I did not think it would take me so long to get it up, but I had some real struggles! The forum was not letting me put it up at all and then had to reformat it and cut it and all sort of problems. I have now had to leave a lot of it out, but IT IS NOW UP!
If you are wondering what I am talking about; The thread guide! It is now complete and finished and up on the front page! and you can see it here: 301 Moved Permanently
It is pretty mammoth and well done to Dudest and I am now heading out and will be back in later tonight.
To me that doesnāt look like a pin bar, the lower shadow is far too long for you to take the trade. I also might be wrong about this, but the area preceding the PA signal seems to be very choppy, meaning that this does not constitute an āA+ Tradeā. Personally I wouldnāt trade this set up for those reasons.
[The beauty of forums where people help people just for the sake passing on knowledgeā¦ It really makes you want to give back to the community as much as possible!]
Btw Iāve already used the links on the first page, thanks Johnathon and Dudest!
market is open for another week! :35: Letās make some money!
The Forex market is quite good at the moment. Just a few months ago we could not say that. Price was very slow and was trading sideways. This can be very boring, but at the moment, most pairs are moving quite solidly even in their ranges and as long as they move they provide chances to make trades.
The first pair is the GBPUSD. Clearly in a range or consolidation on the daily chart at the moment. The reason I bring this pair up is not only am I watching this closely is because this is the type of market that can and will suck a lot of traders in by making trades in the middle of the consolidation. We had the clear up-trend in play and then price moves into consolidation. We see this pattern on all charts time and time again. Price makes a move and then pauses, price then continues. What we donāt want to get caught out is making trades in the middle of this range or consolidation. We either want to make a short from the high or a long from the low or we want to wait for the break in either direction and trade that direction, but not in the middle.
There are plenty of charts that looks similar to this, but not exactly so traders can go through as use this same method. AUDNZD daily is similar, GBPAUD daily is similar etc etc
The time when you avoid a range and itās better to not make a trade is when the levels are not clear and price is not moving in either direction for sustained periods. A perfect example at the moment is the USDJPY daily chart. Trading that chart at the moment would be a waste of time because it would be very risky for not much reward. The chart shows how price is not moving either higher or lower for long at all which makes it hard to make money and there are no real clear levels. This is when it is best to leave well along and flick to the next chart. It must be said that traders should be watching VERY closely to the USDJPY because it is getting very close to exploding. It has been winding up and winding up and the longer it goes on the bigger the explosion will be.
What a fantastic effort by you both on the thread guide. The mammoth effort required really is mind boggling. You have just pulled together truly one of the best learning tools anybody can have to learn PA trading.:35::35::35:
Itās now up to us to use it the best we can.:53:
Only reason I didnāt take it was because of WHERE it was formed, i.e above a level near RN 0.8700 that has been relevant recently, and that could cause a downward move to struggle.
Had the pin closed BELOW this level ( thus making it a BEEB ), Iād have been all over it.
Notice how on the same chart today a technically incorrect BEEB formed. That setup never materialised, it would have miserably failed anyway. Good on me for following the rules by the letter and not entering that trade!
Also two questions for the more experienced traders in relation to the fact that PA based trades often stay open for days or even weeks at a time:
if you are already in one, two or more trades and you see a big PA signal at a perfect level with great potential etc, would you take it? What is your maximum limit of trades open at any given time?
how do you take into account, if at all, the daily interest rates charged or credited to your account depending on your position?
As dudest already mentioned there is a BRN under that pinbar that acts as a trouble maker. Even such a massive pinbar wasnāt able to rush through it,atleast not at first attempt.
Levels like that might not be significant at first sight but still counts as noise and adds to the risk taking. As for now price may still reverse but that trade unfortunately doesnāt seem to fall under the A+ setups category.
Thanks very much for your answers, however re my first question I meant to ask about a case in which you already had a couple of trades that had been open, say, a week earlier and had not yet reached your TP levels and at that point an A+ setup (unrelated) presents itself: do you strictly stick to your maximum risk exposure or do you take the A+ setup anyway? I donāt believe this has been asked or answered in this thread yet.
My bad, missed Dudestās postā¦ Apologies. Again, thank you for your reply.
