Forex Price Action

[fishmoyne1]

Just out of curiosity , now that that pin bar has formed, what do we do with the engulfing bar that is right next to it? I am still in the learning stages so just asking for future reference

I suppose that it is an uptrend I think more weight should be given to the P/B

[bhops]

I suppose that it is an uptrend I think more weight should be given to the P/B

Correct, except it isn’t the greatest of Pins to be honest. The level is nice, the trend is strong the PA is not. there is a high probability that this will shoot higher but I can’t justify plonking down my cash to find out.

[fishmoyne1]

Correct, except it isn’t the greatest of Pins to be honest. The level is nice, the trend is strong the PA is not. there is a high probability that this will shoot higher but I can’t justify plonking down my cash to find out.

Nzd seems to be bullish looking overall with alot of daily pinbars from Friday. There should be at least one picking I think

[Forex_School_Online]

Hey guys,

here is one I am watching this week if price can possibly rotate higher after a huge sell of this week on a lot of the major indices futures.

S+P 500 Daily Chart

Safe trading,

Johnathon

[Derek88]

Hi, some questions:

• About this post by “dudest”: http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-584.html#post432015
  I do not understand point 2). What does “its high has been taken out” means ? Even with the chart I can’t understand…Can someone enlighten me plz ?

• How important is to have 8h and 12h chart? Can you find valid PA signals from those charts ?

thx in advance…

[jadd806]

Hi, some questions:

• About this post by “dudest”: http://forums.babypips.com/free-forex-trading-systems/42378-forex-price-action-584.html#post432015
  I do not understand point 2). What does “its high has been taken out” means ? Even with the chart I can’t understand…Can someone enlighten me plz ?

• How important is to have 8h and 12h chart? Can you find valid PA signals from those charts ?

thx in advance…

Hey Derek,

The “high taken out” means exactly that - the high of the candle was broken. Since it was a Bearish Engulfing Bar (BEEB) and the high was broken, it invalidates the signal and we would no longer look to short it. The same goes for bullish signals when the low is broken.

Yes, you can find valid PA on H8 and H12 charts. They’re not essential but they’re nice to have in that they give you more opportunities to look for trades. Once you get more chart time under your belt you’ll find that you can just mentally merge the candles together on a lower time frame. Personally I almost exclusively trade the Daily as my schedule doesn’t really permit me to hunt for intraday trades too often.

[Derek88]

Mmmm…sorry, I still do not understand.
Even though English is not my native language, I know what “take out” and “break” means…but not in this context.
taken out by what/who? Has the RL something to do with that? Has the previous bar or the following bar something to do with that? help plz…

[jadd806]

Sorry, I will use an image to try to explain then.

So we have a BUEB, or Bullish Engulfing Bar. Please ignore the fact that it’s not at a swing low - I just took a screenshot of the first failed engulfing bar I saw.

Later price action breaks (continues through) the low price of the BUEB, as highlighted in the picture above. Hence the BUEB is no longer a valid PA signal to trade long and we would cancel our trades.

[Derek88]

Perfect! Now I understand. Thank you very much jadd

[Yumei]

Hi WLSTR,
the Pin bar is smaller than previous bar, also small its self, it means that is not strong action of false break, its is just reaction when price hit support level and was traped in it, so just pass it and wait for next train. i myself also dont want to throught my money into such as not A+ setup.

Just out of curiosity , now that that pin bar has formed, what do we do with the engulfing bar that is right next to it? I am still in the learning stages so just asking for future reference

[alrightfrank]

hi all! jonathon, heres a couple of trade i took: last friday (2bar) and another that triggered this morning asian session (pin bar). love to hear your thoughts regading these entries. my questions though, 1. how do we asses if the levels ahead of our entries are weak or strong? (if a traffic will hold or will be penetrated). 2. considering we made our analysis on daily/h4 tf’s and theres no level of s/r, but when we drill down in the h1 theres somewhat levels that we can see…do we ignore the levels on lower tf or do we have to also consider this levels in making decisions for entry?

thanks alot and more power.
f

[bhops]

@alrightfrank

hi all! jonathon, heres a couple of trade i took: last friday (2bar) and another that triggered this morning asian session (pin bar). love to hear your thoughts regading these entries. my questions though, 1. how do we asses if the levels ahead of our entries are weak or strong? (if a traffic will hold or will be penetrated). 2. considering we made our analysis on daily/h4 tf’s and theres no level of s/r, but when we drill down in the h1 theres somewhat levels that we can see…do we ignore the levels on lower tf or do we have to also consider this levels in making decisions for entry?

thanks alot and more power.
f

I’m not Johnathon but…as to your second question, if you have taken a trade on the H4 or D1 you don’t drill down to a lower TF to check for S&R levels.

[WLSTR]

Ah ok, thanks for your reply Yumei

Hi WLSTR,
the Pin bar is smaller than previous bar, also small its self, it means that is not strong action of false break, its is just reaction when price hit support level and was traped in it, so just pass it and wait for next train. i myself also dont want to throught my money into such as not A+ setup.

[alrightfrank]

Noted, thank you bhops

I’m not Johnathon but…as to your second question, if you have taken a trade on the H4 or D1 you don’t drill down to a lower TF to check for S&R levels.

[maperdel]

I’m not Johnathon but…as to your second question, if you have taken a trade on the H4 or D1 you don’t drill down to a lower TF to check for S&R levels.

I have this bad habit too…if I’m trading D1, I use to check the H4 TF to check for S & R over there…

Thanks bhops!

[Adam_Hardi]

Yes Haley, It’s really hot news for forex traders.

[spud_1]

Just started trading this, going good so far

[fjanos]

A nice 2 bar formed after pullback on R/S level, Heads up!!!

[ArthurVR]

Hi there,

It seems to me like current market is ranging overall and traders waiting for something to happen. I assume it can be associated with general “traders sentiment”. I am not sure if it have a relationship with stock market, but we can see that big precentage of stocks are at their maximum/ high tension point. I do not want ot talk about stocks , but as long as we trading indicies like S&P500 it become relevant, as S&P 500 can be a “face” of “traders sentiment”. Thus, based on S&P chart we can say that traders wait for decisiont to be taken : reversal or continuation is in place. As long as such decision not made yet we can see that all market is at indecision period.

The question is - are we apply some special tactics during these “high tension” periods? Are we during some special period at all? ( i do not have enouth expirience to be sure)?
I would like to know if there any special tactics that can be used during this period, if at all.
Are we making less trades?
How long can this periods can continue? Maybe we should wait for market direction to be univocal?

A lot of questions, i know

Big Thanks,

[WLSTR]

So am i right in saying (if the last candle stays like this) it will be a 2BR at a high?

Which will also mean its a short reversal? to lower support? then I can look for long opportunities?

Im unsure if we just disregard that little pin bar which is in line with current resistance?

Or do i just wait for it to come back down .93 then look for a long back into the trend?