Forex Price Action

[marketdeal]

Heya Bel,

First of all, yes plenty. Instaforex is one that uses MT5 Ny close charts. Go markets is another all though not sure if there are working at current time, but there is about 8 of them at the moment. I can tell you instaforex works and they have a ton of pairs and are NY close.’

As for your next points and questions. Firstly I have recently made an article on this because I know it is a point of confusion for traders so I made a tutorial on it to clear it all up on how to trade multi day on how to use daily levels on intraday charts etc

What traders tend to get confused about is what levels to trade from and then when not do go down in the time frames. They get confused because they get told it is okay to mark up their daily levels and then go down to look for trades on smaller charts, but DO NOT go down to smaller charts to manage trades.

So basically all this means is: Mark all your levels on the daily charts. All your 1hr/4hr/8hr/12hr trades etc should be traded from levels that have been marked on the daily chart. This will keep you in trades that are only in great areas and not in trades in no mans land.

What we avoid is not going down time frames to manage trades. All this means is when you get into a trade you don’t then start dropping down time frames to manage stops and to look for targets etc This is a big no no. Moving down time frames in this situation will cause you to start seeing Support and resistance that you could not see on the original time frame and also cause you to over manage and jump at shadows. Over managing is just as bad at over trading, if not worse.

Hope this helps,

Johnathon

I trade with instaforex and their MT4 NY close charts work great.Many traders on instaforex use MT4 instead of MT5 because the MT5 account comes with less attractiveness.You too have a account with instaforex?

[marketdeal]

Thanks [B]dudest[/B] for always helping me out)But still i think using MPTM for closing partial existing positions for taking partial profits is the best option as it,s cost effective in the long run.Because for opening multiple positions you will pay more spread to your broker.Let,s assume for opening 1 lot of EURUSD you gonna pay a 3 pip spread in total but for opening two different positions(0.5 lot each) you will pay a total spread of 6 pips for trading the same volume.

[shane]

Well Said! Its like the light in a tunnel! So inspiring and motivating. It helps me understand more about forex. When we start live with small account, we are basically training to control our emotions well and follow our usual trade plan. After a long while of experience in live, we then invest an good amount of money and earn 10% a month, which is good enough for your living expense and extra money to spent. Growing your account with compounding is possible but it is very difficult. Thats why there is a debate on whether Fix $ Risk or Fix % risk.

Sorry if this doesnt make sense, but i just thought i should share this as it is very enlightening to me.

Agree with that. I having that mindset too. I plan to open a micro account to train my emotion. I personally feel that by learning price action do help in training emotion. Last time I keep on wanted to trade when using indicators, as I started price action, it makes me control my emotion by looking for only good trade.

But 1 point that different is , my plan is to compound the amount of my profit. I make my plan that 1 month with a minimum of 1-2 good pin bar trades only.

[tomyates]

I got 1 question about pin bar .

Just to get some idea from all of you, since I am new to PA , my live account basically trade based on Pin bar only. While other PA method such as engulfing bar, I still haven’t master it so I still try on the demo.

But, if I only trade based on pin bar, approximately how many pin bar formation will usually formed per month?
I know there is no actual answer on that, I just wanted to know the minimum formation. Will it be none of the pin bar formation for a month? Or at least it will formed 1-2 ?

Hi Shane, one of the best ways you can probably answer this for yourself is to look back over what price has done in the past. All the history is right there in your charts! This can be tremendously helpful in seeing which pinbars worked out, which setups are worth taking etc. Some traders of this approach are more conservative than others and will trade different amounts, some 7 a month and some only 2.

Open up the charts on all your pairs and look for PA setups, consider how you would have managed the trade, and then look to see whether the setup would have worked out in your favour. This will improve your ability to identify those A+ setups exponentially!

All the best,
Tom.

[shane]

I like Jacksons answer, but to be a little more accurate, some more information is needed…

What time frames will you be trading and how many pairs you will you be watching? Will you be trading pins on FX only or will you also throw in indices and other markets like oil etc as well?

Hi Jonathan,

I will be trading on H4 and D1 only. I currently watching on 12 pairs (EUR/USD , GBP/USD , AUD/USD , NZD/USD , USD/JPY , USD/CHF , USD/CAD , EUR/JPY ,GBP/JPY , AUD/JPY , NZD/JPY , EUR/CAD) . I will be trading pins on FX only.

[Belier]

Guys, I have one more question, do you use 8H or 12H TFs? Is it useful or better e.g. than 4H? As we talked about “zooming in”, locate good area at daily and when price comes to that area, we can lurk 4H TF for any signal, is possible to zoom in this way? Daily-12H,8H,4H. But I think it may lead to over analyzing and over complicating, but in theory, 12H pin from daily level could be a valid signal for us, am I right?

