Forex Price Action

[ivanic]

Checking Daily chart 3 - 4 hours after NY close is not a big issue at all. The fact that we enter the sleepy Asian session after the American goes to sleep is a mixed blessing. I did it all the time, and I could tell you here that I very rarely miss all the fun.

Awesome - thanks for your response.

I cannot wait for the New Year to get started and for the markets to get cracking again!

[Panupat]

Yeah I made it a goal to get up at 4 A.M. my time to check the charts right at NY close. Was able to do it for 3 days lol.

My usual time now is 8-9 A.M. Almost 5 hours after NYC and it’s not as bad as you’d think. I found making decision while I’m not fully awake very dangerous and prune to error.

[candlewalker]

Hi traders. Is it possible if I use this method to trade options?

BTW, Merry Christmas and Happy New Year :10:

[filipl]

Hi Folks!

I have been popping in and out every now and then.
Good to see the thread growing and so many new people chiming in.

Wish you all the best in new 2014!
Stay Focused! Fil.
http://goo.gl/0nkGg

[filipl]

Just to share some recent negative results on Gold.

I have had a level marked for a while at @1212 (from a daily chart) and was hoping for a retrace in order to short. I have been lured by that teeny-tiny PB that I have used to place a short order (Demo) and after few hours got stopped out @1217.

I thought that if the momentum green bar has not closed above the resistance, it will somehow help the PB to move the price down.

Beware of small Pin Bars folks! Especially the ones after larger momentum candles.
They are deceptive

More thoughts from any of you?

Fil.

Forex Price Action - Abbreviations / Cheat-Sheet (Jonathon F)

Gold - XAUUSD - 4h

[awk3524]

@filipl

Just to share some recent negative results on Gold.

I have had a level marked for a while at @1212 (from a daily chart) and was hoping for a retrace in order to short. I have been lured by that teeny-tiny PB that I have used to place a short order (Demo) and after few hours got stopped out @1217.

I thought that if the momentum green bar has not closed above the resistance, it will somehow help the PB to move the price down.

Beware of small Pin Bars folks! Especially the ones after larger momentum candles.
They are deceptive

More thoughts from any of you?

Fil.
http://goo.gl/0nkGg

Gold - XAUUSD - 4h

Filipl,

Interesting to share with us. Thanks. but an idea. the two previous bars before the pin bar, if you combine them, it will turn into a nice bullish pinbar with the shadow going up.

this is almost a 2 bar reversal. since this is a daily chart, then a 2 bar reversal(or almost one) will be viewed as a pinbar on a 2 day chart. which means that the candle that you were stopped out on is still currently fluctuating on a 2 day chart. give it a little bit of time, i am guessing the price will go down a few ways more. just keep an eye on it.

(the chance for the price to drop would be greater is the 2 bar reversal (a bullish pinbar) was actually a bearish pinbar. That would occur if the 2nd bar closed below the open of the first bar.)

[Panupat]

Gold and silver are very untamed. They swing really hard and unpredictable at times. You’ll want a much larger, more obvious signal on these pair. So obvious it screams in your face “[I]Trade me!!![/I]”

[bhops]

Checking Daily chart 3 - 4 hours after NY close is not a big issue at all. The fact that we enter the sleepy Asian session after the American goes to sleep is a mixed blessing. I did it all the time, and I could tell you here that I very rarely miss all the fun.

I concur. I often don’t get to the charts to check the Daily until a couple of hours after the close and like you I rarely miss out on the opportunity to trade it. In fact I always get a bit nervous if my Daily trade gets triggered in the first couple of hours of the Aussie/Asian session!

[ivanic]

@bhops

I concur. I often don’t get to the charts to check the Daily until a couple of hours after the close and like you I rarely miss out on the opportunity to trade it. In fact I always get a bit nervous if my Daily trade gets triggered in the first couple of hours of the Aussie/Asian session!

Good to hear - I’ll be sticking to my plan of trading the daily charts during my lunch times then

Another quickie - I’m using FXCM as my broker. Johnathan has listed their Trading Station as New York close charts, which looks like this:

However on MT4, it looks like this…

I just compared the last 5 candles on the same charts and they look different. Is MT4 not New York close?

Thanks

[adamjn]

I am pretty sure only FXCM Marketscope is NY close, MT4 isn’t.

@ivanic

Good to hear - I’ll be sticking to my plan of trading the daily charts during my lunch times then

Another quickie - I’m using FXCM as my broker. Johnathan has listed their Trading Station as New York close charts, which looks like this:

However on MT4, it looks like this…

I just compared the last 5 candles on the same charts and they look different. Is MT4 not New York close?

Thanks

[darthfrancis]

I am risking a lot per trade, but I just use my trading account as funding to open trades, I have a set figure I am willing to risk per trade, which is around £5k, 10% of my account. If the trade looses, and at the end of the month, my account is less than £50k, I will just wire more money to it… though that has yet to happen.

It doesn’t matter how much you are risking per trade, say you have a £1k account and risk 2%, so £20, you actually think you will be making good money from that, no, but if you are willing to take a risk of £50 per trade, on every trade, and keep the risk:reward right, so don’t take trades with less than 1:2 Risk:Reward, you will always profit providing your trading style is profitable, also, how much you have in the bank is another factor, say you have £1k in your trading account and £100 in the bank, then you will have a lot more emotion, and be wanting to make big money, therefore you will be over leveraging, taking risks that you cannot afford to take, and will blow the account and have no funds in the bank left to back up your account, trading is not for people who are trying to make a quick fortune or for broke people, IMO.

