Well, i do price action mixed with fundamentals.
Regards.
Really nice pin formed on the EURUSD 4hr timeframe. Apsolute A+ setup.
With the trend, at a pullback to 50% level of last swing and then nice pin bar reversal.
Very nice!
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Hey Johnathon a really nice example of Price Action at work and with a minimum of indicators! I love clean charts.
The Euro pairs had some nice pullbacks last night and I played a similar set-up to the one you’ve posted but on the EUR/NZD.
Trading with the dominant trend price eventually pulled back to a relevant swing zone that I have highlighted on the Daily.
I scrolled down to the 4 hour charts (which is about as low as I personally like to go) and a Bearish Engulfing bar was able to trigger me into the trade. One Price Action signal like this per week can make you a rich man!
Looking forward to swapping more PA ideas with you as we go along.
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Great trading!
The above setup I posted in the EURUSD did fall a lot lower into recent support as well!
Nice trading,
Johnathon
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Hi Johnathon
Nice looking setup just 3 things trend, support and resistance level and setup bar, that looks like a real user friendly way to trade. Simple is often best so many people over complicate things, this is a simple set up with good edge but i suppose the trader has to have the patience to wait for these to come up?
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Thanks Ambo,
I just did a video you may be interested in…
Safe trading,
Johnathon
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Hi Johnathon
This was a sweet trade from a nice S/R level, thank for posting this trade it made some nice pips for me. A nice Price Action signal where old resistance becomes support its a bit tricky to see 12 hour bar on mt4, but an experienced eye can pick it up, I guess especially if you have a nice horizontal line marked.
Money Management seems to be a big part of what you do also, protecting capital by moving to break even after taking some money, seems to work well for you as well.
Nice work thanks for sharing again.
Ambon
Ambon
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Well said Amanseo!
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Price Action setups this week have been very minimal this week as price has been moving to some very clear and important levels.
EURJPY
The EURJPY has been in a strong downtrend for 12 months. Taking shorts from pullbacks in this market has definitely been the correct play. Price has been rotating higher into previous support. We would look for this previous support to hold as new resistance and for a clear Price Action signal to get short.
If this resiatance level does not hold it could signal a more significant move higher.
EURJPY DAILY CHART
USDSGD
The USDSGD has broken lower of an important support level which could signal a move lower. We would look for price to retrace to this old support and look for it to hold as new reistance. If Price Action presents at this level traders could look to get short.
The chart below is a 4hr chart showing that the most recent momentum has been to the downside. Trading on the intraday chart with the momentum in your favour is a much more favoured method than trading against it.
USDSGD 4HR CHART
Regards,
Johnathon
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EURJPY 4HR Chart
A nice large Bearish Engulfing Bar has formed with the trend at resistance and at big round number 100.00.
If it breaks lower to confirm it may test recent highs.
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Here is a chart of a great Bearish Engulfing Bar setup that formed on the EURGBP last night on 4hr chart.
Solid setup at key level. Very nice!!
Hi Johnathon
That was a real clear level to trade from under the BRN, nice easy price action, that’s how trading should be just wait for the trade to come to your S/R then a priceaction signal and then the money in the bank nice one again-- thankyou.
Here is a live trade I am in right at this minute.
EURJPY 4HR BEARISH ENGULFING BAR.
This was the same setup I posted live above when it was forming. Price gapped down this morning. I had two options. Take profit or let price roll back up to close the gap and then I would expect the gap to act as resistance for price to again go lower.
I have held and price is no back up at the gap area as I write this.
I will post 2 charts. The first is the setup on the 4hr chart.
The second is on the 1 hr chart showing the gap and the area I expect to hold as support.
EURJPY 4HR
EURJPY 1HR
Safe trading,
Johnathon
I’m seeing this same way Johnathon, I am holding still as well. It is not uncommon after price creates the gap to see it closed at some point.
Nothing is ever certain in trading but I’m confident that the Price Action we’ve seen with this pair at such a nice level should mean a continued move down.
Hi Johnathon
I am in this trade and I have notice that gaps usually retrace and fill, then continue back in the same direction as the the gap, its just a matter of patience and allowing the market to do its thing. I suppose people have Forex gap trading systems that make the them a few pips as well. This gap coincides with a previous swing low at the start of the month as well, the Euro is looking very bearish at the moment.
The Truth About Forex Price Action
Many traders come to trading with dollar signs in their eyes and dreams of a yacht docking at the Bahamas. Whilst this dream is not unattainable the percentage of traders that are ever going to make that type of money is extremely small.
What can be realistically achieved?
What you will be able to gain out of the market is largely based on the amount of money your trading account has. Someone with $1,000 is going to struggle make decent living and ride out what are inevitable losses that will come, compared to someone with $100,000 who is going to have a far better chance.
It is simple maths that the more money in the trading account the less percentage that the trader has to make, to make a decent living.
Are you kidding yourself?
Are you expecting to open an account with $10,000 and quit your job? If so I think you need to realistically asses your situation.
Example:
Let’s say that you need to make $50,000 per year to make a living.
Account balance A= $10,000 to make $50,000 profit = 500% per annum
Account balance B= $200,000 to make $50,000profit = 25% per annum
As you can see from the above example trader A needs to make 500% yearly to make a living, whilst trader B only needs 25%. This is obviously not including compound interest from within that year however trading on the assumption that you need to make any more that 5% a month is very risky.
Some people will say “only 5% a month”. Well 5% a month is 60% per year, and if you add compound interest with the growth of your account it is 80% per year! If you can make 80% per year growth you are doing very well!
How does having unrealistic expectation hurt my account?
Getting rid of unrealistic goals will help you with the mental application of your trading plan. Traders that are trying to reach trading percentages that are large will in most cases do two things;
-
Over trade -
Risk too much money per trade
Overtrading is a very common mistake made by many traders who are unrealistic in what they can achieve. They operate on the assumption that trading more will make them more. This is in fact is the complete opposite. Trading more will lead them to taking setups that are not worth taking and they will begin to lose.
Risking too much will in most cases lead to an account being blown. Occasionally a trader will get lucky and pull off a large winner. Over time however the same trader can’t keep it up and when the losses come their account is crippled.
What is needed to become consistently profitable?
To become profitable a trader needs to realistically asses their situation. Every trader is different. How they trade and what method they will use will vary greatly from trader to trader. Learning a method such as Price Action trading and perfecting that method will greatly increase the chance a trader will have of making consistent returns in the market.
If a trader can learn to trade Price Action and start using strict money management principles they will set themselves apart from the pack and give themselves a good chance of becoming consistently profitable.
Safe trading,
Johnathon
Forex School Online
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Here is a large Bearish engulfing bar at tripple top with the trendonj EURAUD 4hr chart.
Safe trading,
Johnathon
Forex School Online
1 Like
Hi Johnathon
Looks to be nice rejection of that level, Euro in a down trend at moment, pullbacks in trends are a good way to trade.:).
Just an update on the “live” trade I placed in here as a heads up for Price Action Traders.
The EURAUD has fallen lower from the Bearish Engulfing Bar I posted live this week.
I have now taken 50% profit and moved to BE.
The first chart is the chart I posted 2 nights ago of the Bearish Engulfing Bar Setup.
The second chart is price now haven fallen lower into the recent lows.
Safe trading,
Johnathon Fox
Forex School Online