Forex Price Action

[shane]

Yes i did and is in the money right now and i did go short on it.

How u plan to manage it?

[bigcheefer30]

Yes i did and is in the money right now and i did go short on it.

ref USDCHF D1 short

TP1 @ .92671
TP2 @ .91983
SL @ .94581
Entry @ .93339 (hasn’t been triggered yet)

Care to share your position details tonyro?

[tonyro44]

USD/CHF D1 short

ref USDCHF D1 short
entry @ .9367 TP .9300 S/L moved to 9357. If i can get 600 pips a month i am happy.
TP1 @ .92671
TP2 @ .91983
SL @ .94581
Entry @ .93339 (hasn’t been triggered yet)

Care to share your position details tonyro?

[krugman25]

Trades shouldn’t be entered before the break of the signal, period. If you are entering before the break of the signal then don’t post your trade here because it will promote something that isn’t done in this thread. The reason is that a price action signal isn’t actually “validated” until the low or high of it has been broken.

Also, entering on a retrace will simply not end good in the long run. You are greatly increasing the chance of losing a trade, for such a small increase in profit. Any little extra profits you make will quickly be wiped out by all of the losing trades you will begin incurring. I posted my equity curve a while back, and it had a huge drawdown in the middle, for about 50 trades. The reason for the drawdown was entry before the break. Over half of those loses wouldn’t have occurred if I would have entered the break. Then you can see my profit skyrocket after the big drawdown period, which was after I decided only trading on the break of the PA.

There are advanced stop loss methods that can be used to lower your risk, and are much safer than entering a price action signal before it is validated.

[Forex_School_Online]

Trades shouldn’t be entered before the break of the signal, period. If you are entering before the break of the signal then don’t post your trade here because it will promote something that isn’t done in this thread. The reason is that a price action signal isn’t actually “validated” until the low or high of it has been broken.

Also, entering on a retrace will simply not end good in the long run. You are greatly increasing the chance of losing a trade, for such a small increase in profit. Any little extra profits you make will quickly be wiped out by all of the losing trades you will begin incurring. I posted my equity curve a while back, and it had a huge drawdown in the middle, for about 50 trades. The reason for the drawdown was entry before the break. Over half of those loses wouldn’t have occurred if I would have entered the break. Then you can see my profit skyrocket after the big drawdown period, which was after I decided only trading on the break of the PA.

There are advanced stop loss methods that can be used to lower your risk, and are much safer than entering a price action signal before it is validated.

You the man! :35:

[Forex_School_Online]

@Piping_Hot

Hi all,

I know I shouldn’t show off as this setup wasn’t a valid one from the beginning but things have gone my way and it leaves me with a question.

Reminder, I took this trade based on a pinbar with entry at 155.2 , SL at 154.2 and TP at 156.5.

When I woke up this morning, price had hit my TP but trade is still open because of the spread.

Do I consider that I had my chance and should I close it right now or should I take the risk and wait for a retest of my TP ?

Thanks for your guidance,

Cheers,

Yves

Ideally you really never want to ever be getting into trades and then wondering what you are then going to be doing with them…

It’s great you have a profit target and that’s a start, but you need to know exactly how you are going to manage this before entering the trade. You don’t want to be entering this trade and then being dictated to by either your emotions or price. This is when bad decisions are made and trades are managed poorly.

You are now managing this trade and making it up as you go along and really you don’t have any set plans or criteria. How can you have consistent trading results if you don’t manage your trades consistently? And how can you manage your trades consistently if you don’t have a clearly defined trade management blue print or rule set to follow? The easiest and most simple way is just make your trade management plan before you enter all your trades and then follow it exactly when in the trade.

Johnathon

[Forex_School_Online]

One of the current charts I am watching super closely at the moment is the EURGBP. Nice bullish false break on the daily chart that was not quite big enough to make a trade. Now looking for shorts with any movements of price into this level. Watching all time frames at this level. There is a very similar sort of level on the EURAUD chart.

EURGBP DAILY CHART

Safe trading,

Johnathon

[krugman25]

Haha, thanks Johnathon. You know I used to do quite a few of these bad trading practices. But time has proven me they simply don’t work.

[PIPOFF]

Aud/usd 4hr

pin forming @ resistance.(some time until candle close.):57:

[EternalNewB]

Trades shouldn’t be entered before the break of the signal, period. If you are entering before the break of the signal then don’t post your trade here because it will promote something that isn’t done in this thread. The reason is that a price action signal isn’t actually “validated” until the low or high of it has been broken.

