Forex Price Action

[anc200]

I’ve spotted a potential bearish engulfing candle on the 5hr AUDUSD chart. I’m new to PA so could people comment on this as a trade set up.

Thanks in advance

[ivanyo]

@stephen77

Still trying to learn as much as I can. Looked at this possible set up on the D1 timeframe when it was mentioned on here. The thing that concerned me a little was the First Resistance area being quite close.
We’ve now got a hefty retrace going on but it is interesting to see how price did hit the FRA before turning. In fact it was almost to the pip. Maybe that just shows the power of S&R areas !

Had I taken this, I would have wanted to move to BE once we got to the FRA. Having said that, there wouldn’t have been much room for the trade to breathe though - especially as Jonathon said, this is quite a choppy pair.

Would it be better to wait for PA where the first resistance area is not so close ?
Was the bearish close of the pinbar a bit of a warning sign
How do others trade these ? Get in and out quickly or pass unless there’s more ‘space’

Thanks
Stephen

If the FRA is too close, better to stay out. Definitely wait for the absolute best A+++++++ setups before entering.

[ivanyo]

@anc200

I’ve spotted a potential bearish engulfing candle on the 5hr AUDUSD chart. I’m new to PA so could people comment on this as a trade set up.

Thanks in advance

FTA (first trouble area) is very close by - not worth it in my opinion.

[anc200]

Thanks for the reply. It makes sense. I can see this having a bit of trouble getting passed the 0.9260 area which is too close to the entry

[Danielvs]

What are you think about this GBPJPY triangle. Nice trendlines and a good supportlevel. How to trade here? can we expect a breakout? Hitting the engulf even that next level is close. Do we have more momentum in this kind of triangleformation?
Very glad if you can share some thoughts:)
/Daniel

[stephen77]

If the FRA is too close, better to stay out. Definitely wait for the absolute best A+++++++ setups before entering.

Thanks for your comments ivanyo - appreciated

[ArthurVR]

Had I taken this, I would have wanted to move to BE once we got to the FRA. Having said that, there wouldn’t have been much room for the trade to breathe though - especially as Jonathon said, this is quite a choppy pair.

Hi Stephen,

My thoughts as to the move to BE:
I know that it much more comfortable when after few pips of moving your direction you set the stop loss at BE but sometimes it better to give some space for pair to move.
There is no reason to take trades when you feel like: I have to move to BE (after 10-20% way to you TP), couse i feel like it is not gonna work. This meen that you were not sure in specific setup from the beggining, so better pass it.

My rule for moving to BE is:
A) When you half or 80% way to your TP and you see some obviouse price rejection.
B) While having multiple TP’s - move to BE when 1:1 RRR (Risk Reward Ratio) is reached.

Would it be better to wait for PA where the first resistance area is not so close ?
Was the bearish close of the pinbar a bit of a warning sign
How do others trade these ? Get in and out quickly or pass unless there’s more 'space’
Stephen

While looking for PB setups, both bearish and bullish close are tradable, but it preferable to trade when close is within you trade direction (e.g longs - bullish close; shorts - bearish close ). So YES, it can be one of the criterias while rating the setup but very minor.

[ArthurVR]

@Danielvs

What are you think about this GBPJPY triangle. Nice trendlines and a good supportlevel. How to trade here? can we expect a breakout? Hitting the engulf even that next level is close. Do we have more momentum in this kind of triangleformation?
Very glad if you can share some thoughts:)
/Daniel

Hi Daniel,
Really nice triangle and I also waiting it to be broken. Although patterns are much more likely to work in stock market they still can say us a little bit of a price action story from a chart.
This pattern is like kind of a compressed spring and when released it gonna shoot in one of the directions, so be ready !
The reason why I am waiting is because of a strong resistance more than because of a pattern.
The best way to trade here is to wait for the brake out, then for the pullback to ~173 area and wait for the PA at that point.

@Danielvs

Hitting the engulf even that next level is close. /Daniel

Never try to trade the brakeouts, be patient - this is the key :44: .

[fjanos]

Hey bhops,

By the setup, I would have taken this but what about the risk reward, From what I calculated, I couldn’t get 1:1 RR with this. If you don’t mind, can you share ur mm with me in private? I am kind of working on my MM right now as I know it is the key to be consistent profitable. Just want to have an idea how seniors take this.

Cheers.

Jack

Read about the myth of R:R in Jonathon’s method.

