Im playing out this trade on 4 hour EUR/CAD because it is in a downtrend retrace high. This high used to be old support and looks like a new resistance now.
Hi doky
Nice levels you have marked there. There is just one problem I would have with your TP level, and its the highlighted support zone you would be trading into. I know it didnt close as a 2bar just pointing out possible problem areas you may face once in the trade. Always look for problem areas in your analysis.
If price goes to the next level, then you have more room to run to before first problem area.
Cheers
Thanks for your comment Spongybob! I saw the zone but my assumption was this area had been penetrated twice (down and up) with strong momentum, so most orders should be absorbed. However, we do not have a 2BR pattern and price did not drop anyway:53: So looking forward. Regards:)
Hallo Gangman [Gangnam? :)],
First off, your chart looks different (canât see the last two counter-trend pins).
Secondly, the candle youâve pointed out is not an engulfing bar (an engulfing bar must fully engulf the previous candle). And the pinbar youâve mentioned isnât a tradeable pin (doesnât open and close within the previous candle, among other things).
With regards to the matter at hand (S/R zones): I think your zones are spot on, and I would consider taking setups forming off those areas.
PS: when Iâm in doubt regarding S/R zones on Daily, I go up to Weekly and draw the key zones from there.
Cheers 
US Dollar (4hr)
Hi, I was considering a long position on the US Dollar - see attached. A PB formed at S/R and price has retraced to about 50% of the pin bar - seems ideal entry. Maybe wait for daily close for confirmation of a daily PB? Any comments?
Thanks
Dudest, thank you very much for your reply
Thank you for that advice for S&R zones and weekly chart its very important for me, I appreciate that.
I think I miss the little things⌠this is my mistake, I`ll still learning, thank you again, you help me a lot!
Regard
Hi Dobo,
From the attached screenshot it appears like the pair was consolidating a bit, broke out of consolidation, you waited for the retrace to the resistance turned into support and now itâs giving you a signal to go long. The trade has some space to trade into, meaning FTA (First Trouble Area) is not very close (I would consider it to be recent swing high) therefore it has a nice potential to succeed.
PA looks really strong and according to your chart it is a valid PB for this method.
Bear in mind the signal has already been confirmed and itâs retracing a bit further (pretty normal in my opinion, they very often do it), if youâre already in the trade, hope you feel comfortable with your risk, and you have placed your stop accordingly?
Would you mind clearing up which pair is that?
Fil.
I donât know if anyone else took this, but I had a Long GBP/AUD off the Daily, a pin par that seemed to be off established Support:
Price never went far, collapsing back and eventually closing at -84 pips. This would have been a reversal of the recent downtrend and at a clearly established Support area. Did anyone else take this? Can anyone offer an idea why it might have failed?
Do you mind zooming out and posting another chart please?
No idea why it failed, but I know why I had not taken it although I was looking at it as well.
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It looked like a 100% retrace to me, slightly to big IMHO, Iâm used to 30-50-60% but not 100% so it triggered a thought of pretty strong downmove.
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for me, personally PB was in the middle way between two s/r zones so taking trade from the middle of it was pointless and instantly condemned for smaller rate of success. I would prefer it to be placed as drawn at far right of the screenshot. EDIT: Or even better - at the higher S/R zone so it would resemble a retrace and continuation of the consolidation breakout!
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it was trading straight into SR zone, as per point 2 - no place to go, if you notice, price gapped back in beginning of September 2012 as well as formed a ceiling for consolidation mid Nov-mid Dec (highlighted)
Just my two pips.
Fil.
Thx for the input Filipl. The trade was taken on the US Dollar index which is offered on FXCM.
Thanks.
See the size of the bearish candles before your pin? Notice particular how huge they are and also not much wick on the candles. This was showing bears in full control.
Then that small and unconvincing pin forms. That pin was people covering their shorts and taking profit from their short trades, and importantly not a large signIficant pin showing that the bulls have gained control
Basically what I am saying is you were looking to turn a strong move down with a small pin.
Hallo,
IMO, the level is great but the pin was a pass because:
- it was not large & obvious ( did not stick out)
- was not at swing low
Iâm waiting for big and obvious bullish PA at the same level (a), or for price to breakout and hopefully retrace and give us short PA at the same level (b)
Cheers
Hallo Jeff,
Please strip off the trendlines and indicators from your charts (if at least when posting) -> rules of the thread.
IMO, taking that candle (which was neither a valid pin nor a valid beeb) was selling right into support (around 0.9640)
Cheers
What do you think about this one, USDJPY h4:
Anyone in a trade? Comments are highly appreciated. Thanks and regards
dudest, what make you say the pin is not valid
Iâm in ;)) And donât know next step ^^!
Hallo doky,
The area and the setup were ok, but didnât take it as i thought the First Trouble Area (those overhead wick lows) were too close to my entry.
Best of luck to you!
Cheers
donât wanna answer for dudest, but I think he would like it to be the first red candle , not the second, a swing high .remember, follow the larger trend.unless u get a âtext bookâ reversal pattern on ur chart