Forex Price Action

[Edmo]

Hi everyone,
I have been learning like all of us, its cool to be here, huge thanks to Jonathon. Just wanna point out something - pls learn also to PLACE ORDERS at the support and resistant areas/levels and WAIT. Thats the best way in my opinion to get in and out properly. If you miss a promising one, just wait, wait wait and wait - for the next, it will come to you. This with the right MM will fine-tone your PA knowledge. As Jo always say, safe trading all.

[marketdeal]

Good job mate. I have one question. Did the big bullish bar prior to the pin bother you before taking the trade? Kindly share your thoughts on this please.

Raj

Thanks Raj) Well yea your question is the one which is really important for price action traders.Yes you are right we should notice the big bullish bar prior to the pin bar and it indicates a big bullish pressure.But remember two days ago we didn’t take long trades based on that bullish engulfing bar happened on a very good support area because first it was against the overall downtrend and secondly the first resistance area was so close.The bulls tried to push price higher but bears won the battle and managed to push it lower and formed a very strong bearish pin bar on that resistance area.The bearish pin bar formed with the strong down trend on a very important resistance area which price respected many times in the past.The strong size of the reversal signal plus happening at the good level with the down trend was strong enough to push price lower.The no of factors were overwhelmingly in my favour so i decided to pull the trigger.We should read the whole price action story on the whole chart rather than just looking at the last candle.[B]Confluence is equal to high probability of success[/B]. Hope that helps)

[jackson905]

Hello trademateur,
I couldn’t help but share with you my point of entry and exit in this trade because I was in it. I entered right on the break of the BEEB (I take snapshots of every trade when I enter, exit & when I move my stops as I manage it). I exited right on the blue line, that’s where my TP was.
I would like to hear Bryce’s view.

Very nice trade!

[marketdeal]

Hey AtaArticles,

Still in the trade as i haven’t touched my SL yet (still at 96.00) so who knows what can happen but i agree my initial target of 100.00 might have been reaching for the stars.

Watched Johnathon’s movie about the setup and saw he had his level marked at 100.00.
I was actually wondering where to put my level and thought 99.00 would be good initially but after looking at the movie 100.00 made more sense and i changed it (not blaming Johnathon btw :D).

Will see what the trade does eventually and then recap in my journal what went wrong/right.

Deffo something for me to learn from, wether win or lose, to take more time analyzing setups.

Remitu

That,s why never get greedy while setting your TP,s).Set it at an area where price easily reached in the past.I am fully out of the USDJPY long trade with profit because i knew the recent pressure was bearish and i think in future we will be looking for short trades on yen pairs.Looks like the bull attack on the yen pairs is getting weaker.

[Edmo]

That,s why never get greedy while setting your TP,s).Set it at an area where price easily reached in the past.I am fully out of the USDJPY long trade with profit because i knew the recent pressure was bearish and i think in future we will be looking for short trades on yen pairs.Looks like the bull attack on the yen pairs is getting weaker.

You are very right Marketdeal, to confirm what you’ve just said, just take a look a the weekly USDJPY PA. Dosen’t seem like its gonna head up soon.

[traderamateur]

Hello trademateur,
I couldn’t help but share with you my point of entry and exit in this trade because I was in it. I entered right on the break of the BEEB (I take snapshots of every trade when I enter, exit & when I move my stops as I manage it). I exited right on the blue line, that’s where my TP was.
I would like to hear Bryce’s view.

Thanks chisha. The congestion with intraday choppiness was a little farther to the left which you can see if u zoom out a bit more. Wud love to hear Bryce’ s opinion too

[Edmo]

Pinbar is formed EurGbp at what seem to be a continuation of bearish PA. Though the candle is not closed… Can anyone comment on this? Thanks

[traderamateur]

Thanks Raj) Well yea your question is the one which is really important for price action traders.Yes you are right we should notice the big bullish bar prior to the pin bar and it indicates a big bullish pressure.But remember two days ago we didn’t take long trades based on that bullish engulfing bar happened on a very good support area because first it was against the overall downtrend and secondly the first resistance area was so close.The bulls tried to push price higher but bears won the battle and managed to push it lower and formed a very strong bearish pin bar on that resistance area.The bearish pin bar formed with the strong down trend on a very important resistance area which price respected many times in the past.The strong size of the reversal signal plus happening at the good level with the down trend was strong enough to push price lower.The no of factors were overwhelmingly in my favour so i decided to pull the trigger.We should read the whole price action story on the whole chart rather than just looking at the last candle.Confluence is equal to high probability of success. Hope that helps)

I can see your line of thought and respect it. I had pondered a long time before deciding not to take the above trade. These subtle differences are what makes us completely different traders in spite of using the same system. Thanks a lot for the detailed clarification. It stimulates thought and enhances learning.
Raj

[Revival]

Well, market opened up beautifully. I’m in my first trade in the USD/JPY taking the pin bar reversal. I have a question about trade management however. How exactly do you guys take half profit? I plan to take half profit at the red line I have marked, a bit before the BRN of 100.00. I know you can use the take profit function on modify order, but does that let you do half profit? Or does that cash everything in?

