Thanks mate. Yep thats what I meant.
If people want info on inside bars they can read an article I made here recently that should help them. [B]Trading Inside Bars[/B]
Johnathon
1 Like
Heya mate,
why you having time of? Did you over trade yourself into stress? :39:
Anyways I agree with your analysis on the daily and also the 4hr to be honest. I can speak for Bryce (I donāt know what he would say to that), that is a 2 bar reversal in heās book as it is in mine!
I guess the next question is, is it trade-able? Whilst it looks a far better pullback than on the daily chart I would like to watch this one as I am not sure if it is going up or down. Whilst I can never be sure what way price is going, when I make trades I like to have a lot of confidence.
So Dude are you long the 4hr GBPUSD?
To everyone that did not take this setup pleas be patient! There is some aplsoute killer trades and big moves in the win that I can see playing out early next week. I sometime go up to 2 weeks without a trade at a time. You know what though I just did a recap of the last 3 months and I made an absolutely whopping 15 trades!!! That is stacks! Works out to just over one a week so some weeks I would get 3 in a week of the 4hr and daily chart and then some weeks no trading at all. The difference is I store my cash under my bed for a rainy day. I check my charts every close of NY and also at the 4hr intervals when it is US/UK session. Eventually the rain comes and I pull my cash out and load it up onto a trade I am confident that I have a huge edge in my favour.
How many people do the exact opposite of this? All they wanāt to do is gamble and risk more money! They think the more they trade the more they will win. Hahahahaha:29:
Safe trading all,
Johnathon
1 Like
Thanks for all the comments on the GBPUSD setup. Iām long (demo) on this pair based on the two bar reversal on the H4 chart. Johnathonās comment about not being sure if itās going up or down is the one thing that didnāt cross my mind when I was analyzing this trade. But, now when I go look at the chart I see what heās talking about. Since the end of April it appears to be trending down, but looking a little longer term back to the middle of April itās been trending up. So, I guess we need to be concerned if this recent down swing is a pullback of the uptrend or if the trend has actually changed.
@Johnathon - Do you have any criteria to close trades early or do you always let the market take you out at your stop loss if things donāt go your way?
Nick
bhops, Johnathon, and dudest
Thanks to all 3 of you for the replies on the chart I posted. I did not take the trade, but just wanted to get some feedback to see how strong of a signal I was looking at in a live market. If that pinbar would have had a stronger close on the daily chart, would you guys have had enough conviction to take that trade provided all of the other factors stayed the same?
dudest - I did also see the 2 bar reversal on the 4hr chart, but I am sticking to only daily setups right now until I really get a feel for PA tradingā¦
Of course we are Dudest.
Not sure what the circumstances are but if you feel like it is right to have break from trading then that is a good move. Too often traders who get a little bit fried or fatigued and try to ātrade their way through itā and that is about the biggest mistake (and account killer) that one could make.
So take some time if you feel like you need it and refresh your eyes, weāll see you back soon enough. Feel free to shoot Johnathon or myself a PM even if you just wanna shoot the breeze.
Hello,
when people enter trades they are not 100% sure about they will tend to over manage them and kill the trade even if it is a winner. For this reason I suggest people only enter setups they are 100% comfortable with win or lose.
To answer your question yes you can use PA to alter your stop. You can also use it to read whether they market is going against you. The problem with this trade for you is not that you need a way out. The problem is you are not sure about the trade so you shouldnāt be in it. If this was a trade you were sure about you wouldnāt be looking for ways out. You would let the market do itās thing.
I normally advise traders to not play with their stops and targets that they planned before the trade. I advise this because the mind does funny things when money is on the line and you will always think clearest when not in a trade. The other reason is because the trade needs room to move and do itās thing. The only thing traders will get out of playing with stops normally is taking of a winning trades when they are losing or taking profit early when they shouldnāt: all the account killers.
Good luck with this one, it still may roar higher yet!
Johnathon
1 Like
Perfect answer, Johnathon. Thank-you!
This is only the third demo trade Iāve made, ever. Because Iām so new itās tough to be 100% comfortable with any trade I plan until I get more experience. For me, the experience will probably be the only way Iāll truly understand the difference between an A+ setup and a B- setup. Youāve done a great job presenting the theory and examples in this thread, but nothing beats taking the trades in real time and learning from the results by posting in here to let you guys point out what I missed in my analysis.
