Forex Price Action

[Kasravi]

I Call it a day.

Cheers.

[bigcheefer30]

[QUOTE=“EternalNewB;537027”]Hi Guys

I have never done trades based on weekly charts before so I am not sure if the process is the same in terms of S/R lines etc…

I found this BUEB on EUR GBP weekly chart

the noise directly above the bar on the left is worrying me however it looks like the trend is up and this pair was kind of ranging lately. the 2 bars are almost the same size so I am not sure if ti can be considered as engulfing .

<img src=“301 Moved Permanently”/>

Would appreciate your help on how to manage this trade and if it is a bad idea why[/QUOTE]

I’ve found that typically the higher the tf, the larger the distance for your stops…you need to be prepared to place huge stops. Obviously this is a mass generalization as some setups don’t require large stops, but just be aware of that.

[bigcheefer30]

[QUOTE=“Kasravi;537041”]

I noticed you mentioned within prev. candle, but what I can make out from your weekly charts and my own price is NOT contained within previous candle.

Cheers.[/QUOTE]

Agreed. Price closed just above 1.03 which is outside of the range of prev candle.

[Matthgm]

[QUOTE=“bigcheefer30;537123”]

I’ve found that typically the higher the tf, the larger the distance for your stops…you need to be prepared to place huge stops. Obviously this is a mass generalization as some setups don’t require large stops, but just be aware of that.[/QUOTE]

As long as your broker lets you buy sizes within your risk it matters not right?

It is this where our spreadbeting in the UK is different for elsewhere?

[semmee]

I’ve found that typically the higher the tf, the larger the distance for your stops…you need to be prepared to place huge stops. Obviously this is a mass generalization as some setups don’t require large stops, but just be aware of that.

True the stops are bigger on higher TF’s (Daily). Percentage of capital used would remain the same though. I actually like larger stops especially on swings because it’s that much harder for the market to move against it after already doing so IF you identify correct setups. If the PA is screaming out at you, then it’s screaming to other people too! LOL just imagined a candle bar yelling at a trader slapping him with the wick.

But then again that’s why we’d be looking for 4HR setups or higher along the lines of S/R levels found on the daily, which would initially be the same setup, just a smaller stop (assmuming it is a correct setup)

I used to go insane over 200 pip stops with a refusal to adjust the position sizing to accomodate. Now it’s just relative. Easier to think about it in terms of R:R potential instead. Just my humble opinion and playing devils advocate with myself.

[tonyro44]

True that the higher the T/F the higher the S/L should be in many cases.When i need a larger S/L i always use a smaller pip value.

True the stops are bigger on higher TF’s (Daily). Percentage of capital used would remain the same though. I actually like larger stops especially on swings because it’s that much harder for the market to move against it after already doing so IF you identify correct setups. If the PA is screaming out at you, then it’s screaming to other people too! LOL just imagined a candle bar yelling at a trader slapping him with the wick.

But then again that’s why we’d be looking for 4HR setups or higher along the lines of S/R levels found on the daily, which would initially be the same setup, just a smaller stop (assmuming it is a correct setup)

I used to go insane over 200 pip stops with a refusal to adjust the position sizing to accomodate. Now it’s just relative. Easier to think about it in terms of R:R potential instead. Just my humble opinion and playing devils advocate with myself.

[Pips_Ahoy]

or you could wait until weekly candle close after spotting a weekly a+ signal. then, when market opens the next week, zoom down to the 1 or 4 hour chart and get in on a trend line break with massive leverage and a 20-30 pip stop. you’ll get stopped out on a few for $50 bucks here and there, but the one that catches will pay mad skrilla

[wm247]

Actually when I think about it, we typically demand stronger PA signal if you move into shorter tf than daily. The corollary of that is we [U][B]may[/B][/U] have weaker PA signal once you move into longer tf than daily.

Now before Johnathon or any senior comes and strangles me for that blasphemous advice, I also believe that it’s always safer to always stick to A+ setup. Taking non A+ setup means lower edge overall.