Also another thing I do is cut trades short before I hit too much of a loss, so if i enter a pin bar on H4 and see it is going wrong, I will check H1 and sometimes as low as M15 to get a better understanding of what is going on, and if i see the need to cut the trade at a loss, I will. Multiple time frame analysis is a very important thing, and every trader who wants long term success should be able to do this.

Dude I’m glad your successful (if you really are) but your trade management is ridiculous. 5 losing trades will cripple you. And how blasé you are if you blow an account. Just my opinion but to every noob reading this, this is how not to trade

Darth

[pipwhip]

Dude I’m glad your successful (if you really are) but your trade management is ridiculous. 5 losing trades will cripple you. And how blasé you are if you blow an account. Just my opinion but to every noob reading this, this is how not to trade

Darth

It doesn’t have to go to fisticuffs. He’s been doing it for 3 years so I can assume he knows his stuff. I would say people should do some proper research around the statistics around risk of ruin and make sure they bet within those limits. Its all in books, it’s not complicated and has nothing to do with notional amounts.

[adamjn]

Lol, yes, I know the way I trade is not good, but my trade management it very good, imo. I always cut losses short, before they hit my SL, SL is just for safety basically.

My average winning trade is between £5k and £12k, and average loss is just over £1500.

If i blow the account, I will just fund it again, I have made enough not to care if you get me, my trading is a business, and I take it very seriously, but the initial money I have put into trading, I have withdrawn it 1000 times over so all my earnings I now see as a bonus. Saying that, I would hate to blow £100k, but its part of the business, It would take me 100 loosing trades to blow an account, and, realistically, I don’t see that happening.

For newbs reading this, my way of trading is 100% not recommended for you, Johnos method is top notch! I have been trading for quite some time and the trades I over leverage on are only on certain pairs that I always trade and have got to know how they react to levels, patterns that form, PA and other small details.

Trade management is the true key to being a successful trader.

Dude I’m glad your successful (if you really are) but your trade management is ridiculous. 5 losing trades will cripple you. And how blasé you are if you blow an account. Just my opinion but to every noob reading this, this is how not to trade

Darth

[ivanic]

Hi all,

So although I won’t be placing any trades until the new year, I was still looking at charts just to continue to familiarize myself and also for learning.

I came across the below example on the 4HR CADJPY.

However, I remember that we do not trade intraday candles on Monday because they contain information from a of traders closing/opening trades during weekends.

If that fact was ignored, would the above be a good trade?

My stop loss would be placed 10 wicks under the bottom of that pin bar.

First take profit is just under a BRN 98.500

Second take profit is our next resistance level (and I would’ve moved stop loss to break even).

I am trading with the trend and the pin bar is at a logical swing point.

Thanks!

[bhops]

Hi all,

So although I won’t be placing any trades until the new year, I was still looking at charts just to continue to familiarize myself and also for learning.

I came across the below example on the 4HR CADJPY.

However, I remember that we do not trade intraday candles on Monday because they contain information from a of traders closing/opening trades during weekends.

If that fact was ignored, would the above be a good trade?

My stop loss would be placed 10 wicks under the bottom of that pin bar.

First take profit is just under a BRN 98.500

Second take profit is our next resistance level (and I would’ve moved stop loss to break even).

I am trading with the trend and the pin bar is at a logical swing point.

Thanks!

No because you want to be trading this Pin from a swing high which this is not. It is at the bottom of this little range so you would be trading straight in to Support.

If you look at your chart you have lines drawn at 98.499 and 98.681. These would both be better places from which to take a Pin short as you then have ‘space’ for price to drop in to.

Make sense?

[ivanic]

No because you want to be trading this Pin from a swing high which this is not. It is at the bottom of this little range so you would be trading straight in to Support.

If you look at your chart you have lines drawn at 98.499 and 98.681. These would both be better places from which to take a Pin short as you then have ‘space’ for price to drop in to.

Make sense?

Thanks mate - so pin bars with wicks pointing up means we want to be trading from swing high (as this is showing price has moved up, but bears have rejected this and pushed it back down).

Vice versa - pin bars with wick pointing down shows bulls in control, as they have rejected lower price and pushed it back up when it closed.

Would that be correct?

Does the body matter (whether it’s bearish or bullish?)

Thanks

[bhops]

Thanks mate - so pin bars with wicks pointing up means we want to be trading from swing high (as this is showing price has moved up, but bears have rejected this and pushed it back down).

Vice versa - pin bars with wick pointing down shows bulls in control, as they have rejected lower price and pushed it back up when it closed.

Would that be correct?

Does the body matter (whether it’s bearish or bullish?)

Thanks

Yes that is correct. Colour of the body doesn’t matter so much just as long as they close within the previous bar.

[Panupat]

Hi Ivanic.

I think the level right where price is in your graph is a much more important level. Just looking at the times price has touched it.

This is subjective, just giving my 2c :32:

[dudest]

Hi traders. Is it possible if I use this method to trade options?

BTW, Merry Christmas and Happy New Year :10:

Yes, it works for basically any trade-able instrument
( and the more the volatility, the better )

Cheers

[dudest]

Hi Folks!

I have been popping in and out every now and then.
Good to see the thread growing and so many new people chiming in.

Wish you all the best in new 2014!
Stay Focused! Fil.
Forex Price Action - Abbreviations / Cheat-Sheet (Jonathon F)

Good to see you Fil!

All the best to you too!

CHeers