Forex Price Action

[Yumei]

in some case with good setup, i dont care too much about R:R, like i took XAUUSD on last trade. i always target to next level to catch almost TP, only let the trade run on the case price pass this level easily, if after 3 candles the price can not break level, i will close all position. my first priority is protect my account. with this case, we can see that price go with up trend for long time, its strong trend, but it also means the big guys already took a big money on the accounts and lots of them are jumping out and make the trend weaker. i prefer some first swings of the trend, when bigs guys have just entered and the frist pull back when price break 1 key level. this case is not one of them, so i pass.

I see risk of 170 versus 100 reward, not a bad R:R, as most trades are in that area I find, such as the latest XAUUSD (280:320) and the GBPNZD (70:100). My understanding of this strategy is that most trades are based on a high probability with a combination of a decent R:R. And maybe it goes to 91, maybe it doesn’t, that’s the beauty of trading, nothing is certain, just a higher probability, hence the edge we look for in price action trading.
Easy for me to say all this, I only took it in demo anyway…

[nus]

@Forex_School_Online

What are traders thoughts on the weekly BUEB on the NZDJPY? How would you guys assess it (both senior and new)?

NZDJPY Weekly Chart

NZDJPY in uptrend and I think price will moved to the level I mark, if price break high of the last week candle. But since the risk/reward is below my rule (at least 1:0.5), I will pass.

[fxteddy]

@Forex_School_Online

Heya Zubair,

whilst this was an okay area to be looking to take long trades, you need to be mindful of the overall story and especially what you would be trading back into.

I made a post about this the next day, but price had found support and then burst lower and when you were looking to get long I was looking for the market to pull back and get short at the old support new price flip resistance area. The reason for that is by taking longs you would be trading back into all the mess where as taking the short you would be trading away with the very short term momentum.

AUDCAD Daily Chart

I can definitely see your idea and why you would look for longs from there and it is also not wrong at all, but when price was going to trade back into this area it was going to have a time to breaking through with all the traffic overhead and especially as price had just found support there previously.

Safe trading,

Johnathon

thanks mate for your quick reply .you are right and i should go for sell for another reason .i think the recent trend is down.
although i am still holding this trade in profit

[fxteddy]

@Zubair Ratul

sell again?

i posted this trade on 1st may
now running profit in 1st position and another position on break even i mean
free trade

[fxteddy]

if we think about corelation then
this is the right trade what we will trade
this morning

[ivanyo]

AUDSGD 1st position closed +29.1 pips

2nd position moved SL to break even and will let it run

[CQ_pips]

Amazing thread

Thank to Johnathon for all the work he is putting to keep this alive and running.

[Kasravi]

if we think about corelation then
this is the right trade what we will trade
this morning

Hi Zubair,

That chart is a ‘Kartofelsalat’ as the Germans would say, quite noisy and price has to force itself through rather than just flow.

[Kasravi]

There were, I wouldn’t say better but easier, setups to consider like the Aud/Nzd 8h 2br/D1 PB.

Best

[armandrmorel]

There were, I wouldn’t say better but easier, setups to consider like the Aud/Nzd 8h 2br/D1 PB.

Best

The PB at swing-low? Isn’t that pair in a downtrend, or at least ranging since Dec, or was that set up so strong, it was worth taking, which is was, obviously… But what made it that obvious, the pullback from the short term upward momentum since March?

[semmee]

The PB at swing-low? Isn’t that pair in a downtrend, or at least ranging since Dec, or was that set up so strong, it was worth taking, which is was, obviously… But what made it that obvious, the pullback from the short term upward momentum since March?

This pair is Long term downtrend and Short term Ranging (Depends on how far you look back and how you determine swing points, so some might call this a short term downtrend). Sentiment may be to the downside yes.

I took this PB after NY Close and took TP already at 1.075 which was my initial target after breaking the high of the PB.

What made me take this trade was:

1. Fairly close TP level. Others see this as a tragedy, I see this as an opportunity.
2. PB
3. Swing
4. Support at 1.065

Since this pair is going down for both short and long term, any large moves to the upside are probably not likely to happen. Because it’s a close TP, I did a short term play! If you were looking to play this as a long term PB going up, I wouldve been weary. Just remember to consider the aspect of time when you trade!

