Forex Price Action

[Forex_School_Online]

@justise

full profit hit

Quite a lot of traders in here made this trade in here I see so great job with this trade. It really was huge compared to the rest of the price, it was from a low in the up-trend and it clearly stood out like a sore thumb as we always go on about. Price was always going one way with this one. It was a question about risk and trade management.

Nice job,

Johnathon

[Forex_School_Online]

@eugenegoh

would this be a valid BEEB on the CADJPY, if the current candle breaks below it?or is this considered trading into support, since the sr line is so close?

Heya Eugenegoh,

as others have said; not this is not valid as does not fully engulf previous candle.

@zubairratul

but why are you saying it is not a engulfing bar we are clearly seeing it engulfs the previous bar entirely

Heya Zubairratul,

because price to be a valid engulfing bar has to fully engulf at least one previous candle/bar. Your saying it looks like it does, but all it engulfs is the previous body of the previous candle, it does not engulf all of the previous candle. To completely engulf the candle it needs to have a higher high and a lower low, this includes wicks and candles.

Safe trading,

Johnathon

[Forex_School_Online]

@fjanos

I’m sure nobody took this. I did and it was a mistake.

@fjanos

It wasn’t a pending order I just entered the trade. On the image above I draw the entry line a bit lower (error on image) my entry was higher.

@hopital

The only loss I took this month was the only trade I took without a pending order. I just entered at the close of the bar and the price started to move against me and hit s.l…
I think that pending orders save you a lot of times.

The reason we bang on and on about it and I have posted about taking the break in this thread over at least 40+ times is for this very reason, however hopefully this trade can yet still turn around for you into a winner and it can be the scare you need to never make the mistake of not waiting for price to close and then setting pending orders. Remember: The pin bar is not a confirmed pin bar until it has broken. Most traders aren’t so lucky and they take on buckets full of losses, with loss after loss with retrace entries on pin bars time after time until they finally work out that taking retraces on pins is like banging your head against the wall; it only feels good when you stop doing it.

There is some resistance around the high of this pin and that is why this pin bar was created in the first place, obviously price moved higher and into the resistance and the sellers move in to snap price lower creating the pin so when price moves higher there is every chance price may yet hold again as resistance. Who know?

Good luck, but I do know you should not have to be worrying about it either way!

Johnathon

[fxteddy]

@Forex_School_Online

This will be my last post for a few days as travelling.

For me looking at the daily chart I would only short if price was a little higher from a more important and logical area.

Safe trading all,

Johnathon

most of your chart is zoom in but some of the chart lie this is zoom out
when we will mark our support and resistance line should we need to zoom out our chart lie this?

[abc2005]

these are 2 pairs that I like to trade this week .
Gbp/cad :
very big pinbar rejecting swing high . FTA is quite away . it’s counter trend setup and we should be caution .

Aud/cad :
weekly : it’s rejecting a very very strong resistance level as it’s clear on the chart. as dudest sayd price closed below 1.000 (vbrn)
Daily : pinbar rejecting this level , my only concern is a little traffic .

I haven’t decided to take both of them or gbp/cad .
any idea ?

Thanks

[fxteddy]

@Forex_School_Online

Hello,

just to clarify, it did close within the last 1/3 of the desired direction right?

Yes I agree with you all. As we know sometimes crappy setups come of. They don’t come of because it was the crappy setup they made it work but the market was going there if that makes sense. Anyway anything can happen but we all know that if we stick to only the good ones we will win more than lose right?

I tell you what I am not keen on the 4hr NZDUSD at the moment? Chop, chop and more chop. This could do anything right now.

Johnathon

could you please clarify it more ?
do you mean the second candle will be 3 times large than the first candle?

[fxteddy]

@Forex_School_Online

Fair call. I have a few questions if you don’t mind.

Do you enter Pin’s at the break? And if not how do you “normally”?

If you were to take this one how would you manage it?

Would the level I have marked on my chart below worry you at all?

For me personally I am looking for longs from the level I have marked on the intra day charts should we get PA to confirm.

Safe trading and good night.

Johnathon

what is the intrigue reason for going long in this trade?
as the trend is in downtrend

[jqchews]

what is the intrigue reason for going long in this trade?
as the trend is in downtrend

a 1-2-3 reversal pattern has formed thus confirming a trend change from down to up.

http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-253.html#post376584
http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-1344.html#post541273

hence when price retraces back to the old resistance turned support level we want to be looking for longs.

[Forex_School_Online]

@zubairratul

could you please clarify it more ?
do you mean the second candle will be 3 times large than the first candle?

If your going to pull old posts our in isolation your going to end up super confused like you are here.

You need to read them in context with what the rest of the other replies have said to make sense of them. I was not clarifying, but asking a question. I have gone right back through these posts now for you and will post the conversation out;

@Spongybob

Hey guys

What you think of NZDUSD 4H?

Just trying to see how you guys are thinking.

Forgot to add, had I not joined FSO I would of been all over this trade.

Cheers

@ywboo3

Here is what I think, pls correct me okie:

pros:
BEEB form at swing high at good resistance level
EB engulf the entire previous candle

cons:
Price did not close in the last third of the candle in the direction of the trade

Hence did not meet the criteria of a good BEEB setup.

@Forex_School_Online

Hello,

just to clarify, it did close within the last 1/3 of the desired direction right?

Yes I agree with you all. As we know sometimes crappy setups come of. They don’t come of because it was the crappy setup they made it work but the market was going there if that makes sense. Anyway anything can happen but we all know that if we stick to only the good ones we will win more than lose right?

