Forex Price Action

[EternalNewB]

I wish we had allot more traders like you, for sure you are NO burden.

Not a burden, you are the one who makes this thread move forward indeed !

Thank you so much to both :8: :8:

Is my statement overall correct ?

[Kasravi]

Thanks guys,

So now that I get the concept a bit more. Can we say that with the method taught here, we can trade when trending, when ranging but better not when consolidating ?

Yes, trade with the obvious stuff.

Anything else goes into far more details and with it comes more stress and more homework to do.

Cheers

[Kasravi]

Thank you so much to both :8: :8:

Is my statement overall correct ?

Yes buddy.

You read the market correct.

Cheers

[krugman25]

Thanks guys,

So now that I get the concept a bit more. Can we say that with the method taught here, we can trade when trending, when ranging but better not when consolidating ?

I’m not sure what you mean by “when ranging but better not when consolidating”. Ranging and consolidating are really the same thing. It’s just price bouncing around in the same price region.

Here we trade reversals signals and not continuation signals. Reversal is any time price is moving in one direction and hits a key SR level and fires off a signal to show price is going to change direction. Reversals happens on a trend when price is moving in the direction of the trend and then pulls back to the last swing high or other key S/R levels. Reversals happen on a ranging pair when price reaches the high/low extremes of the range at key S/R levels. We just don’t trade continuation candles.

[bambino358]

Thank you for the kind comments! I’m not an FSO member, but I do creep around Johnathon’s website a lot, haha. It’s a one stop shop for just about everything PA you will need to know. And also have spent a tremendous amount of time digesting PA information all over the web, and applying to to my real life trading. I do think it was a trade CT traders could have taken, but I think the strength and quality of the trend was underestimated, and I personally didn’t put a lot of weight into the SR line from the candle highs around 08/12. Just from the fact that I had already written it off as noise anyways.

Hi,
this is realy high level of price action analysis :).
For me area in green box is regular higher high no noise. It is too comlicated and I think not necessary try to identifi what is noise and what not. If there was candle with huge shadows (10x bigger then previous candles) like sometimes on exotic currencies then I never take trade even if there is A+ setup but this was “normal size” (not so much bigger) if I compare it with previous candles. So for me the BEEB is formed on this level (there is confluence).
Anyway I agree with you in everything. It is definetely counter trend trade and if there is good R:R we can take it. There is no reason to think that price break through last low but it still can be R:R cca 1:3 and it is great.
123 reversal No reason to think that there is any changing in trend direction until it realy happens. Yes 123 reversal pattern is forming but still not valid.
There is 123 reversal pattern:
1.higher high
2. break through trend line and forming low
3. testing higher high
4. if price break through last low then we can say that trand change direction

[Piping_Hot]

I’m not sure what you mean by “when ranging but better not when consolidating”. Ranging and consolidating are really the same thing. It’s just price bouncing around in the same price region.

Here we trade reversals signals and not continuation signals. Reversal is any time price is moving in one direction and hits a key SR level and fires off a signal to show price is going to change direction. Reversals happens on a trend when price is moving in the direction of the trend and then pulls back to the last swing high or other key S/R levels. Reversals happen on a ranging pair when price reaches the high/low extremes of the range at key S/R levels. We just don’t trade continuation candles.

Ok, lets change it to : only trade clean trends and clean ranges without too much price stalling. Ok ?

[bigcheefer30]

A must:

EURAUD Daily Price Action Bearish Engulfing Bar | 25th Sep 2013 - Forex School Online

Look @ that chart.

[Elunar]

As a rule of thumb, a pending order gets invalidated once the High or low of your setup gets taken out.

In the case of USD/CAD Weekly pin bar, your pending order is invalid once the low of the pin gets breached.
Folks Remember that is a weekly setup, it might take one or two candles to get triggered and many more to reach your TP.
So if you don’t have the nerves or cannot spare your margin on such a possible long trade ,now listen

KEEP YOUR HANDS OF IT!

It is a high probability setup and it might get triggered very soon and it might take an 1 hour candle to run the 100yards.
But nothing is set.

Hope that helps.

Cheers.

Thx mate for the clear answer. I like the waiting game so ill keep pending order in as long as the setup keeps valid

[Kasravi]

Consolidation is not Ranging!

Ranging is a market structure where price is not making any new highs or lows and is simply bouncing between a support and resistance.

Consolidation however, also known as winding up(a term many times used by good Johnathon), is where price is building momentum to break out. You may see it shrinking at the end sometimes before it explodes.

