Yes that is a great area to look for longs…Good job in looking to find a trade with the trend and at a relevant level…
It is as simple as showing a little common respect for your fellow members. It is as simple as that.
The very first post on the very first page says clearly what we do and how we do it and that this thread is for those who wish to do it that way. I have personally in this thread said there is many ways to skin a cat and there are literally endless ways to trade price action let alone forex, but in here we have over 800+ pages of one method and people working together with one goal and method in mind.
As I said above there are many ways to do things but in here this is how it will be done. Anybody is free to start their own thread. The reason this thread has been so successful is because it has a simple method that has a clear set of rules that does not chop and change and these rules are followed and enforced week after week. If I am not here to enforce them then other step into the breech like has been done and I must thank all the members who are part of this great group of people!
On a personal note I am sorry I have not been in here as much as I would have like over the last two weeks. I have been crook (not well) and have not been doing much at all.
Safe trading all,
Johnathon
Yep agreed. Nice logical area you have there! The SGDJPY looks similar but even better like a dream PA level to get long!
There is a very interesting level I am also watching on the GBPUSD at the moment on the intraday charts for possible shorting trades. If price makes it back there it could act as the continuation for price to roll back over lower again…
GBPUSD DAILY CHART
Sir Jonathan, the Long term trend is up and i know we are trading the short term trend, but the Short term trend has not formed a Lower High and Lower Low yet. So my question is if a PB/BEEB shows up on the chart you attached, can we trade that PB/BEEB even if the 123 wave is not there?
[QUOTE=“immvp;489707”]Sir Jonathan, the Long term trend is up and i know we are trading the short term trend, but the Short term trend has not formed a Lower High and Lower Low yet. So my question is if a PB/BEEB shows up on the chart you attached, can we trade that PB/BEEB even if the 123 wave is not there?
[/QUOTE]
He mentioned he is looking to trade the intraday charts on gbpusd. When you look at those charts the trend is down so he would’ve been trading with the trend. Looks like he marked a key level on his daily and just drilled down to the intraday charts. Kept himself with the trend on the chart that he his trading. We don’t want to use the daily charts to determine our trends on the intraday charts.
The daily trend is up and I would be looking for longs on that chart around 1.5225
Exactly what in2fx33 said. Looking for trades on intraday charts such as 4hr chart. Flick over to the 4hr chart on this pair and highlight this level and you will see the trend is down and this level could act as a good one to look for shorts with the down-trend.
Make sense?
Hello Johnathon,
please look at my chart, I wrote a few question into it, so I would be grateful if you throw me some light onto it. Thanks
Hello Belier,
I have tried, but I can’t read a thing on your chart. You may be best served using a free screen capture program like Jing. Or the other option is take the pic again and use dot point for your questions.
Now midnight and off to bed.
Johnathon
Yes, sorry, my fault, I’ve noticed it and I edited my original post and zoomed it in, so now it is better I think.
I might be able to help, it will help my learning curve as well.
your lower trendline - if you get a good reversal bar like a pin that would definitely show support at that area, be worth closer attention as it looks as though the trend has been up, this could be the pull back before another leg up.
Maybe there is also some confluence, perhaps a 50% fib or weekly pivot, round number etc etc.
Then you want the break.
you mention 4hr but I think its all about sticking to 1 TF, you’ve got a daily up here.
Your upper trendline above I would pass on, look to the left slightly and I see a engulfing candle, price then swept through that support quite easily, it needs to establish and it might do with a nice PA candle, but not known yet… sure there are cleaner ones about, I just don’t like that its been swept aside so easily.
Hope that helps
PG
Could anyone please tell me why a PB that doesnt close within the previous candle is not a vaild PB? Thx alot 
It doesn’t indicate that price is ready to start moving the other direction. You typically want to wait for some kind of confirmation that price is going to actually move and it’s not just the market breathing. The pin closing in the previous candle and starting to move indicates that you’ve reached the swing high/low and it’s ready to move in the opposite direction.
Hey everyone,
I’ve been reading all of Johnathon’s articles on his website and I’ve managed to get through the first 50 pages, and plan on reading more. I am glad I found this approach since it’s simple, and it fits my time constraints perfectly.
First question is I sometimes hear people saying “Don’t trade into lots of traffic”. Does this mean, don’t take a reversal if there are lots of potential minor resistance/support levels near by, making it hard to decide where price might struggle and thus where to take profit?
Second question I have is about pin bars. I sometimes see people taking pin bars where the small body is far from the key support/resistance level, however the upper/lower wick contacts the support/resistance level. I also see trades where the small body is AT the support/resistance level, and the wick goes well past the support/resistance level. Are both of these viable? I’ve attached a picture where the body isn’t near the support/resistance, but the wick touches.
http://forums.babypips.com/attachment.php?attachmentid=22201&d=1330068878
Third question I have is about support and resistance. I know Johnathon says to plot only 2 lines, above and below where price is at relevant support/resistance levels. It seems that for the most part people are using a couple months of recent data to look at support and resistance levels. However what if you see a lovely pin bar at a support level, but say 8 months back, there is a relevant resistance level that is close to your pin bar (say a little above it), would you still take the trade?
