Oh God, what happened to GBP? :32: Someone blew up a whole UK? :32: It’s a pity that I’m not shorting GBP, well, I wonder how deep this will drop.
That’s happened around Official Bank Rates
Thanks dudest for making it crystal clear 
I was looking at the overall trend too much and forgetting about the shorter term trend.
Thanks for pointing that out so clearly 
Remitu
Ps. We have the same level marked for shorts. Wuhu go me!
If you place a stop loss you are thinking about it in some sense. Do you know [I]why [/I]you place your stop loss where you do?
Ask yourself this question: For this trade to be valid or continue to be valid, the market shouldn’t trade to what point? If it trades within that point, then the trade still has potential for working. Beyond that point, it is no longer valid in the direction that it started.
What do you consider “short term” on a daily chart? 2 weeks? 4 week? 6 weeks?
It gets tricky. What you are suggesting is that on this daily chart we only look back 2-3 weeks (latest down swing started around June 17th), and draw a SR based on April.
If you look back as far as May 24th, you may look at the last swing down as a retracement on the uptrend and look to go long based on SR from May 
It didnt work out sadly…
Your getting burnt one trade after another because you simply will not follow the most simple rule of the thread! Take entry at the break! I wrote a massive post about this and I know you read it because you were the first person to “like” it. I can’t help if you want follow the rules…
The whole method inside this thread is keyed towards taking the break. You can not go looking at what others do in other methods with other systems and then start coying and pasting with what we do here. It will not and does not work and you are finding out and as I keep going in about.
Out method is keyed to high probability trades. Finding A+ trades and then making winners.
As for this particular trade, the pin was not up at the high and it did not stick out. It was a small pin that was stuck back in price. You need to give the fibo away for a while as it is clouding your judgement. You need to concentrate on price only for the next two weeks minimum. I promise this will help. Give the fibo away. It is a tool to add as confluence and something to just add, but it is not helping you at the moment. Please try giving it away for a couple a weeks and let us know how you go working on raw price action only…
Johnathon
Yes Sir! I will do exactly and try it out for the following weeks! Guess i’m still not picky enough on the PA although i felt that i’m being much more patient than what i used to be. Guess ill have to work harder than that.
Thanks alot Johnathon! Great advise!
Jack
Yet another example of being burnt not entering at the break of the candle like the rules of the thread state! :58:
Regardless of the setup you should not have been in the trade as it did not move higher to break the high of the BUEB.
As for the setup; can I ask did you find the BUEB first and then the level? The reason I ask is because the level is not really there. It is not a really strong support level. Yes there is support there, but it is not a support level we would mark on our charts to say that we would want to find a trade at. Normally we go through our charts and mark all our level where we want to find trades and then it is just a matter of waiting for price to either make a price action setup at our level or move through to the next level and then we mark up the next levels.
As for the BUEB itself; it is an inside bar. Engulfing bars should be large and commanding signals that show that either the bulls or the bears have fully grabbed the market and are about to push it one way. In this case price was winding up. We could see a large housing candle (candle A on chart below) and then 4 candles inside this housing candle winding up getting reading for a breakout. Technically this was a BUEB, but this was not a large and commanding candle that had control of the market. It was an inside candle that was winding up and was at the mercy of whichever way the next push came. That could have been higher and if you have your orders to enter at the break you would have been laughing! If you had of realised this winding up and the price action you could have set yourself and your orders and prevented this loss, but not all is lost!
The best learning is done when you have a position in the market. From you taking this loss you have been forced to learn things that you otherwise would have never learnt so even though it sucks to lose, take the lessons on board and use them for next time.
And DO NOT TAKE A RETRACE ENTRY AGAIN.
Johnathon
PS: I do hope you take this as it is intended and that is to help you! I would not spend 15 minutes making a post and a chart unless I was trying to help!
1 Like
Also I forgot to add something…
You would also do well with doing away with the pairs such as EURSGD etc
I know you want more trades and that is fair enough. You would do better with adding more time frames such as 4hr,6hr,8hr,12hr and other markets such as oil, indices.
At least this way the markets are a lot more stable and you are not starting behind with silly spreads. You will also find the bigger pairs and markets far easier to trade.
Johnathon
Actually i did draw the SR line before, maybe i did not draw it accurately as sometimes going through many pairs and draw SR on them, i tends to get a little confused. And ya i realized the consolidation after i went in. Im going to put that down in the trading journal
Im happy i got stopped out and learn from market and luckily im still demoing.
Thanks so much on taking the time to correct me even though im not in your course. I appreciate it.
Btw, which broker you suggest i go to for the oil, indices?
What? Well that’s it I am not helping you any more then! 
Shoot… shouldnt have mentioned that lol hahahahhaa
Important: Forex pairs range far, far more often than they trend.
Traders are often caught up always looking for the trend in every pair when more often than not there is no trend.
Clear case on the GBPUSD there being no clear trend either way.
You can have short term momentum, and clear on the GBPUSD that is all to the downside, but as for the trend there is none. We are in clear sideways action just as your chart clearly shows. So don’t worry about getting caught up in finding the trend when there is none. Identify the range and learn to trade with-in it.
The best way to trade ranges is not to get caught trading in the middle. The middle of ranges is where price can chops and turn and stop you out quite easily with whipsaws. Look to take trades from the extremes or in other words take trades from the highs and lows of the range, but not in the middle. That BUEB the other day was an example of a signal in the middle of a range. This would be much better down at the low of the range where major support could be found and there would also be more space to move and the risk of price chopping would be a lot less.
Johnathon
1 Like
I’m quite interested in this as well, strictly to look for setups and watch the charts for now.
Does anyone have any good broker recommendations for oil, indicies, etc?
Hello Johnathon,
I’d like to get your advice about managing these trades if you’re currently online.
Thanks a lot!
Hallo,
Does Mr J’s post #9736 settle it?
http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-974.html#post506528
Cheers
Check out: AxiTrader, HotForex, GoMarkets
Mr J,
Would you be looking at trades setup in the EURUSD for reversal as it will soon touch the low/low of the range? Or continuation of the current downward momentum? Look at my chart as I am already awaiting signals, but been confused about going against the momentum as you said earlier on this topic, and avoid loses, or expect a rebounce on the low, as we are “ranging”…
Thanks again for this amazing thing you are doing here:
EDIT (ONE LAST ? MR J)
As I see the USDJPY there is a consoloditation (resting) (winding up), but where will it go? Would you set orders above and below of this box? to catch the next momentum? with a trailing stop? or it wouldnt be a winner A+?
Please advise doesnt matter the time you take, but answer please, this is for learning purpose so fat I already blown one account before getting stopped at this thread and demoing…
Regards,
PipDom
[QUOTE=“PipDom;506599”]Mr J,
Would you be looking at trades setup in the GBDUSD for reversal as it will soon touch the low/low of the range? Or continuation of the current downward momentum? Look at my chart as I am already awaiting signals, but been confused about going against the momentum as you said earlier on this topic, and avoid loses, or expect a rebounce on the low, as we are “ranging”…
Thanks again for this amazing thing you are doing here:
<img src=“301 Moved Permanently”/>[/QUOTE]
The chart is for EURUSD?