Forex Price Action

[dudest]

@Jeff5796

Hi, anyone can comment on this pair? USD/CHF 4hour chart.

I’m looking to long.

Hallo Jeff,

IMHO, that’s a small pinbar to be fighting the huge down momentum with.

As Mr J. posted a short while ago, a good play would be to wait for a pullback, then get back in with the dominant downtrend.

Cheers

[dejanb1981]

If u long aud then short eud/aud is correct. Cause u think aud is strong?

Exactly…if you think aud will rise in value against eur you short eur/aud.

[wigglez]

I closed my usd/cad short for 2 pips. I wasn’t confident enough to hold it. The daily trend is up.

[dudest]

@dudest

That’s a great looking BUEB ain’t it? Was excited when I saw it: nice level + great rejection off 9700

However, I see trouble, because of which I’m sitting out on this one.

Recent momentum: price has been down (1), pulled back nicely (2), and continued downward (3)

There are a couple of rejections of the 0.9700 area, but the fact that price has been managing to make lower lows and mostly lower highs is of concern to me. The First Trouble Area is also close.

Best of luck to those already in, may it go up for you!

Cheers!

PS: if the D1 closes as a commanding BUEB, I will definitely consider taking it.

[tonyshieh]

Hi tony,

It’s actually a BEEB, and IMHO, you’d be shorting into support…

Cheers

<img src=“301 Moved Permanently”/>

Hi dudest,

Thanks for your thought. I like u so much

[immvp]

50 percent entry will give you 2:1 reward risk

@dudest

Hi tony,

It’s actually a BEEB, and IMHO, you’d be shorting into support…

Cheers

[mkteer]

I’m also long on AUD/CHF. Here’s my chart. Price now on trouble area pointed by Dudest

[tonyshieh]

50 percent entry will give you 2:1 reward risk

Ya…I took 20pips…then run away

[fazliy]

@dudest

PS: if the D1 closes as a commanding BUEB, I will definitely consider taking it.

i’m worried to enter long post coz the two big bearish candle and also the price now quite near to the first trouble area…

[OMFGWTF]

Waiting for these two to close like this:

AudChf is a better candidate since it is with the trend while GbpChf is not. Although with the AudChf there is that looming resistance, the minor pullback before it collapsed into support.

[Spongybob]

The problem is we don’t go down to the 1 Hour time frame on this thread. So it’s probably a coin toss on if this will work out or not even if you do get a “valid” pin bar. It’s just too volatile on the short time frames.

Russ

Nothing wrong with that setup at all. Well done!

[rsg10z]

i have a question regarding bearish outside bar. Do you consider this as a BEOB? If not, why? The previous bar looks like completely covered by the next one, also it happened at strong resistance area 1.6042. thanks!

[OMFGWTF]

i have a question regarding bearish outside bar. Do you consider this as a BEOB? If not, why? The previous bar looks like completely covered by the next one, also it happened at strong resistance area 1.6042. thanks!

Not in this trading style no that looks minuscule and not commanding even if it formed at a strong resistance as you said. BUT if you think it is a BOEB then go ahead and trade it. As they say, “we don’t really trade the markets, it is our BELIEFS that we trade in the markets.”

EDIT: On second look yes it engulfs the whole candle before it, but I bet people here will say it has a small body that would almost qualify as a spinning top with big wicks on both ends.

[kurtmackenzie]

Hi guys! Saw this while checking the charts, would you short this pair if it shows a sell signal at the highlighted area?

[Spongybob]

Hi rsg10z

Here is a link to Johnothans site where he has examples of BEEB, BUEB.

Your example is against the trend, the resistance zone is not a key resistance zone, the bar is not much of a BEEB bar.

Bullish and Bearish Engulfing Bars Introduction

[waldmann007]

trade closed

[rsg10z]

ok guys so let me be clear.

1. the second candle needs to have strong body
2. It MUST be taken on the current trend (and not contradict it)

thats it right?

Another question. How do you consider a strong support/resistance zone? Please enlighten me!

[rsg10z]

how about this one at EU?

i know this is also against the trend but i am just looking for a confirmation if this is a bearish outside bar (not much wick there)

[dudest]

@kurtmackenzie

Hi guys! Saw this while checking the charts, would you short this pair if it shows a sell signal at the highlighted area?

Hi kurt,

IMHO, A big and obvious bearish PA around 1.6120 level would definitely be worth considering.

( PS: 1.6120 is also the 61.8 Fib retrace level of last down-swing on the weekly ).

Cheers

[dudest]

ok guys so let me be clear.

1. the second candle needs to have strong body
2. It MUST be taken on the current trend (and not contradict it)

thats it right?

Yes

Another question. How do you consider a strong support/resistance zone? Please enlighten me!

Please read this article by Johnathon: Price Action Holy Grail - Support and Resistance

Excerpt:

We must remember what support and resistance is when marking it on our charts. Support and resistance areas are simply the previously tested levels in the market that price has respected. If price has respected an area in the past there is a good chance price will respect it again, should price test it.

When marking our two levels above and below the current price we are simply looking for the two levels that price may struggle at or reject.