Forex Price Action

Thanks man!

Iā€™ve been keeping my eye on the EURUSD Daily chart. I decided not to put in an order over the weekend and revisit it this morning. The problem I am having is that it didnā€™t bounce back like you would expect a pin bar to do. Iā€™m also seeing a little bit of resistance around the 1.3750 area and then up in the 1.3785 area.

We are going to need it to break 1.3732 before we get in, but if you scale down to the 4H chart you see that it has been caught in a small range with very clear resistance around the 1.3730 area. After the large decline we had in the last week or so you can expect price to stall out.

My second problem is that since the USDCHF is so closely correlated, it doesnā€™t appear that it had a strong reversal signal either. Maybe Iā€™m a little too picky here, and the EURUSD may very well move higher. Iā€™m just not confident enough yet to get in. If youā€™re going to go long on the EURUSD at the break of the 1.3732 bar, I would be very tight on moving my stop to breakeven once it starts testing 1.3745.

Fairly certain the PB was only caused by people who were short from the 1.4000 area cashing in their 300+ pip profit. The fundamentals of the situation have not changed and itā€™s already been made clear that there will likely be an intervention if the pair rises too far above the 1.4000 level.

Could you elaborate on what you mean by ā€œthe fundamentals of the situationā€ and ā€œan intervention?ā€

http://www.currencynewstrading.com/95700/ecbs-verbal-intervention-keep-eurusd-1-4000/

Hi all,

Any of the PB on the JPY pairs worth looking at?

Iā€™ve put a buy limit order on USDJPY at a slight retracement of 101.425. If it triggers, Iā€™d expect 2:1 at least. Any opinions welcome, Iā€™m eager to learn.

[QUOTE=ā€œPG Tips;629430ā€]Iā€™ve put a buy limit order on USDJPY at a slight retracement of 101.425. If it triggers, Iā€™d expect 2:1 at least. Any opinions welcome, Iā€™m eager to learn.[/QUOTE]

Same with me! But if tomorrow does not trigger I am cancelling the stop order!

Good stuff psalda, weā€™ll see how we get on tomorrow.

It just looks itā€™s not going to trigger, same as the EURUSD. Or do we wait?

Is it best to wait for these PBs to activate, or only once price goes past our s/l? My limited experience with PB is that they tend to play out quite quickly.

If price goes beyond your S/L than this Setup would be invalid.
We had two inside bars now on the Eur/Usd daily chart following the big PB. So some rapid movement could be imminent.

Best

I only have one inside bar on my daily chart, where is the other one!
Can you picture it up?
Cheers

This is a great post! Concentrate on the price action and the story first and then the trigger!

Heya Godzilla,

first of all; remember to take all of the fairy floss of your charts. It is not helping you find what you are looking for, especially at your stage of development. It is just adding other things into the pot to create a lot of confusion about what you should be doing and where should be concentrating on.

New traders think they need to add more and more to get a bigger and bigger advantage to compete when in fact it is the opposite. To have in hope they need to strip IT ALL back to start with to the basics. This is why we recommend starting from the daily charts and then from there you can work down to any time frame you like. Price action works the same on the smaller charts, but traders need to first pay their respects and learn how to profit on it on the higher time frames.

To answer your other question; ā€œwould I trade a BUEB from a swing low in a downtrend?ā€ There is the short and the long answer to which I will try and combine to make a middle. Basically; it is correct that we should be taking a bullish reversal at a swing low, however the most important thing of any trade is the price action story and not the trigger or the ā€œsetupā€. It is all the other things that make the high probability trades i,e the key levels, the space has to move into, the trend or the false break etc, etc Some trade against the trend can be high probability trades, but some can be super low probability trades as well and what makes the difference between the two? The price action story.

Johnathon

I am not sure I follow. There is now two bar reversal here and there had no potential to be one. Even if the second candle moved higher, the two bar would have been formed stuck set back in price and not down and sticking out and away like we would like to see.

Worrying and looking into the reasons into why price is doing what is something that can become frustrating and in the end parlaying. We could make a ton of these comments every day and find a heap of different reasons why price moves, but it really doesnā€™t matter because all that matter is price does what it does and we need to be ready to profit from it. Price moves up and down everyday and It would really only be useful knowledge if you knew before hand what was going to happen and could be ahead of the market. I do understand why people are so fascinated with the news and economics etc, but when it comes to the crunch, traders move the markets and not new announcements and this is why so often price goes the complete opposite way ti what the market is expecting or remains flat when traders are expecting it to do something else. Either traders have already price it into the price or they were looking for something else, but the point is; price action is the key because it is the traders who move the markets and it is through the price action that you are watching trades behavior.