I like to think longer tf as somewhat more boring but with higher probability to succeed overall. The analogy of short vs long term trade in football is like this:
[B]Short term trade[/B]: I believe Wayne Rooney will score at least two goals in the second match.
[B]Long term trade[/B]: I believe Manchester United will win more than it loses this season.

See the clear difference?

That’s kind of you, thanks !

General thing : I noticed that on the weekly, PB BUEB and BEEB’s tend to work a lot better than on smaller TF, even when the setup doesn’t look perfect, am I right ? I am not encouraging to take non A+ Setup on the weekly but just curious to know if you ever noticed the same.

Yves

[Pips_Ahoy]

the weekly is like the daily but in slow motion, and more reliable and with less need to be as precise with the pa spec. also, you are in the market more often than you might realize since trades will be held for weeks. you don’t have to sacrifice your appetite for being in a trade by moving to weekly or monthly

[krugman25]

I wanted to help correct some wrong thinking I see going on regarding this USDCAD trade. Just skimming through the posts I picked up on three things.

1. The weekly candle is not a pinbar as it did not close within the previous candle. An “almost” pinbar is not a pinbar. For a candle to be considered a pinbar it must follow a few simple criteria, closing within the previous candle is one of those criteria.

2)Someone said their chart didn’t show that it had closed within the previous candle, so they switched from their bid to ask chart, and their brokers spread created a pinbar… Adding spread doesn’t change anything about the actual price action.
If todays weekly candle closed 100 pips lower(essentially creating a solid bearish candle), and your brokers spread was 100 pips, your spread chart would still be showing a pinbar! I.E. looking at the charts without spread is giving you the purest look at market price.

3)Some people got into this trade already. You are not suppose to enter trades before a candle closes, and the markets and weekly candles close at the same time, so you should not be in this trade until next Monday. This is bad for a couple reasons. First you always enter on the break of the price action candle, which validates the PA signal. This is not possible if the candle has not yet closed. Second, if you entered right at the end of Friday, you paid multiple times more for spread than you would on Monday after Asian session gets underway.

These are the kinds of bad habits that Johnathon teaches us to break. You can’t hope to have the success Mr. Fox’s method offers without following all of it’s rules. With each rule broken, it decreases your chances of success. I know about traders itch, when it’s been weeks since a good PA signal, and your finger is just itching too take a trade. But if you take poor quality trades, all of the profit you get from the A+ signals will just end up helping you recover all of your losses from poor quality trades.

I have and many other veterans have been down this road before. Do yourself a favor and make the decision to not break or deviate from these simple trading rules. It will save you a ton of heartache and money. I want to see people in here making huge yearly gains and seeing how lucrative a good trading method can be.

Regarding USDCAD, the pair has actually formed a lower high on the week of 8/17, which means that it could very well form a reversal pattern. I am personally still looking for a short opportunity come Monday if I get a nice 2BR or EB on H4 and up timeframes.

[jackson905]

What works for me when i trade J’s method is, when i get the A + 1 set up and i take the trade, if it goes against me but does not hit my S/L and reverse, then i layer the trade. So is cost average in a positive way, it lets me make more pips.

So, in essence you’re probably opening small positions just to attempt to offset the reversal…This is intriguing. I have a few open positions right now, implemented this, and was already able to make some money. This seems dangerous though …

Read more: 301 Moved Permanently

Hey Tonyro!

If i get you correctly you meant that you open position before the price break your High/Low of the PA?

Just to share with you about 5 month ago me and krugman tried the your method by entering 50% of the A+ PA and the success rate of the setup drops.

A PA is ONLY valid, when the High/Low of the bar is broke and that makes it a A+ setup.

Hope this helps!

Cheers!

Jack

[jackson905]

Thanks Jackson. I too feel that I slightly bent the rules on this one. The low of the bullish candle missed fully engulfing the previous one by a fraction. However, I don’t necessarily think it was a “bad” trade. That level it bounced from was significant enough on my D1 chart, and the action @ that level displayed to me that there was enough upward buying pressure (4 candles all closing with significant tails & then the strong bullish reversal candle). To me, this was a strong signal that price was trying to reverse and wind back up to that previous support level. It did, and quickly came back down.

