Forex Price Action

[hossein_mir]

Welcome to the thread Hossein!

Kudos for putting in the time and hard work to read through the thread, will help you more than you now know!

With regards to your questions:

1. NY-close chart

An New York-close chart is one where the Daily bar closes when the New York session closes (the unofficial daily close of the forex market).

This, by extension, also means that the Daily bar opens when the Asia session opens (the unofficial daily start of the forex market)

So this works out to a chart having 5 Daily bars in a week ( not 6! ) with the open at start of Asia, and end at close of NY.

Not all brokers (MT4 or otherwise) offer a chart whose feed conforms to the description above (actually, most DON’T).

The description above is used by the BIG BOYS who move the market (banks, governments,etc).

Price action trading is following and taking advantage of the movement of raw price (i.e, what the BIG BOYS are doing), so for that we need to use 5-day NY-close charts.

A couple of brokers offering these type of charts are listed on POST #1 of this thread ( examples: HotForex, Pepperstone, AxiTrader )

You can open a DEMO MT4 a/c with any of these, and you’ll see the same things we’re seeing [ and hopefully start posting up your trade ideas ]

2. Entries and exits

Mr J reserves details on trade management for members of his forum, but if you were taking notes (I hope you were :)), you’ll see the reference many times to placing entries/stops above the high/low of a setup. The specific no. of pips is your choic

Summary: there’s enough info in the thread on placing of entries/stops and the foundational concepts on how to manage trades. Just go through your notes and you’ll see.

3. Application of the method to smaller timeframes

Can it? (in theory) Yes
Should you? No
Why? Smaller timeframes have alot of NOISE, i.e, unreliable signals.
This NOISE gets filtered out as you move up higher timeframes.

Since you’ve started learning the method, begin at the Daily timeframe.
The truth is: if you can’t apply this on a Daily timeframe, you are kidding yourself thinking you can trade on a lower timeframe. [ Most of my trading now is still on the Daily, after having played on the H1 and H4. The D1 rocks!, you’ll find out more as you continue ]

Remember it’s not just the technique you’re learning to the develop, but the MINDSET (which is what will determine whether you’ll be consistently profitable or not).

I hope that helps If something is still unclear, just say and someone will offer help.

All the best to you!

Cheers!

Thank you for your prompt answer Dudest. Actually I have opened a demo account with peperstone but I still have doubt. Do you mind if I send a screenshot here, I was wondering if you might check it with yours?!

As for the entry & Exit point I got the concept , I think I have a bit obsession because of the lack of disipline in the past. Therefore I try to post my setups in order to get your opinion.

Again than you for your attention and your time.
looking forward to hearing from you.

[allarigs]

@dudest

Back to core business…

Some setups I’m looking out for this new week:

Cheers

Thanks , i also monitoring them. The JYP pairs have been having very nice PA setup which have given me good PIPS.

[filipl]

Back to core business…
Some setups I’m looking out for this new week:

Oh man! I simply a.d.o.r.e. your single-lined-s/r charts, so clean and up to the point!
Wondering why the heck I have not yet started drawing them this way…

fil
good luck!

ps. watching the same levels yay! & still in the USD/JPY long trade I bought at 88.5 (already taken half profits and S/L moved to BE+90pips).

[forex4worth]

Hi) Below we have a 4 hour chart of EURJPY.I found something really interesting and reasonable to ask on this chart.The bearish pin bar was formed on the top of swing high and it,s called a pin bar because it did open and close within the previous bar.The size of the pin bar was not bad and the S&R levels are also quite relevent on this chart.This is supposed to be a good setup according to what i have read in the first 50 pages of this thread so far.But later the price went upwards.So any senior member here please tell me, am i missing something? Was this setup lacked something?Or is it simply something inevitable in forex which is to loose at somepoint?

[Average_Joe]

Forex4, that PB closed above your resistance line and the preceding bull candle closed above the resistance would signify caution. Also it never broke the pin low so you would not have got filled before it zoomed up. Now waiting for PA on this support level.

