I supposed it was with the long-term trend.
Yes The pin bar was rejected by the Support line . But is not the it the exact thing we are looking for or may be I misunderstood the whole concept???
is not the rule ?:
"[I]A valid Buy PB signal is the one which is rejected by a relevant Support . it means that sellers reached a major support and buyers jumped in with a remarkable momentum!! therefore we see a rejected pin bar at closure time of the session. "[/I]
I am quite new to PA system . I read the first 50 pages for more than 3 weeks one by one . I am reviewing all the example pictures you have uploaded every morning :). I have been really trying to get to the right direction . But still have problems to spot the A setups. I also planed to do backtest of the market.
I would appreciate if you give me some advice.
Hossein I trade this PB too, and I wonder where was my mistake.Johnathon expain it before. I think the PB must be the lower bar of all before and must close in the previous bar.Compare your chart and his and look the other bars around PB in Johnathonâs chart.I hope to understand it rightâŚ
P.S. Sorry for my bad english
For the AUDCH PB on 4 hr.
Am i right to say the pair is in a range since early october 2012?When the pair is heading to the top of the range we are in upward trend and when it rotates back down after rejecting the top top of the range we are now in downtrend,is this correct?If this is correct then we can say the trade was against the trend within the range?Wow!!!Someone please make me understand.I think range trading is the challenge here.
The market has its three conditions.Up trend, down trend and range. Now on the daily chart AudChf is on range between 0.9440 and 0.9880.We can wait the trend when price brake down or up level.Now trade wasnât against the trend. In some thread Johnaton says we musnât trade in a middle of the range.Now we with hossein do it and this was a mistake.I think we must wait to break low or up level or trade (not for novice) the down level of the range if PA tells us to act.I hope to help you
I agree with your view on this potential trade setup but just wondering if the 4H higher low leading to the current test of the resistance level has any bearing on a perceived shallow fall?
Actually you are right . this is very controversial and confusing. I took notes from the first 50 pages of the thread. Once Johnathon wrote : " in trending market we trade at pullbacks, in range market we trade in swing low / high." but the problem is how to recognise and distingushe these two status of the market from eachother. when you take a range market , most of the times it is a part of a bigger trend.!!! what I mean is we have too much subjectivity in the term of lableling the market. it all depends on how you look at the picture. As I suggested to Mr Johnathon, maybe having an experienced based rule for ourselves can help us for solving this problem.
I think the level of zoom is covered by saying: according to this method, âwe are swing traders on 1D chartsâ, so 3-years worth of data is well too much, while a week or two is defo not enough. Every pair is different, you require different amount of âzoomâ, but just enough to recognise recent swings and verify whether itâs a trending or rather a ranging market as according to this, you use different trade management techniques.
Fillipl, Johnathonâs simple method is look left of chart to right and a kid should be able to tell the trend. ex GBPUSD 4H, EURUSD 4H/daily. GBPUSD daily I think a bit tricky, looks like a range that has broken KHL so now looking for pullback with a PA confirmation.
Very similiar to my levels except the middle line which IMO is not a key level unless you are counter. I also noticed that putting the moving average gives it conflicting signal because a break of that MA usually signify a change of trend? But then again who is to say this is not happening, it just doesnât fit into johnathonâs method of trading I think.
PS: I like your charts., I am not normally a fan of black charts and have even considered banning them in here but your are very clear.The reason is because a lot of people copy and print a lot of the charts and obviously with black back ground it takes 4 re-fills per pick:), and normally they are super hard to see especially on phone) but your are great.
To the people who are waiting my answers in here please wait and I will hopefully get to your questions around 12 my time tonightâŚ
Spend time looking at your blank D1 charts & practice marking the horizontal levels, and i promise you in not too long, your eyes will begin to see S/Rs and A+ PA setups on those charts where before you only saw random candlesticks.
thatâs a really good idea to define the level of zoom according to the swings . but the question is how many swings we should take in order to catch the given trend???