Forex Price Action

[Piping_Hot]

My Trading on USDCHF 4HR charts.

Chart USDCHF, H4, 2013.08.23 14:13 UTC, AxiCorp Financial Services Pty Ltd, MetaTrader 4, Demo - MetaTrader Trading Platform Screenshots

Sell at green line low of the Pin bar candle.
SL & TP at yellow lines.

Same here! Looking good!

[abc2005]

@dudest

Hallo abc,

Even valid trades can get stopped out.

But did you read this? Pin Bar

Would you say your pin met these criteria?

.

.

Hi dudest
thanks for your reply
I saw the pinbar on 8h not 4h . This is the picture of the chart and the pinbar I took .
does it have any problem ?

thanks

[bambino358]

Hi,
can I ask you what strategy do you use for placing stop loss? I know that basically we place SL few pips below (above) candle formation but what if for example pin bar is to large? We can’t move with entry point, not a lot with profit target(s) (placing on logical levels) so we can move only with SL. Do you use fibonacci retracement (50%, 62% of the pin bar) or something else? Or you always place SL above (below) pin bar?
Thanks

[tonyro44]

What i do in a case like that is, i make a trade with less lots or smaller, cuz i like to put S/L after or before the candle. Now that is one way of doing it , if you really want that trade.l

Hi,
can I ask you what strategy do you use for placing stop loss? I know that basically we place SL few pips below (above) candle formation but what if for example pin bar is to large? We can’t move with entry point, not a lot with profit target(s) (placing on logical levels) so we can move only with SL. Do you use fibonacci retracement (50%, 62% of the pin bar) or something else? Or you always place SL above (below) pin bar?
Thanks

[Forex_School_Online]

USDSGD TP2 hit, out of trade

Cheers

Great trading Dudest and thanks for all your help in here lately. Has been a huge effort! :35:

[Forex_School_Online]

@krugman25

USDJPY H4 pinbar @ resistance.

Pro’s
*Well defined pinbar
*pinbar same size or larger than last few candles
*formed at a level often used as support or resistance
*next major support not until 97

Cons
*While at an important S/R, still in the middle of the overall range(100-96)
*Wish the pinbar was a bit larger for a good reversal signal of the short term trend

Pin Bar yes, but it was sitting right smack back on a very key level and this was very important to the overall price action story that was being told.

USDJPY 4HR CHART

[Forex_School_Online]

@jackson905

Hey guys, i found a very nice level to trade at. I’m not sure trading daily on Monthly TF is ok with the rules in this thread but it is definitely a ranging market.

Please look at the pic below and your comments are much appreciated.

You can see that SINCE 01/01/2011 till present, GBPCAD market is Ranging. Most importantly, price has reached the TOP of the Range.

I have marked the two levels of extreme that acts as Support and Resistant.

Now on Daily,

It seems that its gonna be forming a Fakey Pin bar. With all the rules applied, i will be Shorting on this A+++ trade if a Pin bar is formed at NY close today.However, if no valid signal is formed, i’ll not step in. Also, ill not increase my risk and stay at 3% like all other trades.

Jack

P.S. The potential RRR of this trade is really high.

A couple of things Jack;

If your are going to trade the monthly then that is fine but stick to the monthly and trade within the monthly charts range. That range has no bearing on the daily chart. Just because the monthly chart is ranging does not mean the daily chart is. The daily chart could have many different swings before even one candle has formed on the monthly chart has formed. We don’t go to the monthly chart and find a range and then within that begin looking for range trades on the daily chart. Because you have done that you have got yourself on the completely wrong side of the current trend on the daily chart which is why we avoid doing it.

The daily chart at the moment is in a clear up-trend making higher highs and higher lows and has reached new highs for the year. I am not saying your wrong to short, but to short this market would be taking a very clear counter trend trade. It would not be a range trade as this is one of the few pairs at the moment that is ranging on the daily chart and making higher highs. It would be range trading on the monthly chart yes your correct, bot each chart has their own trend and on the daily chart we can see price has broken higher and made a 1,2,3 and higher highs and lows.

A pull-back into the near term support would provide for a solid opportunity for a possible high probability trade to get long I would look for. As I said you would not be wrong to get short because there is no wrong in this business, only profitable and not profitable. I hope this helps. Any questions let me know.

Johnathon

GBPCAD Daily Chart

[jackson905]

@Forex_School_Online

A couple of things Jack;

If your are going to trade the monthly then that is fine but stick to the monthly and trade within the monthly charts range. That range has no bearing on the daily chart. Just because the monthly chart is ranging does not mean the daily chart is. The daily chart could have many different swings before even one candle has formed on the monthly chart has formed. We don’t go to the monthly chart and find a range and then within that begin looking for range trades on the daily chart. Because you have done that you have got yourself on the completely wrong side of the current trend on the daily chart which is why we avoid doing it.

