BC is talking about that big bullish candle a few candles ago, which is an Inside bar, because it houses the next 2 candles.(in other words the 2 candles after that big bullish one are both within it’s price range, and that is called an Inside bar).
It is an indication that the market is indecisive and a break out is imminent.However we don’t trade Inside bars(IB), rather use them to read the price action story.
Now to A+ setups.
I wouldn’t say one setup is A,B- or F. I mean where does it stop?
It either is just a setup or emerges as an A+ setup after fine tuning.
That A+ is really metaphoric since it is a Forex school after all.
The problem with Usd/Cad is or was, that on some platforms it didn’t close within prev. candle rendering it useless, not a setup at all. As Dudest said, he would take it if it did close correctly on his platform. Hence it comes down to you.
Speaking of A+ setups, Kasravi has a good point here. We at FSO actually never really use that grade classification, except for the A+ setups. It’s just a simple metaphor that your trade fits the very strict requirement from Johnathon’s PA analysis. Virtually all the time, your setup is either A+ or [B]NOT[/B] A+.
Some traders play with this setup and set their own criteria, which one is B setup, which one is C setup, etc. But that’s really not important and practically irrelevant. What you really need to know is to follow Johnathon’s PA criteria to the periods, and you will easily see that either your setup is A+ setup, or [B]NOT[/B] A+ setup at all.
About the success rate, it also depends on the trader him/herself. Johnathon never really said that A+ setup will have success rate of 85% or 90%, but it will definitely work most of the time if you are consistent with your A+ trade setup criteria. I may have confused you when I said in the past that A+ setup could have success rate of 70% - 90%, but then again it really depends on how strict the traders set their requirement for A+ setups. There is no exact number for sure, but it is definitely higher than 50%. The rule of thumb here is that the higher you stack your edge (and thus the success rate of your trade) in your favor, the less often you will see your A+ trade setups.
Krugman, if I’m not mistaken, once argued that some traders here seem to favor A++++++++++ setups over A+ setups. That’s another way to say what I’m trying to explain in the previous paragraph.
[QUOTE=“wm247;537983”]Speaking of A+ setups, Kasravi has a good point here. We at FSO actually never really use that grade classification, except for the A+ setups. It’s just a simple metaphor that your trade fits the very strict requirement from Johnathon’s PA analysis. Virtually all the time, your setup is either A+ or NOT A+.
Some traders play with this setup and set their own criteria, which one is B setup, which one is C setup, etc. But that’s really not important and practically irrelevant. What you really need to know is to follow Johnathon’s PA criteria to the periods, and you will easily see that either your setup is A+ setup, or NOT A+ setup at all.
About the success rate, it also depends on the trader him/herself. Johnathon never really said that A+ setup will have success rate of 85% or 90%, but it will definitely work most of the time if you are consistent with your A+ trade setup criteria. I may have confused you when I said in the past that A+ setup could have success rate of 70% - 90%, but then again it really depends on how strict the traders set their requirement for A+ setups. There is no exact number for sure, but it is definitely higher than 50%. The rule of thumb here is that the higher you stack your edge (and thus the success rate of your trade) in your favor, the less often you will see your A+ trade setups.
Krugman, if I’m not mistaken, once argued that some traders here seem to favor A++++++++++ setups over A+ setups. That’s another way to say what I’m trying to explain in the previous paragraph.
Cheers!
[/QUOTE]
I think the “grade” of a setup is majorly subjective as well. What one sees as a high probability setup on their charts, another may see a no trade situation. So, labeling it and trying to generalize may not work. Interpreting a chart is a subjective experience.
other usd pairs have some strong resistances (like usdjpy vbrn 100 ahead),
I think Im gonna take it @1.0344(first top high) still with R:R 1:1.2, sl move to BE @1.0372, Final TP @1.0547.
What do You guys think? Challange me, show me that its not A+ PA, i had some mistakes recently so if u can maybe save me some money that would be great
no major data this week,-------------------we don’t care about that unless it’s just right in the NFP announcment
Cons:
D3 so can take some time to play out,
weekly pinbar not closed within previous candle,-----------you don’t want to compare your other timeframes,it’s an analysis killer.
other usd pairs have some strong resistances (like usdjpy vbrn 100 ahead),--------no need to look at other correlated pairs, in the end it comes down to what happens only in the pair you’re trading. I mean you are not going to buy Aud/Usd because there is a good signal on Eur/Usd either.
All in all I believe it’s a neat setup.In addition Johnathon mentioned yesterday that he’ll drop by and give insight on the setups too.
I add major data to my check book because of sudden spikes which they often generate and it can hit your stop loss and go back in the right direction but im concernd with it only if price is near the sl and data annouce happen.
I am aware that comparing other timeframes can be an analysis killer but i decided to put it there because of the hot discussion in recent posts, and i wanted You to know that im aware of it :).
I like to look on other pairs for a little confirmation - if the setup is occuring on all the usd pairs in better or worse way i know that it is very strong.
Hello I am about to put an order on this trade however I wonder how you calculated you R/R for me it is < 1 since SL 168 pips down but first TP is at 98 pips.
Unless you are calculating based on second TP but, for me, it doesn’t make sense since after first TP is hit I am in the market at zero risk so basically my risk is it goes up 98 pips or down 168…
For me its Final Tp vs SL, i calculate this in that way because resistance’s ahead are not that significant (only 2 tops, for me significant is 3+). And its like 220(TP) vs 170 (SL), and after first 40 pips i have free trade.
You made a great point that an A+ setup is really another way of saying “a setup that fits the criteria for this PA trading method”. And then there are certain trades within the criteria that are simply better than others. Maybe it has a better RR , less traffic or larger more defined candles. So I think there is a range of quality of trades that fall within the criteria, but the simple fact they fit in the criteria to begin with makes them high quality.
Regarding the A+++ comment, I think there are trades that fall within the requirements of this method, but people pass on them because they aren’t absolutely perfect in every way. You also don’t want to get in the other ditch of taking poor quality trades and sacrificing profit. It just takes time learning what trades actually have an edge, and what ones don’t.
The other thing that determines your win rate is trade management. I had a good online friend and we were taking almost all of the same trades, but I was winning more than he was and taking more profit from each trade because I was managing the trade better. Getting a good signal is only half the battle, managing the trade is the other.
[QUOTE=“EternalNewB;538100”] always a pleasure to read your comments. Can you give us a bit more insights about the “management” part even if it is a bit off topic ? thanks[/QUOTE]
Trade management is everything you do after you click the “submit” button and place your order. That includes where you place stops, how you move stops, taking profit, etc. I think it also has to do with your mental state and how winning or losing causes you to take certain actions on your positions. I know a volume of information could be written about the topic, so I won’t get into it here. Johnathon over at Forex School Online had already compiled a lot of trade management learning material. So that’s one place to go to learn more.
]