Thanks again for your explanations on Pin Bars and BEUB ! ! !
Here you give us so much information, that personally I never had a chance to discuss with a professional trader…It’s sOmething to learn from the books, but it’s much different when there is someOne to correct you (my misunderstanding of BEEB for example).
I am in this business for 3+ years, all learning myself from different books, courses but never met someone explaining Price Action trading like you do here… My first information about Price Action trading was from someone on MeetPips, who pointed me in the right direction - Nisson’s books on Candlestics and some others… I learned a lot from them. After starting to see what potential is in this kind of a trading, I never looked back again on any indicators ( why to look on any lagging indicators, when we have first hand action in front of eyes)…
And here we are, eager to learn from someone who offers his help to the others and knows what he speaks about ! ! !
Please, forgive us for our persistency and Please, choose the questions you think worth answering to… We can understand that ! No questions asked !
In some time, who knows, maybe someone will be qualified to help you in helping the others !
For example in situation like this, is it a trade, or is it wiser to wait the Price to break (maybe) the support line and come back to test the recent S/R level?
…Or better to wait the price to test resent resistance on Daily chart and then look for intraday signal ?
Then the trade will be in the in the general trend direction, in this case DOWN ?
For me the Price Action on the daily wasn’t quite commanding enough. You have to remember that this trend down is growing quite strong.
Ideally when playing the 4 hour intraday charts you are looking for a PA signal to trigger at the pullback zone. The BUEB you’ve highlighted is really just a sort of continuation bar. Shoot price may continue moving up but this Engulfing bar is just a little too congested for my like.
If you scroll down and look at the examples i posted on the AUD/JPY charts can you see how much 'cleaner’they look when played at pullack zones?
Hope that helps, maybe Johnathon will have something to add.
Hi all and Great thread!!!
I think the 1st one is not a PIN cause of the body is too much in the middle on the candle. The 2nd, according to John rules, is not a PIN cause of the wick doesn’t protrude so much from all other bars.
We’ll wait John answen anyway…
Just my 2 cents
Sorry for my english though
No worries. I’ll post another current chart to show you how I plan my PA trades.
Price has currently bust through long term resistance on the AUD/CAD Daily. I will now mark up this relevant zone and wait for price to rotate back and then produce a relevant bearish PA signal, either a PB or a Bearish Engulfing bar.
Ideally I would like them to ‘pop’ out as well rather than take place amongst a lot of congestion, thus forming a swing point from which i can get short.
The first one on the left is not a Pin and the one on the right is a Pin but so small I couldn’t trade it. Again I believe Johnathon showed some examples a few pages back which showed playing pins from swing points. Just go and check them out and you’ll see the difference from the ones posted here.
Again it is not just enough to have a PB. That is only a small part of what makes a trade.
Then you have to consider is it with the trend?
Is it occurring at a relevant Support or Resistance zone?
How big is the PB?
Am I playing the PB from a pullback within a relevant trend?
PA trading is great, reliable easy and simple. However it is not good enough juts to see a PA signal on it’s own and dive into a trade. Ideally you should be able to put a tick next to all those other things I listed to make it an A++ trade.
so firstly can we please just for the sake of simplicity and just so everyone can stay on the same page stick with the same terms. I think if we do this it will avoid a lot of confusion and questions being asked 1 thousand times over.
So the 4 main price action signals we will begin to trade are;
1: Pin Bar Reversal
2: Engulfing Bar
3: 2 Bar Reversal
4: Inside Bar
There are some others but we will stick to these as this is more than enough and to be honest all I really concentrate on these days anyway.
Okay so as for the USDCAD, you state it is a downtrend so why would you want to trade against it? So when you ask if it is A+, I can answer this by saying when trading agasint the trend a trade can be a good trade but never A+. Yes I do trade both side of the market i,e: with and against the trend however the majority of my trades are with the trend.
I suggest for new traders ALL their trades should be with the trend. If people follow this one strategy (which most do not) they will be very happy!
Okay so to analyse the daily chart for you. We had the tiniest little not quite pin bar. Yes price has now gone higher but not a good setup whatsoever. Way way to small! Please keep this mind forever: Big Candles = Big momentum! People get scared when they see a really big pin or engulfing bar. I lick my lips as I know the bigger the setup the bigger the market is telling me something!
Now the pin you have highlighted on the 4hr chart is a better setup but still not a great setup as against such a strong trend.
This market has hit a proven support area that you have highlighted clearly on your daily chart. Price has now found support and bounced. I wouldn’t be suprised to see price go higher from here. I would in fact like to see it go higher. Why? Because then I can look for price action at a key resistance level to get short in line WITH the trend. With me?
Okay so for an example of a better setup on this chart I have attached a chart below of the same USDCAD 4hr just a little previous. A nice Pin Bar WITH the trend.
Thanks for shearing your thoughts…
A question… ? What about general trend? On Daily chart the trend is UP, or…? So in this case you are going to take the trade against the general trend?
Sorry yeah I should have made that clearer it was the 4 hourly.
Yes I treat each time frame separately. Price has been bullish but if price breaks down and cannot back above that former support then that would be good enough for me to short IF I got a nice big bearish PA signal.
Hey yes I did post or rathe copy and paste from one of my article about this but instead this time I will just give you the link and you can go and read. You can find here: Pin Bars intro
