Forex Price Action

[dudest]

Whats the difference between just a normal s/r and a KHL?

What would characterise a KHL?

Hallo G,

KHL (key horizontal level) refers to a MAJOR S/R, as opposed to just any S/R on a chart ( in context ).

Ideally, the normal one/two S/R’s we draw on our charts are KHLs ( that’s why they are on our chart, they are the key levels )

The differentiation becomes stark especially when a chart is choppy, and there are several S/R’s on the chart, and one wants to highlight the major ones.

For example, in a ranging market, the KHL’s would be the TOP and BOTTOM of the range, with other S/R’s in between being the minor ones.

Hope that makes sense!

Cheers

PS:

I’m guessing your next question would be: how to identify KHLs (?)

And the answer to that would be:
—> the main two levels on your chart are the KHLs.
—> the STANDOUT ZONES on your chart are the KHLs

Nothing to get confused about

.

[dudest]

@dudest

You’ve learned enough to self-correct Darth :), that’s what counts!

@Silver: it may very well work out ( who knows? may explode up never to come back again! )
So just carry on with your original plan, that way you won’t have beaten yourself

Cheers!

So now the importance of staying with your plan becomes evident [ regardless of what dudest or anyone thinks about your trade ]

Cheers!

.

[dudest]

@EternalNewB

Any comments on the BEEB of GBP USD Daily ?

Pros:
Weekly gap still needs to be filled
Day closed below S/R line
Engulfing 4 previous candles
look what happened last time price broke below this level

Cons:
Low wick show supports below
I am not sure if engulfing bars can be treated as continuation (since momentum is already down for a few days)

thanks

Analysis:

A good number of times, gaps are NOT filled, so don’t count on that as a ‘confluence’

A good number times, gaps act as S/R, so the BEEB is sitting on a potential S/R

The candles prior to the BEEB have failed to close below the level --> support holding

Lastly: the area happens to be around the RN 1.5900, which if you zoom out will see has acted as S/R before ( in this case, support )

.

[EternalNewB]

@dudest

Analysis:

A good number of times, gaps are NOT filled, so don’t count on that as a ‘confluence’

A good number times, gaps act as S/R, so the BEEB is sitting on a potential S/R

The candles prior to the BEEB have failed to close below the level --> support holding

Lastly: the area happens to be around the RN 1.5900, which if you zoom out will see has acted as S/R before ( in this case, support )

.

Thank you again

I always draw my S/R lines too high or too low

[darthfrancis]

Actually the setup worked well as far as a counter-trend trade I would have expected if I took this trade myself.

Without further ado, this is what I think went wrong with your trade:

1. You entered this when the candle had not been fully mature yet, didn’t you? A big no-no. Never enter at market order, always enter at pending order. I learned this the hard way myself. :17:
2. You’re taking a counter-trend trade with that smallish pinbar as your entry bar. You’re a one brave man, Darth. But if you want to enter a CT trade, keep in mind that you need to have a much more powerful entry bar to ensure price really move to the direction you want.
3. Your TP is too ambitious. You should have identified a lower possible trouble area, maybe around the previous lower low or Round Number like 1.91000.
4. You have been losing a lot this last few days, so that should have told you that you are not ready to even go live or take any timeframe lower than Daily tf or even take another counter-trend trade setup. Please focus on Trend trade in Daily tf and higher tf at demo account for now. Keep this is mind: trend is our friend till the end.

Just my 0.00002.

Thanks you for your review. My 1st reason to enter was for the previous daily candle pb. But you learn from your mistakes and no matter how long you have been trading for you still make them as we are only human.

On a plus note my gold and silver trades hit there tp and made back all the losses I have had. So now I have learnt an important lesson and I’m no worse off.

[darthfrancis]

So now the importance of staying with your plan becomes evident [ regardless of what dudest or anyone thinks about your trade ]

<img src=“301 Moved Permanently”/>

Cheers!

.

Yep I stayed in and it hit my tp. I was also riding gold too. Yay.

Is it me or does the silver chart look like a double bottom?

[darthfrancis]

The AudCAD is climbing to the VBRN of 1.000. Looks like a great place to short. I’ll be watching this like a hawk!

[dudest]

@darthfrancis

The AudCAD is climbing to the VBRN of 1.000. Looks like a great place to short. I’ll be watching this like a hawk!

