Forex Price Action

[dudest]

Hallo peeps,

Highlighting two trades on the AUDNZD in the last week:

[Spongybob]

fxdd, pepperstone, fxpro, fxcm market scope.

[Bigd41190]

Okay I have been following this thread for sometime now and I love price action trading because it eliminates all of the indicators and riff raff. But issue I’m having this week and have also had in the past is lack of quality signals. If I do see a good signal it is either at a swing high or swing low going with the trend.

My question is if a trader plans on using FOREX as a main income stream how can a price action trader maintain a consistent return in times like I’ve explained. Are there periods where some dont trade for 2-3 days and try to make up for those days when a valid signal arises?

Any comments, opinions or feedback will be greatly appreciated

[cams75]

fxdd, pepperstone, fxpro, fxcm market scope.

Thanks for the help I shall check them out. FXPro is 00.00 EST Time for daily candlestick though.

[Bigd41190]

Depends on what timeframe you use… And how many pairs you follow… If you are using daily charts and only following one pair… You are only going to get a handful of trades a month.

If you use a 5 min chart and follow four pairs then you may get a handful of trades in a day.

Your goal should always be quality over quantity… And if you have an adequately funded account, you only need a few wins a week to live off of.

Yes proper capitalization is also another key element I left out. What would be good capital to invest initially 10-20k? With a 1-2% risk system or would more capital be need initially?

[Bigd41190]

A new trader should have no where near that amount in their account…

For a professional who is doing it as a sole source of income… 25k is adequate, more is better.

The key is to scale up your account as you gain experience and prove success…

Definitely I am demo trading for 4-5 months and I will have the capital to start with atleast 10k. I feel that starting undercapitalized is a major issue for traders and sometimes why they do no see the upside in trading. They either earn minuscule gains or risk absurd amounts trying to turn 2k into 40k in a year. I work approximately no more than 4-5 hours a day on my reg job and that is a very long day for me so I have the time to invest my mind into trading.

[FTC]

idude,

Extract from Johnothon’s article -

“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.”

In BEEB - The second candle should engulf the first candle.

Thanks
Hemant

@idude

I’m having some difficulty in differentiating the engolfing bar from the 2 bar Reversal patterns!

here’s the BEEB:

and here’s the bearish 2 bar:

can someone enlighten me a little more on these?

[idude]

Hi Johnathan,

I have not got enough post counts yet to send you a message. I was wondering what brokers you can recommend that have a NY candle close?

Thanks

Oanda is a good one. Very low spreads

[Forex_School_Online]

@hemantarora

idude,

Extract from Johnothon’s article -

“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.”

In BEEB - The second candle should engulf the first candle.

Thanks
Hemant

Pretty much.

An engulfing bar has to engulf at least one previous bar but 2 bar does not. They can look completely different.

Check charts below for what I mean in difference:

Johnathon

[Aariff]

Oanda is a good broker with low spread but it is not having NY close.

For newyork close, use pepperstone, FXDD, FXCM etc.

Oanda is a good one. Very low spreads

[idude]

Oanda is a good broker with low spread but it is not having NY close.

For newyork close, use pepperstone, FXDD, FXCM etc.

Yes indeed. I misunderstood the question, i usually say gmt + 2, one of the purposes for that is to get rid of the sunday candle. But for daily charts i use a demo account with ny close.

[Aariff]

EURGBP daily trade triggered SL

[FaRS]

EURGBP daily trade triggered SL

Hey!

What signal did u trade? Can u show a pic please? Where did u enter and why?

Richard

[idude]

Oops!
EUR/USD
My first demo trade using PA got triggered and put out.
I think I put my stop loss a little too tight, just 5.5 pips above the support line and candle’s high.
Or the pin bar was not really a pin bar since it had little of a shadow on the bottom. Take a look at the pic and some of you can tell me what would you do differently if at all or should I have avoided this trade and why. Thanks.

[Aariff]

Richard,

Here you go. It is my previous post related to this trade.

@Aariff

EURGBP Daily has triggered Pin Bar

1. Pin bar
2. Swing Low
3. Against Weekly and Monthly Trend

I am testing it in demo for a target of 40 pips. It is my first demo trade using PA.

[niX1990]

@Aariff

EURGBP daily trade triggered SL

Did you enter because of the PB at 25.09.2012?
If so, you should not have been in the trade. The PB’s high was never taken out. My Stop Buy is still pending and I am closing it now. There was a strong contradicting bearish PA on the weekly and price seems to be going that way.

@idude

Oops!
EUR/USD
My first demo trade using PA got triggered and put out.
I think I put my stop loss a little too tight, just 5.5 pips above the support line and candle’s high.
Or the pin bar was not really a pin bar since it had little of a shadow on the bottom. Take a look at the pic and some of you can tell me what would you do differently if at all or should I have avoided this trade and why. Thanks.

Check out some of Jonathons examples for good Pinbars.
The signal you used as a trigger was rather small compared to the large bearish candles some a week ago. I know we dont here that often…but size matters

[riandouma]

Hey, maybe try on the daily timeframe first as a new trader! AND zoom out a bit and take a look at the bar sizes around. That is a tiny pinbar with no momentum in it at all

[Aariff]

niX1990,

Yes, i placed order at the open of the next candle.

Then later i realised the entry point from Mr.J video.

Entry should be placed 5 pips above/below the wick…based on signal.

Did you enter because of the PB at 25.09.2012?
If so, you should not have been in the trade. The PB’s high was never taken out. My Stop Buy is still pending and I am closing it now. There was a strong contradicting bearish PA on the weekly and price seems to be going that way.

Check out some of Jonathons examples for good Pinbars.
The signal you used as a trigger was rather small compared to the large bearish candles some a week ago. I know we dont here that often…but size matters

[Bigd41190]

A pin bar is invalid even if it closes outside of the previous bars open and close. for example a bearish pin bar would be invalid if it closed under the previous bars body(close).

[idude]

Did you enter because of the PB at 25.09.2012?
Check out some of Jonathons examples for good Pinbars.
The signal you used as a trigger was rather small compared to the large bearish candles some a week ago. I know we dont here that often…but size matters

Yes I noticed that on the pinbar, I didn’t really liked the pin bar that much. I was using a demo that’s why I went for it anyway and it is also the reason I don’t like using demo accounts to practice, I tend to get into the “let’s see what happens” mode. I’m a lot more careful when using a real account even though I only buy macro lots when practicing (1000 units) even though is very little it’s enough to get rid of that demo mode of mine.