Sorry, fjanos, but i can not agree with you on this one. As to me you have to take into account the size of a candles before the setup couse by ignore it you can read the story wrong. Not only the setup itself tells you what to do, but the behavior of the price and the PA is a trigger to make the final decision.
This EUR/NZD setup was realy good one and i would take it too ( i missed it ). The PB here is bigger than 4 previous candles, so it goes with my rules by the way.
Comparing the candles is a part of a āread the story price tell usā. That is how i understand it from this thread.
Maybe Jonathon can explain it more accurate than i am.
Yes, you are right. The money management is on top of the list on the way to success.
Trader with good money management can get more from not A+ setups than trader with bed management from A+ setups, that is for sure.
Agree with you. Although it is a hard part, esspecialy for the begginers , it make your account grow or at least not reduce it.
As a traders in such intensive/āhigh speedā market we have to train our descipline and not take every trade we see.
Here Johnathon talking about large and obvious signal.
Comparing it to previous candles can help as (the traders ) to identify if specific PA signal we want to trade is large and have higher probability.
The size of the PA signal candle is important for me too. If it had been a tiny small little PB with tiny tail with a big bullish momentum or candle before it I wouldnāt have considered taking it for a second. It was a convincing PB. But itās up to you of course which setup you take or not take. I took this trade and endured the risk with it because every trade involves risk.
If you include previous candle size in the PA story. Maybe youāre right the statistics will tell the truth and our balance :-). In my opinion if I look for trades that has no big bullish candle/momentum before the Pinbar (PA signal) and the Pinbar (PA signal) is not at least twice as big as the previous barā¦well one would find trades like that once an year.
When I read the PA story I always check for example other time frames (weekly or daily if I take the trade on 4H) because if I find a counter candle then Iām not taking the trade.
Itās an okay setup - itād be much better if the pin bar was larger and sticking out more than it is currently. Iād probably also take 50% profit at halfway between when you currently have there on the chart.
). The PB here is bigger than 4 previous candles, so it goes with my rules by the way.
that what i think, but you knowā¦even this kind of setups can turn against you.