I’ve been looking at this tread since two days know and i’m definetly convinced about Price Action trading!
I’m 19 (live in france) and have been learning about trading for a few years now, looking forward to go live in the summer.
So i have about 2/3 months to master Price Action (at least the basics).
I will be posting here for you to criticize and correct me whenever i’m going the wrong way.
I’ll start with the silver/dollar (XAGUSD) that i spotted a few minutes ago as i just opened the (daily) graph:
You can see extremly clearly that the price is bearishing toward a SUPER STRONG HISORICAL SUPPORT (hasn’t been broken as a support yet); here’s the graph:
(Sorry for the tiny writings, hope you can still read 'em)
Great name!!! Okay so your chart looks fine. Looks like your using Pepperstone so you should have the correct candles for daily/4hr trading.
The only thing I want to say that may help you is the time frame to look at when searching for a trade. It is good and well looking for the very larghe swings and trying to trade with the very overall trend but when it comes down to it we are tarding for periods of 5-10 sessions normally.
Because of this it is important for us to get in with the medium to short trend in our favour.
I guess the best way to explain this is if I upload a chart of what I am looking for on Silver.
Hi tommy0921
Thanks for the indicator and will explore it.
I do see the merit of this indicator. I am currently using the price alert built into MT4 and find it cumbersome as the alert set cannot be viewed from the chart. There were also times when I set at the wrong value and didn’t realise it. Many thanks again!
Hi RC24
I have also recently signed up for alertfx. I like it that I can use the free service as it does not require me to keep my MT4 open. Useful stuff when I am outside and can access my email to see the alert from my smartphone
Please read this if as it is something i have been wanting to say but keep forgetting for a long time!
Yes just to add to this:
I have spoken quite a lot about [B]Alertfx.com[/B] in this thread and others and I highly recommend. I made that link clickable so people can check it out. I have not used in a while but it is awesome!
Now on something else I have been wanting to say about this and trading in general:
You can set alerts to phone or email and then by notified when doing whatever else your doing.
An indicator is okay but what you really want is to be able to move away from the charts and not have to watch them!! With indicators you have to be by your computer.
The whole goal of trading should be this in my opinion: Make as much money as possible, whist spending as little time as possible!
What tends to happen is people get the bug and before you know it everything thought is Forex and all the married people begin hearing their wives/husbands yelling at them “What on earth are you doing!”
Don’t worry I was the same but after 5 years (that’s what it took me) Forex begins to lose it’s gloss. The excitement stays but you remembers why you started and you begin looking to trade less but make more which actually goes hand in hand when trading Forex. The only thing I know in the world where less actually makes more! It’s quite funny but at the same time people get to this point in their head they will lose the need to trade all the time. Once again of course I had this at one point! The lose the need to watch their trades all day every min! (Yes me) and also manage their trade for no reason such as move to BE because they are bored.
All these tend to go! Some people don’t realise just how close they are! Because when traders get what I am saying above which plenty will EVENTUALLY they will start ,aking money consistently!
Safe trading to all. I will be updating the front page to this thread later tonight for the new people. I am going to add basic info and also instructions for what people should do when they are starting etc. I am also getting excited as some pretty key and solid setups look to be building! I am sitting on hands at moment earning interest in my high interest term deposit, just saving until I can go BANG!
Hi John ! My name is Funkylegs actually ;D (reference from a famous breakdancer: crazylegs)
Anyways, i understand what your point is, i agree with you. But still, since the price is already way far down, and closer to the historical support than the resistance, i’d personaly wait till it actually breaks or bounce’s up (with significant price confirmation)- 'cause to me, any trade so close to this kind of res/sup can not be an “A+” trade so not worth taking, worth wait and see.
Here’s the 4hr chart for SilverUSD, the indecision really stands out: (Anyone correct me if i’m wrong)
Hello Funkylegs sorry about the fat fingers (mispelling your name),
I think you have misunderstood my post. I am not advocating selling now. The example I was trying to give was of using the recent move and then trading within in. That’s why I added those blue levels. If price was to retrace to this level this would be a good example of a nice area to short and inline with the recent momentum. I hope this make better sense now.
I’m ok with trade setups, but just one question:
On the GBPNZD, didn’t you just miss the pinbar to go long? Or are you waiting for a better risk/reward setup ?(since the closed pinbar is a tiny bit too far to obtain an easy 2:1)
I’m waiting for a more obvious, decisive setup
PS: i usually have no risk/reward in mind when entering a trade; if setup looks worth entering, i set TP at what i consider the next logical S/R area
so so often I find myself trying to explain to people about Risk Reward and why they are only seeing half the equation. Traders from the very new will often say things like “Why are you entering that trade when the Risk Reward is xxx?” or “I must target a min 2/1 Risk Reward”. The funny thing is these same traders have no idea why they do it! They have heard from someone else they must target a min Risk Reward to be profitable!!
So I have tonight made an article that will explain this and why traders are working out the full equation.
I realise for some people this will be hard to read as they have it stuck in their head about these stupid rules. At the same time you can guarantee these same people never make money consistently. So read the article and think about it. Don’t just block it out because it is not what you have heard from others! If your not making money continuing doing the same things is not going to bring about a different outcome!! Your thoughts and patterns must change.
What I think it exactly where you have entered is a pretty key resistance area. For me to enter this I would have needed to see this break. It still may go higher but the % play was defintely to see this area break first.
thanks for another great article johnathon! i am glad that as a newbie i was not brainwashed by the r:r theory before finding this thread, nor any other convoluted trading method either : )
i am going about this without really paying attention to numbers just yet, but rather to the picture, so if an a+ pa setup is based mostly on how it looks, then s/l and t/p should follow suit and have a certain look as well. so far, as i am only doing single trades per pair and not multiple partial trades per pair, my s/l and t/p always seem to go in thirds. so s/l is usually one third the distance from entry, while t/p is two thirds away from entry. it’s not always exactly like this, but most of the time(i guess this is 2:1 then lol)
i did muck around with some b and c grade trades this week and paid the price but then placed a few that were more promising and all three hit t/p. just thought i would share them (the winning ones lol) to see if i’m getting on the right track. i did miss a few nice a+ this week too
1)EURNZD 4H buy order based on large-ish engulfing bar at s/r. price was merely stalling in the middle of an uptrend and not at a major swing point so i wouldn’t call this A grade but it did end up being my biggest winner of the week
2)EURCAD and CADCHF - inversely correlated pairs that showed the same setups in opposite directions. i was looking for a small retrace trade against the main trend in both cases. price formed a strong pa signal on both the daily and 4h charts for both pairs, which makes them a+ setups (yes?no?) albeit if only for a short retracement. so the pa that forms on the daily charts, is reinforced by pa on the 4h charts. both trades were open for about 22 hours and again, were triggered early in the asian session and hit t/p the next day just after new york close (not sure if any of this makes a difference, but in the other pa thread by dnb he says he tries to avoid trades that are triggered early in the asian session)
the entry was perfect regarding the pinbat but it goes in another direction and its lost. Why it was moved in oposite direction i have to analyse detailed as i am now on my cell phone.
