then how do we know if it marks a reversal? or do we llok for other indications too? eg. indecision at the area followed by a pb?
Thanks in advance!
We don’t know. We never know. That’s why we try to stack more odds in our favor.
We don’t normally trade reversals, it’s much easier to trade a pullback continuation of the trend than to try and pick out trend reversals. When we DO trade reversals (Don’t quote me on this but I believe Johnathon said something like only 2/10 trades should be against the trend) we look for very strong areas of support and LARGE price action, something substantial that really sticks out and has the potential to reverse massive momentum like that.
Of course, that trade could easily work out, but then again it easily might not, and we’re traders, not gamblers 
hope that helps bud
Well, if you trade within trend, you want your PA signal to be big and obvious, right? That’s even more important if you want to trade against trend. If that pinbar has much longer tail and at obvious resistance level, I’ll be all over it by now.
More importantly is the traffic it is dropping into immediately is my bigger concern. I love the position and size of that pin.
Just had another look at NZDJPY and something I notice that I am not sure which way is better. Draw the daily resistance which is what is represented in the previous poster’s chart but fill in the weekly resistance and suddenly the pin is sitting on top of that weekly level! Hmm not sure how to look at this one now.
Are you talking about daily chart? It looks very tiny if you zoom out a bit. The upward momentum does look like it’s decreasing tho. Bulls and bears are surely fighting to death up there.
The BUEB few candles back looks much more convincing for me to go long. I’m not entering this pair, just saying.
Thanks for the explanations all! Man I just love this thread. Haha!
Clean charts with helpful people!
green line weekly wick high, white line similar to your red line weekly support. Would you put money betting this will collapse or bounce off at most your red line, at worst green line bounce?
I would try to jump on board the up trend on any lines - mine or yours. lol. Yeah I’m being greedy, not good.
Much better that fearful of greed otherwise known as losing the trigger finger.:58:
Hi bro,
Actually this is good setup specially if you cheek the 4 hour chart you will find nice pin bar and BUEC se i will put pending order on 86.465 ,SL 87.315and Tp 85.76 happy trade
Nice PA in GBP CHF we have nice pin bar and the price after that test the same point and pullback and we have also outside bar my entry is 1.49965 ,Sl 1.50235 and Tp 1.49205
I most say I love everyone’s view on my NZDJPY D1 PB trade. Thank you all for your input.
An obvious counter trend trade, obvious big trend. But I like the level the pin formed at, I like the pin bar which i don’t believe is small as it stuck out to me straight away but could always be bigger. I also believe the pair is looking for somewhere to pullback to.
We shall see.
Darth
you are right CT trades are more inherently risky. stick to the pull backs until your ready for them and to clarify gambling is having no good reason why you have jumped into a trade.
I got reasons
Darth
Hey, not that you care but i would say this is not a good idea. The pin bar is small but its also on the wrong side of the high in april 2013.
Since it is the new year i just wanted to take stock and give a little update as to my progress so far with this thread. I said about a couple of months ago that i was going to take a look at the ideas in this thread and test it out myself. I have mostly been taking trades that i have seen on this thread, used my own stops but currently i am up 370 pips and have a 6 wins out of 8 trades. Some of the trades were a little hairy (that one before christmas with the 4H CAD BUEB was a bit sketch but worked out in the end but for the most part i have been impressed at how little effort it has been given the return profile. Anyway, merry 2014 and please keep posting trade ideas!!
Just noticed we just broke past 10000 likes!!!
Yay.
