thanks guys, a lot of feedback on this. would i be correct in saying that, assuming this bar closes as either a PB or a BEEB, the consensus is that we are in a downtrend and this is possibly a trade you would look at shorting?
In the spirit of keeping things simple: when price starts breaking flip zones in the reverse direction ( e.g swing was up, but price has fallen and broken old support --> new resistance ), I start looking for trades in the direction of the new most recent swing.
So where price is currently, I am looking for shorts. If the current candle closes as a BEEB (and under that minor support to the left), I will consider taking it.
I have just had a good look at the numerous daily BEEBās that formed today (EURUSD, AUDCAD, AUDJPY, EURJPY, and so on) and also the BUEB on USDCHF. My opinion is that they are all trading into support areas and therefore I am not going to consider them A+ setups.
In the example of EURUSD D1 I think that by taking that BEEB as an A+ PA signal you would trade straight into the S/R area at the BRN 1.34, did you end up taking the trade?
out of the eurjpy and eurusd i prefered the jpy. the level it bounced off seemed more solid. I think both pairs have a battle on there hands to go lower. But I think they can do it.
Completely agree with you. EURJPY seems like a more solid setup than the EURUSD, I also agree with having an entry price past any BRN or strong S/R level close by in order to avoid any nasty surprise.
Only thing I would consider doing is to take a quick profit at the FTA and let a small portion of the position run.
Good luck with this trade, Darth and anyone else whoās in it!
PS Iāve decided to join Jonathonās course within the next few days to get to the next level with my trading! Exciting times ahead!
every nice BEEB was formed, but the price go ahead to a big support, do you think it is safe to take it? if we wait price go through this level, it must be too close to TP1, also the stop loss will be quite big
I think your levels are correct. I would pass for this reason too. As per FSO rules you wouldnāt be triggered into this trade yet (if you were taking it.)
I hoped it would close just past the minor support. Obviously some ābig moneyā did not get the memo!, and it went almost all the way to 1.3400!
Overall, I think itās still a super BEEB, with the only major -ve being that entry is straight into 1.3400 area. Given the size of the PA though (and overall story), I wonāt be surprised if today forms some sort of pin/doji before price finds its way down. This one is great for the learning!
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@EURJPY:
The EURJPY has also thrown up a fantastic BEEB [ though @sachithgh: I donāt get a BEEB when I use period converter to give D2 chart ].
My two concerns with EURJPY are that the BEEB and prior candle have formed a higher high, and that FTA is pretty close.
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IMHO, when PA is A+ and, after your analysis, the PA story checks out, and the only main -ve is that FTA is close: itās still OK to take the trade SO LONG AS YOU ARE AWARE of the close FTA and MANAGE THE TRADE APPROPRIATELY (tightly) at that level.
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That said, Iāve having a go at the EURUSD and NZDJPY BEEBs. Trading both as RANGE TRADES and managing both very tightly given where Iāve seen the FTAs at.
I understand fully that some will choose to stay out of (esp) the EURUSD and EURJPY, and those would be good calls as well. This is where it comes down to trader preference & uniqueness.
I have set a short pending order just below that 1.3400 S/R level at 1.3391 hoping that it will continue down once it passes through it, with a T/P at 1.3320.
The Eur/Usd on 4hrs is forming a BUEB (well, not closed yet), but it seem to me that the pair is going back to where it started this week at Fibo 50% around 1.357. The bearish move was just as a result and reaction of market volitality in the last days.
100% agree, dudest. Just like Warren Buffet once said, āYou are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.ā
IMO the best thing about today is that some major levels were broken. We can now expect prices to retest the new resistance levels, hopefully giving us clean and strong PA signals to follow.
AUDUSD daily chart has a BEEB which formed, coupled with todayās down move (though candle has not closed yet). One concern i have is that it has not occurred after a swing high though PA does look good.