Basically what I’m trying to say is how relevant is support/resistance from months or even years in the past? If these support and resistance levels haven’t showed up as of late, however your price is approaching one of these levels, do you take this into consideration?
And my last question, I know this has been done to death, is how to you determine trend when you think it may be reversing? I know how to spot obvious trends etc, however what if there has been a slight uptrend, but for the last 15-25 days it has been in a down trend? How do you know if it’s just a big retracement, or an actual reversal? Or would you just ride the momentum of the recent down movement of the last 15-25 days since we are only looking to swing trade?
Thank you all, and hope to be contributing some trades I make soon.
What is your criteria to exit the trade?
Hi Ansunirmal really you should have mapped this out before entering the trade. We must never enter a trade before having our stops and targets mapped out.
I personally would be interested to know what your targets are?
That’s a hell of a trade to take with trend against you! As others say best to map out your targets before hand. price is current bouncing around a VBRN!
see the post 10/05/13 target 1.0250
Hi guys,
Just a question… I have recently missed a weekly BUEB long entry on USD SGD (See below)
My question is, if price were to retrace back to this BUEB closing price in a reasonable time, would it be an opportunity to enter the trade? Or is it a case of if you dont get into the trade at the first opportunity, then leave it out?
Thanks
Owen
Hi All,
I have read the 1st 200 pages of the thread and last 50. Really appreciate you Johnathan for stepping out like you have and really shared an amazing amount of knowledge and experience. You are genuine in your beleifs and methods. I am looking forward to continuing in my learning as I realise each day is a learning day even when you have been trading for years. I have been into a few different things over the last 10yrs. I have spent thousands of dollars on different courses and systems and I do mean thousands. But in the end it looks like the simple things are often the best.
I appreciate also all the others that have posted along the way and can seen that they have grown a lot and are happy in their journey as well. I will be monitoring setups over the next few weeks. But only looking for the best setups and to continue to learn as it unfolds.
I realise now to take it easy and hopefully take the best opportunities and manage trades as well. No need to be in trades all the time. But more profitable to be in the best setups when the come along.
I have been burned on more than a few occasions and got to a point where I nearly gave up on the whole trading idea but fortunately I kept having a feeling inside that this can be done and done well. So along the way I stumbled along babypips and then this thread which I am grateful for, as I guess a lesson is to continue the journey, so you can reach a destination which I guess is different for everyone.
I am interested in the daily setup of possibly a pinbar on the USD/CAD short of the resistance bar it is the current bar which will not close untill the end of New York Session today. Please let me know your thoughts.
I am also an Aussie and live in NSW.
Please keep up the amazing work. If it were not for people like yourself and others in this thread I may have been at a loss so a genuine thankyou and hopefully I will be able to start to recoup thousands of dollars and go for my destination.
Thanks
Shannon:p
@Revival [post #8435]
Those are some good questions, good on you for doing the hard work and due diligence.
Allow me to put in quick thoughts (hopefully Johno or Bryce will add more from their expertise)
@TRAFFIC
Does this mean, don’t take a reversal if there are lots of potential minor resistance/support levels near by, making it hard to decide where price might struggle and thus where to take profit?
Essentially, YES.
‘Traffic’ refers to areas of consolidation/boxing that could hinder price going in the direction we want.
Lots of minor s/r levels are also trouble areas where price could struggle.
@PINBARS
I sometimes see people taking pin bars where the small body is far from the key support/resistance level, however the upper/lower wick contacts the support/resistance level. I also see trades where the small body is AT the support/resistance level, and the wick goes well past the support/resistance level.
My opinion: the most viable pins are those where the body is AT the S/R level and the tail/nose/wick sticks out from the S/R level
@RELEVANT S/R LEVELS
However what if you see a lovely pin bar at a support level, but say 8 months back, there is a relevant resistance level that is close to your pin bar (say a little above it), would you still take the trade?
Well, first off, S/R is a zone
So you said the pin formed at a support level. So I’d double-check (using eyeballs, chart time helps) whether the resistance that appears a little above is part of the same support zone
I would also move one timeframe up (weekly) and re-draw the zone and see where the pin falls within that. If I find myself ‘forcing’ the pin to fit into a zone, it’s not for the taking
Basically what I’m trying to say is how relevant is support/resistance from months or even years in the past? If these support and resistance levels haven’t showed up as of late, however your price is approaching one of these levels, do you take this into consideration?
In short, S/R zones remain relevant for months/years. And the more they appear on a higher timeframe, the more relevant they are likely to be.
If price was approaching a level that hasn’t shown up of late, as long as price has been there before on a high timeframe (daily, weekly), I’d take it into consideration
@TREND
Mr J teaches on catching the latest swing/momentum (on whatever timeframe we are looking at).
The swing/trend is determined by whether price is making higher highs/lows or lower highs/lows, and by what price is doing at the zones around it.
In brief,
If price is making lower highs+lows, and breaking support zone(s), it is in a down-swing. We wait for it to retrace back to the support (now resistance) zone and look for shorts
If price is making higher highs+lows, and breaking resistance zone(s), it is in an up-swing. We wait for it to pullback to the resistance (now support) zone and looking for longs
Sorry I can’t answer based on your 15-25days example; best thing would be if you throw up different charts and we can discuss based on that.
Cheers!