Forex Price Action

[eignerdauL]

Hey ED

Hope that candle closes great for you! ( and us! )

@FTA:
Suggestion: would you consider adding to your pre-trade plan exactly what you intend to do when price gets to FTA? And maybe list a number of adverse scenarios that you could foresee and how you intend to deal with them if they occur?

[ assuming the candle closes as you wish ]

Cheers

These opportunities are valid for me:

1. When Price struggles at FTA for mor than 2 days I will take full Profit

2. When Price can manage to to break through FTA I will let the trade run and move my stop to FTA-level when Price is about 25 pips above FTA

3. When a CT Signal is occuring at FTA I will Close the trade

Hope this makes sense and helps.

regards

[bigcheefer30]

Hey ED

Hope that candle closes great for you! ( and us! )

@FTA:
Suggestion: would you consider adding to your pre-trade plan exactly what you intend to do when price gets to FTA? And maybe list a number of adverse scenarios that you could foresee and how you intend to deal with them if they occur?

[ assuming the candle closes as you wish ]

Cheers

So here’s something I have a question on, since the topic was brought up. I was having some trouble managing a trade in MT4 and trying to see how others are able to work around this.

When the first TP is hit, we like to move to BE (not always, but I’d argue the majority of times). Other than staring at your position and waiting for the target area to be hit, how are you managing the trade?

Here’s how I see it:
-Option 1: Order gets filled for .1 lot. Watch charts until FTA is hit, manually close out half the position, and manually move SL to BE.
-Option 2: Set two pending orders. 1 with TP @ FTA, and the other with TP at 2nd target area. Watch charts until 1st TP is hit, then manually move SL to BE.

What is option 3? You can’t create a complex order in MT4 to “close half position @ level x, and then move SL to BE”. I was thinking, set 2 pending orders as described in option 2. Then, find a service that can email you a price alert. Set the price alert just under your first target area, so you get an email when your TP1 is hit. Then, you can fire up MT4 and move your stop manually. A bit off topic, but, I think it’s critical to understand how to do this so we don’t stare at our position and start fidgeting with Stops / TPs.

[wm247]

Hi Krugman,

please CMIIW, but aren’t you overly managing your trade at this point? As the USDNOK is at Weekly chart, and only 4 days have passed so far, don’t you think you worry too much at this point?

The analogy is like when taking a trade from D1 chart, you’re moving all your BE and TP after only several hours have passed and the next D1 candle is not mature yet, and we agree in the past that that is not a good trade habit to do.

Sorry, I actually did miss that! This forums moves so fast some of these slip past me. I have already moved to break even. I moved it there last night. In this case my TP is 6.1000, but I moved up to BE yesterday when I was up the 800 pips.

I don’t always do the standard TP1, 2, 3 and move to BE at TP1, which is kind of the default trade management method and the easiest to do. But I will sometimes move to BE earlier based on price action or if I deem the trade as extra risky. And I don’t always have TP areas. I will sometimes keep my whole position open as it moves through SR levels, or I will pyramid up my position on fresh price action. Both have extra risk involved.

[dudest]

Totally agree I just need guidance to learn how to set such a plan…

I learned how to set the the different TP and move to BE or trail the SL etc… but all this is after FTA is reached

In that trade price reversed on me before FTA something I wasn’t prepare for and, if I was on a live account, I guess I would have panicked and closed it to secure some traffic.

Since I was on demo i kept cool and just moved my SL to BE

So I was wondering what senior members do in their trade management…

For me it is a whole learning process

Hallo EB,

No worries, it’s a learning process for everyone! [ everyone was a newbie once ]

W.r.t to what to do at FTA: It’s not magic, there’s no template or anything.

The same way you set TPs ( you anticipate that price has a high probability of getting somewhere ), is the same way you evaluate and say “when price gets to point A, I will do xxxxxx”. “If scenario yyyy occurs, i will close trade/move SL/etc etc”

Notice it’s a journalling convo. If you haven’t already, start a journal ( I personally use Evernote, pretty kul ) and have your own template that you fill in before entering a trade ( entry, sl, tp(s), fta, what to do at fta, outcome, etc ). Within no time, your mind will not think it strange to plan for FTA, and will be more flexible when something unexpected comes up.

Hope that helps; holla back if it doesn’t.

Cheers

[dudest]

Hey Dudest

Thanks ever so much for the help here, hopefully you can set me straight if I’m wrong. So I see it as being at a swing low but indeed traffic is pretty close by above and would be against the trend. Would this be correct?