[marketdeal]

@Belier

Guys, I have one more question, do you use 8H or 12H TFs? Is it useful or better e.g. than 4H? As we talked about “zooming in”, locate good area at daily and when price comes to that area, we can lurk 4H TF for any signal, is possible to zoom in this way? Daily-12H,8H,4H. But I think it may lead to over analyzing and over complicating, but in theory, 12H pin from daily level could be a valid signal for us, am I right?

Hi belier) yea thats a pretty cool idea.I have my charts set to 4h,8h,12h ,D1 and D2 for every currency pair.4h,8h and 12h are classified as intraday time frames.Most often if i dont see the good setup at 4h for some reason lets say the choppiness etc i switch to higher timeframes.And the same applies to the one day and two day chart.It,s not over analysing if you know know about the candle blending.With a little bit experience you will understand that,lets say two 4 hour candles on a four hour chart will form 1 candle on a 8h chart.The smaller the time frame is the bigger the candle is going to be.Hope that helps)

[dudest]

Thanks [B]dudest[/B] for always helping me out)But still i think using MPTM for closing partial existing positions for taking partial profits is the best option as it,s cost effective in the long run.Because for opening multiple positions you will pay more spread to your broker.Let,s assume for opening 1 lot of EURUSD you gonna pay a 3 pip spread in total but for opening two different positions(0.5 lot each) you will pay a total spread of 6 pips for trading the same volume.

Hallo,

Taking partial profits with MPTM is another way to do it, yes [ Jumping or Trailing Stop with PartClose enabled ]

PS:
=> EURUSD 1 lot: $10 per pip x 3pips spread = $30
=> EURUSD 2 x 0.5 lot: ($5/pip x 3pips spread) x 2 = $30

[ you can’t do (0.5+0.5)lots @ (3+3)pip spread because if you were taking a 1lot trade, the spread will still be 3pips (not 6) ]

Cheers

[krugman25]

This last thread is so realistic that is not funny. For all those out there that think they are going to make millions on a small account in a short amount of time better think again. Keep it real…

I think it depends on what a small account is and also what a small amount of time is. To me a small amount of time is around 5 years, and a small account is 5k or less. If a person is extremely disciplined and naturally inclined to understanding the market, due to compounding your winnings, your account could grow ridiculously large. In the same way someone like George Soros or Warren Buffet can grow 1 million into 100 million in half a decade, a retail trader could turn 10k into 1 million. It’s not about $'s, its about %.

For example a 10K account would get to 1 million in 4 years with a constant month over month growth of 10%.

[Belier]

@marketdeal

Hi belier) yea thats a pretty cool idea.I have my charts set to 4h,8h,12h ,D1 and D2 for every currency pair.4h,8h and 12h are classified as intraday time frames.Most often if i dont see the good setup at 4h for some reason lets say the choppiness etc i switch to higher timeframes.And the same applies to the one day and two day chart.It,s not over analysing if you know know about the candle blending.With a little bit experience you will understand that,lets say two 4 hour candles on a four hour chart will form 1 candle on a 8h chart.The smaller the time frame is the bigger the candle is going to be.Hope that helps)

Yes, I understand candle blending, I’ve been doing it like this at MT4, but just only roughly if I e.g. saw 2 BR at daily, I imagined some rejection at 2D chart. If I say it very “roughly” formations like 2BR, engulfing bars use to usually look like some kind of pin bar (it does not have to be valid according Johnathon’s rules) or just rejection over two candles.

Anyway, isn’t better to zoom in(from daily over 12H, 8H etc. to 1H) then daily - 4H-8H etc. Of course it depends on actual time, obviously we would not trade if 8H or 12H is not closed yet. Hope you understand me.

[dudest]

Guys, I have one more question, do you use 8H or 12H TFs? Is it useful or better e.g. than 4H? As we talked about “zooming in”, locate good area at daily and when price comes to that area, we can lurk 4H TF for any signal, is possible to zoom in this way? Daily-12H,8H,4H. But I think it may lead to over analyzing and over complicating, but in theory, 12H pin from daily level could be a valid signal for us, am I right?

