Nice trade Greg, I had that pair on my watch list but missed it for some reason. Very nice trade and well managed by the looks of it.
Hey all,
just a recap of a few charts I posted in here the other day and another new engulfing bar.
GBPCAD
This fired of a large pin and now come of nicely to the downside.
AUDCHF
This has now gone higher with thre trend and the Bullish Engulfing Bar
AUDUSD
This has formed a BEEB/Pin Bar and will be interesting to see what happens should it break lower. Is against the trend but formed at proven resistance area so all depends if it can break lower at allā¦
Safe trading,
Johnathon
Yes I have seen that thread when I was looking to either just join a thread and start posting but found i had to start my own as eveything else was just confusing meā¦
hi johnathon. been reading ur postings and like your patience with newbies. PA is something that i have been trying but w/o much success. taking profit level has always been a problem for me. lots of time i get the entry right but will fail at take profit. it reverses before hitting my target. could you advise how we should place our SL and TP? tks a million pips!
Steo great question, this is one of the toughest parts of trading. Anyone can get into a winning trade but plenty of us can end up turning it into a loser as well!
Let me post an example. In this case the trade we are taking is a counter trend trade but just ignore that for now and look at the example of how we might manage this trade.
So lets say we have decided to take this Pin Bar on the AUD/USD. I have pulled back the chart to show the range we might speculate price will travel between. I have simply picked out 2 major zones where price has found support & Resistence.
Now without tooting his horn too much this is where I have found Johnathonās guidance and course invaluable. And that is to start becoming away of other minor levels where price may struggle and turn around on us.
Taking a closer look at the chart I can see the first point where price may struggle.
I can do one of a couple of things. I can either take some profit and move to Break Even or I can simply move to Break Even and let the trade play out. Either way I have protected my capital which is something that Johnathon teaches first and foremost.
It is a fine line between giving a trade room to breath and knowing/understanding where a trade might struggle and turn against us. Johnathon may have more to add (will probably have more to add and say it better than me!) But I hope my example gives you an idea of how we can manage our trades more effectively.
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Hello,
this is where all the skill and knowledge come in. Even a monkey can place a winning trade but only a skiiled trader can manege their trade and make money consistently. I donāt want to go into it too much in here as:
1: It can be quite difficult to learn and people still donāt quite have basics down yet,
2: I would prefer to help people first learn the basics of how to find the right trades and what areas they should trade from,
3: Not fair to my members
As Bhops said though using the price is what we can do. As I am always saying price is always telling us something and we as traders have to open our eyes to realise this.
So this trap will sound familiar to a lot of people: Trader enters trade and the trade goes onto be a nice winner. This trade hasnāt reached a risk reward that the trader wants to achieve such as 2/1 RR so they hold onto this trade. What then happens? the trade turns around and the trader watches this trade go back to become a loss and the trader gets stopped out.
The trader in the above example is left stunned, in fear mode and thinking that some sought of magic just turned the market.RUBBISH!
When we enter a trade price will go to an first area of what we is a possible stall or reversal area. I call these first support and first resistance area or FSA and FRA. When price gets to this area traders can do a few things:
- Move to break even
- Take full profit
- Take partial profit and move remainder to BE
- Do nothing
Now these first areas are everywhere. What has happened to the trader in the example above is price has gone into them being a winner and hit the first area where price will stall or reverse. These are not big support and resistance levels but rather bar highs and lows that make a small support or resistance area. The hard part for the trader is beginning to recognise these and the PA story, but the even harder thing for the new trader to do is do something when price does reach these areas.
Okay so stay with me, as I said this can be hard to learn as most people have heard of PA but not actually how to manage tradesā¦
I am going to use a chart below as an example. In the chart below we have a pin bar. When we know we are going to enter we look now for the first supprort area. Notice how the recent bar highs and lows make this area up for us? What happens then? Price goes straight to it and respects it. Now for reading the PA story. Notice the last bar on the chart. When price broke above this FSA we know old resistance should hold as new support and look exactly where the bottom of the last bar went toā¦ Yep thatās right, nearly to the pip to this same area. We could use this knowledge by knowing once price broke above this level we could move our stop up knowing that price would have to break this new support to go lower again.
I hope this helps you out. I am going to stick to helping people in here work out the basics before moving onto this subject. there is so much else to learn about first about finding and entering setups before people need to worry about trade management.
Safe trading,
Johnathon
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iām newbie for trading forex,
i will read this thread for learn more 
hi bhops, thanks for the lesson. i actually had difficulty understanding the FSA/RA. i realized i been having a hard time identifying these areas so keep taking positions but w/o considering these areas. appreciate your kind help 
anyway, the SL shd b just behind the tail of the PB right?
hi johnathon, thanks a million for your explanation given that you have your own students to take care of first. I am one of those who stuck too closely to the RR ratio that keep holding on to the trades and not see the FSA/RA to protect the trade.
so if the FSA/RA doesnāt give a reasonable RR (1:1) we should move on?
