My first post in this thread. I’m new to Forex and and have been reading/studying/demo’ing for 6 months now. About to go live this week (going to start small) with real trading and I’m all in on price action…After reading everything I can get my hands on it just makes the most sense and really looks like the way to go. Indicators are all based off historical data anyways…and we all know prior performance doesn’t predict or guarantee future results.
With all that said…I have a question that will probably seem stupid to most of you but like I said I’m just a rookie. After reading through a lot of what’s on the first 50 pages of this thread, I have one question.
Say for example you’re looking at a chart (4 hour for example) and price is trending down to a support level you already have marked on your chart. Once the price gets to that support level the wick breaks completely through it but retraces and closes as a pin bar…but the pin bar itself is red (bearish - closes down from the opening). Should I consider that a bullish pin since the wick is on the bottom or is the fact the candle itself is red still make it a bearish (continuation) sign?
with a pin its not essential for it to close in the direction of the trade as long as it closes within the previous bar, that being said it is favourable for it to close in the direction you want to trade. it mainly depends on the level, size, wether it sticks out or not etc…
as long as it open and closes within the previous bar, with a wick three times the length of the body…its a pin bar…if it happened at a downtrend with the wick peaking low…its a bullish pin bar even if it closed red…of course its better if it closed in the direction you wanna trade
That’s what I figured…so safe to say that while a favorable direction close is optimal, it’s not an absolute. So in a case like the above and assuming the wick was significant, that candle that technically closed down could still very much be interpreted as a reversal sign, or at the very least major indecision.
it would usually be treated as a reversal signal. i mean if the body is rather large and it closes against the direction maybe consider the trade a little more before you decide to pull the trigger but as long as the wick is 3 times the body etc… your good to go
I don’t really know why wasn’t it a BEEB, I mean, why wasn’t it a valid BEEB.
The only thing I can see is that the trend hasn’t been very clear recently, that high is higher than the previous one (although not very much), which could mean a change in the trend, or at least a range trend (in this case, the signal would be still valid)… another point is that the low of the BEEB seems to be right on a little support level at @1252, although this support is very tight, near the resistance level…
I would appreciate a clear answer to why not to take this signal, considering the price eventually went down.
Because of the grinding climb, there were minor support zones that price would have had to fight through to go lower. The low of the BEEB itself was sitting on one of these minor zones
Came down to personal trader choice (whatever the outcome)
I took the GOLD trade if that makes you feel better.
A quick question on moving stops: Does one move the stop once it reaches a certain level or closes beyond a certain level. My assumption is once it closes but I wanted to check.
Hi everyone, I’ve been pretty busy with schoolwork recently but I’m trying to dedicate some more time to forex and learning price action! I’ve got a couple of quick questions.
The image below shows some S/R levels I’ve plotted on the AUDCHF. I’ve marked the major levels on the daily chart and then zoomed into lower timeframes to mark some more minor levels, which I’ve used dotted lines for. My first question is simply whether or not I’ve marked good levels or not? My second question is, how seriously should the minor resistance levels be taken? I mean, if a great price action signal formed on a major level, but was running straight into minor resistance, should one take the trade? Thanks a lot in advance, this forum is just fantastic!
