I am on mobile now can’t provide charts
I entered about 10 pips higher than the break of the 2 BR
TP set to 160 and 158.4
[QUOTE=“mselva;531980”]Ok, it is friday and I’m in Cancun, so I will take this long position.
Great week! not too much opportunities to trade, but I lot of learning.
Thank all you guys for your help.
Have a nice weekend!<img src=“301 Moved Permanently”/>[/QUOTE]
Looks like an A+++++++++++++++++++++++++++++++++++++++++ trade Mselva.
Have a good one!
On the 4 HR chart, where I’m managing this position from- 10 pips higher is 157.45. 157.8 is about 45 pips higher then the break, so I’d say your entry point may have been a bit too high.
What happened is that I entered first time at 157.44 and tp 158.2 and when it was going fine I entered again at 157.8 with TP 160 since I thought it had a lot of space to move
The question remains is the trade still valid?
Adding to a position is a very dangerous habit. Just because a position “is going fine”, does not mean that you should be opening additional positions within the range you expected price to move. Don’t forget you are paying a spread off the top. This is why we use position sizing/scaling before a pending order is even set. Walking into every potential trade, you should know exactly how much money you are willing to risk. Think about it like this: The first position you opened was based on sound reasoning using PA signals and the methods preached here. What was the second position opened based on?
As to your question, that I cannot fully answer. For me, per my trading rules/guidelines and position that I’ve opened, yes, the “trade is still valid”. It’s a Friday, 1.5 hrs away from NY close so I don’t expect to close this position out.
Thanks a lot I really appreciate your help and advice I see now the gravity of my mistake. That’s another lesson learned for me
Thanks again
As a rule of thumb, your trade gets invalidated once SL is hit which is obvious or you see a significant price action which indicates a reversal.
About your Gbp/Jpy position, I cannot tell you to close your position or to hold out,but what I can tell you is that.
If you entered the trade based on an analysis you believe is coherent with whats been taught, then a wise man would
let it play out.
However if you start getting anxious because you start to see many reasons why not to be in this trade or you came to the conclusion that your base analysis was not in tune. Then it might be best to close such a position.
I understand you are quite stressed,moreover you lost half your stake already.
But that in my opinion that is more reason to stay focused. For a moment put aside that there is money involved and re assess
your position.
Very best of luck!
I call it a day.
Cheers.
You guys are great I’m just in my 5th week of trading and you are helping so much and your advises are priceless
I think this setup is a great one for continued discussion.
I see a bullish 2BR formed at a key level, with the trend. Now, a pending order could have been filled just above the break of the 2BR to go long. The two candles before the “live” one form a BEEB. We haven’t seen a lower low established (which would take out the opened position because it would need to close beneath the 2BR) but, we do see a lower high. Is this trend slowly reversing?
How would a more “experienced trader” manage this?
I’m going to be watching what price does very closely early next week. I think this is a great example of the psychological component taking the forefront of a trader’s mind. We love to trade these setups, but, I need to learn how to identify signals that say “price does not have a good chance of breaking through the recent high”.
For example- the psychological component of dealing with price ranging in b/w an uptrend, and how to identify a reversal.
Hey Eternal, You should have all of your plan laid out before you ever click the “submit” button on your trading screen. If you don’t have a plan then you are just “winging” it, and you will just let your human nature sabotage your trade. There are really only 3 things you can do during a trade; set your initial stop losses, set your profit targets and move stop losses as you make profit. Don’t be hard on yourself, once you do the right things over and over it becomes second nature.
I was personally in this trade and was stopped out at break even. There were a few things about this trade that caused me to be a little strict on the stop loss management. Now that SL has been hit, I won’t re-enter unless a new PA signal forms. I’m not sure when you got in the trade but at one point I was up 60 pips, and I entered about 10-15 pips above the candle. The point is I had already planned out everything, and executed it precisely. Being systematic like that keeps you from most of the emotions that happen during trading.