Welcome! I definitely look forward to seeing you around!
Short answer: NO.
Long answer: If I see a trade on a daily time frame that has a stop of 100 pips and I can see the first support area is only 30 pips away but I know this setup is from a very solid area and the price action is very large and obvious I will take it.
I know the chances of price getting to the first area are extremely high. So I enter the trade and when price moves the 30 pips I move to break even and have a free trade! Forget about the risk reward.
This whole risk reward myth is ruining traders accounts all over the world! Traders believe they have to reach some random amount they heard of someone else such as 2/1 RR or 3/1 RR just because someone else said so. People donāt question anything! People just say " Someone said to be a pro I need to average 3/1 risk reward on my trades" yep and ever since that same trader ha been broke!
Risk Reward is only working out half of the equation. When working out what risk reward we need to average as traders we need to take into account what our average winning rate is. For example if you winning rate is only 40% you are going to need to average much higher risk reward (RR) trades than a trader who average 80% win rate.
This make sense?
Safe trading,
Johnathon
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yup. it makes sense tks again!
Seems like we dont have to do your course with all this information you giving for free! :54:
Shhhh! Donāt discourage the free info! Either that or heāll say he has super secret info thatāll make us rich if we do the courses! sarcasm
Boston and Ang101
If you look at my profile I registered on here last year May, so I couldnt of known Johnathon
Also if you see my first post in this thread, I actually thought he was part of Nial Fullers group.
I hadnt been on babypips for some time, and to be honest didnt expect to read any really good systems, yet I come anyway and saw this thread labled PRICE ACTION, I am a huge fan of PA and have a fair knowledge of it, well thought I did. I read just a few of Johnathons posts on here and boy, he knows his stuff.
I purchased his course last week and I can HONESTLY say im very impressed!
To Johnathon, STOP giving away so much, :D.
Spongybob, I hope heās paying you a good referral commission! Haha, joking.
If you donāt mind me asking, what is the time commitment for the training? The cost is reasonable so I wouldnāt object to it. Training worth it for a newb or should I get more under me before I consider it?
EJ
Hmmmm, maybe I should get commission:51:
Seriously though, I managed to go through it roughly, I have an understanding of PA and S/R so its easier for me to grasps it.
As for newbies, well I started learing forex around 3 years ago, had I started with Johnathon back then I would of saved allot on books, courses, margin calls ect ect.
One of the reasons I bought his course and not Nial Fuller that I have and still do follow on facebook, is that Johnathon put his reputation on the line by being on here. I could of come back on here and told the thousands of people reading here that its a load of RUBBISH
You too could purchase it and then come here and tell me im talking RUBBISH.
This is the bottom line, if you really want to take forex seriously, you wont be sorry joining.
Now im tired and going to bed, lol
Nice post Spongy.
Look itās pretty simple, Johnathon being on here is good exposure for him and his course. Of course it is. He puts his reputation on the line and for people interested in Price Action it is a great way to sample his methodology and teaching principles without putting any money down.
Naturally he is going to hold certain stuff back for his paying members to be fair to them. There are more advanced techniques in the course and a whole lot around stop setting and money management that is so crucial to trading, and which frankly speaking, a lot of Price Action courses avoid like the plague.
I know he is also in the process of putting together a new section devoted to trading psychology (also much neglected in many trading courses.)
It goes without saying that you also have access to a guy that really does trade for a living which is the kind of access/mentoring that a lot of people are after.
However on the flip side there is tons of free advice he has given away on this thread and I know he is determined to contune providing this advice for Price Action traders here for as long as itās wanted.
Personally I think it is a win/win for everyone.
If you want a good basic grounding on PA trading for no dollars down you can continue to follow this thread and bounce ideas off of Johnathon.
If youād like to take it to the next level and go to the more āadvancedā stage then obviously youāll have to pay to get the course.
I think that is a pretty fair compromise, but what do I know? :18:
And no Boston he doesnāt promise to make anyone super rich. That will all be up to you my friend, LOL.
Hey all,
no I will not stop giving info away for free and talking about what I love. Yes I will hold certain things back such as how traders should manage their trades but at the end of the day it is not all about MONEY! This is not the only forum I talk on or am a contributor. I have a few blogs around, do professional contribution for DailyForex.com and also in the process of starting a fund for the public.
There is NO big secret! Also I can not make any one rich! Full stop! You show me someone who claims these two things and I will show you someone that should be put in Jail!
I am going to do a video later if I get time on two trades this week both on daily: GBPCAD and AUDCHF and also the levels to watch for the coming week. I will post in here an on site when I get time.
Until then Safe trading,
Johnathon
Did you get the Paypal payment I made to you a bit earlier for sales? Hahaha
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