous candle. As I said in that clipping the market is being faked out by the 2 bar but for that to happen you need price to go to a new area or away from
Other price (just like a pin bat does same thing) where as this did not.
Like all good pin bars the 2 bar also has to stick out otherwise it is not faking anyone out. To fake people out people need to be entered Ito a break and that’s why it is so important for pins/2 bars to stick out. We need to see people getting caught on a break and then price whipping back the other way.
Make sense?
Because they usually come back to half way up the pin bar - or the intermediate support level… I think that is roughly 1.5220… it might not though anyway see what it does tomoroow morning…
Why 1.5220?[/QUOTE]
what is your target?
this can easily turn into a pause, without even breaking that candle’s low. moreover, the trend seem to be undergoing a change.
depending on your target, this could be feasible.
Hey!
Well… if it doesn’t break the low, then let it be so… I really don’t know, what exactly the price will do, and actually I don’t care as long as the setup has met my rules. I guess noone really knows, what is going to happen next, otherwise the person would be amazingly rich… It may turn into a pause, it may break the highs or it may go south, u never know… 
Richard
I’m short GBP/AUD at 1.5175. Stops at 1.5277. TP1 at 1.50227. Both stops will be moved to BE if the move down happens.
Also have an order in for EUR/CAD on a 2 bar reversal on the daily. Put my entry at 1.239 below the psychological 1.24. Stop at 1.25036, T1 1.22760, T2 1.21581. That one hasn’t triggered yet.
I’m curious to know everyone’s trading style here far as price action. I know we dont have any scalpers because you cannot be successful using price action in these shorter time frames. But do most price action traders have success doing swing trading or day trading? For instance closing orders before bed or leaving an order open until it reaches target no matter span of time.
I think you would describe Price Action as swing trading. Hold the positions a few hours to a few days. I’m still playing around with my style. I see the charts really well by now, but it is being able to only take the best trades, stick to your stop losses, take profit off the table at the right time and move SL to breakeven on the rest.
I’m also short GBPAUD at 1.52130… will pyramid a bit if price moves lower…