Got stopped out. Yen shot down quite a bit and hit my SL. Thng I did wrong was putting my 1st TP too high. There was a support zone where price hit and had a chance to take half profit and move rest to break even as some did. O well, it was my first trade ever and on demo, no harm done. Just goes to show you how important trade management is. Never understood that until now. Spotting a good set up is easy, managing it is tough.

[traderamateur]

Hey AtaArticles,

Still in the trade as i haven’t touched my SL yet (still at 96.00) so who knows what can happen but i agree my initial target of 100.00 might have been reaching for the stars.

Watched Johnathon’s movie about the setup and saw he had his level marked at 100.00.
I was actually wondering where to put my level and thought 99.00 would be good initially but after looking at the movie 100.00 made more sense and i changed it (not blaming Johnathon btw :D).

Will see what the trade does eventually and then recap in my journal what went wrong/right.

Deffo something for me to learn from, wether win or lose, to take more time analyzing setups.

Remitu

If i had taken the USDJPY trade (i did not take thistrade due to big bearish bar preceeding the pin), my take profit would have been 99.75 as i had marked in my chart and i would not have played with the trade before reaching that level. So i would not worry too much about loosing one like this. My only suggestion is to set your TP slightly before the VBRN and not at the VBRN.

Raj

[monjorra]

CHFJPY H12 BEEB TP HIT … Is this a valid setup cos price didnt reach Day S/R zone

[Remitu]

If i had taken the USDJPY trade (i did not take thistrade due to big bearish bar preceeding the pin), my take profit would have been 99.75 as i had marked in my chart and i would not have played with the trade before reaching that level. So i would not worry too much about loosing one like this. My only suggestion is to set your TP slightly before the VBRN and not at the VBRN.

Raj

Hey Raj,

Thanks for your advice.

Trade has now closed down as it hit SL at 96.00.

I actually had set TP at 99.85 as i recall a post of one of the seniors about scalpers coming in on these level and pushing price the other way (down in this case) so that it might not reach the VBRN entirely and thus putting it a little below would eliminate that.

Shame the trade didn’t play out as planned but learned alot from it and that is worth even more to me at this stage
(aka set better TP levels which boils down to reading price better and looking for recent s/r levels)

Gonna update my journal now for future reference.

Little less then 2 hours before the NY close and new options to trade

Remitu

[Pips_Ahoy]

i did not take this trade due to big bearish bar preceding the pin

i should have heeded this. lesson learned. my first tp was at 99.50, just missed it then got stopped out

oddly, last week had a winning trade on the weekly with this pair going the opposite direction ; (

[Remitu]

That,s why never get greedy while setting your TP,s).Set it at an area where price easily reached in the past.I am fully out of the USDJPY long trade with profit because i knew the recent pressure was bearish and i think in future we will be looking for short trades on yen pairs.Looks like the bull attack on the yen pairs is getting weaker.

Good advice and will be putting this in my journal.

This stuck with me:
“Set it at an area where price [B][U]easily[/U][/B] reached in the past.”

I doubted my initial TP level and changed it to the VBRN (a little below) as it made more sense at the time.

Good to see my initial plan was right and the fact that i changed it after questioning myself doesn’t always mean it is better.

Lesson learned, onto the next trade!

Remitu

[marketdeal]

Good advice and will be putting this in my journal.

This stuck with me:
“Set it at an area where price [B][U]easily[/U][/B] reached in the past.”

I doubted my initial TP level and changed it to the VBRN (a little below) as it made more sense at the time.

Good to see my initial plan was right and the fact that i changed it after questioning myself doesn’t always mean it is better.

Lesson learned, onto the next trade!

Remitu

Just wait soon i am gonna release my full trading plan and hopefully that will help you and other people here.

