Hi Johnathon,
I think the support line on EURCAN at 1.2885. Taking into consideration lows of 17 January and 14th March.
Wouldn’t you?
On my view,
only the BRN above and the News on Friday make this signal not so good.
What other friends are saying?
Here is my thoughts:
EURCAD
pin bar sticking out? Y
going with trend? N
at round numbers? High of pin bar is just above BRN 1.30
good momentum? Not really
rejection forms at swing low? Won’t consider it an ideal swing low
form at pullback? NA since in consolidation stage
PA forms at significant SnR? Y
large PA? Y
relative sign of PA compared with surrounding candles? Not considered small
RRR more than 1? Barely about there
Conclusion: If price can go above the pin bar high, it is also above BRN 1.30, price would probably have a high chance to go higher. But overall, won’t consider it a A+ trade setup.
CADCHF
pin bar sticking out? Y
going with trend? N
near round numbers? 0.92 is near to low of pin bar
good momentum? not really
rejection forms at swing high? Won’t consider it an ideal swing high
form at pullback? NA since in consolidation stage
PA forms at significant SnR? Y
large PA? Y
relative sign of PA cmf with surrounding candles? Not considered small
RRR more than 1? Barely about there
Conclusion: Won’t consider it a A+ trade setup.
Interestingly, EURCAD seem to be forming a descending triangle and CADCHF forming a ascending triangle. This is also not in the trade setup favor.
Hello Johnathon
I haven’t mastered this technique yet so am not willing to risk taking trades against the trend just as yet. When the market is consolidating what I decided is that I’ll wait only for trades in the direction of the momentum leading into the consolidation. For example on USDCAD the momentum was down leading into the consolidation so I would only consider shorts at resistance. Once I get better at this I’ll start taking trades against the trend.
Heya,
some very interesting comments from all which is great!
Yes agree with your support however this is making a false break of all the recent candle lows. Support and resistance is more of a zone and not a hard and fast line.
The big round number you speak of is 1.300. If people enter this Pin Bar upon confirmation they would be entering at the break higher and would be above the BRN. Traders could then look for this to hold as support in their favour. The Pin’s strong close above the BRN is a good sign. In other words the pin has closed above the BRN and does not have the BRN above.
This has tons of chop above and anyone playing should manage tightly due to this.
As for the news: As you know I am strong supporter of not following the news except for the NFP. And this I do not follow except trade around or in other words I don’t trade into. The NFP will normally only effect the US pairs in a major way and the others are normally left untouched (Normally). For me personally the only trades the NFP keeps me out of are the USD pairs.
If I was going to enter a trade I do not care in the slightest what news is coming out. I don’t check and never know.
This Pin has not broken as yet and is below the BRN so hopefully no1 has jumped the gun and entered as yet.
Good luck to all and happy trading,
Johnathon
USDJPY has now fallen lower after the NFP. This worked out to a nice trade and goes top show you really do have to let the market do it’s thing and leave stops in place and not get in a huff and puff when price does not go your way!
I have done a vid on the USDJPY trade and will release over the weekend. Nice trade here in the end and still holding a small portion if it for a large runner. The rest was taken of at support.
Johnathon
Hey all,
here is that video I said I was doing on the trade some of us played in here this week on the USDJPY.
Safe trading and many pips to all this week,
Johnathon
EUR pairs gapped down significantly today. May be a good opportunity to short if key resistance is retested and PA shows rejection signals. Eg 1.30 for EURUSD
Be careful today, it’s a Bank Holiday here in the UK, so volume might not be as per normal.
Happy trading.
GG
Didn’t realise it. Thanks for the reminder!
What do you mean?
To go short? Or to go long once it hits that solid support level close by?
Well i just notice it a few minutes ago, so i didnt take it, but i would short if i saw it last nite.
Fair call. I have a few questions if you don’t mind.
Do you enter Pin’s at the break? And if not how do you “normally”?
If you were to take this one how would you manage it?
Would the level I have marked on my chart below worry you at all?
For me personally I am looking for longs from the level I have marked on the intra day charts should we get PA to confirm.
Safe trading and good night.
Johnathon
I would enter at candle close and set SL at the swing high and TP base on the SL (RR = 1:1 or 1:2), once it’s already green and move quite far from my entry point, i’ll move my SL to Break even or today’s high, and let it run
Hi payahbleh
I am attempting to list down why Johnathon may not consider this shorting setup as A+ in his view. Pls do not be offended. This is more of a learning exercise so that we can all improve to be better. In fact, I feel that this setup does have quite a few of the qualities of a A+ trade.
The followings are my thoughts of the not so good qualities:
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For this pin bar which is essentially a shooting star, most textbook would argue that it is not confirmed till price can break below it. Hence if the entry price is below the low of pin bar, the RR would be less than ideal.
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Then there is the BRN of 1.64 just below the pin bar. Given the choice, I would rather enter if price manages to cross below it. But then, this will cause the RR to suffer further.
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The pin bar is relatively smaller than the previous bullish candle just before it.
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This last point I am not quite sure. This shorting setup is not trading at any pullback which may make it less ideal than to long it from a pullback at 1.63.
This thread was recommended in another thread that I follow, I have taken the past week to read all the way through it and I have to say I’m really impressed not only with the knowledgable help offered here, but how well it has stayed on topic.
I currently make about 1-3 trades a month based off of the 1H timeframe on one pair and have been successful with my system thus far. However with so few trades taken I am left with some extra time and I am going to fund a small account and try PA trading off of the daily chart for starters.
I’d also like to thank Jonathon for his quick replies to a couple PM’s I sent last week regarding brokers. If you give that fast of replies to your BabyPips followers, I can only imagine the first class service your FSO members get. I do plan on joining the school soon, as it seems relatively easy spotting the PA trades, but as you have stated over and over, it’s all about trade management.
Thanks,
Randy
There’s nothin to be offended about, we all learned here, i consider myself always learning something new everyday, even at loss or profit
[QUOTE=RC24;348807]
I currently make about 1-3 trades a month based off of the 1H timeframe on one pair and have been successful with my system thus far. However with so few trades taken I am left with some extra time and I am going to fund a small account and try PA trading off of the daily chart for starters.
Hey Randy
If you only trade 1-3 trades a month from the hourly chart is shows you have great discipline. We at FSO only trade the best setups so you would fit rite in.
Look forward to seeing some of your posts in the future.
Cheers
Hi Guys!
What would you say about EUR/USD pin bar on daily? Sorry can’t post a chart while at work.
Cheers