Forex Price Action

[dudest]

@dudest

Nice spots Fil!, thanks for sharing as well!

@jackson905

Just saw this post and was wondering the resistant line is drawn correctly? But seems all the old ppl liked it. But in my opinion the SR line should draw a little more lower which also meets previous Resistance. Pls help me answer this question. Thanks a lot!

Old people!? LOL

Well Jack, it’s the same old truth of S/R being a zone.

In the case you’ve highlighted, I believe Fil was using the MOST RECENT highs of the zone to mark the S/R [ all good ]

If you draw the same zone which a box line (instead of the usual thin line), you’ll see the zone lines up. E.g, USDJPY below

Cheers

.

[chisha]

This is great!

@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

[dudest]

Saw this one aswell and didn’t take it for the same reason.

Not at my charts right now but i think i was looking for shorts on this pair and if i recall correctly price is approaching my marked level so who knows what might form this week.

Remitu

I think you guys are all right… trading against a momentum is risky. However, considering the candles before it, a pin of that size on daily, and most of all on a tested support level is rare. The last times it happened on the same pair, we saw reversals. Trading is full of risks, be moderate and use SL. Safe trade.

On its own, the pin was not a great counter-trend signal. The level is very key though.

I’m already long the AUDUSD, but only because I have touch-trading in my trading plan. Means that if I think a level is super-important, I can buy-low or sell-high without a confirming PA signal.

Price hasn’t breached the area around the 0.9400 handle for close to 3 years (see Monthly chart). Had pending orders set at that level.

Is it a reversal? or merely a retrace? Only time will tell

Cheers

[chisha]

Jackson…all the old people liked it hehehe:18:

Just saw this post and was wondering the resistant line is drawn correctly? But seems all the old ppl liked it. But in my opinion the SR line should draw a little more lower which also meets previous Resistance. Pls help me answer this question. Thanks a lot!

[MadForex]

very informative

[dollareuro]

You are correct, a pin bar did form on most of the JPY pairs but that is 3 days ago so I am not sure what your point is.

To get signals from the PIN bar, u need to see the next candle and that is on 9th June, further confirmation on 10th June, I was just 1 day late to pick it up and share it! After your response ‘what is the point’, I am feeling that daily charts are not giving me correct and timely signals…what doyou think?

[dollareuro]

that is pin bar, but dont tell me you going to make a trade when the price pull back to the top of the pin bar. there are no chance for you to re-entry, just let it go and wait for another opportunity. chase the market will make you lose. just be patient.

lol…nice words from you. yes, definitely not! I just replied above that I am late to pick it up and the daily charts are not good enough to give timely signals and I am working on it which time frame to choose…

[dollareuro]

@dudest

Old people!? LOL

Well Jack, it’s the same old truth of S/R being a zone.

In the case you’ve highlighted, I believe Fil was using the MOST RECENT highs of the zone to mark the S/R [ all good ]

If you draw the same zone which a box line (instead of the usual thin line), you’ll see the zone lines up. E.g, USDJPY below

Cheers

.

With full respect to you, my question is why should we draw box line this time! So that they can be lined up? Things need not to be exactly lined up as long as we understand, isn’t it?

Not related but I would like to note that I am surprised to see a lot of newbies understanding and posting charts on price action right from the beginning! Good sign…

[dudest]

With full respect to you, my question is why should we draw box line this time! So that they can be lined up? Things need not to be exactly lined up as long as we understand, isn’t it?

Not related but I would like to note that I am surprised to see a lot of newbies understanding and posting charts on price action right from the beginning! Good sign…

Uhm, I didn’t say we should draw box line… I’s just saying it’s the same zone, and was trying to explain it graphically (using thicker ‘line’)

Don’t be surprised to see guys understanding and posting charts; Johno’s method is simply elegant

Too bad you feel that Daily is not giving you timely signals. The pins you showed were caught as soon as they closed on Fri, and discussed at length before Mon open, so I don’t understand what you mean…

Cheers

[sirkay78]

@Sirkay78, right now, the pair GbpUsd is stock on a resistant on daily chart. If it breaks tru (which I can bet it will, because of the strong bullish momentum), then the next target will somewhere around 1.5900. Always remember, below this round is much safer. Overall, look for confirmation, watchout what PA is telling you. Safe trade.

@Edmo
Thanks I appreciate

[sirkay78]

On its own, the pin was not a great counter-trend signal. The level is very key though.

I’m already long the AUDUSD, but only because I have touch-trading in my trading plan. Means that if I think a level is super-important, I can buy-low or sell-high without a confirming PA signal.

Price hasn’t breached the area around the 0.9400 handle for close to 3 years (see Monthly chart). Had pending orders set at that level.

Is it a reversal? or merely a retrace? Only time will tell

Cheers

@Edmo
Is it really advisable to buy at swing low without considering trend?

[h3yn0w]

@Edmo
Is it really advisable to buy at swing low without considering trend?

I’m not Edmo, but in my opinion this is risky and i would prefer to look for signal on the bounce back down off a retrace.

Or if going long i would have a very tight TP which has probably already been hit

[dudest]

@Edmo
Is it really advisable to buy at swing low without considering trend?

It’s counter-trend, of course; no problem, coz it’s in my trading plan; just means it’s managed tighter

NB: I donno where you’re at, but (as Johno says) stick with the trend if you’re learning the method

Cheers

[dudest]

@bhops

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.

Nice going sensei

.

[sirkay78]

I’m not Edmo, but in my opinion this is risky and i would prefer to look for signal on the bounce back down off a retrace.

Or if going long i would have a very tight TP which has probably already been hit

Thanks I appreciate your comments. Based on AUDJPY daily chart, if the bar closed as pin that following down trend is it good to place sell order?

[ppchrispp]

Hi guys,

I have finished reading the first 100 pages and I am still learning at the moment but I just wanted to jump in and say hi.

I found this post very useful and the PA method is easy and clean which is what I like.

[ppchrispp]

Thanks I appreciate your comments. Based on AUDJPY daily chart, if the bar closed as pin that following down trend is it good to place sell order?

Hi sirkay,

I think the AUDJPY daily hasn’t got much room to trade as it is not at a swing high.

[Yumei]

Yes,
it worked, but the price come back now, if we dont exit at right time, it will be a trouble. trade against strong trend is always include high risky.

It has worked already for those looking for moderate pips Hope this will mark the beginning of a reversal here. Watch your candles. Safe trade.

[Edmo]

I cannot explain what happened here. Boom, all of a sudden bullish reversal. Are we ever gonna win this battle? Who can explain this chart to me pls. Overall trend baerish, the candles looked ok and still a losing trade. Just check out the last 2 Pins.
I joined the trade with the first Pin, singing Hosanna and the Cumbaya… Then it happened, all gone up again???

[bhops]

@Edmo

I cannot explain what happened here. Boom, all of a sudden bullish reversal. Are we ever gonna win this battle? Who can explain this chart to me pls. Overall trend baerish, the candles looked ok and still a losing trade. Just check out the last 2 Pins.
I joined the trade with the first Pin, singing Hosanna and the Cumbaya, all gone???

Yeah this is actually quite easy. You weren’t trading that Pin from a swing high, you were trading it from no-man’s land so really it was always gonna be a 50/50 trade.

See that thick black line marked up around the 0.8580 mark? THAT is where you would want to be playing the PB from. And if you look at it you can see historically how price has sold off aggressively from that point.

By taking the trade from such a relevant zone you are stacking the odds in your favour, taking Pin’s from no-man’s land and the results are far less certain.

Hope that makes sense.