Obviously firstly noting that the trigger signals are just confirmation and the real key is the price action story and area of the trade. We have to add this because new traders often think that pins or EB’s on their own can be profitable, but truth is none of them have any hope in heck of making money unless first found from the correct areas.
A lot of traders will first jump to answer at the pin bar because they are the easiest to identify and the simplest, but hands down the trigger signal I see traders from the new through to the semi experienced stuff up is the pin bar. Whilst there are only three main criteria, for some reason traders can often find it hard to get all three. They will often concentrate on one and then forget another and then concentrate on the other one and forget the first one. I see a lot of traders trader terrible pins time after time, whether they are stuck in traffic, not at correct swing points, not out and away or whatever, you name it. So whilst the pin is by far the easiest, it can also be by far the hardest is some way because if you are not picky in the ones you take, then you will not have an edge.
This does not happen as much with the EB and I have found traders tend to have more success with this. The other reason is because the EB is also normally showing momentum and strength and after the trader gets over the fear of placing trades on large EB’s they normally start to work these out provided they trade them from the correct swing points and the EB stick out and away from the correct support and resistance areas.
same as the normal trades and rules. You need to mark up your key trading levels on the daily levels and then use these same levels to hunt for trades on the intraday charts such as the 1hr, 4hr & 8hr charts.
my question to jonathon and some others why this is not a valid set up
the area is nice and pin bar also valid although tiny one
but we trade such types of pin
please suggest the pros and cons of the set up
I think you have summed it up yourself pretty well actually.
Look at the size of the pin bar. It is tiny. I don’t know about you, but I do not trade pins that small. You were just trading that large pin on the USDCAD and they are the type of pins we want to trade, not these tiny little nothing indecision candles.
When candles are this small they are not giving or telling us anything. They are not showing that there has been a huge rejection and quick snap from the bears to the bulls. It’s just a so, so indecision. Yes it obviously may work out, but look at the size of the candles on the way down!
I think your summary said it all pretty well and you know in your own head what the go is with this setup.
thanks mate
you all in this room helped me much to digest the idea of price action
thanks again and hope the nice communicating and learning environment will be continued
thanks mate for quick reply
actually i did not took this setup for the tiny pb thats why i wrote why this is not tradable .but i thought
as the area is perfect so may be pro traders took this one and i technically miss it
as you clear the point so now it is crystal clear to me
thanks for giving time and quick reply
regards
Im sure your right Johnathon but for some reason I cant seem to fall in love with EBs,I don’t mind a quick fling and even buying them fish and chips but not a long term commitment if you see what I mean, perhaps in light of what you’ve said I’ll look into their anatomy a bit deeper,:33:
been holding this short from below the pin bar since thursday. thanks lord it moves to my direction.
nb : please mind the weekly SR line, it’s just help me to put SR line on daily as I’m not as trained as you guys here and it helps me draw reasonable line.
thanks again for your knowledge here, john. help me a lot,
this week is very good for me. 6 trades, all about patience and pullback, and I won all of it. (although last week I didn’t trade at all as my chart showed no man land a whole week)
Glad it worked out army! Just a note that the bar wasn’t quite a good looking pin as it had such long lower wick, showing rejection to go low. Something to think about in the future
Does anyone see the 2BR at key resistance on the NZDCHF Weekly as a good set-up come Monday Europe open? Clear run to .785?
And the PB on the CHFJPY Weekly in line with current uptrend at key support, possibly too small though compared to bearish candles for the last couple of weeks?
Has been a tough week for me - only 1 real loss but it was a big one (-120 pips) because I didn’t stick to the methods of putting my stop correctly and not giving my trade enough room to breathe.