[bearOZpips]

In which direction was the overall trend? Also notice where pin bar closed, above support … after breaking through resistance. Think of it in terms of and ask yourself … if I were already long, before that bar, why would I get out and close my position? … as I just saw this pair break overhead resistance and hold it.

@forex4worth

Hi) Below we have a 4 hour chart of EURJPY.I found something really interesting and reasonable to ask on this chart.The bearish pin bar was formed on the top of swing high and it,s called a pin bar because it did open and close within the previous bar.The size of the pin bar was not bad and the S&R levels are also quite relevent on this chart.This is supposed to be a good setup according to what i have read in the first 50 pages of this thread so far.But later the price went upwards.So any senior member here please tell me, am i missing something? Was this setup lacked something?Or is it simply something inevitable in forex which is to loose at somepoint?

[forex4worth]

Forex4, that PB closed above your resistance line and the preceding bull candle closed above the resistance would signify caution. Also it never broke the pin low so you would not have got filled before it zoomed up. Now waiting for PA on this support level.

Hi average joe) Thanks for the answer and it really makes a lot of sense.Literally i thought about what you said but later the valid bearish pin bar and the S&R levels changed my thoughts.But have one confusion and would like to ask about that.S&R isn,t about an exact line it,s a zone right?
Thanks.
Tahir.

[forex4worth]

@bearOZpips

In which direction was the overall trend? Also notice where pin bar closed, above support … after breaking through resistance. Think of it in terms of and ask yourself … if I were already long, before that bar, why would I get out and close my position? … as I just saw this pair break overhead resistance and hold it.

Hi bearOZpips) Thanks and your answer also makes sense like what averagejoe answered.But i am not clear about one thing.I believe the price was trading in a range.At first there was an uptrend but later it was trading in a range am i right?Shouldn,t i just look at the recent range before making a trade?

[Average_Joe]

@forex4worth

Hi average joe) Thanks for the answer and it really makes a lot of sense.Literally i thought about what you said but later the valid bearish pin bar and the S&R levels changed my thoughts.But have one confusion and would like to ask about that.S&R isn,t about an exact line it,s a zone right?
Thanks.
Tahir.

Forex4, yes normally it is a zone and different traders will define how thick that zone is. I use best fit so the level will be like the level where there as many touches on either side with significance to the latest levels. I have the same level as yours.

Example below, I could move that red line down but big round number takes precedent and as you can see the later candles had a lot of wick penetrating the red line but could never closed below signifying to me that there are a lot of fake outs/stop hunts or whatever conspiracy theory you want to use.

Hope that explains clearer.

[hossein_mir]

[QUOTE=“forex4worth”]Hi) Below we have a 4 hour chart of EURJPY.I found something really interesting and reasonable to ask on this chart.The bearish pin bar was formed on the top of swing high and it,s called a pin bar because it did open and close within the previous bar.The size of the pin bar was not bad and the S&R levels are also quite relevent on this chart.This is supposed to be a good setup according to what i have read in the first 50 pages of this thread so far.But later the price went upwards.So any senior member here please tell me, am i missing something? Was this setup lacked something?Or is it simply something inevitable in forex which is to loose at somepoint?

Hi forex4worth
I just wanted t ask if the chart yo have uploded is 5-day NY-close charts?
Thank you .

[vasude]

[quote=“hossein_mir,post:6847,topic:41718”]

@"forex4worth"

Hi) Below we have a 4 hour chart of EURJPY.I found something really interesting and reasonable to ask on this chart.The bearish pin bar was formed on the top of swing high and it,s called a pin bar because it did open and close within the previous bar.The size of the pin bar was not bad and the S&R levels are also quite relevent on this chart.This is supposed to be a good setup according to what i have read in the first 50 pages of this thread so far.But later the price went upwards.So any senior member here please tell me, am i missing something? Was this setup lacked something?Or is it simply something inevitable in forex which is to loose at somepoint?

Hi forex4worth
I just wanted t ask if the chart yo have uploded is 5-day NY-close charts?
Thank you .