Ahhhh sorry Dudest that should have said with the trend, just looking at this from my mobile and probably should have waited until I got back to base.

Hey BA!

I agree that it’s with the medium-term trend since it’s a bullish signal ( rejection of support )

I agree that traffic (aka chop aka trouble areas aka candle lows that could form minor resistance) is pretty close by

I don’t think it’s at swing low. The high of the candle is right up there with the previous candle highs. A better setup would be one where the candle’s body is at the support, with the tail sticking out (false break of support).

Hope that makes sense

Cheers

.

[krugman25]

Hi Krugman,

please CMIIW, but aren’t you overly managing your trade at this point? As the USDNOK is at Weekly chart, and only 4 days have passed so far, don’t you think you worry too much at this point?

The analogy is like when taking a trade from D1 chart, you’re moving all your BE and TP after only several hours have passed and the next D1 candle is not mature yet, and we agree in the past that that is not a good trade habit to do.

I would disagree that it is overtrading. Moving a SL to BE is something you will always do, I am just doing it before it reaches my TP. As I said earlier I don’t always do the exact same thing on every trade(I.E. 3 Take Profits and SL to BE on TP1). It all depends on the chart setup and my perceived risk of the trade. It sometimes gets me out of trades early, on the other hand I don’t take losses very often. I believe Dudest mentioned a few posts ago he will also sometimes move to BE before TP1. I imagine for the same reasons that I do. Although I only do this with confidence after reading price action and trading for years.

[bigcheefer30]

I would disagree that it is overtrading. Moving a SL to BE is something you will always do, I am just doing it before it reaches my TP. As I said earlier I don’t always do the exact same thing on every trade(I.E. 3 Take Profits and SL to BE on TP1). It all depends on the chart setup and my perceived risk of the trade. It sometimes gets me out of trades early, on the other hand I don’t take losses very often. Like Dudest mentioned in a previous post, if there is price action against my trade at an important level, I will deviate from my premade plan, if I think it will help maximize profits and minimize losses. Although I only do this with confidence after reading price action and trading for years.

Can you please post the chart for the USDNOK trade? My broker doesn’t offer this pair and I’d like to see. Thanks in advance…

-BC

[krugman25]

Can you please post the chart for the USDNOK trade? My broker doesn’t offer this pair and I’d like to see. Thanks in advance…

-BC

#12914

http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-646.html

[fazliy]

this is a daily chart for nzd/jpy, if a bullish 2 bar reversal formed at the arrow, is it ok to long?

[Pips_Ahoy]

If someone say that you should trade 1D charts for 3 months and if you are profitable you should try real money i can’t agree with that.

i agree with you on this. 3-5 a+ daily chart setups per month with some weeks going without a trade (this according to the master) is just not going to happen for someone new to this. it’s not cut and dry that newbie and seasoned trader alike will catch all of these trades together, adding to this people’s daily routine etc will also mean missing some of these important opportunities

most of the time it’s a matter of the newbie catching the trade but getting stopped out while the experienced trader will catch it and make profit. the losing trader will be affected psychologically from the loss which further impedes progress

for many newbs it will take more than 3 months before going live. i think this goes for most trading methods?

[Pips_Ahoy]

throwing myself under the bus here…i realize he says 3 months profitable, not just three months…

just relating my experience with this method (it’s not so easy for everyone)

[krugman25]

I would personally have to pass on this trade. There was a price gap on 04/05, and this area acted as support for the next 6 weeks. I am personally watching for price pull back to 80.00 where there is another significant support level.

[Kasravi]

i agree with you on this. 3-5 a+ daily chart setups per month with some weeks going without a trade (this according to the master) is just not going to happen for someone new to this. it’s not cut and dry that newbie and seasoned trader alike will catch all of these trades together, adding to this people’s daily routine etc will also mean missing some of these important opportunities

You got a very good point there Ahoy.
That is where a new trader needs to run the extra mile!
We are all big guys and gals,we gotta do our homework and jump when opportunity presents itself. For some these opportunities will come rarely but in a an obvious setup.

The seasoned trader will trade more than the less experienced fella. But you always got to remember they also started out as a newbie and had to sit out sometimes while the rest were cleaning up,and there is nothing wrong with that.

If I remember it right lately Krugman said that ,this system is SIMPLE but not EASY. Your edge dictates you to only take the very best of setups.(if anyone feels they genuinly cannot identify a good setup then there is more studying to do).
Bottom line is that a trader got to be disciplined ,anyone who lacks in that should seriously put much more effort in that and not underestimate the lack of it!

