Well, I have decided to go on long at 155.24 (Order is pending)… Reasons for this long… the pin bar is not meeting the characterstics of the PIN bar so it may not be a perfect setup for a reversal.
Cheers for the chart Johnny.
To Benji’s question about the wicks, I think there is actually a wick on the first blue candle of the dblhlc pattern it just isn’t showing up in the picture (is that right Johnny?).
I think I understand your entry now - once you see the pattern complete, it’s a bearish pattern so you take a bearish position immediately. Your target is the low of the pattern.
Your stop, I’m guessing, was a few pips above the pattern?
What do you do if the low of the pattern is only a few pips from the entry, i.e. the pattern closes near its low, would your profit target now be the next area of S+R on your chart?
Sorry for the bombardment of questions and thank you for all the fantastic answers you’ve given so far!
on my dbhlc i chose my exit not because the low of the pattern but because that is where i thought price could run into problems and either stall or reverse. i usually look at ppz and sometimes 150 ema and 365 ema but mostly ppz, and or s/r
cprao i don’t think I would have taken that gy short only coz the market was sideways and that candle didnt seem to impressive.
thanks for the pinbar definitions
also for anyone looking to trade this style, the candle or patterns that get us into the trade must be complete. we can’t assume a candle is going to close as a pin we have to wait and see.
There are many ways to trade a price actions setup,
- Enter on the break of the price actions
- Enter on the retracement of price after it breaks a price action setup.
- Enter on the close of the price action setup
James16 feel that 1) is the safest trade to play, wait for the break. He also advised newbies to learn 1) first. 2) and 3) are more risky ways to trade price actions setup. In addition, stop loss is always ayt the other end of the price actions setups, but james16 always advised traders to take a small loss instead of taking a full bar loss. Breakevens trades are winning trades too. 
Feel like sharing some good posts contributed by James16:
I recieved a great question today and i thought my reply might be of benefit to some of you struggling with how to approach this business.
THE QUESTION…
I won’t keep you to long as I know you are a busy man.I would have left this message on the thread but thought it may of got lost before you could see it.My question is on MM.I know you are a firm believer in taking some off the table at first resistance.and setting SL to BE.Doesn’t a loss eat up a lot of your profit from prior trades?Or do you get out before the trade goes to far against you?I know there is discrepency involved here…but just a basic answer would be great.
Thanks again for all you do for us!I have had 3 trades in a little over 2 months,both were profitable.It’s easy to have patience when you look at this business as you describe it!!THANK YOU,and godbless…
THE ANSWER…
great question and a simple answer but it wont seem simple to you for a while. it will however if you keep the focus of only taking the best set ups. how do you know the best? after practicing for a while.
ok the answer.
i literally know with almost certainty that when i enter a trade its going to do one of two things virtually every time.
- give me a profit either full or partial
or at the least
- give me a chance to get my stop to breakeven because i understand simple side to side support and resistance. understanding this had a great deal to do with the decision to take the trade in the first place.
i go months at times without taking a loss from daily charts BECAUSE i know before i enter its a near sure thing. the losses i do take whether daytrading or not are still for the most part less than A PLUS set ups. (yes i still screw up).
those losses usually come after a very long run of winners and im feeling over confident. (yes im just like the rest of you)
since i trade with a very large account im only looking for 2 or 3 slam dunks every month. there are ALWAYS 2, 3 or more “money in the bank” set ups every month.
its actually very easy when you trade like that when you start out on daily charts IF you keep that ultra picky attitude. The hard part is for small account holders to be picky ( been there done that)
being that picky is 180 degrees different than the way 99 percent of people trade.
this is what i teach people to do.
a certain percentage try it and give it there best for 6 months or a year and a very high percentage of them find out it works.
a certain percentage refuse to try my way because they want it all and they want it now (thank you freddie mercury). many of them return when they are beat up, bruised and whipped. those are the ones i enjoy seeing make it the most. i have a bunch of them and they are my pride and joy.
once someone finds out my way works (from there own hard work) on long term charts they then have a thought.
