Do we trade gap’s, like on the attachment if there were no gap we would have 2 bar reversal becouse price clearly move down from resistance zone. I traded it and made like 50 pips but maybe just lucky. BTW my last wrong trade was lucky and profitable too (euraud from swing high some time ago - made like 300+pips).
Thank you. So I need to focus on identifying market condition. Trending market = trade on pullbacks, ranging market = look for reversal signals on boundaries. Maybe spotting right position of boundary requires more experience.
Hello Johnathon,
I’d like to know how to decide about the validity of candles when it comes to wicks.
For example should we consider following candles as BEEB? They have really big shadows. Should we ignore them because they’re not closed near their lows?
Thank you.
[QUOTE=“dudest;516821”]
Comment in the form of a question: is the pin (if it closes as-is) at SWING LOW?[/QUOTE]
Depends on how you look at it! 
its at a minor swing low, and still at 150.000?? But I see what you’re getting at! 
[QUOTE=“Forex School Online;516838”]
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.[/QUOTE]
Thanks Johnathon - is the training and support for this all covered as part of the members area?
I was wondering, this large green bar on the daily chart of the GBPUSD, is this a bullish engulfing bar, or something…? It just seems rather large and “in your face”, to me 
Also earlier today on the same pair, we had a very nice bullish pinbar right at the 1.5300 level. Did anyone trade that?
Correct! The horizontal level is KEY
To summarize:
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Recognize relevant horizontal Support and Resistance Zone
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Identify relevant Price Action.
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Ensure that the PA at the KHL is being played from a swing high or swing low.
Cheers!
1 Like
Hallo,
My take on GBPUSD BUEB.
Is it an bullish engulfing bar? YES, it bullish and it is fully engulfing the candle before it
The next big question is: is it at swing low or swing high?
We need to be buying LOW and selling HIGH. For BUEBs, we enter when price breaks the HIGH of the BUEB. For me, in this case, that would constitute buying high.
A higher probability play IMHO would be to wait for price to retrace on lower time-frames and look for LONG PA there.
Cheers!
.
Great explanation! Thank you very much!
Hi [B]johnathon[/B])Today i read your post about NZDJPY on your site where you stated that gaps can be a high probability trades.Well i clearly ignore trades on monday open with gaps because the missing price action confuses me.Can you please enlighten me about how such trades are called high probability trades?Did you take that NZDJPY trade?
By the way it looks like the markets are getting normal and few pairs are breaking out from the choppy areas.
Hello Friend,
to answer your question, both those candles are BEEB because they engulf the preceding candles completely (with their wicks and all).
So the answer is yes we should think of those candles as BEEB because they have really big shadows that engulf the preceding candles.
No we shouldn’t ignore them because they are closed near their lows. This is of course taking into consideration the entire price action story:
1 Are they formed at strong resistance
2 Swing high
3 With Trend (assuming you’re playing a trending market)
4 No FTA close by etc
hey every one
I made a trade 2 days ago on Aud/Usd . This is the chart I saw 2 days ago :
I put a sell order under the engulfing . I got in and today , I just stopped out .
is there any problem with my trade ?
Thanks so much
Hey abc
I liked the setup, it was a BEEB at a swing high with trend. It could of been a little higher to make it a better KEY level although that level is getting blown away currently.
Where you could of saved your trade though is by what Johno teaches and it is IMHO the most important part and thats management. I took the trade and moved my stop to BE once I identified a possible support area where price could turn.
price is now at where i would have drawn my s/r line, using the line chart on the daily. then i would move to 4 hour. i say it was a proper trade just taken too early. maybe it will bounce from this level now will have to see
audusd daily
With the size of the candle just closed I would not look for any shorts in this zone. It might pull back and find support to continue is strong move up.
Cheers
So is it a valid setup? In fact for me it has everything it should. And if it was closed lower making a smaller shadow I had already set my orders.
At a swing high and a good level – but the lower shadow makes me reluctant! What do you think?
Good level on daily chart:
BEEB on H4?
I’ll answer your question like this: I try to only trade markets that I understand (this is easier said than done because sometimes I just find myself entering trades that I have no business being in). When I am having trouble marking key support & resistance levels I stay out because I don’t know what the market is doing. Also if I’m not sure about a setup I stay out.
This trade might or might not work out but I’m staying out because I’m not confident about it.
Please realize this is my personal opinion & should not be taken as trading advice. If you’re in this trade I wish you success!
Thanks for quick reply.
as I said I am not sure about this one too. so I’m not going to trade it. I’m just curious to know about the shadows(for learning only). should we consider shadows reasons for our decisions?
Hi pedramslhr,
to quote Johnathon “when trading engulfing bars, we want the price to finish in the last 1/3 of the direction we want to trade”
In this case, i would like the close of the BEEB to be lower - it may be in the last 1/3, but it is not obvious. Also, i consider this 4hr to be in an uptrend and would need to see a bigger PA to convince me it had turned.
Just my tuppence worth.