My order was filled @ 157.45, I’m about 8 points in the Green right now. @ one point I too was up about 35-40 points. I posted a little while ago my concern with the medium-sized BEEB that formed on the 4HR chart. Were you managing this from the 4HR or 8HR chart? You must have had a really tight stop, or, took some profit off the table then moved close to BE?
I think it was a good pinbar on a key level, but the fact price didn’t pull back farther made me more conservative on the trade. In a trend I would want to see price pull back at least 50% of the last swing high or have the pinbar body closer to the SR level, with the tail really poking through. But you don’t always get that if the trend is really strong. The price stalling could mean a couple things, maybe the market is building up orders for a reversal, maybe a lot of profit taking has occurred, or maybe the market thinks the pair is at fair price so it is just meandering around that range.
I was using the 8 hour chart. I always start my stoploss 1 pip outside of the high or low. In this case when I saw it go about 55-60 pips into profit, I moved my SL to BE.
Wouldn’t a stronger trend in this scenario be beneficial for a long position? Or, could it also be seen that maybe since price didn’t pull back to that 50% level of the recent swing, that the trend is too strong and can’t maintain upward momentum?
My mind is just messin’ with me hardcore today, and I think I’m starting to go down the rabbit’s hole over-analyzing this position…
Gotcha- I was considering the same. Usually when that 50+ point profit level is busted, I’m not going to allow myself to be stopped out for a loss.
It’s always better to be trading with a string trend. Regardless the pullback wasn’t as big as I would hope, so I planned out my trade a little more defensively than usual. 95% of the time I won’t move SL to BE until my first TP is hit. I also don’t like going into the weekend with open positions unless they are comfortable in the green, so I don’t get gapped way past my SL.
The trade may still play out for big pips, but I have to follow my plan.
[QUOTE=“krugman25;532029”]
I think it was a good pinbar on a key level, but the fact price didn’t pull back farther made me more conservative on the trade. In a trend I would want to see price pull back at least 50% of the last swing high or have the pinbar body closer to the SR level, with the tail really poking through. But you don’t always get that if the trend is really strong. The price stalling could mean a couple things, maybe the market is building up orders for a reversal, maybe a lot of profit taking has occurred, or maybe the market thinks the pair is at fair price so it is just meandering around that range.[/QUOTE]
I think I answered my own question while standing in the shower and thinking about it more. In regard to determining whether a position is starting to reverse…simple enough, look for price action! Have a good weekend everyone.
Can You please walk me through your trade?
Reason why You are in, and trade plan
[QUOTE=“bigcheefer30;531870”]
Read this:
The 2 Bar Reversal
Watch this:
Forex Price Action Setups Commentary | Johnathon Fox | Forex School Online - YouTube
Look at this:
https://www.evernote.com/shard/s85/sh/3bcb539b-f9f1-452a-ad23-f4a647a3d7ab/30ad9afccc1982d7a81fc40e02f3cad2
And search out 2 Bar Reversal on the internet. Do you think it is a valid 2BR? Why, or why not? I came in here with the same mindset (Post questions, get answers, and not do any leg work). I didn’t learn anything with that methodology. I learned by answering my own questions with solid research. Hope this helps.[/QUOTE]
Thanks again bigcheefer, just realised what an awesome resource this is, especially the Evernote link. Good for Friday night reading.
Don’t worry, mate. I also once made that beginner mistake. The rule of thumb is, when London session is close for this week, that also signals that we are all really done for this week. No need to stare at MT4 until New York is close at the very end of the week for 2 reasons:
- It give you lots of false intraday signal as many traders are closing their position or taking profit,
- The spreads are getting insanely huge in most cases.
For those very reasons, the Godfather argues that it is simply not worth it to open another intraday trade for the very last hours at the end of the week. This also extends to the opening of Tokyo session in the following week. Unless one of the pair is traded in Asian region, we do not open any intraday trade until London session is open in the following week and the big boys are up and running. The exception for this rule is if you use Daily chart and tf beyond; you are free to open your trade anytime you want as long as it fits your trade plan.
Hope that can help. I’m also just a new disciple so I just share as much as the Godfather allows in this forum. 