I just want to say thanks to Johno for starting this thread, it has fully changed my trading style, I used to trade M5, M15 charts back when i started, I was doing pretty well until my luck ran out. I have been searching for the perfect system looking for fast money, and have just realised there is no such thing, I love trading the M15 and M5 charts, but I get stopped out too much, I used to just buy/sell at S/R levels on these time frames, but I can fully see the power of price action and higher time frames.
I will just have to build up my account balance slowly using PA and win 9-% of my trades (I have only lose 2 PA trades, out of 16)
I have just moved to my real account to start trading PA and am trying so hard to resist trading lower time frames because I know I will end up making a few hundred, then blowing it when my luck runs out again lol, or else it will just go south right awayâŚ
Anyway, thanks for the thread guys, itâs great! Keep up the good work
I spotted this pin bar, nut I am not quite sure about the level it has formed at, if anyone could shed any light on it, I would greatly appreciate it
The lower red line is the daily swing point, the top red line is the area of congestion if you would call it that, does that count as a valid area of support?
Couldnât help posting one picture that I wanted to show you, my first long term position using PA! So proud of it, although I couldnât stay longer, because I panicked as the price stopped movingâŚ
So I took the pin bar you can see on the EURCAD daily, I took the pips that the purple vertical line shows and I got scared as the price stopped at a previous resistance level. I took the half of the position at 1.3923 and I trailed a little then I closed everything.
Tell me what do you think about this one
p.s. Thank you Johnathon for the useful information!!!
the problem is this , you spotted a wrong SR level , actually I think you just saw the 0.9500 and you made this level as a S/R level . S/R levels and key levels are the most important things and If they combine with psychological levels , make them perfect .
this is the right place of S/R level and there is nothing to trade now .
Safe Trading
You may wanna consider to be over cautious on counter trend (CT)trading,the pin didnât form on any recent resistance.
We are very fussy when it comes to CT trades, but you had 2 very important things in your favour;
1- a huge pinbar
2-lots of space to move,minimum noise.
A good advice ; always plan out where you wanna take profits and possible scenarios that will make you close your trade.
It saves you from baby sitting.
You are analyzing it the correct wayâŚeverything is in place, ButâŚbutâŚ
that what you call a congestion wasnât simply that let me explain;
Usually when you see lots of candles cluttered together you may call it noise.
However looking at the daily chart you would have noticed price was winding up in that area, Engulfing bars one after another.
Now that tells us that, that area is a black hole! Meaning stop losses are most likely getting hit.
It is an area of interest in terms of a break out but not a pullback/reversal.
This is very important when looking at noise areas. They are quite dangerous.
You had the right approach,just missed the reason behind that area.
Sounds like you are not convinced, do what you think is right and not what Krugman,Myself or anyone else tells youâŚ
As Krugman said even if you end up profiting(which by the looks of it price pushed higher and you got stopped) the reason is not price action methodsâŚ
Hell, there are PA reasons to go against your trade!
I wonât keep going on about it, bottom line you need to get the right mind set.
