Even if it will form 2BR setup it will not be the setup we would like to trade as long as it will not be at SWING HIGH.
You are right, the PB three candles before was at swing high point and current 2BR formation (if it will form at all) is below this point. In general this area you are looking for a setup is a consolidation area and we should better let the price decide which way it will go.
Secondly, when you have an uptrend you better look for swing lows and PA setups there in order to join the trend.
There is still option for Counter Trend (CT) setups but it should be A+ (perfect) one, this kind of setups you will be able to identify with more expirience you get.
So, YES, as you mentioned already, you better wait for the pullback to 93 and join the trend.
Here is an example of swing high 2 BR during an up trend.
I do not fully understand what you mean by high tension but to keep things simple, when you have a feeling that market conditions are not in your favour than I would most definitely suggest not to trade.
Regarding stocks and other things going on globally,it is not something we put in our analysis. Of course they do effect market conditions but then again market conditions might be affected by totally different reasons that you may never know.
If it helps, it is always good to be extra cautious when trading in any market condition and only pick the very best of setups. This will ensure you consistent profitability.
Thank you for your reply, I did in fact read about the swing highs and lows forgot to implement them into that, How about this then, the recent daily GBP/USD. Massive PB at a new low ( which I have marked with blue lines)
Would you say my entry point which is the red line, is situated at a reasonable place or would you take it from now and place your SL below the pin? or place it below the previous candles low?
Sorry for all the questions, Im just trying to learn from everyone
Hi WLSTR,
the PB on GBP/USD is nice pin, was formed as good support, the thing i dont like, first, there is not too much room to next level for TP, the risk is quite biger than reward. second, the price is sitting on extremmely high on very strong resistance which have not been broken from 2009 to now, see below chart on Monthly TF.
Base on your entry point, it looks like you enter the trade when the daily candle still did not close. it was not recomended by PB trading method, we always wait for the bar close to confirm the signal, then i my self, will place a pending order little bit over the pin, SL is below the Pin. TP1 is next level. This is what we doing here. But still have many ways to trade Pin bar, which different ways to set SL and TP. you can find them on other threads which i dont post here to respect this topic.
Thank you for your reply, I did in fact read about the swing highs and lows forgot to implement them into that, How about this then, the recent daily GBP/USD. Massive PB at a new low ( which I have marked with blue lines)
My area of ressistance is 1.6770 and for me it is not enough room for price to move. I am not saying that you ressistance is not reasonable but you have to take into account all this choppy are from the left while the price will move through it.
Would you say my entry point which is the red line, is situated at a reasonable place or would you take it from now and place your SL below the pin? or place it below the previous candles low?
According to my trading method of PB ( the one that discussed in this thread) suggest me to place âBuy Orderâ / Entry only after the PB is closed and a few pips above the high of the pin.
As to the Stop Loss ( SL) - in 99% of trades i will place the SL ~10 pips below the PB.
Sorry for all the questions, Im just trying to learn from everyone
Thanks in advanced
WLSTR
There is nothing to sorry about, this is what this thread for
I would like to suggest you to go over first pages of this thread and read it carefully, there is a lot of information.
I didnât actually end up taking the trade, for couple reasons:
In my previous image I set the ENTRY point 30-40 pips below the candle, due to me thinking that price would fall before rising (as in previous trades this as happened to me before) I was mainly trying to minimise my risk, because otherwise Entry -> Stop loss was an extreme amount of pips to be risking IMO
I was asleep while this was all taking place, so even if I wanted to change my entry points I couldnât because I was Zzz
I Should have just followed the threads strategy and placed the ENTRY above the candles high, but hey I tried to make it my own, obviously didnât work out for me lol
WLSTR
P.S - I love the style of your charts, blue/yellow/green, I shall give this a try. Much better than a white background
Yeah I should have just followed the strategy of the thread instead of trying to make it my own, in trying to do that I missed out on a great LONG opportunity. Oh well, I shall watch out for some others.
I have read the pages, through and through but I try and add my own touch to things, to see if they work for me, in this case and at this time, it didnât lol
I missed the trade due to trying to minimise my risk , and being asleep while it took place I didnât see the signs, plus it all happened rather fast lol all in the space of 4 hours so again , I should have just followed the threads rules and strategy.