Hallo,

How I do it:

1. I operate off Daily
2. When price gets to key S/R, I switch to H4
3. If on H4 there is no clear PA, but price is moving in reversal direction, I open up MT5 and look at H6/H8/H12. If any of them has valid PA, I take it

Getting a feel that a series of candles could be something on another TF is quickly doable with time (e.g a bearish candle at resistance with a false break, followed by another bearish candle => on H4 could be non-PA but on H8 could be a BEEB)

Cheers

[marketdeal]

Hallo,

Taking partial profits with MPTM is another way to do it, yes [ Jumping or Trailing Stop with PartClose enabled ]

PS:
=> EURUSD 1 lot: $10 per pip x 3pips spread = $30
=> EURUSD 2 x 0.5 lot: ($5/pip x 3pips spread) x 2 = $30

[ you can’t do (0.5+0.5)lots @ (3+3)pip spread because if you were taking a 1lot trade, the spread will still be 3pips (not 6) ]

Cheers

Now this is silly and funny lol) I am not sleeping well these days and thinking from my sleepy mind .Anyway thanks for the correction.

[forbiden]

I have one question… Now I look at the charts (Daily Close) and on GbpChf daily chart (Alpari MT4 live account) I have PB,but on GbpChf daily chart (Alpari MT5 demo account) I haven’t… I wonder why is that?! How strange…
GbpChf MT4

GbpChf MT5

[Forex_School_Online]

I trade with instaforex and their MT4 NY close charts work great.Many traders on instaforex use MT4 instead of MT5 because the MT5 account comes with less attractiveness.You too have a account with instaforex?

I do not have a live account with instaforex. I have one hell of a bad experience with them. They locked my money up. I could not get it. I did not know where it was for a while. no none could tell me if it was being transferred. It was not in my bank but also not in my insta account and no one call actually tell me where it was. They were a shambles. I was just running a test with them for something else and to look to opening other accounts and they did not pass the opening account and depositing and withdrawing money stage without locking my money up for 45 days!!! I then got an email after for to them asking where they heck my money was telling me that on occasions they have the right to hold withdrawals for 45 days. They were one of the worst broker I have ever dealt with and I have dealt with a ton of them.

Johnathon

[jackson905]

Hallo,

How I do it:

1. I operate off Daily
2. When price gets to key S/R, I switch to H4
3. If on H4 there is no clear PA, but price is moving in reversal direction, I open up MT5 and look at H6/H8/H12. If any of them has valid PA, I take it

Getting a feel that a series of candles could be something on another TF is quickly doable with time (e.g a bearish candle at resistance with a false break, followed by another bearish candle => on H4 could be non-PA but on H8 could be a BEEB)

Cheers

Btw man, the tradingview platform is cool!

[dudest]

@dudest

1. “Hoping” mate, not “sure”…

2. I’m already long: http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-915.html#post499532

0.9400 RN has held in the recent years (see monthly chart). Set pendings at that level (touch trade).
Have already taken partial profit + moved to BE+

Cheers

.

Out of trade now (TP1 + BE++ )

Cheers

.

[dudest]

…
Open up the charts on all your pairs and look for PA setups, consider how you would have managed the trade, and then look to see whether the setup would have worked out in your favour. This will improve your ability to identify those A+ setups exponentially!

…

This is a great piece of advice, wanted to highlight it.

It is sure way also to develop and hone TRADE MANAGEMENT skills which no-one can teach you (you have to do your own chart time).

Cheers Tom

[forbiden]

Hi guys… I wonder what do you say about GbpChf (On 6h, 8h and 12h timeframes)…? Is it good spot to trade?

1. On 6h TF we have 2BR, on 8h and 12h TF we have nice Pinbars.
   2)With the intraday downtrend
   3)On resistance 1.45000
   Here is the charts:
   6H
   
   
   
   
   8H
   
   
   
   
   12H
   
   
   
   

[jackson905]

I’m in this AUDJPY trade Daily.

The level Below is not only a Daily support but a Weekly support as well + the Pin Bar formed previous, i think that this will be a good trade. I understand that the price is going down strongly but with the PA and the level, i think that it will reverse.

Long: 90.25
TP1:91.90
SL:88.80

Slightly more than 1:1 RRR.

what you guys think?

Jack.C

PS hope you guys can see the picture properly lol

[Forex_School_Online]

@jackson905

I’m in this AUDJPY trade Daily.

The level Below is not only a Daily support but a Weekly support as well + the Pin Bar formed previous, i think that this will be a good trade. I understand that the price is going down strongly but with the PA and the level, i think that it will reverse.

Long: 90.25
TP1:91.90
SL:88.80

Slightly more than 1:1 RRR.

what you guys think?

Jack.C

PS hope you guys can see the picture properly lol

I don’t have much time to comment, but not the most convincing trade I have ever seen, but that’s not why I am posting just now. I am posting because I can see you are paying 9 pips spread on AUDJPY!

I will post about the trade in a few minutes but if you saw my post the other day about what worried me about the pin on the EURJPY, well this is very similar… And whilst they both could still work out great they do not look convincing at all in my opinion.