[Teachme]

[QUOTE=“adamjn;625478”]Imo, price action is the most profitable trading strategy about. Add your own touch, mine is inside bars. Once you know how to trade your system and know it is profitable, trade it like a robot. [/QUOTE]

Can you suggest some good videos or articles on inside bars

[semmee]

Can you suggest some good videos or articles on inside bars

There was a really nice one I shouldve taken but didn’t. USDCAD 4/28/14. It was cupping down after creating a new low on a nice resistance right at 1.105. Dropped pretty hard the day after :(. Much sad.

[pipranha]

Because of the large spreads near the end of the day, when you look at daily candles, they can look quite different depending on whether you’re looking at the ask or bid prices. Because of that PB on bid price won’t look as PB on ask price, and Engulfing Pattern on bid not necessarily looks the same on ask price. So how do you guys deal with this. Do you always look only at Bid or Ask price ? Or do you check both and only enter if both charts candles give you a signal. I’m sorry if this has been discussed in the thread already, I couldn’t find anything…

I’m often not sure whether to take a trade or not when I see a nice PA on Bid and than switch to Ask and it doesn’t look like much.

Thanks!

[Yumei]

when we trade on long time frame like daily, the bar containt PA signal ussualy have around 50 to 100 pips some time over 200 pips. so add Bid/ask spreads, they do not affect too much. with the bar signal with small pips, its better not to trade them. we follow the false break with big momentum in this thread.

Because of the large spreads near the end of the day, when you look at daily candles, they can look quite different depending on whether you’re looking at the ask or bid prices. Because of that PB on bid price won’t look as PB on ask price, and Engulfing Pattern on bid not necessarily looks the same on ask price. So how do you guys deal with this. Do you always look only at Bid or Ask price ? Or do you check both and only enter if both charts candles give you a signal. I’m sorry if this has been discussed in the thread already, I couldn’t find anything…

I’m often not sure whether to take a trade or not when I see a nice PA on Bid and than switch to Ask and it doesn’t look like much.

Thanks!

[Nguyen]

I’ve seen many price action schools/traders recommend using the NY close and NY close only. Do any of you guys use different charts?

[Kasravi]

The PB at swing-low? Isn’t that pair in a downtrend, or at least ranging since Dec, or was that set up so strong, it was worth taking, which is was, obviously… But what made it that obvious, the pullback from the short term upward momentum since March?

I had my levels marked and was waiting for a rejection around that area.

Best

[Kasravi]

Because of the large spreads near the end of the day, when you look at daily candles, they can look quite different depending on whether you’re looking at the ask or bid prices. Because of that PB on bid price won’t look as PB on ask price, and Engulfing Pattern on bid not necessarily looks the same on ask price. So how do you guys deal with this. Do you always look only at Bid or Ask price ? Or do you check both and only enter if both charts candles give you a signal. I’m sorry if this has been discussed in the thread already, I couldn’t find anything…

I’m often not sure whether to take a trade or not when I see a nice PA on Bid and than switch to Ask and it doesn’t look like much.

Thanks!

Pipranha,

Don’t over complicate things. The charts you want to look at should be NY Close (New York). And default pricing, take your analysis from there.

best

[Kasravi]

I’ve seen many price action schools/traders recommend using the NY close and NY close only. Do any of you guys use different charts?

The reason Johnathon advocates NY close charts is because it pretty much sums up the whole trading day throughout all trading sessions. The day starts in Japan but ends in the U.S. And thats what you want to see. Just like the song goes; [B]The sun may rise in the East,At least it settled in a final location[/B]
Red hot chilli peppers-Californiacation

It’s simple logic.

Best

[buster48]

I know in the past Johnathon has recommended using pepperstone for its NY close I’ve always used alpari but on trying to reopen a pepperstone demo was told by their help desk demos with them are only valid for 30 days which as far as I’m concerned is a waste of time ,has anyone else had this problem with them?.