Also, entering on a retrace will simply not end good in the long run. You are greatly increasing the chance of losing a trade, for such a small increase in profit. Any little extra profits you make will quickly be wiped out by all of the losing trades you will begin incurring. I posted my equity curve a while back, and it had a huge drawdown in the middle, for about 50 trades. The reason for the drawdown was entry before the break. Over half of those loses wouldn’t have occurred if I would have entered the break. Then you can see my profit skyrocket after the big drawdown period, which was after I decided only trading on the break of the PA.

There are advanced stop loss methods that can be used to lower your risk, and are much safer than entering a price action signal before it is validated.

How do you know it broke? Or it means about 10 pips below support?

[PIPOFF]

Xau/usd 4hr.

:57:

[PipDom]

Where can I see the curve? I want to benchmark and optimize! Please link.

Trades shouldn’t be entered before the break of the signal, period. If you are entering before the break of the signal then don’t post your trade here because it will promote something that isn’t done in this thread. The reason is that a price action signal isn’t actually “validated” until the low or high of it has been broken.

Also, entering on a retrace will simply not end good in the long run. You are greatly increasing the chance of losing a trade, for such a small increase in profit. Any little extra profits you make will quickly be wiped out by all of the losing trades you will begin incurring. I posted my equity curve a while back, and it had a huge drawdown in the middle, for about 50 trades. The reason for the drawdown was entry before the break. Over half of those loses wouldn’t have occurred if I would have entered the break. Then you can see my profit skyrocket after the big drawdown period, which was after I decided only trading on the break of the PA.

There are advanced stop loss methods that can be used to lower your risk, and are much safer than entering a price action signal before it is validated.

[krugman25]

How do you know it broke? Or it means about 10 pips below support?

Technically it is once price breaks the low of the PA candle/s, but we do a 10+ pip buffer because sometimes those breaks are false. They poke below the signal just a few pips, and then pull right back sometimes resulting in a loss. Just by waiting for the break, you are greatly increasing your chances of a successful trade. Adding in the buffer to the candle bumps that success rate even higher by filtering out some of the false break signals.

[krugman25]

Where can I see the curve? I want to benchmark and optimize! Please link.

http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-574.html#post524660
#11471

The string of losses were mainly from entering before the break, or entering on retracement of the price action candle, and the other reason was trading timeframes smaller than I was comfortable with.

[bigcheefer30]

How do you know it broke? Or it means about 10 pips below support?

I’ve implemented the method Krugman talks about (Adding a 10 pip buffer) and this definitely helps in ensuring the strongest signal is traded. We use sell stop, and buy stop pending orders eternalnewb. Former when we think the price is going to go lower, latter when we think the price is going to go higher.

[Piping_Hot]

Ideally you really never want to ever be getting into trades and then wondering what you are then going to be doing with them…

It’s great you have a profit target and that’s a start, but you need to know exactly how you are going to manage this before entering the trade. You don’t want to be entering this trade and then being dictated to by either your emotions or price. This is when bad decisions are made and trades are managed poorly.

You are now managing this trade and making it up as you go along and really you don’t have any set plans or criteria. How can you have consistent trading results if you don’t manage your trades consistently? And how can you manage your trades consistently if you don’t have a clearly defined trade management blue print or rule set to follow? The easiest and most simple way is just make your trade management plan before you enter all your trades and then follow it exactly when in the trade.

Johnathon

Thanks Johnathon !

Frankly, reading your answers always hurts badly and makes me feel like a little child but I guess that’s what’s gonna turn me into a better trader.

[ppchrispp]

The candle didn’t close within the chart because you are looking at the ask chart, not the bid chart. While it’s good to use the"ask" chart when placing sell order stops and limits, I always look for price action signals on the “bid” chart. The reason is that a bid chart is taking into account the price spread from the asking, as volatility gets lower(such as the end of day on Friday), the price on the ask chart begins to move farther away from the bid price. If my bid chart is showing the right price action, then i’m a happy camper.

this is a very interesting point. I know people look at bid chart when they short and look at ask chart when they long. does this apply to price action as well? if so, does that mean we should look at bueb with the ask price and the beeb with the bid price?

[chisha]

Hi guys,
what do you think about the setup on the NZDCHF 12HR chart?

[Kasravi]

Hi guys,
what do you think about the setup on the NZDCHF 12HR chart?

Hi Chisha,

Looks not bad,there seem to be lots of setups on Chf pairs.
Keep your exposure in check if you are in a Frank trade already.

Cheers.

[Panupat]

this is a very interesting point. I know people look at bid chart when they short and look at ask chart when they long. does this apply to price action as well? if so, does that mean we should look at bueb with the ask price and the beeb with the bid price?

From what I gathered, ask chart is a modification you may or may not want when looking for signals… spread not only differs between broker, it even differs between times/days. You’re not seeing the real picture but rather a inconsistently-modified one.

Bid chart on the other hand is universal - everyone in the world will see the same chart (if their chart closes at the same time of course)

Just my humble newbie opinion