A PB formed at a resistance area and i wanted to go short.
Why isn’t a good trade?[/QUOTE]
I agree with eigner, but there’s a couple reasons I can see as a newbie. These are IMHO
the strategy outlined here looks for a break of resistance, a pull back to that resistance where it becomes support and then a PA signal (PB, BUEB etc) to drive the price back up again from the position of support. This also gives the benefit of being with trend (something you’re not getting with the trade you outlined)
the PB itself looks to be to small. I could be wrong but visually, the wick doesn’t look 3x the body. A description of a valid on is here The Pin Bar Reversal
Some body said to me a while ago something that stuck with me, which was ‘always give yourself at least three reasons to enter a trade’. Actually I’m looking for four with this strategy as a starting point before I enter:-
With trend 2. At support/resistance 3. PA signal 4. Price moved higher/lower after signal
As I said, I’m a newbie to this and it’s all only IMO
USDJPY: Pin Bar formed on H12 timeframe at marked resistance area, rejecting VBRN 100. Furthermore there was 50% fibo’s pullback. Already took the profit - risk:reward 2:1.
I’m in GBP/USD, entered on break of PB High, I plan to take full profit at your First Profit Area, all this taking of profit is a royal pain in the …head…, ehh…
Anyway, thanks for posting and good luck on the forum!
I opened two positions at the break of the pinbar-high and closed one of them at the FRA (first resistance area / marked by the blue line) and moved the other to BE.
Now the Price is hopefully heading to my second take Profit Level marked by the Major resistance area.
I have similar setup as your chart. I want to ask you for the EURUSD setup, when the chart goes near the resistance level, when do you decide to go short? do you wait for a pinbar to show up at H4? or do you enter after several fail attempts of H4 candle to break the resistance level (we have better chance to win the trade considering the trend)?
In my opinion the mentioned resistance area is a very important one.
So I choose between the following alternatives:
1. When there is a bearish reversal Signal, it has to be a very LARGE and OBVIOUS one to take the trade and going short. This is because of when we enter short at this area we are trading against the trend. So it has to be a very big Signal.
2. If Price can manage breaking through this resistance area, I wait for a pullback so that the former resistance can now act as new Support! Then I hope seeing a nice PA there to get long.
So, you are trading both EURUSD and GBPUSD?
Did you half the position size of each to avoid double risk?
IMO, i would like to see the pin form a bit lower, with the body closer to the red support level you drawn.
Good luck though
btw, are you using NY close 5-day chart???
I saw an extra candle on your daily chart compare with mine…
@eignerdauL : thank you for explaining this to me. I look forward to seeing your next setup, I will also try to post an obvious setup if I see one and ask for everyone comments.
I have just started to follow this thread and have reached page 40!!
I want to thank you Jonathan for everything you have taught me so far
I have a question about the Eur/jpy chart that I was hoping you could help me with
I wanted to know if the Eur/jpy has formed a double bottom pattern?
I am starting to be able to put things together and was hoping you could confirm what I am seeing on its eur/jpy daily chart
I have just started to follow this thread and have reached page 40!!
I want to thank you Jonathan for everything you have taught me so far
I have a question about the Eur/jpy chart that I was hoping you could help me with
I wanted to know if the Eur/jpy has formed a double bottom pattern?
I am starting to be able to put things together and was hoping you could confirm what I am seeing on its eur/jpy daily chart
<img src=“301 Moved Permanently”/>[/QUOTE]
We don’t trade chart patterns in this thread but I personally do along with pure PA, VSA and harmonics. I don’t really want to elaborate any more as it’s a bit disrespectful of johno and the other senior guys but my email is <[email protected]>, feel free to shoot me a message and I will be happy to help
Hi all,
I have been an avid follower of this thread for some time, and i too would like to thank Johnathan for his excellent teachings.
I hope it would be ok for me to ask a question on my first post…
If price action presents at a S/R level let’s say for example in the form of a pin bar. If in the next candle, the price does not move past the head of the pin and enter you into a trade, is it still a valid entry for the next candle or the next, or must it be the very next candle after the PA has presented?
An example recently in GBPUSD 8hr chart below, where price did not break the high of the arrowed pin bar in the following candle, but did 2 candles later. Would this still be a valid entry, or should you wait for a new PA to present?
[QUOTE=“Bobba;510249”]Hi all,
I have been an avid follower of this thread for some time, and i too would like to thank Johnathan for his excellent teachings.
I hope it would be ok for me to ask a question on my first post…
If price action presents at a S/R level let’s say for example in the form of a pin bar. If in the next candle, the price does not move past the head of the pin and enter you into a trade, is it still a valid entry for the next candle or the next, or must it be the very next candle after the PA has presented?
An example recently in GBPUSD 8hr chart below, where price did not break the high of the arrowed pin bar in the following candle, but did 2 candles later. Would this still be a valid entry, or should you wait for a new PA to present?<img src=“301 Moved Permanently”/>[/QUOTE]
Yeh that is a valid entry as long as the low of the previous candle isn’t broken. I however have found the best trades happen when it’s entered on the next candle as this will show stronger momentum and should take the trade into profit more quickly, as to that exact trade I can’t comment as I can’t see the whole chart
And no I´m not using NY Close 5-day Charts as i I´m using a german Broker. But I´m mostly trading the daily Setups and there are only very small differences between them. ( I think only the 1-hour sunday bar is different).
Price has already hit my Goal (marked by the blue line) and I took full profit.
Now I´m waiting for Price breaking the resistance area and giving me a nice pullback and PA to go long.
Or Price moves down to Major Support @ 1.50270. Then i look for good PA either to go long, or Prices breaks Support and forms a pullback then i will be looking for nice PA to short it.