1. trend is up see the daily chart
2. first bull candle broken the resistance and the pin bar formed at support

so if u take the trade blindly at pin bar you get burned without any mercy .market dont show mercy

[forex4worth]

[quote=“hossein_mir,post:6847,topic:41718”]

@"forex4worth"

Hi) Below we have a 4 hour chart of EURJPY.I found something really interesting and reasonable to ask on this chart.The bearish pin bar was formed on the top of swing high and it,s called a pin bar because it did open and close within the previous bar.The size of the pin bar was not bad and the S&R levels are also quite relevent on this chart.This is supposed to be a good setup according to what i have read in the first 50 pages of this thread so far.But later the price went upwards.So any senior member here please tell me, am i missing something? Was this setup lacked something?Or is it simply something inevitable in forex which is to loose at somepoint?

Hi forex4worth
I just wanted t ask if the chart yo have uploded is 5-day NY-close charts?
Thank you .

No i have already wrote above its a 4 hour intraday chart.

[forex4worth]

[quote=“vasude,post:6848,topic:41718”]

1. trend is up see the daily chart
2. first bull candle broken the resistance and the pin bar formed at support

so if u take the trade blindly at pin bar you get burned without any mercy .market dont show mercy

Hi vasude) Thanks for the answer and we are not supposed to look at different charts for different things while developing a set up as johnathon told us.Doing so is like tinkering with your trade.I spotted a pin bar on a 4 hour chart and i have look for the ingredients of A+ trade on that same chart.
Thanks.
Tahir.

[filipl]

@forex4worth

Hi bearOZpips) Thanks and your answer also makes sense like what averagejoe answered.But i am not clear about one thing.I believe the price was trading in a range.At first there was an uptrend but later it was trading in a range am i right?Shouldn,t i just look at the recent range before making a trade?

Hi buddy,

Why do you think it’s a rangebound market while you have higher highs and higher lows as per my picture?

If you are referring to the “recent range”, just forget the pinbar.
Do not chase a missed trade few candles later.

Besides, the PB is not very convincing, small comparing to all those 5 up-candles in front of it. Why would you want to fight that momentum up with one teeny-tiny PB? And how some other people pointed out, playing straight into resistance. Countertrend. Not from retracement.

Don’t take it personally, but it might be profitable for you to re-read those first 50 pages paying attention to playing with trend, from value areas. Have a look in here, this could speed it up.

Kind regards.
fil

[mastergunner99]

A pinbar itself isn’t worth getting excited for. It’s the candles thereafter that will tell you if price reversed.

[wigglez]

A pinbar itself isn’t worth getting excited for. It’s the candles thereafter that will tell you if price reversed.

You just can’t help yourself can you?

This thread is about trading trend following reversals, based on pin bars, two bars, and engulfing bars.

[tylermckee]

comments on this possible audusd daily trade? its with the trend at a relevant support level. pin isnt huge, but it does stand out, looks obvious to my inexperienced eyes. would look to enter above the high of the pin.

[Average_Joe]

Tyler, I prefer the lowest ‘blue line’ you have drawn for the current pin bar to form because this is range bound and I would be looking at the swing low.

[tylermckee]

Tyler, I prefer the lowest ‘blue line’ you have drawn for the current pin bar to form because this is range bound and I would be looking at the swing low.

yeah i would like it to be a little lower too, ill keep my eye on it.

[filipl]

Greetings my friends!

I haven’t posted any charts for a while, but few pairs caught my attention tonight and wanted to share my thoughts out loud. Please add share your thoughts.

EUR/NZD D1
I am looking for shorts on this chart as per the longer term trend before entering range.
The question is, is it in ranging market?
Do you have similar levels marked? It has reacted to it back in the past (March-May 2012) as well.
It’s a nice PB, with direction of my overall trend (pls ignore EMA!), What I don’t like it is (a) not strong close and (b) it would be trading into a gap. They always confuse me. That’s why I’m passing on it. Simply not sure and not enough chart time in “ranging market”. Does anyone (dis)agree??

GBP/NZD D1
Nice looking PB/BEEB with the trend rejecting 1.9, although passing on it as (a) no retracement, (b) trading straight into support. Anyone else?

HKD/JPY H4
Simply waiting for a retrace to support zone and satisfying PA to go long.

Good night.
fil