You and me buddy!

.

[dudest]

…

On a plus note my gold and silver trades hit there tp and made back all the losses I have had. So now I have learnt an important lesson and I’m no worse off.

Yep I stayed in and it hit my tp. I was also riding gold too. Yay.

Is it me or does the silver chart look like a double bottom?

Yaaaay! :35:

@double bottom: doesn’t quite look one to me… though I normally don’t place much premiums on double-bottoms and such (and don’t have them in my trading plan)…

.

[dudest]

Thank you again

I always draw my S/R lines too high or too low

Uhm, not true, your S/R’s usually look good to me!

The key here was to remember that gaps tend to act as S/R, and not mix TF’s (“weekly gap has not yet closed”). Also to see what the wicks of the previous candles were doing ( i.e, that the candles where not able to CLOSE BELOW the level )

Cheers!

[wm247]

So now [U][B]the importance of staying with your plan[/B][/U] becomes evident [ regardless of what dudest or anyone thinks about your trade ]

And if you don’t do what he said, you will make Uncle Dudest really sad.

[Kasravi]

EUR/USD 1HR PINBAR

I’m taking first profits.

Cheers

[JUAN55]

Dudest, thanks indeed for your support.
As newbie, I miss with some abreviations. Some reference guide to help me?

Hallo G,

KHL (key horizontal level) refers to a MAJOR S/R, as opposed to just any S/R on a chart ( in context ).

Ideally, the normal one/two S/R’s we draw on our charts are KHLs ( that’s why they are on our chart, they are the key levels )

The differentiation becomes stark especially when a chart is choppy, and there are several S/R’s on the chart, and one wants to highlight the major ones.

For example, in a ranging market, the KHL’s would be the TOP and BOTTOM of the range, with other S/R’s in between being the minor ones.

Hope that makes sense!

Cheers

PS:

I’m guessing your next question would be: how to identify KHLs (?)

And the answer to that would be:
—> the main two levels on your chart are the KHLs.
—> the STANDOUT ZONES on your chart are the KHLs

Nothing to get confused about

.

[Yumei]

i took profit on Gold around 120 pips. i dont plan to let the trade run too much on reversal trade

Yep I stayed in and it hit my tp. I was also riding gold too. Yay.

Is it me or does the silver chart look like a double bottom?

[Kasravi]

@Forex_School_Online

You taking this one?

Looks a solid false break pin…I am personally not taking a long, but I am hoping price does pop higher which I think it might so I can slam it back lower with a ton of short order at the overhead key daily resistance area :18: Good luck if you take this pin. I hope she pops higher for you & me so it can then go lower.

USDCHF Daily Chart

Talk of prophecies!

Good on you Johnathon, hope you pocketed plenty cash.
Or maybe you are riding it further down. nonetheless enjoy the triumph.

Cheers

[darthfrancis]

Yaaaay! :35:

@double bottom: doesn’t quite look one to me… though I normally don’t place much premiums on double-bottoms and such (and don’t have them in my trading plan)…

.

i only take it into consideration and once i got home and looked at the silver chart it didn’t look like a good double bottom to me either.

[Bobba]

@Kasravi

EUR/USD 1HR PINBAR

I’m taking first profits.

Cheers

Wow! you must have a cape and wear your pants outside your trousers! I can never seem to run a profitable trade this well. Congrats

[darthfrancis]

i took profit on Gold around 120 pips. i dont plan to let the trade run too much on reversal trade

this was actually my best trade pip wise( i know it doesn’t really matter as gain is what counts) to date on my live account
203 pips whoop whoop. lol

I might say it was a “golden trade”… heh he.:34:

[Kasravi]

Wow! you must have a cape and wear your pants outside your trousers! I can never seem to run a profitable trade this well. Congrats

Hi bobba,
Thanks
I’m more the suit and slacks/jeans type of guy.

Leaving a trade run is not difficult bobba, going BE and taking some money is,though.

Good luck to you and hope to see you post more.

Cheers

[gmatav]

@Kasravi

EUR/USD 1HR PINBAR

I’m taking first profits.

Cheers

I missed this trade because the pinbar for me was in No Mans Land, I had the support much lower, do you use Hourly SR levels or only Daily levels ?