it’s weekend and time for reviewing the last week .
we’d a pinbar on aud/jpy daily time frame on monday .
Did you trade it ? It’s a valid pinbar from a good level .
I didn’t trade it because we’d very big bullish candles before it and the pinbar candle wasn’t as big as they .
i read about this 1,2 3 pattern in this thread for several times
but still not fully clear about the basic principle of it
could you please explain it more?
or any senior member come forward?:17:
That explanation is very clear abc2005. I will keep that page on file to help some of my friends.
is it mean short term momentum in [1] pull back is [2] and we will place our trade at 2 and wait for happening or result [3]
make sense?
I took AUD JPY cause i loved the pin bar and the level (respected several times). However i didn’t have the guts to stay into the trade till it reached the support at 91.2 I took profit really early at BRN 93 so i must admit that seeing the pair going down like a rollercoaster made me feel bad cause i could have raked so many pips.
here i am not understanding about the difference between correct swing and good level
will jonathon clear it more as he commented it .
or someone experienced clarify it
I’ll take a crack at it. The trade in question was on a Bearish Engulfing Bar (BEEB). We trade these as reversal signals in this thread, so it has to be at a swing high in order to be a reversal signal. That’s what he means by correct swing. If the BEEB is at a swing low or stuck in the middle of a price movement these are not the correct points to trade from, which automatically invalidates the trade - hence why it’s Johnathon’s first check.
Good level means the signal is occurring at a key support or resistance level that has seen action in the past. Our signal should show that the level appears to have held again and that a reversal is imminent. But for the trade Johnathon referenced this step wasn’t necessary as we’ve already determined the BEEB was not a valid signal due to not being at the correct swing point.
So basically, we’re looking for pin bars or engulfing bars which occur at a [B]single level[/B], which is both the correct swing point and a good support or resistance level.
I give you an example , we’ve a bearish market ,price falls lower , then retrace and create a lower high , price falls lower again and make a new lower low .
the image i’ve posted make it very clear.
just remember it should be use for trending markets .
thanks for quick reply
and wish u have winning trade in board!
Hi I am a rookie forex trader, currently im practicing price action on demo. i just wonder what are your recommended brokers. cause currently im using fxcm and oanda. but i noticed that they have different candle mar 15 daily close. singapore time.
Oanda has that extra Sunday candle so shouldn’t be using them. FXCM has NY close candles so they’re the correct broker to be using for the FSO price action method.
thanks, i am actually looking at audusd friday close. they are different.
Seeing a few people not sure how to change their time frame to make any time frame chart they wish. It is actually pretty basic, here is a link that I think will help: Here
Hello Icequebe,
if it is me you have sent a PM to, then I can confirm that I have not received anything. I just double checked my messages in BP’s after reading this post and there is nothing from you in there. Normally email is the way to go as I don’t normally get an alert when I have a message from BP’s so I can often sometimes be logged in and out and have made a few posts and not even realise I have messages waiting for me. Talk soon.
Safe trading,
Johnathon
Hello Owen,
I think I better clarify help make clear; I do not recommend set and leave or set and forget. What I recommend is making a pre-trade plan and then following this plan. What a lot of traders will do is either just find a trade and then blindly set a target based on their risk reward they have to make i,e 2/1 and they will forget their trade, this is set and forget and they don’t take into account the price action at all. Then there is the traders who do take into account the price action, but don’t have a plan and just try and manage without a plan and by the seat of their pants the whole time.
We are somewhere in the middle and the best of both worlds. We use a plan from the start of the trade, but also use price action and at times when it calls for it we can also manage with the price action.
To answer your last question; no. I never, ever lose confidence in a trade and cut it early. I would never play a trade that I was unsure about to put myself in a position that I would then doubt it. I put my stops in strategic spots that if they get taken out, then they are taken out for a reason and I move into the next trade, so there is no need to cut a trade early because the stop is there for a important reason and by price hitting it is then telling me that the trade has then become invalid and the trade is over.
That is one mistake I see traders making far too often. They spend so long working on their trade ideas working in entries etc and then 5 secs on their stops, when their stops could be the thing they increases their reward or in fact is the difference between keeping them in the trade or making a full profit. Far more time should be thought about where exactly the stop should be placed on each trade.
Hope this helps you,
Johnathon
As Bryce is alluding to here; the major reason why this would be okay to trade on a Monday morning when nearly every other pair would not be is because of the currencies involved; AUD v NZD i,e they are both Asian market pairs.
The only factor we have to consider is we DO NOT want to be opening trades within the first 1-2 hours when the market opens because the NZD market is the only market opens and the market is super thin which makes spreads really wide, but after that if price had have opened as normal, this super A+ BEEB at a key daily area on the 12hr and 8hr charts would have been a very solid setup to take on the AUDNZD during the Asian session which is super rare to see!
Johnathon
Hello Question,
your are confusing yourself (and you are not alone by the way with this topic) because there is no difference between when price it a swing level and a good level.
Let me try and explain that further; price can be at a swing high or low without being at support or resistance and price can also be at a support or resistance without being at a swing point, but what you are looking for is when price is making a swing high or swing low into a key level.
For example; if you were looking to trade a bearish pin bar you would be looking for price to make a swing higher. Now price may make a swing higher and up to a swing high, but if this swing high is not at a key level then you are not going to look to trade it. If price then makes another move back higher and back into a swing high and this swing high is at a key resistance you would then look at this pin bar because this pin bar is now at a swing high that is also a resistance level.
Clear as mud?
Johnathon