Forex Price Action

[wigglez]

@Diablo1505

I am amazed how powerful this way of trading is! If you remember i made 500 pips on the USOil last week and closed my second position when price reached the upper resistance. Once there it formed a nice 2 bar reversal pattern (please correct me if i am wrong) and i jumped on. Now i have closed my first position with +100 pips profit and have my stop placed at +30 pips. My second position currently is +250 pips in profit.

Question: Do the bars in the 2 bar setup have to be equal in length or is this a valid setup i took?

Last week i also entered the USDJPY (240 min chart) after a nice BEEB had formed. First position closed for a profit och +70 pips. SL now at break even and second position +140 pips in profit.

The only trade i am in on top of that is the AUDUSD, my entry got triggered a few hours ago.

Fantastic way of trading with no stress at all. The hardest part is to be patient and wait for setups to present themselves. Thanks Jonathan for teaching this for free on baby pips!

I don’t get it.

At least in that picture, it looks like you sold oil in an uptrend.

[Edmo]

I’m still there too - out of interest, what’s your stop and target?

I joined EurUsd daily chart short 7 days ago at exactly 132910 and have placed my SL at 13346. A day after I was in green 80pips, but the Non Farm News happened and the pair shotup, but till now still did not hit my SL. Am a range trader and don’t trade the news, just good MM and patience. So according to my plan, even 7 days later and right now 10pips in red, am staying to my trade.

[Matthgm]

[QUOTE=“Edmo;516672”]

I joined EurUsd daily chart short 7 days ago at exactly 132910 and have placed my SL at 13346. A day after I was in green 80pips, but the Non Farm News happened and the pair shotup, but till now still did not hit my SL. Am a range trader and don’t trade the news, just good MM and patience. So according to my plan, even 7 days later and right now 10pips in red, am staying to my trade.[/QUOTE]

Thanks Edmo, I’ve been in the same trade for a little less as I waited for it to break down before entering. Consequently I’m not for off 100 pips down. My stop loss is at 13347.

I am experimenting with range trading as markets are predominantly in a range rather than a trend so wanted to find away to take advantage of this. Would you be able to share your range trading strategy, I find lots if views in PA trading trending markets but not a lot on PA trading ranging markets. Would be much appreciated.

[Spongybob]

Howdy Wiggles,long time no chat.

He must of taking the double top rejection, I too only counter trend trade at double tops or bottoms.

Later dude

[Spongybob]

Took the 2bar on NZDJPY yesterday on the hourly chart, gap was filled then nice rejection of that zone!

Cheers

[Diablo1505]

Good job man! i think the reason you got it so fast because you have the fundamentals in you which is great! Very nice!

Thanks Jackson! Everything just fell into place when i saw this trading style since i am very used to support/resistance when trading advanced patterns. I also have plenty och chart time in my backpack so i guess that helps a bit.

But in the end it’s only and edge in the market and those trades could also have gone against me. The most important thing is to just follow the rules, keep the trigger finger under control and have patience to wait for the right setups. I’ve always been the overtrading type of guy. This actually helps me getting more picky and selective which is great.

Great Job Mate Keep it going! Now that you have had your “AHA” moment, the only key is to not get greedy and begin over trading. Now you see how easy it really can be when the A+ setups are there to be traded, the trick is to be like a robot and only pull the trigger when there is a signal to be traded and not get frustrated when there is nothing to trade. If you can do that the world is at your feet.

Thanks. Yeah i can see that now. This trading also fits me perfectly since i do not have much time for trading these days. Just one questions though. Was my short entry in the USOil a valid 2 bar entry or do the candles in the 2 bar setup have to be equal in length?

[Diablo1505]

I don’t get it.

At least in that picture, it looks like you sold oil in an uptrend.

Yes, it definitely was a counter-trend trade. We had a nice reversal pattern at a good resistance level so i took it.

As spongybob mentioned it was also a double-top formation with a great RSI divergence but thats something which is not covered in here and i did not take that into account when placing the trade.

I only traded price action at an resistance level. Nothing more, nothing less.

[Matthgm]

[QUOTE=“Diablo1505;516704”]

Yes, it definitely was a counter-trend trade. We had a nice reversal pattern at a good resistance level so i took it.

As spongybob mentioned it was also a double-top formation with a great RSI divergence but thats something which is not covered in here and i did not take that into account when placing the trade.

