Haha,
the thing about in here is I can only teach and help so much but I will keep on trying! Soon you will be able to help along! That would be great!
Hi guys!, what do you think of this?
GBPUSD Daily:
-> Is it with the trend? YES (uptrend)
-> Is it occurring at a relevant Support or Resistance zone? YES (resistance)
-> How big is the BUEB? Engulfs previous bar; closes in the last 1/3rd of itself
-> Is the BUEB from a pullback within a relevant trend? YES (pullback seems to be ending)
-> Conclusion: good probability for bullish trend to resume
Holla!
PS: my thoughts: after breaking through the resistance at 1.5907, may climb a bit, then come back to test if the resistance is now support and if yes, continue trending upward.
First question you need to ask is did it form at relevant swing low or high?
Basically pin bar and engulfing bars are reversal correct? As in the Pin Bar Reversal
And if we are to pick a reversal in the price we need to pick price to go the other way.
What you are doing on this chart is picking price to continue (which it very well may do as price is in upmove of late) however that’s not for reversals.
So when trading in an uptrend like we are here we need a pullback to support and then to go long. In other words price would have been going down, we get a reversal signal and we trade the signal looking for price to “reverse” and go long.
Make sense?
I know I keep sending you to these articles but i do it because all the info with charts and explanations are there. Engulfing Bar Intro
You’re right Johnathon, i see my wrong. PB and EBs are reversal signals, and in this case, it’s more of a continuation. So my analysis was not correct in the sense that it’s not occurring at the swing low. Thanks for making me think 
Firstly I really must say you are uploading some really clean and nice charts that are uncluttered and beautiful to watch!
The other thing I really need to point out is something I think you maybe getting confused with that a lot of people do.
When I say to trade from good areas I mean to trade AWAY from these good areas. So in your questions you have put down that yes it is from relevant support or resistance when in fact it is the exact opposite. Instead of looking for longs at this resistance we should be looking for short to trade away from the resistance. Opening a trade here is trading right into the important area, in other words opening a trade right into an area that others are looking to sell at resistance. Is this making sense? Please let me know as this is SUPER important
Put it this way if I got a nice bearish pin bar at this same level I would short, where as you are looking to go long. So remembers this: Long from support and Short from resistance and trade away from levels not into them.
On another note,
What I favour happening in this market is resistance is looks to be possibly breaking. If it does this is very important for market structure. Price will be above a very important area and will then look to stay above it. Longs will def be confirmed as the right play if this area can break and close above as for people shorting this area would need to break again which would be tuff to do. Hope that hasn’t confused anybody. Just how you can read a market and learn what it is telling you as a story.
Johnathon
PS: So I have just found an example to explain what I was trying to say. This is also on the GBPUSD and a trade I actually took and covered live. I even made a live video for public on this one. Anyway what I am trying to say is this is quite similar to the story you are now looking at with your support and resistance levels. Notice the pin I have 3 touches of resistance and kept selling of? Price has also touched your resistance 3 times but instead of looking to sell away from a resistance zone you are trying to buy.
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Its just a waiting game now
The part I need to learn to do:28:
Haha and you got another about 3,000 words of reading to do soon also. A surprise for you that will help your trading heaps!
@Johnathon: Opening a trade here is trading right into the important area, in other words opening a trade right into an area that others are looking to sell at resistance. Is this making sense? Please let me know as this is SUPER important
Hi Johnathon,
After several reads of your post, it has made sense.
Condensed in my head as follows:
** REMEMBER:
*** you LONG from SUPPORT
*** you SHORT from RESISTANCE
*** you trade AWAY from levels, NOT into them
Thanks once more for the in-situation coaching, invaluable.
Envy you; would like to join but $ constraints…
All good, will make the most of the fellowship here
Hi all!
Check this one: EURAUD D1
My thoughts:
-> PA signal seen: BEEB ( bearish engulfing bar )
-> Is it with the trend: YES (downtrend)
-> Is it occurring at a relevant Support or Resistance zone: YES (support turned resistance)
-> How big is the PA signal: STANDS OUT
-> Is the PA signal occurring from a pullback within a relevant trend? YES (occurring after a pullback from a downtrend)
-> If it’s a reversal signal, is it happening at a relevant swing high/swing low? YES ( occurring at swing high (resistance) )
=> My conclusion: worth SHORTing
Comments welcome please!
Hello Dudest,
once again I don’t really want to comment because if support breaks here price will go lower so keep in mind I am not talking about what will happen here but rather where you are getting confused about.
Once again everything you have put in the q/a is correct except for the support and resistance. You are getting them backwards a little.
This was old resistance which is now new support. I will explain with the chart below.
Try to think of price as a story. So price went higher and found resistance and rolled back down. The price went higher and broke resistance. We know old resistance will look to hold as new support so then we look at the old resistance to hold as new support and to go long. You are trading right into support again here. What you should be doing is looking to go long. (well in most cases, but not really here as the trend is so strong down.
So here is another chart to explain. It is the daily USDCHF. Okay so we had support. Price found support and went higher. Price then did break support and we would look for this to hold as NEW resistance should price retrace back to this level. What you are essentially doing is (using this chart as example) is waiting for price to get back to resistance and instead of shorting away from this level you are going long right into it.
Please if you do not understand ask questions as this is most important,
Johnathon
PS: I have just drawn something up to explain this. The red lines represent price. So note we had price move up and find resistance and then back down, Price goes higher again and breaks this resistance. When price rotates back lower to where this old support is we would look for it to hold as new support and to go long. You are waiting for price to get to these levels and then looking to trade into them. We need to trade away.
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Hi Johnathon,
Thanks for the explanation, appreciate your feedback.
This is how i was looking at it (from a zoomed out point of view)
I was looking at support/resistance from the ‘zoomed out’ point of view of the larger downtrend
I see now the need to see the whole story, and not the part i want to…
I don’t really have any intelligent question to ask now,…guess i need to digest and practice…
Thanks.
Dudest I think from your example above the higher S&R line (1.29657) would be a better area to look for reversal patterns signaling a move lower to get in short there. That was a clear line of support so the odds are more to your advantage at that level as opposed to smaller resistance area you outlined at 1.24535.
Remember we are looking for obvious areas of support and resistance and obvious reversal patterns.
look for closest support and resistance to where price is currently
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I’m new to this thread. I’ve attached my current trade where my first target hit at 80 pips and second contract is still working. Any commnets or thoughts would be appreciated. I’m not sure where to set the next target, my stop is break even.
That was quick Greg, you sure learn fast, lol
Ang101
Thanks, I have tried many strategy, especially shorter time frames only be be chopped up. I have been doing much better on daily charts with ebs and ibs. I do need to learn so much more especiall with support and resistance.
You in the right place now.
Cheers mate!
I just went through the newbie forum
There is a PRICE ACTION FOR DUMMIES thread, I must be a dummy! :30:
The first two pages confused the hell out of me! 
Does this help?
A set of simple rules …
If the Price Action Pattern is just above a line, look for reasons to long.
If the Price Action Pattern is just below a line, look for reasons to short.
If the Price action Pattern isn’t near a line, wait until it is.
Pablo