Cheers

[Mr_B_A_Barracus]

Hey BA!

I agree that it’s with the medium-term trend since it’s a bullish signal ( rejection of support )

I agree that traffic (aka chop aka trouble areas aka candle lows that could form minor resistance) is pretty close by

I don’t think it’s at swing low. The high of the candle is right up there with the previous candle highs. A better setup would be one where the candle’s body is at the support, with the tail sticking out (false break of support).

Hope that makes sense

Cheers

.

Thank you Dudest, that makes complete sense. I need to work more on figuring out my swing lows and swing highs better, I think I am slowly starting to grasp the concepts but learning this way (On the job so to speak) helps me very much. I really appreciate your feedback because I know from starting at the beginning of this thread that you are the real deal Dudest!!!

Many thanks again!!

BA

[bambino358]

i agree with you on this. 3-5 a+ daily chart setups per month with some weeks going without a trade (this according to the master) is just not going to happen for someone new to this. it’s not cut and dry that newbie and seasoned trader alike will catch all of these trades together, adding to this people’s daily routine etc will also mean missing some of these important opportunities

most of the time it’s a matter of the newbie catching the trade but getting stopped out while the experienced trader will catch it and make profit. the losing trader will be affected psychologically from the loss which further impedes progress

for many newbs it will take more than 3 months before going live. i think this goes for most trading methods?

Sorry
Don’t want to discuss about it anymore.
From now i will post only my potential entry signals.
Right now I don’t feel experienced enough to give advice anyone.
What I wrote was only my opinion and I could keep it to myself. It was out of this thread and I make only mess here. That was unnecessary.
There is so many new forex traders and they are like blank book I don’t want to write crap and give them bad habits.
Cheers

[marketdeal]

@dudest

Hey boynep!

I’m stalking that area as well for shorts!

My level is slightly higher than yours. I think the pin is small and not trade-able.

Let’s see what today/next few days brings

Cheers

.

Why do you want to trade into the BRN of 1.2500?

[bigcheefer30]

@marketdeal

Why do you want to trade into the BRN of 1.2500?

1.25 really hasn’t played a critical role for this pair the last 6 months. Put a line there, and zoom your chart out. Just because there is a big round number in your way, doesn’t mean that price will stall there every time. We look to the past as to how price acted around certain levels, and expect it to act similarly again- This, coupled with signals, and the overall story being told, gives us the edge and higher probability setups. I’d argue that 1.24 is more significant than 1.25.

[krugman25]

Why do you want to trade into the BRN of 1.2500?

With proper trade management, I don’t see the problem. Also are you just saying avoid it because it is a BRN, or do you have price action at that level to back it up as potential problem area?

[jackson905]

@Pips_Ahoy

throwing myself under the bus here…i realize he says 3 months profitable, not just three months…

just relating my experience with this method (it’s not so easy for everyone)

Hi, just like to share some of my views/experiences here as well.

This thread is a GEM.

New forex traders may not see it because when they just entered the world of forex, their mindset is very immature, all they can think is that there are easy money in forex. However after some time in this place, do you guys(seniors) still think that money will be earned very quickly and within few months you will be one of the billionaires driving Lamborghini down the street? Certainly not.
I remember when i just started about 2 years + ago, i dreams about “Hey, when price go up, i can buy and when it retraces, i can sell and take every dollar i can earn”, also i will use my calculator and try to do compounding the amount of money i put in live which was 500USD then, and dreaming that about 5 years im a Billionaire, it felt good.

That was total BULL**** when i think back now.

So when newbies met this type of PA methods, they wouldn’t want to stay because why? They have to wait weeks to take 1 or 2 setups and they think this method is holding them back as they can make more using other indicators and enter 100 times a day and win lots of money.

When these traders finally settle down and start to really focus in studying forex, read forex related books, finish babypips school and had experiences of getting account blown out, they start to grow up(of course not everyone grow up this way but i did). The more they read, the more experience they had, they will realise one day that to be successful in forex, you have to really treat it as a business. When they think back, they will not understand why they were even in live trading then with the knowledge they have now. This is when they finally learn the truth about forex trading.

After these encounters in forex trading and THEN if they are LUCKY enough to stumble on this GEM and study it thoroughly, they then can understand what HIGH PROBABILITY setup truly meant, what A+ setup truly meant.

Yeah, 3 months of demo in my opinion is definitely not enough to be gd in this PA trading, thats why i spend half a year only trading Daily A+ PA signals and still counting. Trust me it is worth the training.