The daily chart at the moment is in a clear up-trend making higher highs and higher lows and has reached new highs for the year. I am not saying your wrong to short, but to short this market would be taking a very clear counter trend trade. It would not be a range trade as this is one of the few pairs at the moment that is ranging on the daily chart and making higher highs. It would be range trading on the monthly chart yes your correct, bot each chart has their own trend and on the daily chart we can see price has broken higher and made a 1,2,3 and higher highs and lows.

A pull-back into the near term support would provide for a solid opportunity for a possible high probability trade to get long I would look for. As I said you would not be wrong to get short because there is no wrong in this business, only profitable and not profitable. I hope this helps. Any questions let me know.

Johnathon

GBPCAD Daily Chart

Yup i got it completely. Thanks! A bit overwhelmed by recent success and wanting to jump in trades i guess =o=

[jackson905]

Ok, wanted to ask abt MM but i think we dont discuss this here so its ok. Anw Final Target hitting soon! i hope lol

Jack

[Panupat]

Thank you for sharing the charts Johnathon. The S&R levels are so obvious when you showed it to us. I hope I’ll be able to spot them myself in the near future, lots more training to do!

[krugman25]

Thanks for the input Johnathon. I want to understand your comment better so I can keep honing my trading skills. When the pinbar formed it looked like it had formed right at a well respected S/R level. Since price has been ranging in the pair, I had it marked as an important resistance level to look for bearish price action to go short. Once price reached the resistance level and formed the bearish pinbar, that to me was the signal the market is respecting the S/R and resistance a movement higher. So it wasn’t just the fact that it was a pinbar, but a pinbar at an important resistance level.

If I am looking at this wrong, i want to make sure I don’t make the same mistake in the future. I did stick to your entry method as I have gone completely cold turkey on retracements, and it saved me from a loss! :59:

UPDATE:
I see what you are say, there was a support line directly below the pin. It looks like there was a resistance band that was around 20 pips wide, and the pinbar closed inside of the box, with the bottom of the S/R band acting as support for price. Thanks again for examining the trade and helpful input!

@Forex_School_Online

Pin Bar yes, but it was sitting right smack back on a very key level and this was very important to the overall price action story that was being told.

[krugman25]

CADGBP is forming a daily pinbar but has already broken out of the range, so as Johnathon mentioned earlier, looking for longs are now preferred if price pulls back to the top of the range now support. GBPJPY I think is the better short. It is still in a range and is forming a nice daily pinbar at the top of that range.

[dudest]

@abc2005

Hi dudest
thanks for your reply
I saw the pinbar on 8h not 4h . This is the picture of the chart and the pinbar I took .
does it have any problem ?

thanks

Sorry for that ( posting H4 instead of H8 ), correct chart below (same as yours)

Instead of me saying whether or not it had a problem, I would like you to analyse the setup (PA story) and take me through what about the pinbar made it valid.

( I have removed the following candles from the chart )

.

[dudest]

@bambino358

Hi,
can I ask you what strategy do you use for placing stop loss? I know that basically we place SL few pips below (above) candle formation but what if for example pin bar is to large? We can’t move with entry point, not a lot with profit target(s) (placing on logical levels) so we can move only with SL. Do you use fibonacci retracement (50%, 62% of the pin bar) or something else? Or you always place SL above (below) pin bar?
Thanks

1. Post #10712 (15th Aug 2013): http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-1072.html#post519059

2. Post #10900 (20th Aug 2013): http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-1090.html#post520807

@dudest

LOL!

This is one of those times you’ll be glad you asked a question

Yes, there can be exceptions/tweaks to the rule, and Johnathon explains exactly why/how in the video

Setup:

Johnathon:
To put a stop above the high, we’re gonna be left with a crazy, massive stop…not worth the trade…the risk/reward would have been very small…so all I’ve simply done is put it above these bar highs here, these candle highs…these should act as a relevant resistance here should price go back up…

And there you have it :)!

@dudest

We position size: Position Size Calculator, Forex Position Size Calculator

As Willy found out a few pages ago, we can also use candle highs/lows that can act as relevant S/R to buffer our stop. But that’s a stunt if you’re still coming to grips with the method.

Whatever the case, we always position size [ i.e, SL determines lot size, not the other way around ]

Cheers

[bigcheefer30]

Greetings all,

Was wondering if I may please request some critiquing of a potential setup I found on the NZDCHF Daily. Would I be wrong to assume that this is an A- setup?

Here’s what I see:

• .71872 Support level tested
• .71872 Support level tested and held: 5 times in June 2013, 1 time in July 2013, and 1 time in August 2013
• Although it is not a crystal clear pin bar, previous tests have held past the 50% retracement (i.e. around June 20th)
• Market is range-bound (in my eyes) and a clear trend can’t be identified. I understand there are lower highs, but I don’t deem this downward. Please correct me if I’m wrong though!