Johnathon, many thanks for the information on the inside bars. It is very generous of you.
And also, hope all of you can help me analyze this BEEB. This swing low has been tested a lot of times. Is this a reversal. Or sholud I wait for another PAā¦ like BUEB
Here is one pair I am watching heavily this week:
The GBPCHF has been roaring higher of late. Price has moved up so strongly it did not even halt at the recent resistance. With such a strong move higher only a very brave trader would try and trade against it.
Traders could look to trade with this recent up momentum. A logical level to look for a Price Action setup would be at the old resistance which would look to hold as new support.
See the chart below for the next logical new support level.
GBPCHF DAILY CHART
Safe trading,
Johnathon
Hello,
going of my rules to what structure an engulfing bar needs this for me is not a valid BUEB.
My rules for these state price must close in the last 1/3 of the trade direction. In other words for this trade price needed to close within the top 1/3 of price.
This is a false break and is also an engulfing bar but under my rules it does not meet the trade criterea. Please see this article for clarification and if you have any other questions just ask. [B]Engulfing Bar Article[/B]
Johnathon
Hi Johnathon,
I went against my trading planā¦and got punished for it; took the week off to evaluate and get mind back on track. Youāre right in what you say above; i hope to develop the patience and focus that you have (hopefully sooner rather than later 
)
Cheers
Hey Bryce!
Thanks for the support, appreciated!
Iām back to trading now, time off definitely does good in re-focusing the mind
Cheers!
Thanks to Johnathon for the GBPCHF D1 trade to watch.
Other trades Iām watching this week:
XAUUSD D1:
Cheers
[QUOTE=Forex School Online;350277]Hello,
going of my rules to what structure an engulfing bar needs this for me is not a valid BUEB.
My rules for these state price must close in the last 1/3 of the trade direction. In other words for this trade price needed to close within the top 1/3 of price.
This is a false break and is also an engulfing bar but under my rules it does not meet the trade criterea. Please see this article for clarification and if you have any other questions just ask. [URL=āBullish and Bearish Engulfing Bars Introductionā][B]Engulfing Bar Article[/B]]
Many thanks for the info
I wanted to go back over the GBPUSD trade here that some were looking to take last week as I think some people can learn some thing from it ( we are all constantly learning).
As stated that time the setup formed was very small. It was not shouting out at us that price was looking to go long. As I always say it is very important that when we open positions we have a huge edge in our favour. If the trade then goes onto fail so be it!
The level this formed was also not from the strongest level possible. On the chart below I will highlight where I would have liked to see price make PA for me to go long. At this level you will note is has acted as support and resistance many times and is also around the Very Big Round Number of 1.600.
A Pin bar that formed lower at this level and went through and rejected the VBRN would be excellent and a trade able setup ( as long as the PA is large and obvious of course).
See chart below:
GBPUSD DAILY CHARTS
The first chart I have zoomed right out just to show how key this level is and the second chart is zoomed in showing what I would have liked to see. I have played with the candles to show what would be a great trade to make.
Also I have just finished a quick article some may like:[B] Price Action Trading - Keep it Simple[/B]
Johnathon
Thanks for that breakdown of the GBP/USD PA from last week Johnathon.
Also like the new article! Good stuff man.
Hi!
What do you guys think of this? ( EURAUD H4. Check the levels on the D1 also )
( sorry, not at my pc, so canāt put up my usual charts )
Iām not at home to check on a chart for a longer term look, but that looks like a pretty decent 2 bar reversal. I can notice a couple things going against the trade that would keep me sidelined though.
The first being that price does seem to be trending upwards, so I would have been more inclined to take the 2 bar reversal at the last swing low. The other is that price seems to be sitting right near the important levels marked by the 2 swing highs on the left side of your chart (minus the long wick on the bearish pinbar) which have also shown an important support level for the past 7 barsā¦
Hey dudest
If you want to trade against the trend rather do it on daily charts, small PA on 4H doesnt convince me much.
Cheers
the time to get in on an a-ish grade 2 bar trade on the 4H with this pair was thursday just after 5pm eastern time when price broke past the 2 bar/inside bar formed at the 1.2800 level