I only traded price action at an resistance level. Nothing more, nothing less. ;)[/QUOTE]

Hi Diablo,

I’ve been looking for a way to trade ranging pairs and it looks like what you have here would be a great example. Is your strategy as simple as looking for a strong PA formation with a strong support / resistance level to use as a base to trade from?

[chisha]

Spongy,
I’m a little confused here. You say your entry signal was the 2bar reversal but isn’t a two bar reversal supposed to have 2 bars of the same size? One of the bars is clearly bigger than the other. Can someone please clarify this?

Took the 2bar on NZDJPY yesterday on the hourly chart, gap was filled then nice rejection of that zone!

Cheers

[abc2005]

Hey everyone
I’m new and I’ve a question .
How can I have new york time frames in my charts ? I want my candles closes on new york time .

Thanks

[Belier]

Hey everyone
I’m new and I’ve a question .
How can I have new york time frames in my charts ? I want my candles closes on new york time .

Thanks

Oh man… Have you ever read the first post? :38:

[jejlennon]

On your usd/jpy trade was the beeb at resistance?

I believe the 2 bar reversal setup have to be equal in length. Could someone please clarify this?

[abc2005]

On your usd/jpy trade was the beeb at resistance?

I believe the 2 bar reversal setup have to be equal in length. Could someone please clarify this?

yes, the second candle should completely cover the first candle

[GivenName]

GBP/JPY daily forms a bull pinbar at 150.000 if it closes above. What’s your thoughts? I guess it’s a little in the middle of nothing, but its still a good 250pips to nearest resistance i believe.

Comments?

[dudest]

@Songok

I have a question to Johnathon do we trade opening gap’s?

No, just PA signals at key horizontal levels

Cheers

[dudest]

Hi all,

I just created a quick check list that I will go through before opening a trade. I suffer from impulsiveness when it comes to opening trades and I thought this would be a great way to avoid the issue.

The reason I am sharing this is firstly, maybe I am not the only one so feel free to copy it. Secondly, it is a good opportunity to check my understanding of the whole process.

The questions are :

Are the trendlines drawn at the next significant level*?
Is Price touching a relevant level (support or resistance)?
Is there a known pattern?
Is the candle already closed*?
Would the trade be going with the trend*?
Is the win/loss ratio acceptable*?

I welcome your feedback on this, is this ok, or is anything important missing ?
Happy trading,

Yves

Hallo Yves, nice checklist.

Only you need to remove #1, we don’t use trendlines.

Cheers

[dudest]

@GivenName

GBP/JPY daily forms a bull pinbar at 150.000 if it closes above. What’s your thoughts? I guess it’s a little in the middle of nothing, but its still a good 250pips to nearest resistance i believe.

Comments?

Comment in the form of a question: is the pin (if it closes as-is) at SWING LOW?

[Forex_School_Online]

@aleksihe

Guys,

Is USDCAD on downtrend or uptrend?

In other words if there forms large short PA signal on this resistance line, would it be A+?

Try not to fall into the trap that a lot of traders fall into of thinking that all markets are always trading. More often that not Forex markets are not trading. The vast majority of the time there is no trend. It is more common for there to be no trend, then there for there to be a trend. So looking for a trend in every pair is going to cause you to be getting into the wrong side of the market more often than not, rather than correctly identifying the market and then trading it that way.

The first key to making a successful trading is identifying the market type and structure.

The USDCAD on the daily chart is in a clear range. We can clearly see there is no trend at all and price is clearly sideways trading.

USDCAD DAILY CHART

Safe trading,

Johnathon

[Forex_School_Online]

@Songok

I have a question to Johnathon do we trade opening gap’s?

Do you mean do we trade just the gap closes by themselves with no price action? Do we wait for the gal to close and then just enter?

[Forex_School_Online]

Hi Diablo,

I’ve been looking for a way to trade ranging pairs and it looks like what you have here would be a great example. Is your strategy as simple as looking for a strong PA formation with a strong support / resistance level to use as a base to trade from?

There are plenty of other price action signals to trade other market structures that we use… We do not only trade reversal signals. So we can also trade markets that are continuing or breaking out we also trade price action breakouts and continuation signals. This allows us to trade all market types including ranges, trends, continuations, breakouts, boxes etc all with price action.