In the future, I’m going to exhibit more discipline and not take trades like this. I understand it’s essential to first identify our levels, then look for PA. But, I also think it’s important to see “behind the bars” and read what price is trying to do.

Thanks for taking the time to reply.

Hey! Yes definitely you are right, you have to see what price is trying to do which we are trying to do here.

However what i mean bad trade is not really BAD TRADE, what i meant is NON A+ trades. It is the edge in the LONG run made us successful traders! Hope you get what im trying to say!

Jack

[jackson905]

@EternalNewB

Hi Guys

I have never done trades based on weekly charts before so I am not sure if the process is the same in terms of S/R lines etc…

I found this BUEB on EUR GBP weekly chart

the noise directly above the bar on the left is worrying me however it looks like the trend is up and this pair was kind of ranging lately. the 2 bars are almost the same size so I am not sure if ti can be considered as engulfing .

Would appreciate your help on how to manage this trade and if it is a bad idea why

Hey, im with you on this one, but i entered on 4Day chart which i posted awhile ago.

I’m going to BE real fast after it hit my first FTA with 10% profit taken.

Jack

[Piping_Hot]

I wanted to help correct some wrong thinking I see going on regarding this USDCAD trade. Just skimming through the posts I picked up on three things.

1. The weekly candle is not a pinbar as it did not close within the previous candle. An “almost” pinbar is not a pinbar. For a candle to be considered a pinbar it must follow a few simple criteria, closing within the previous candle is one of those criteria.

2)Someone said their chart didn’t show that it had closed within the previous candle, so they switched from their bid to ask chart, and their brokers spread created a pinbar… Adding spread doesn’t change anything about the actual price action.
If todays weekly candle closed 100 pips lower(essentially creating a solid bearish candle), and your brokers spread was 100 pips, your spread chart would still be showing a pinbar! I.E. looking at the charts without spread is giving you the purest look at market price.

3)Some people got into this trade already. You are not suppose to enter trades before a candle closes, and the markets and weekly candles close at the same time, so you should not be in this trade until next Monday. This is bad for a couple reasons. First you always enter on the break of the price action candle, which validates the PA signal. This is not possible if the candle has not yet closed. Second, if you entered right at the end of Friday, you paid multiple times more for spread than you would on Monday after Asian session gets underway.

These are the kinds of bad habits that Johnathon teaches us to break. You can’t hope to have the success Mr. Fox’s method offers without following all of it’s rules. With each rule broken, it decreases your chances of success. I know about traders itch, when it’s been weeks since a good PA signal, and your finger is just itching too take a trade. But if you take poor quality trades, all of the profit you get from the A+ signals will just end up helping you recover all of your losses from poor quality trades.

I have and many other veterans have been down this road before. Do yourself a favor and make the decision to not break or deviate from these simple trading rules. It will save you a ton of heartache and money. I want to see people in here making huge yearly gains and seeing how lucrative a good trading method can be.

Regarding USDCAD, the pair has actually formed a lower high on the week of 8/17, which means that it could very well form a reversal pattern. I am personally still looking for a short opportunity come Monday if I get a nice 2BR or EB on H4 and up timeframes.

Thanks krugman !

There is always a wise man to calm down the newbie’s excessive drive ! Also after a good night sleep, I decided not to take it because as we are on the weekly, it could well spent the first 2-3 weeks in the wrong direction right after having triggered the trade and that would mean less capital left for A+ setups on the daily - 4hr during this time. What I noticed is that the real A+ setups tend to move quicker in favour of the trade than the poor setups if they do at all.

Yves

[tonyro44]

NO , i did not mean before price break at all, remember just because the trade is an A+ trade does not mean that sometimes it still goes the other way for a bit, remember i said if it reverses before it reaches my S/L i’ll take another trade and cost average. I can’t understand how your success rate would drop if you did not incur any loses? and you do not enter 50 % on the next trade, you enter the same trade. All your doing really is having 2 trades on the same pair only at different entery point, most experienced traders does that anyway, the from them is that they open 2 trades right away and i do it if it reverse on me and does not hit my stop lost. I hope it was more clear this time Jakson905.
;l

Hey Tonyro!