[marketdeal]

Hi everyone) Below is my simple trading plan which i open every time while analysing setups and simply follow it after entering my trades and it worked for me again and again.Sharing it in an attempt to help out others.It may help learners in erasing confusions from start to end.
Trading Plan
(Plan it then trade it)
1)Before committing your capital to the market :-
Spot and analyze the A+ trade(Relevant S&R levels,Valid price action signal,PA signal on a right area,Acceptance/Rejection of psychological numbers like BRN and VBRN,s(round numbers excluded), No choppy areas upward or downward,Consideration of BRN,s and VBRN,s for trade management,FSA&FRA for trade management.Calculation of risk reward.
Only trade against the trend if the PA signal is strong enough to reverse the price and it has at least two tops/bottoms.
2)Trade management:-
Entry at the break of the price action signal
Stop loss at the high/low of the price action signal(for sell orders place stop loss (bid-ask)spread no of pips above the high of the PA signal)
Final take profit level adjustment by looking at the final and potential support/resistance area. Don,t get greedy and set take profit at a level where price reached easily in the past.
Then guide expert advisor (MPTM) for:-
Took partial profit at first target area(only if you have any) and move the stop loss to breakeven.
Use trailing stop/jumping stop in case you have more than 2 take profit levels.
Trailing stop works best in the trending markets because the strong momentum behind them makes
them move straight in one direction rather than moving upside/down in the ranging and counter trend markets.
3)Money management:-
Only risk the comfortable amount from your account per trade. Make sure in case of a loss you can live
and trade another day.
Always use position sizing and don,t think in terms of pips ,think in terms of money you are going to risk.
The larger the stop loss will be the less lots you can trade and the smaller the stop loss will be the more
lots you can trade.
Plan your objectives for growing your account.
Lets say for example I am gonna risk $20 per trade when account balance reaches $200.And will risk $40 per trade when it will $400 and so on.

4)Some other important psychological things:-
Don,t look at your opened positions too often because markets need time to move. This may make you
mess around with your stop losses and TP,s.But with time you will master the art of setting and forgetting.
Stick to your trading plan with great patience and discipline no matter what happen .Setup your parameters and forget it and let the markets do their hard work.
KISS(keep it simple stupid)
Chaos and complexity will get you no where
Thanks
Happy Trading

[tonyro44]

To Marketdeal, very nice and simple plan.

[traderamateur]

@"marketdeal"

Hi everyone) Below is my simple trading plan which i open every time while analysing setups and simply follow it after entering my trades and it worked for me again and again.Sharing it in an attempt to help out others.It may help learners in erasing confusions from start to end.
Trading Plan
(Plan it then trade it)
1)Before committing your capital to the market :-
Spot and analyze the A+ trade(Relevant S&R levels,Valid price action signal,PA signal on a right area,Acceptance/Rejection of psychological numbers like BRN and VBRN,s(round numbers excluded), No choppy areas upward or downward,Consideration of BRN,s and VBRN,s for trade management,FSA&FRA for trade management.Calculation of risk reward.
Only trade against the trend if the PA signal is strong enough to reverse the price and it has at least two tops/bottoms.
2)Trade management:-
Entry at the break of the price action signal
Stop loss at the high/low of the price action signal(for sell orders place stop loss (bid-ask)spread no of pips above the high of the PA signal)
Final take profit level adjustment by looking at the final and potential support/resistance area. Don,t get greedy and set take profit at a level where price reached easily in the past.
Then guide expert advisor (MPTM) for:-
Took partial profit at first target area(only if you have any) and move the stop loss to breakeven.
Use trailing stop/jumping stop in case you have more than 2 take profit levels.
Trailing stop works best in the trending markets because the strong momentum behind them makes
them move straight in one direction rather than moving upside/down in the ranging and counter trend markets.
3)Money management:-
Only risk the comfortable amount from your account per trade. Make sure in case of a loss you can live
and trade another day.
Always use position sizing and don,t think in terms of pips ,think in terms of money you are going to risk.
The larger the stop loss will be the less lots you can trade and the smaller the stop loss will be the more
lots you can trade.
Plan your objectives for growing your account.
Lets say for example I am gonna risk $20 per trade when account balance reaches $200.And will risk $40 per trade when it will $400 and so on.

4)Some other important psychological things:-
Don,t look at your opened positions too often because markets need time to move. This may make you
mess around with your stop losses and TP,s.But with time you will master the art of setting and forgetting.
Stick to your trading plan with great patience and discipline no matter what happen .Setup your parameters and forget it and let the markets do their hard work.
KISS(keep it simple stupid)
Chaos and complexity will get you no where
Thanks
Happy Trading

Only a great trader tries to help others. Good job mate.

[bhops]

Hello trademateur,
I couldn’t help but share with you my point of entry and exit in this trade because I was in it. I entered right on the break of the BEEB (I take snapshots of every trade when I enter, exit & when I move my stops as I manage it). I exited right on the blue line, that’s where my TP was.
I would like to hear Bryce’s view.

My entry was the same, right at the break of the BEEB.

Now here is where I have differed slightly. After that short term Support to the left there is quite a lot of space for this trade to fall. Hence instead of taking any profit I have simply moved to BE to see if price can bust through and drop further.

There is no right or wrong way to trade this. In either case we have taken profit or moved to BE, so the trade is not a loser.

[h3yn0w]

I made out OK on USD/JPY, thanks to a relatively conservative TP at 98.900, just below my drawn resistance line.