Johnathon has explained those terms in more detail throughout this thread.

Cheers

Just thought to repost it as a reminder.

cheers

[krugman25]

[QUOTE=“Piping Hot;540773”] Ok, lets change it to : only trade clean trends and clean ranges without too much price stalling. Ok ?[/QUOTE]

Haha, works for me. I just want to make sure no one thinks they aren’t allows to trade ranges, because we can and that’s what most of our trades will be.

[Piping_Hot]

Ok, I really want to use this discussion to bring up something. I never dared to post such a mess before but I really need to concept check.

This is how I see it and really, if you could confirm I am thinking the right way, I will remember all of you who participated to this answer and I will invite you on my private island if I get a chance to own one in the future thanks to me forex income. (A bit of dreaming sometimes in all this discipline won’t harm.)

Basically, I always check for these 1-2-3 patterns and define where a PA signal would have to happen to be a good setup (orange circles). Once the pattern is broken (dotted lines showing where it should have gone) I start a new pattern again and again. So in this particular exemple (EUR/USD Daily) there were 2 finished patterns and 3 broken ones. If PA signals had happened there, they would have been good setups to take.

Am I right ?

Many thanks, this is really key for me, and maybe for many of you.

Yves

[Kasravi]

I don’t have access to my tools now,but there are many more places I would have looked for setups.

Cheers

[EternalNewB]

A must:

EURAUD Daily Price Action Bearish Engulfing Bar | 25th Sep 2013 - Forex School Online

Look @ that chart.

There is one piece of info in this article I don’t understand why we want the BEEB to happen at a swing high and not a swing low ?

[krugman25]

[QUOTE=“Piping Hot;540792”]Ok, I really want to use this discussion to bring up something. I never dared to post such a mess before but I really need to concept check. This is how I see it and really, if you could confirm I am thinking the right way, I will remember all of you who participated to this answer and I will invite you on my private island if I get a chance to own one in the future thanks to me forex income. (A bit of dreaming sometimes in all this discipline won’t harm.) Basically, I always check for these 1-2-3 patterns and define where a PA signal would have to happen to be a good setup (orange circles). Once the pattern is broken (dotted lines showing where it should have gone) I start a new pattern again and again. So in this particular exemple (EUR/USD Daily) there were 2 finished patterns and 3 broken ones. If PA signals had happened there, they would have been good setups to take. Am I right ? <img src=“301 Moved Permanently”/> Many thanks, this is really key for me, and maybe for many of you. Yves[/QUOTE]

I can see where this is going. I wasn’t intending to start a 1-2-3 discussion or teach how to identify them. I was just giving a brief commentary on what was mentioned earlier. This is not the place to try and identify 1-2-3 patterns, or learn more about them. Although I know it is wide open for discussion and learning over at FSO for members.

Sorry if it triggered an unwanted bunny trail, please let’s get back on topic.

[buster48]

Here"s a nice little memory aid I found that might be useful
to those of us that use pending orders,I can never remember and it helps me ,so might help others

[krugman25]

There is one piece of info in this article I don’t understand why we want the BEEB to happen at a swing high and not a swing low ?

Of course you want a BEEB at a swing high, that’s always been the case. When price rises up to a resistance level you are looking for bearish price action for the price reversal.

[Piping_Hot]

I can see where this is going. I wasn’t intending to start a 1-2-3 discussion or teach how to identify them. I was just giving a brief commentary on what was mentioned earlier. This is not the place to discuss the technicals of 1-2-3 patterns, or learn more about them. Although I know it is wide open for discussion and learning over at FSO.

Sorry if it triggered an unwanted bunny trail, please let’s get back on topic.

Up to you, we gonna miss you on the island though ! Seriously, I understand this thread’s frame is important and I respect that. But these could as well be simply seen as retracements that respect or break supports and resistances. We did get thaught to look for PA signals at these particular levels as they happen to form points from which we draw or srlines. The only new thing really is to learn to identify when to look for bearish or bullish signals once price reaches these levels. Hope I make sense…

[bambino358]

Ok this could be helpfull

[EternalNewB]

Of course you want a BEEB at a swing high, that’s always been the case. When price rises up to a resistance level you are looking for bearish price action for the price reversal.

can you please share a chart so i can better see it ?

[EternalNewB]

Ok this could be helpfull

WoW I was working on something similar just today !!!

But ok mine is childish play now

Thank you

Maybe others will chime in on potentially missing parts and we can have a common flow-chart ?