I dont know if i was typing to answer your comments but the words just came out. Also, please spare my bad english it is not my main,so it probably has lot of grammar, sentence structure etc issues(anyone english teacher here? haha).

Anw, im saying this thread is not someone who stumble on it and immediately will know that its truly a good thread but certain experiences, basic knowledge need to be acquired before you continue this. So if you think you just started and really doesnt have much clue what forex is about yet, go to babpips school and complete it.Also, read as much as books you can find and finally come back to this thread again( of course you can continue to study this while studying other basic stuff), you will realise you are one more step near success.

Just have a leap of faith (Prison break anyone?)

Ok, lets get some chart out as there are many possible A+ setups forming on Daily(in 2 hours time). Come in waves rmb?

Sweet A+ if it close like this! but i wont be taking as im in another EUR pair trade.

A little push up above my Resistant line and close like that, its gonna be a sweet A+ babe as well!

Currently in range, the body needs to close above the previous body to be a valid signal.

Add On:

If the Price close higher, it will be a nice A+ pin bar to go long!

Look out guys!

Jack

P.S.
Volatility Patterns for Day Traders and Scalpers by Chris Lori - YouTube

This video is about how a successful trader develops. Just have to watch finish the front part and you can ignore the teaching at the back.

[bigcheefer30]

@jackson905

Hi, just like to share some of my views/experiences here as well.

This thread is a GEM.

New forex traders may not see it because when they just entered the world of forex, their mindset is very immature, all they can think is that there are easy money in forex. However after some time in this place, do you guys(seniors) still think that money will be earned very quickly and within few months you will be one of the billionaires driving Lamborghini down the street? Certainly not.
I remember when i just started about 2 years + ago, i dreams about “Hey, when price go up, i can buy and when it retraces, i can sell and take every dollar i can earn”, also i will use my calculator and try to do compounding the amount of money i put in live which was 500USD then, and dreaming that about 5 years im a Billionaire, it felt good.

That was total BULL**** when i think back now.

So when newbies met this type of PA methods, they wouldn’t want to stay because why? They have to wait weeks to take 1 or 2 setups and they think this method is holding them back as they can make more using other indicators and enter 100 times a day and win lots of money.

When these traders finally settle down and start to really focus in studying forex, read forex related books, finish babypips school and had experiences of getting account blown out, they start to grow up(of course not everyone grow up this way but i did). The more they read, the more experience they had, they will realise one day that to be successful in forex, you have to really treat it as a business. When they think back, they will not understand why they were even in live trading then with the knowledge they have now. This is when they finally learn the truth about forex trading.

After these encounters in forex trading and THEN if they are LUCKY enough to stumble on this GEM and study it thoroughly, they then can understand what HIGH PROBABILITY setup truly meant, what A+ setup truly meant.

Yeah, 3 months of demo in my opinion is definitely not enough to be gd in this PA trading, thats why i spend half a year only trading Daily A+ PA signals and still counting. Trust me it is worth the training.

I dont know if i was typing to answer your comments but the words just came out. Also, please spare my bad english it is not my main,so it probably has lot of grammar, sentence structure etc issues(anyone english teacher here? haha).

Anw, im saying this thread is not someone who stumble on it and immediately will know that its truly a good thread but certain experiences, basic knowledge need to be acquired before you continue this. So if you think you just started and really doesnt have much clue what forex is about yet, go to babpips school and complete it.Also, read as much as books you can find and finally come back to this thread again( of course you can continue to study this while studying other basic stuff), you will realise you are one more step near success.

Just have a leap of faith (Prison break anyone?)

Ok, lets get some chart out as there are many possible A+ setups forming on Daily(in 2 hours time). Come in waves rmb?

Sweet A+ if it close like this! but i wont be taking as im in another EUR pair trade.

A little push up above my Resistant line and close like that, its gonna be a sweet A+ babe as well!

Currently in range, the body needs to close above the previous body to be a valid signal.

Add On:

If the Price close higher, it will be a nice A+ pin bar to go long!

Look out guys!

Jack

P.S.
Volatility Patterns for Day Traders and Scalpers by Chris Lori - YouTube

This video is about how a successful trader develops. Just have to watch finish the front part and you can ignore the teaching at the back.

EURNZD- Trading into 1.62558 zone

CADJPY- Trading into 96.22 zone

Broker doesn’t offer NZDCHF- but it looks like price sold off pretty hard at that swing high so I’d be careful.

NZDJPY- Look left. There was recent strong movement upwards, but look how deep price retraced since that last swing high (almost 100%). Buyers stepped in, but I think there is chop off to the left where things can get dicey.