Here’s how I’d play it:

• Place a buy stop order at .72360
• S/L slightly below .71872 (+/- 600 points)
• 1st T/P at .75263 (+/- 2885 points)
  -4/1 reward /risk ratio
• After 1st T/P, sell 50% of position, then look for move up to .76214 and beyond

I’d like to thank anyone in advance who takes time out of their day to analyze this. I really do appreciate it.

Respectfully,
Roy

Probably should have waited 10 minutes for the markets to close…well that’s embarassing… The .71872 level was broken.

[eignerdauL]

@bigcheefer30

Greetings all,

Was wondering if I may please request some critiquing of a potential setup I found on the NZDCHF Daily. Would I be wrong to assume that this is an A- setup?

Here’s what I see:

• .71872 Support level tested
• .71872 Support level tested and held: 5 times in June 2013, 1 time in July 2013, and 1 time in August 2013
• Although it is not a crystal clear pin bar, previous tests have held past the 50% retracement (i.e. around June 20th)
• Market is range-bound (in my eyes) and a clear trend can’t be identified. I understand there are lower highs, but I don’t deem this downward. Please correct me if I’m wrong though!

Here’s how I’d play it:

• Place a buy stop order at .72360
• S/L slightly below .71872
• 1st T/P at .75263
• After 1st T/P, sell 50% of position, then look for move up to .76214 and beyond

I’d like to thank anyone in advance who takes time out of their day to analyze this. I really do appreciate it.

Respectfully,
Roy

Hello!

Sorry, but this can never be stated as a pinbar. The nose has to be 3x as Long as the Body and the candle has to Close within the previous one.
I was also looking at this pair and I´m waiting for next week to perform a really nice Pinbar or BUEB. And when reading the previous Story of this pair, I´m very confident that there will be one.

At least to Highlight the positive aspects:

Your Levels marked are very accurate and good.
And your TP-Levels are also well placed.
Hope this helps.

Best regards

[bigcheefer30]

Thanks for the compliment. Anywhoo, the level was broken right before market close so that setup (in my eyes) is moot.

[bigcheefer30]

One more that I’m monitoring- sorry for pulling the trigger early on that last one, I’m having some trouble right now dealing with a minor “over-trading” spell I’m in… bleh.

AudCAD Daily:

3 points of confluence:

• .95075 resistance held

• Pin bar formed

• Market trending downward

• Place sell limit order @ 50% tail (around .94950) (OR) straight up sell once .94677 is broken

• S/L @ .95221 (250 points)

• 50% T/P @ .93974 (1000 points)

• Future targeting .92029

Thanks again. I promise I can bring more to the table than simply demanding everyone’s eyes and ears…I don’t consider myself THAT selfish

[bigcheefer30]

As promised- Here’s one trade I’m short in right now:

GBPCAD Daily:

I still believe there is time for traders to get short on this, and ride it down to at least 1.62547 (800 points from where it closed today).

I used to only trade trends for so long, but got busted so many times with fakeouts and just recently started trading PA. I have alot to learn because I lack discipline. This pin bar (to me) just looked too good to resist. Monthly charts shows downtrend. However, I’m starting to wonder if this may be a fakey pin bar…Even if it is, my stop is so tight (thanks to Nial Fuller and Jonathan Fox) that the loss would be nothing on my bank roll. Thanks everyone!

[Sergei13]

@bigcheefer30

One more that I’m monitoring- sorry for pulling the trigger early on that last one, I’m having some trouble right now dealing with a minor “over-trading” spell I’m in… bleh.

AudCAD Daily:

3 points of confluence:

• .95075 resistance held

• Pin bar formed

• Market trending downward

• Place sell limit order @ 50% tail (around .94950) (OR) straight up sell once .94677 is broken

• S/L @ .95221 (250 points)

• 50% T/P @ .93974 (1000 points)

• Future targeting .92029

Thanks again. I promise I can bring more to the table than simply demanding everyone’s eyes and ears…I don’t consider myself THAT selfish

Hi, Roy!
IMHO, it’d be nicer if this PB was “sticking out”, as folks in this tread call it - you know, when the nose is far out from other candles. You have found this sticking out in your next message (on GBPCAD), but there it’s body is bigger than is considered good (not 1/2-1/3 of wick’s length - which is optimal, but close to 1/2 of the whole range length - that’s not optimal).
Hope I don’t annoy you with critics:p
Best of luck!
PS there’s a repository of knowledge on this method (including PB’s - as they interpreted here) in first 50 pages of tread - with a lot of graphs! It’s highly useful.