To be honest, I have the same question in my mind too. I think I better let the expert/ Johnathon to answer this question. I admit that sometimes it’s hard to identify whether an uptrend or retracement.
IMO in this scenario, i just keep an eye on the price. Only 2 possible cases will happen:
Price breaks the resistance, and continue to go up. As a trader, we only need to watch out for PA when the price pull back and go long if obvious PA comes
Price reject by the resistance. As a trader, we look for a reversal PA and go short if obvious PA comes
I am a newbie too, just sharing my thoughts, so I can be wrong. Hopefully, any lovely fellow PA experts here can give us some guidance on this.
I see. Thanks for magnifying that
IMO, I wouldn’t consider it as a strong pin bar. Simply because the tail doesn’t stick out from all the other candles. Also the length of the candle is pretty much the same as the length of the previous candle. So, no trade for me
Hey kedridder,
Try not to take things the wrong way. Hard work and commitment probably wasnt the guidance you were looking for but let’s take the value in any advice and apply it.
So I’m sure you read the required pages but did you fully grasp it? Browsing through and rushing to the end won’t make you a better trader. So take your time in reading thru the thread and the articles on Mr. J’s teaching website.
As spongebob said you were right abt trying to trade from support turned resistance. That’s very important and you want to look for that in every trade you make. After you find those areas then you look for price action. Pin bars, engulfing bars and few more that you will learn.
Some added advice would be to trade higher time frames like like the daily charts. All of this advice is in the begging n g if the thread as you will see when you re read it.
Safe Trading
Hi johnathon)Wanna ask you a question about candle blending.A two bar reversal is simply a pin bar which formed over two sessions.Can we use those englufing bars as PA signals which also formed over two sessions by blending two candles together?And one more question do you trade only 4 hour and above timeframes?
Thanks
Happy Trading
Yes he does trade those time frames. But he also advises to beginners to trade higher time frames to begin and once we have a grasp on how to trade this method then move on to the lower time frames for more trading opportunities.
Signals on the daily tf do not happen as often as the lower time frames but are more reliable. By working the daily charts as a beginner you will learn patience and you will get use to not trading as much. This will help in keeping you from over trading and only picking the best setups. I’m not an expert and I’m still learning and I’m sure I make silly trades in the eyes of senior traders. But in time you will improve. Go back and reread. That’s the best advice I can give you.
There are two scenarios that you should be looking for here, the first is for a bullish trade setup to print right on the support zone then look to go long.
The next scenario you should look for, and it would probably be a better one, is to wait for prices to go through the support zone then come back and print a bearish trade pattern on the resistance zone.