[stephen77]

Hi Stephen,

My thoughts as to the move to BE:
I know that it much more comfortable when after few pips of moving your direction you set the stop loss at BE but sometimes it better to give some space for pair to move.
There is no reason to take trades when you feel like: I have to move to BE (after 10-20% way to you TP), couse i feel like it is not gonna work. This meen that you were not sure in specific setup from the beggining, so better pass it.

My rule for moving to BE is:
A) When you half or 80% way to your TP and you see some obviouse price rejection.
B) While having multiple TP’s - move to BE when 1:1 RRR (Risk Reward Ratio) is reached.

While looking for PB setups, both bearish and bullish close are tradable, but it preferable to trade when close is within you trade direction (e.g longs - bullish close; shorts - bearish close ). So YES, it can be one of the criterias while rating the setup but very minor.

Thanks for taking the time to share your thoughts - much appreciated
Stephen

[armandrmorel]

@Forex_School_Online

Pretty solid setup. The 8hr setup may have been the more obvious and clearer of the two setups with the 8hr chart forming a big false break pin bar. As the chart shows below; price is a bit choppy as they normally are on the exotics, but the false break pin is super clean and is making a clean break of the price flip area.

USDSEK 8hr Chart

Safe trading,

Johnathon

Do you trade this pair, I didn’t see it on your list on your website?

[Danielvs]

Hi Daniel,
Really nice triangle and I also waiting it to be broken. Although patterns are much more likely to work in stock market they still can say us a little bit of a price action story from a chart.
This pattern is like kind of a compressed spring and when released it gonna shoot in one of the directions, so be ready !
The reason why I am waiting is because of a strong resistance more than because of a pattern.
The best way to trade here is to wait for the brake out, then for the pullback to ~173 area and wait for the PA at that point.

Never try to trade the brakeouts, be patient - this is the key :44: .

Thanks for your answer ArthurVR !
Hehe yes patience and discipline is the right way, read and thought it lots and lots of times by still very hard to remember.

[monjorra]

Just now i found a short setup audchf . Nice BEEB form at nice zone

[stephen77]

@monjorra

Just now i found a short setup audchf . Nice BEEB form at nice zone

I hope you don’t mind me making some comments but I’m trying to learn from all the great info on here and I figured sharing my thoughts might be a good way to develop.

I marked my SR Area somewhat lower than yours. The reason being that I used the low of the wick from the July / August Swing Low and lined this up with the two minor swing highs in Jan and Feb. Am I wrong using the wicks. Should i stick to the candle bodies as you have done ?

My other observation is that the BEEB is a bit small in my view. I would have preferred a more significant bar. It strikes me as being small relative to the recent Bull moves making me question whether there is enough downside momentum. Am I being overly picky ?

I also see a fair bit of traffic and bar highs immediately to the downside of the break of this bar so might that first trouble area be a bit close ?

I’d be really interested to read everyones views on this

Thanks
Stephen

[Danielvs]

@monjorra

Just now i found a short setup audchf . Nice BEEB form at nice zone

The BEEB dont look like its on the swing high

[aweforex]

Interesting place for me on EUR/AUD Daily

and this is h1 right now

[Pippin_it_Old_School]

Anyone looking to play this BEEB on AUDUSD? It is appearing at a very significant level. The only thing that concerns me is the FTA close by. Opinions?

Safe Trading

[semmee]

@Pippin_it_Old_School

Anyone looking to play this BEEB on AUDUSD? It is appearing at a very significant level. The only thing that concerns me is the FTA close by. Opinions?

Safe Trading

This is not at a swing high. If I were to place my stop just before that, I would not be confident that that area will hold as a strong level because it has been pierced twice recently, unless you play continuation PA.

The level however is significant as you said, and as for FTA, as long as I am confident, I am willing to take more risk for less, which in this case, is not worth my risk. It definitely is a nice PB though. As to why I’d risk more for less, people seem to forget that the longer you wait for your trade to reach TP or the further away your TP is, the more risk you are taking by “holding”. People always seem to forget to factor in TIME to their methodologies.

Otherwise, I was hoping pairs like EURCAD or USDCAD would produce nice PA

[ptekasetia]

@Pippin_it_Old_School

Anyone looking to play this BEEB on AUDUSD? It is appearing at a very significant level. The only thing that concerns me is the FTA close by. Opinions?

Safe Trading

AUDUSD TF H4 there is Two Bar Reversal at level 0.93000

[Kasravi]

@monjorra

Just now i found a short setup audchf . Nice BEEB form at nice zone

Hi Monjorra,

There are 3 inside bars after each other. I would rather wait and let the market show its hand.

Best