It really wasnât that great of a long opportunity. I know in the beginning itâs tempting to trade every single PA signal regardless of the rest of the PA story. The pin is ok, itâs nothing special, and the most important reason why this was a no trade for me is that the upper wick comes within a few pips of my marked level before heading back. It has no room to move, and risking 100 pips to get maybe 10, entering the trade with the expectation for that very key monthly level to break, or breaking the rules and entering before the high breaks to increase your R:R do not give you an edge in the market because the first is not sustainable and the latter two donât change the reality of the PA story. Donât let yourself be tricked into saying that this trade was a great opportunity just because price went up a bit after the fact. There was a 50/50 chance of that happening anyway.
Itâs just something you have to pick up on over time but in this game, less really is more! If you take just 2 trades per month, risking 3% of your account with 1:1 R:R and win them all, you will double your account every year. Obviously youâre not going to win all of them but if youâre only trading the best signals, going several months without a single loss on the Daily chart is not unheard of. In fact, usually there will be 2-5 A+ set-ups on the Daily per month if you watch enough pairs.
So really, thereâs no reason to take trades like that. They just hurt you in the long run by dulling your edge. If youâre patient and are able to go a week, sometimes two weeks or more without a trade, but waiting to pull the trigger on those A+ set-ups, you will go very far in Forex.
Entry point above the Pinbar is just one basic method of PB playing, still have many others ways. and yours is one of them, which was mentioned as advance pinbar trading. but if you folow this method, its better when you folow the thread strategy.
we donât need to look at other stock charts or any other charts to see that some Forex charts are going through a consolidation phase at the moment. The last thing we want or need to do is confuse or make things more complicated.
By analysing the price action or looking at other markets it is not helping us and our edge at all and thatâs what its all about i,e whether doing something will help us in our trading and make our trading edge better or worse. All looking at other markets will do is make us form a bias for when we do then look at our charts for setups and when we form a bias we close our mind off to potential obvious and clear setups that mat present against that bias.
We need to analyse the price action that is on the charts we are looking to trade. As we often talk about in here; the really good setups come in swings and thatâs why this thread goes through a super busy period with a few days of being flat out with a heap of great setups and then it goes through a period of quiet and then all over again. This is where the market swings from going into consolidation into continuation and then all of a sudden a heap of good setups all tend to come at once.
There are no special tactics to apply other than when the market is slow or going through obvious ranging periods, traders need to have the strength and discipline to hold on to their cash and not blow it for the next time the great trades come around in a few days time so that they can cash in and when they do they are have not been flogged by the ranging market.
Firstly; if your going to make a trade on a pair, then stick to that one trade and play it out. Unless you are at break even on the first trade, you are doubling your risk which is putting your account at a massive risk of taking a larger dent than it should. Itâs great if you get lucky and they both win, but if price goes against you and you lose, you take hit and lose both trades and take a larger hit than you should be.
The price action story and where we play trades is the most important factor of a high probability trade. The 2 bar is a valid 2 bar, however it is against sitting way up the top against a very strong trend. Trading these types of signals against very strong trends on intraday charts will not be a fun game over the long term. Some will win and some will lose, but over the long term, this will not prove a winning strategy.
The pin bar is not where you want to play pin bars. There is an absolute ton of info in this thread on pins and where they should be played. The first 50 pages has a lot of info on it (if you have not read this first 50 pages please make sure you do) and also on the first page there is a lot of good links about where pins should form. This pin is not up at the high or sticking out and away from all other price. The pin is down at the low, not where good pins form. The other thing you said was that you entered the pin in the Monday Asian session and this is not when we want to be entering intraday trades. Anything below the daily candle should not be entered until the UK session on the first day of the week. We donât want to be entering intraday setups on the 4hr chart that could be setting us into false break entries during the Asian session when the big guys in the UK & US have not even started trading for the week.
Lastly; we should never be going lower to look at levels. This is so important. If you find a trade on the 4hr chart, then set your targets and stops on the 4hr chart. Donât then go to the 1hr or 15 min chart to start looking for other levels. The smaller the chart you go to the more levels you will find, the more confused you will get and there is no need for it. Stick to the price action on the time frame you are playing the trade on. This is important.
[QUOTE=âWLSTR;621531â] Hey Did you take this trade? I wanted to take it but when I checked the 4 hour There was a pin bar reversal on that. Which through me off. wLSTR[/QUOTE]
I think there is no need to go down on timeframes if you have a solid signal on a higher timeframe. You are only confusing yourself
This is a pretty good post really if you think about it,in the past I have been discouraged by the small amount of possible trades with this method but as jadd806 points out slow and steady is the way to go,I really like this post it gets things in perspective so I thank him sincerely for it , so keep at it you,ll get there in the end.