Safe trading,

Johnathon

Heya guys,

I have noticed there are a ton of questions in here and I have been busy of late trying to move and travelling so I will get back in here tonight and answer all the questions I can for you so if anyone has any more make sure you post them up and I will get to them.

Johnathon

Thank you for posting this Adir. I am glad you have posted this because I have had the same questions you did (just not in as much detail as you).

I found the actual link to the post. It is from one of Jonathan Foxā€™s actual students admitting he had a fund for 30k, and that the fund was negative for the year.

Forex School Online with Johnathon Fox - Page 2

It was his student (who was in general supportive of Jonathan Fox) who said this. So to admit the fund exists suggests what Adir is saying is true.

This begs some big questions, such as:

  1. If the fund isnā€™t negative, why try to sweep this under the rug and not address this?

  2. If he is such a good trader, why trade only a 30k fund? The profits would be peanuts.

Assuming he does 100 percent return, and he takes 20 percent of the profits, we are talking 30k x .20 = 6k income for an entire yearā€™s trading.

What professional trader trades 30k for a 6k payday at the end of the year? He could sell 20 courses and make that easy, so this does not make any sense.

What also doesnā€™t make sense is that he could not even make money with 30k!

  1. If the fund is so great, why havenā€™t we ever heard another word about it over the last two years?

There are probably a lot more questions I am missing here. The fact remains, Jonathan Foxā€™s own student admits his trading fund is in the negative, should prove Jonathan Fox cannot trade profitably, and only loses money trading.

I think everyone should be having serious doubts about Jonathan Fox. If he doesnā€™t address this, then you have your answer.

Other Points by Adir

  1. His site is very similar to Nial Fullerā€™s. I do not think they are the same person, but they both have cartoon drawings of themselves, and give themselves high titles on price action.

My guess is Jonathan Fox saw Nialā€™s work and realized he could copy it, built a similar product to make money, because he canā€™t trade.

  1. In terms of proving he actually trades live, how come when he does a video, telling everyone where his entry, stop-loss and limit are, the charts do not show he is actually in any trade? MT4 shows horizontal lines showing the entry, stop-loss and limit, so if he was really in the trade, it would show it.

Why not show it as Adir suggests? It would demonstrate he is trading live, and making money with those trades. Doesnā€™t make any sense not to do this.

I also agree with what Adir says about many of the R-R ratios being quite poor on the trades he says were successful.

Anyhow - thank you Adir for pointing this out as it seems clear Jonathan Fox cannot trade.

If people in here arenā€™t asking questions about this, then they are paid plants/fake accounts, or oblivious to something that seems obvious.

I also notice Jonathan has been absent from this thread lately. Hoping this will just ā€œgo awayā€ perhaps?

BBPunisher

just my 2 cent. and I know some negative posts not really for me.

but in my opinion, I donā€™t really care if Johnathon can trade or just making money.

if he can/canā€™t trade, well the money he lose or won not go or coming to my wallet.
and if heā€™s just making money, well itā€™s his fortune then, and absolutely also not coming from my wallet.

from what I read in this thread, heā€™s just sharing his knowledge. Iā€™m glad if some post might help, when some are not. and if he help me personally, I also will be glad. and I found his knowledge helpful and have enough credibility for the matter of education. as we know, support, resistance, price action is real (except there are people saying that price action is bull**** and resistance and support doesnā€™t help you trade then maybe iā€™m in the wrong business)

both of johnā€™s site or nailā€™s site, both are very helpful for me. as well both show similar analysis and method, me as well use both and monitor both website when one give faster update about some matter.

lol, just my 2 cent tho. I donā€™t know john, nial, or any of you on this thread. at least, not yet. so Iā€™m defending nobody nor offending nobody. just saying my opinion, thatā€™s all

Jonathan has taught me a lot simply through this free thread I am eternally grateful for him introducing me to the world of price action. 1 thing he taught me is PROTECT YOUR CAPITAL. In fact, I have that as my desktop wallpaper.

I view the cost of signing up to his site cost that is taken out of capital. Therefore I urge everyone to research on Johnathan and his competitors to see if the signup fee is truly an A+ investment.

For me personally, I will be studying james16ā€™s thread over at forexfactory before I make any decisions.