If i get you correctly you meant that you open position before the price break your High/Low of the PA?

Just to share with you about 5 month ago me and krugman tried the your method by entering 50% of the A+ PA and the success rate of the setup drops.

A PA is ONLY valid, when the High/Low of the bar is broke and that makes it a A+ setup.

Hope this helps!

Cheers!

Jack

[jackson905]

NO , i did not mean before price break at all, remember just because the trade is an A+ trade does not mean that sometimes it still goes the other way for a bit, remember i said if it reverses before it reaches my S/L i’ll take another trade and cost average. I can’t understand how your success rate would drop if you did not incur any loses? and you do not enter 50 % on the next trade, you enter the same trade. All your doing really is having 2 trades on the same pair only at different entery point, most experienced traders does that anyway, the from them is that they open 2 trades right away and i do it if it reverse on me and does not hit my stop lost. I hope it was more clear this time Jakson905.
;l

Hey,

Thats exactly what i meant, you should not enter another trade at different entry point. The ONLY entry point should be the Break of the PA candle. The reason behind this is

1. A+ PA is only VALID when price BREAK the HIGH/LOW of the Current PA you trading

2. After the price breaks the High/Low it will have higher chance to continue.

Thats is why Johnathon wrote a long explanation for us to make sure we ONLY take the trade after the Candle breaks the previous time. I hope we dont go back to that problem again.

Yes most experienced trader may does that but it is violating the rule of this PA thread and you should follow the rules here strictly without any amendments on your own.

Im not trying to disagree for the sake of disagreeing with you, what im saying is that we’ve been through this and it simply does not work. However if you think I’m not that “experienced” enough to tell you this im sure some others like Johnathon himself will explain this more clearly

Cheers!

Jack

[tonyro44]

Well, i guess then is strictly sticking to the rules, i get it thx jacson905 :21: have a great week end.

Hey,

Thats exactly what i meant, you should not enter another trade at different entry point. The ONLY entry point should be the Break of the PA candle. The reason behind this is

1. A+ PA is only VALID when price BREAK the HIGH/LOW of the Current PA you trading

2. After the price breaks the High/Low it will have higher chance to continue.

Thats is why Johnathon wrote a long explanation for us to make sure we ONLY take the trade after the Candle breaks the previous time. I hope we dont go back to that problem again.

Yes most experienced trader may does that but it is violating the rule of this PA thread and you should follow the rules here strictly without any amendments on your own.

Im not trying to disagree for the sake of disagreeing with you, what im saying is that we’ve been through this and it simply does not work. However if you think I’m not that “experienced” enough to tell you this im sure some others like Johnathon himself will explain this more clearly

Cheers!

Jack

[jackson905]

Well, i guess then is strictly sticking to the rules, i get it thx jacson905 :21: have a great week end.

Hey you too! No hard feelings

[Klenthusiast]

Hello.

I’d like to properly introduce myself to everyone here. I am Redza from Malaysia. I have been following this thread religiously for the past several weeks and boy I’m glad I did!

I am not new to Forex but I am new to Price Action Trading. To be able to learn and get input from everyone in here is such a blessing.

I plan to be more involved with the PA analysis just like the seniors and newbies in here are doing. Should probably continue with reading the first 100 posts.

Talk soon. Have a great weekend!

Redza

[Kasravi]

Hello.

I’d like to properly introduce myself to everyone here. I am Redza from Malaysia. I have been following this thread religiously for the past several weeks and boy I’m glad I did!

I am not new to Forex but I am new to Price Action Trading. To be able to learn and get input from everyone in here is such a blessing.

I plan to be more involved with the PA analysis just like the seniors and newbies in here are doing. Should probably continue with reading the first 100 posts.

Talk soon. Have a great weekend!

Redza

Hi Redza,

Welcome to this thread.

Cheers