Thanks for the reply, does this mean large BEEB’s and BUEB are rarely going to be good signals as they are often going to peak near the next area of S/R?
Currency rate changes regularly therefore, it is necessary to know everything about how change occurs.
Hi giddy ) I know it,s all about making your solid trading habits but i took this trade because i never heard about such a situation before and it was just interesting for me.
So why not watch it instead of trading it? Why the need to trade in a situation you have no idea about?
Why not instead watch it and learn from it and only trade in your demo how you would for real.
If you start getting into lax habits now, this is what will come out when trading real and under pressure. You need to be practicing how you will trade for real.
As you said habits are important and our outcomes are built from our habits. Change your habits and change your outcome. You have bad habits these will continue when you go live. They do not disappear. if anything they intensify things because you are then risking real money and not play money.
Johnathon
Hi everyone) Below is the 4hour chart of CADCHF.Currently i am holding a short trade.I entered into the trade because of the following reasons.
1)A very solid bearish pin bar on swing high and it sticks out.
2)The pin bar formed on a relevant resistance area and price is rejecting the BRN of 0.9200.
3) I think the size of the pin bar is not bad.
4) It is with the overall downtrend.
5) The risk reward ratio is also good.
But currently it is trading into a lot of mess but i hope it will go down.
Hi dear PA trader
Finally I managed to create a comprehensive Check list for PA methods in order to filter bad and weak setups based on what Mr Johnathon taught us. I know that most probably it is not flawless and perfect. Please read it and give me your opinion( negative and positive) I would like to make it better with your opinions.
I have tried hardly to make it more mechanical and increase objectivity as much as possible. I suppose it is picky enough to avoid even A Setups
Looking forward to hearing from you.
Price Action Trading Check List V.1.pdf (98.5 KB)
awesome, i will use it in order to improve my diary:-)thx
Too long of an upper wick to trade BUEB? What do you guys think?
Also for these two BEEB, too long lower wicks?
The signal you’re seeing isn’t actually a signal. It’s just random noise because it neither stands out strongly nor formed at an obvious swing point. There are examples of what an Engulfing Bar should look like on the first page of this thread that you can compare the signal you’re seeing to. If you haven’t- be sure to sit down and read the first 50 pages of the thread or so. There’s a lot of good information that will help clarify future interpretation.
GBPJPY - I don’t quite like that signal because it didn’t close above the previous stick. It’s at a pullback but I don’t think too favorably of its potential strength.
AUDUSD - I liked this set up due to the strong pullback and clean downward movement. I actually opened a trade off of this one. The set up is also with the trend which is another check mark for me.
NZDUSD - I’m not a fan of trading against the trend because I always aim for 2:1 or greater return. The pair is in a slight uptrend so I wouldn’t trade against it. It also seems like that particular stick isn’t a very strong signal for countertrend trading. To me, it seems too equal and that it could be a continuation signal.
Good for you buddy!
Q4 seems to be slightly unclear to me, shouldn’t it be about PA signal and not the trend?
Q11 is more or less the same to me as Q4.
Fil.
The BUEB from GBP JPY closed in the first 1/3 of the candle. Ideally it should have closed above previous candle but the uptrend is very strong. So strong I’ll trade even small pin bars.
AUDUSD doesn’t seem to me it has a clear trend and the space between BEEB and FSA is very low. The lower wick isn’t too long since it closed in the first 1/3. I’ve read in the first pages that EB bars must close in the first 1/3 in the direction of the EB bar. So the wick is too long only if it closes between 1/3 and the high of the bar.
The BEEB from NZDUSD is counter trend. From what I’ve seen the chances of success with a counter trend setup are lower than if you’re trading with the trend.
I don’t agree that a setup is good only if you can win at least 1:1. For instance let’s suppose you expect to have a reward risk ratio of 0.75:1. If your probability to win is 0.6 (or 60% of time) this is still a profitable setup. Same with 0.5:1. If you win at least 1 / 1.5 = 67% of time you can take a trade even if you only win 0.5:1.
It’s a myth that you need 1:1 or 2:1 to take a trade.
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I agree, but you got to remember everyone will have different plan, if Hossein feels comfortable with his, let him use it. Most important in my opinion is [B]to have a plan[/B] [U]and follow it[/U].
fil
I agree. R:R is an after the fact thing. A 1:1 and a .5:1 are “the same” because their inherent factors come hand in hand. With a lower R:R comes a higher win rate. So the adjustment is relative. There is balance even in the world of trading.
How did you figure aud/usd was 2:1? It looks kind of tight to me.
Johnathon I wont repeat what a hundred others have said but this forum has helped me enormously so thanks heaps for all your selfless work.Im up to page 65 now so only a few hundred more to go.Just a quick one (apologies if its been answered before)but how many a+ setups would you expect to see in a month on a 1week/1day time frame,thanks for your time mate.
Yes but there are a few key differences…
The trader with the higher reward trades will normally have a smaller win rate like you said. Because of this they will take more losses and have bigger swing in their account. These traders will hve to hold through more losses and larger drawdown waiting for the next big winner. At the end of the day both can be profitable over time but this method can be difficult.
The profitable trader with the higher win rate and lower reward will generally have a steadier increase in their account without the large swing up and down in their balances.
Johnathon
Heya,
if trading 4hr, daily, weekly you will average over time 4-8 quality setups per month. This is average though as sometimes will be more and other times less. If you then add break out trading and continuation trading there is obviously a higher amount of trades PM.
Video of this weeks setups and market commentary.
Safe trading to all this week,
Johnathon