I tell you what I am not keen on the 4hr NZDUSD at the moment? Chop, chop and more chop. This could do anything right now.

Johnathon

Basically all I was saying was that it did in fact close in the last 1/3 of the candle. That’s all.

Johnathon

[Forex_School_Online]

what is the intrigue reason for going long in this trade?
as the trend is in downtrend

Basically; you don’t just follow blindly. As a price action trader you watch the price and the clues and use these to work out the story of each chart. This chart had slowly been forming a base which often happens with trend reversals and then we saw a key break of resistance. Once this happened I stopped looking for short trades to then long trades. As explained with a ton of the links on the front page it is very important what trend we trade with and as a lot of traders get wrong every day; trading with the overall trade is the wrong way to go for our particular trading. We need to get with the short term trend.

There are a ton of links on the front page that I think you will love and will really help you.

Johnathon

[westpest]

NZD/USD+USD/CAD WEEKLY CHARTS.:38:

NZD/USD has printed a 2bar and a BEEB.
Price sold of from last weeks small pin-bar and has broken through the 0.83 figure.
May be headed for the bottom of the range at 0.81 if price holds under 0.83.

USD/CAD WEEKLY
Price has printed a large BUEB on the weekly.

[dudest]

@awk3524

zenz,

in reference to price making higher lows, yes it is in the short term. But looking at your chart overall, price is actually making lower highs, if you can see what i mean.

Also, if you’re looking for a reason to go short, you definitely have one with the bearish engulfing pattern but here is a chart to give some insight.

The chart below is the weekly usd/jpy. as you can see, in conjunction with the rsi, there is negative divergence on a large scale. Also, on a side note by my analysis, in the Elliott Wave Theory, we are in the corrective phase of the huge rise up from the low in december 2011 and the high of december 2013. My thoughts are to look for a good price action signal off of a resistance level as you have done, or as price hits a Fibonacci level of the first move down from the high of december. here’s my chart.

Hi awk,

No indis / indi talk please

Thanks

[dudest]

Hey Dudest,

Thanks a lot for your warm welcome and the valuable feedback! I take your tip for the “risk splitting” and will take smaller lots of multiple CAD pairs (with best pin bar setups only) instead on just one. I hope this is what you meant :).

Also, can you please advise: In practice, will it be better to take trade right away after seeing a setup like this or should we apply buy stops and sell stops for the purpose?

Cheers mate,
Farhan

Hey Farhan,

==

@Risk-splitting: something like that.
–> Either: Enter one trade with full risk ( e.g 3% risk per trade )
–> Or: Enter several correlated trades with total risk equalling that of a single full-risk trade ( e.g 3 trades, 1% risk per trade, total 3% risk )

==

@Pending orders: we [B]ALWAYS[/B] use sellstops and buystops to enter trades. A setup is only confirmed when price breaks it ( e.g a bearish pinbar is only confirmed when price breaks its low ).

So if you’re planning to take a bearish setup, you set a sellstop below the low of the pin (include a few buffer pips) [ and vice-versa for bullish setups ]. You will also be saved many losing trades that were not triggered by doing this.

==

Cheers

[dudest]

most of your chart is zoom in but some of the chart lie this is zoom out
when we will mark our support and resistance line should we need to zoom out our chart lie this?

Hey Zubair,

If the immediate view is not enough to draw a clear S/R, you can zoom out to get a better view, or switch to a higher timeframe.

Cheers

[dudest]

what is the intrigue reason for going long in this trade?
as the trend is in downtrend

Trade with the short-term momentum only [ the most recent swing ]

Cheers

[fshah09]

Hey Dudest,

Thanks very much for your guidance. I have attached the chart for USD/CAD. I believe it is a good set up for shorting, as:

• It is coming from swing high
• bearish Pin bar at the top

I believe the R:R is not good but since the top resistance stands true for both weekly as well as daily, so in my view it should be a safe trade. Please advise?

I am pretty new and this is the first setup I am thinking to trade. Your valuable comments are much appreciated.

Cheers,
Farhan

[abc2005]

hi dudest
several days ago you said eur/aud is an a+ .
a question. what type of trade is this ? I mean , it’s not a continuation market, it’s not a counter trend market ,what I think is that it’s an important SR level ? right ? there are some traffic , how much we should care about this ?

thanks sooooooo much

[Average_Joe]

Hey Dudest,

Thanks very much for your guidance. I have attached the chart for USD/CAD. I believe it is a good set up for shorting, as:

• It is coming from swing high
• bearish Pin bar at the top

I believe the R:R is not good but since the top resistance stands true for both weekly as well as daily, so in my view it should be a safe trade. Please advise?

I am pretty new and this is the first setup I am thinking to trade. Your valuable comments are much appreciated.

Cheers,
Farhan

Doesn’t look like the swing high location I am after even though the pin bar is very pronounced.

[abc2005]

Hey Dudest,

Thanks very much for your guidance. I have attached the chart for USD/CAD. I believe it is a good set up for shorting, as:

• It is coming from swing high
• bearish Pin bar at the top

I believe the R:R is not good but since the top resistance stands true for both weekly as well as daily, so in my view it should be a safe trade. Please advise?

I am pretty new and this is the first setup I am thinking to trade. Your valuable comments are much appreciated.

Cheers,
Farhan

I don’t like it very much , I like gbp/cad and aud/cad , specially gbp/cad .

[zenz]

@abc2005

I don’t like it very much , I like gbp/cad and aud/cad , specially gbp/cad .

I don’t have gbp/cad but aud/cad does look good. anyone taking it?

Overall down trend
Good wick and at resistance
1.0000 RN