Forex Price Action

[Average_Joe]

@Panupat

Guys. Did something different here.

GBPAUD daily 2BR was too large for the amount of $ I want to risk. So I dial down to H4 and found this EB

The EB itself was not a good one, tiny, not at swing point etc but I use it to enter based on daily 2BR. It allowed me to manage the trade properly. The trade is now BE and moving strong.

Good one with the bullish order flow. Would be a big risk reward play if it gets to the top!

[mancamy]

@dudest

For me, the GBPJPY is cleaner in terms of area of formation (relative to candles around it) and less resistance to get to FTA (more room to move).

For me there was little between the two technically - charts look virtually identical - compare my mark up of GBPJPY with Dudest mark up of USDJPY.

…Perhaps though GBP is relatively stronger than USD so go for GBPJPY.

In the end I took neither since, even though these pairs have been trending strongly of late, they didn’t seem like A+ - there’s quite a bit of resistance above (minor and key) and given the long range of the 2bar reversal, not much room to move up ahead before you meet first resistance…

all the best to those in these trades…

[Panupat]

I don’t understand how a signal can be too large for your risk level. If there was signal A which you were fine trading, say, $100 and trade B which was twice as large as trade A, you could still risk $100 by halving the number of lots you buy.

Hi Chromeo, I’ll send you a private message about it

Edit - can’t send you private message.

[Velniukstis]

@Panupat

Guys. Did something different here.

GBPAUD daily 2BR was too large for the amount of $ I want to risk. So I dial down to H4 and found this EB

The EB itself was not a good one, tiny, not at swing point etc but I use it to enter based on daily 2BR. It allowed me to manage the trade properly. The trade is now BE and moving strong.

Just my 2 cents. Johnathon teaches that the level is most important and then you look for the PA. Also it was to small that you could be stopped because of market breathing.
Also check topics on position sizing and those big 2BR won’t be a problem.

[Panupat]

It is for me. If you’d like to talk about please send me an email, I’ll be happy to explain

[abc2005]

hi
Just curious , is this a valid 2bar ?

[jqchews]

i’ve read John’s article that explains y having a good R:R ratio is a myth.

i agree with it and think it makes sense to have a lesser than 1 RR ratio with this strategy since its win rate is high. However, is there a threshold where one would pass a trade as RR is really too low?

[darthfrancis]

hi
Just curious , is this a valid 2bar ?

I would say no as the the second bar did not close within the bottom 1/3 of candle.

Darth

[filipl]

no need to wait mate definitely trades out there for the picking already.
Darth

Darth, would you mind rephrasing, I don’t get you. Sorry, but English is not my native tongue. Are you suggesting getting into market without a signal?!?!
Fil.

[dudest]

hi
Just curious , is this a valid 2bar ?

No

…

[dudest]

i’ve read John’s article that explains y having a good R:R ratio is a myth.

i agree with it and think it makes sense to have a lesser than 1 RR ratio with this strategy since its win rate is high. However, is there a threshold where one would pass a trade as RR is really too low?

I think the point of that article was to show that taking R:R in isolation is a mistake, and that having arbitrary R:Rs before entering a trade ( e.g 1:2 or 1:4 ) is a fallacy coz the market doesn’t give a rat’s *** about your arbitrary numbers.

With Johno’s method, the trades are fewer, but have more winners.
A system with a high win-rate doesn’t need a high R:R trades to be profitable.
A system with a low win-rate needs high R:R trades to be profitable

The bottom line is: don’t set arbitrary R:Rs when entering a trade; just focus on taking the absolute best (A+) setups, and exiting where the market considers important (e.g at key S/R zones), and the PROFITABILITY (what matters most) will take care of itself ( whatever the R:R outcome of each trade ).

Cheers

[darthfrancis]

Darth, would you mind rephrasing, I don’t get you. Sorry, but English is not my native tongue. Are you suggesting getting into market without a signal?!?!
Fil.

GOD NO!!!

no i mean there where a few signals you could of traded.

darth

[jqchews]

I think the point of that article was to show that taking R:R in isolation is a mistake, and that having arbitrary R:Rs before entering a trade ( e.g 1:2 or 1:4 ) is a fallacy coz the market doesn’t give a rat’s *** about your arbitrary numbers.

With Johno’s method, the trades are fewer, but have more winners.
A system with a high win-rate doesn’t need a high R:R trades to be profitable.
A system with a low win-rate needs high R:R trades to be profitable

The bottom line is: don’t set arbitrary R:Rs when entering a trade; just focus on taking the absolute best (A+) setups, and exiting where the market considers important (e.g at key S/R zones), and the PROFITABILITY (what matters most) will take care of itself ( whatever the R:R outcome of each trade ).

Cheers

so if it is an A+ setup but the TP target is pretty close, say 1:3 RR ratio, we will still take it?

[Panupat]

You should rate a set up based on the room it can move too. If the RR is low then it shouldn’t be A+

[rcreddyvanga]

Thats true. We have to play according to the market. We cannot set a predefined RR Ratio. its all depend on the S/R and price action.

[adamjn]

Did anyone catch USDCHF H8 or H4 Bullish Engulfing?

[dudest]

so if it is an A+ setup but the TP target is pretty close, say 1:3 RR ratio, we will still take it?

My last trade was the GBPNZD D1 BEEB (still running).

My risk was 220 pips. So at 1:3 my target would be over 600 pips away…you bet I would still take it!!

To be honest, I never look at the R:R when entering a trade. If it is A+ (which includes ROOM TO MOVE INTO before hitting any real opposition), I’ll take it! That’s why Johnathon keeps harping on about SWING LOWs and SWING HIGHs. Trades taken from the correct swing point have space to move into before getting to their first trouble areas ( at which point you can manage the trade ).

Cheers

[fjanos]

…

Hope this helps!

Yes it helped, thank you. This is what I expect from a good thread. Contribution and everyone helps each other.

[justise]

My last trade was the GBPNZD D1 BEEB (still running).

My risk was 220 pips. So at 1:3 my target would be over 600 pips away…you bet I would still take it!!

To be honest, I never look at the R:R when entering a trade. If it is A+ (which includes ROOM TO MOVE INTO before hitting any real opposition), I’ll take it! That’s why Johnathon keeps harping on about SWING LOWs and SWING HIGHs. Trades taken from the correct swing point have space to move into before getting to their first trouble areas ( at which point you can manage the trade ).

Cheers

the daily is such a godly TF…seriously you almost dont wanna trade anything else after you get a taste of it

[cheva282]

@adamjn

Did anyone catch USDCHF H8 or H4 Bullish Engulfing?

Good trade man!