Agreed. Blend that together to make a pin and it has a very big lower wick which we don’t like because the wick on the lower side is hinting at rejection of the lower prices. In other words price went lower and rejected moving back higher to close of the session lows.
If price breaks lower there is high chance price falls straight into 0.7950. Then what happens? Support holds and price moves back higher.
We have now seen a higher low which worries me because momentum looks to move higher.
Here is the question that needs to be asked; is it worth the risk to put this trade on with the support so close? For some it will be and others not.
EURGBP WEEKLY CHART
Johnathon
If price breaks lower from the BEEB there is high chance price falls straight into 0.7950. Then what happens? Support holds and price moves back higher??? Or continues falling?
We have now seen a higher low which worries me because momentum looks to move higher.
Here is the question that needs to be asked; is it worth the risk to put this trade on with the support so close? For some it will be and others not.
EURGBP WEEKLY CHART
Johnathon
does this bearish engulfing bar have a great chance as its also almost a pin on the right direction?theres was higher price rejection
Thank you for your explanation. My thought process was the the overall trend is down as you can see it mid August to about mid October. Then it bottomed out and retraced back. I was looking at the top of that retracement to go back down. However, it seems to me that you are looking at like the trend is up and that’s why it would be against the trend. I see your point and thanks for your time. 
puzon
That BEEB goes against everything we do in here because of where it is formed.
Heya,
I was not talking about the trend because before I look to the trend I notice other things that make it a no trade as I explained in previous message. For a trade to be a quality setup it must have a few core factors such as:
- Stick out away from price and obvious
- Form at key areas
- Not form in a ton of traffic
- Not be sitting on support or resistance (like this is)
- etc etc etc
Before looking to other things as to whether or not this would be a great trade, the first thing I see is there is no signal to start with. What you are referring to as an BEEB is an IB. Then we straight away see it is formed in a box as previously explained and then we notice that price is sitting on support.
If this was a BEEB we would then notice that the signal does not stick out and scream at us.
If price breaks lower we would look for the next support to come in around 1.2570 and then if it continues lower the recent lows much further lower. If price holds at this support the next resistance would come in around where we can see the false break pin bar fail to break through around 1.2670 area.
AUDNZD DAILY CHART
EXAMPLE CHART - This is an example of a BEEB sticking out from a high and being pbvious. Noticed not formed with price sitting on support and there is what we call space.
Safe trading,
Johnathon
Thank you very much for a very thorough explanation!
puzon
One more question though… I thought that engulfing bars are to be sitting at resistance or support as they are reversal signals. Am I missing something here?
puzon
Yes we want them to be rejecting a support or resistance, not trading into them. We need to trade away from key S/R level and not into them.
Hi guys 
I don’t post much but I am a keen follower of this great thread.
I want to bring your attention to the Monthly GBP AUD.
I see a pin bar at the swing high, nicely formed, indicating to go short with the long term trend.
(I’m not really set up to post charts, but it should look pretty much the same on regardless of your chart software)
To be sure I should wait till the candle closes, I know, but Im setting a pending sell stop looking to ride this for a while.
Comments very welcome
agree boss,
a 1,2,3 bottom reversal is already completed there
Welcome to the thread and great post.
The first thing I want to talk about is the TF. I personally never trade the monthly and it is only occasions when I trade the weekly. Why? Because do you really want to wait around for the next 3 -4 months to see if your signal is going to work out? Paying commissions along the way (depending on broker account). Yes price action is price action, but it is far easier to stay in trades for hours or days at a time than months at a time. Most people in theory are fine placing weekly/monthly trades but what then very often happens is a few days into a monthly trade they are playing with stops and targets etc I see all the time someone will enter a weekly trade and before even one candle has closed they will be messing around with it. As long as you are aware of this and that you are going to be waiting months for the trade to play out go ahead.
Okay now for the setup. This is a tiny Pin Bar and one of the smallest candles on the whole chart. It is with the trend but it is a bit of a nothing candle. For me the resistance was a bit higher and if price had have moved higher we would now be seeing not only price rejecting resistance but also a lot bigger and more convincing signal.
Good luck with it and be prepared to wait and not fiddle away your trade!
GBPAUD MONTHLY CHART
Hallo Mr.Johnathon…in this case …which is better to trade? daily or h4?
oh sorry…H4 chart also GBP-CHF…SORRY FOR THAT…
Hey Spongy thenx for the respond. And I have stopped using ACM after your advice, thenx again.
What key level are you talking about?
Please help.
Hallo,
The “pin” on Daily is not a valid pin; wick is not at least 3times the size of the body
The “BEEB” on H4 is not a BEEB, it is not engulfing anything.
Cheers
really…my mind gone mad…thats true…
coz…i write beeb insted of 2 bar reversal…and name of that pair also…
before posting this i have edited 4 times…i think i need to have cool mind…i am in a hurry and having tension for my open trade at that movement…
really sorry for that…thank u for pointing…
and my trade reached the tp level where u looking for bullish PA.