“i just proved i can do it on daily charts so if i follow the same business plan perhaps i can do it on 4 hour”
(many never see a need to go to 4 hour or less. daily gets to easy and profitable for them to even waste there time)
Since they now “know how” to make it work making it work on a lower time frame is simply a matter of following the game plan NO MATTER HOW LONG IT TAKES.
So what does good money management mean to me?
- never risking more than 3 percent of my account on any one trade.
and
- being so picky and aware of the best set ups that losing that 3 percent is highly unlikely. less than a 10 percent chance.
DO I always follow my own advice?
NO, but i do most of the time 
james16’s post:
WE MUST LEARN TO:
- notice a strong s/r area just beyond our pa if it exists.
- know that if we trade into it we had better be prepared for a quick reversal that could give us a loss if we are not prepared.
if we know its there we have several choices.
- get out when it gets there for a small profit.
- take a small partial profit and move the remainder to BE.
- stay in with your total position hoping for a break and move your stop to BE.
- Dont enter until the level has been broken.
in the case we are looking at this level was a big round number at 5100. trading into a big number like that with a defined pivot is very very very risky. the fact remains however that price most of the time WILL reach that first s/r area whether its 200 pips or 20. in this case it did not which makes number 4 a good choice much of the time exspecially for those new to these methods.
I agree with all of that.
It pays to use support and resistance levels. I bought today after the 4h candle closed above 156. I only needed a stop loss just below 156 to take a nice 85 pip trade. I took profit just below the next resistance level.
ray great posts. thank you. I hope people can see the wisdom.
Hey guys,
Thanks Ray for posing here Jim’s words. A few days ago I have started reading his thread from the beginning so I saw these posts…currently I’m at page 135…theww :o
If I will see something interesting in the way I’ll share it with you guys here as well.
This week I had only one trade…made +102 pips on it though
The gj 4H had a breakout of double heights, so I entered long 10 pips above the bars heights at 156.41 and got out at 157.43. At 156.80 I thought first to get out because of the crowded heights of the previous bars, but decided to move my stop to BE and continue with the trade.
Then moved my stop to the higher bar heights and price hit my stop before the reserve.
Ohh and of curse the break of the bar heights was a break of a PPZ - resistance which became supports, so I enjoined a small SL as well.
I’m going to start going through that same thread also
hey guys i love the posts and quote from j16 just please make sure you get permission to post them here. i know its not a requirement but it is a sign of respect. i would hate for anyone to say we are plagerising (however you spell that) you know stealing there ideas. Also I think it would be a good idea to provide a link to the original post so there is no doubt who the original author is.
sorry if this seems like a nusance i just think it is the right thing to do.
admin if there is a problem with this please send me a pm and i will act accordingly.
thanks, john
This is a good trade Benji. Congratulations on that one.
Can I just ask where you set your initial stop loss for this trade (or how many pips were you prepared to risk)?
The placement of the initial stop loss is still a bit of grey area for me and I have not found an ideal system for this yet.
Cheers
Which broker or chart you use ? I don’t see that setup either IBFX metatrade or FXCM metatrade od FXCM Marketscope charts .
I’ll second the question from Bocajunior - where did you place your stop loss? Below the low of the previous candle?
I took this trade using a different method (NickB) and used a 50 pip stop, which stopped me out.
I believe Ben placed his stop around 155.17 region. Just a guess.
Did any one of you see the set-up Ben showed on your charts ? I don’t see them on my charts. I have 3 charts at my disposal to use. FXCM - Metatrader & marcket scope. IBFX - Meta trader.
I don’t see that setup on any of these charts. Since the data feed could be differrent from each broker, pattern formations also could differ, right ? With this, a doji/LWC on your chart will not be same on my chart. Then how do you take the trades ? Sometime, either you loose the pips or gain or even loose a excellent opportunity ? I am confused with this… Any thoughts???
Hi cprao,
Just trade what you see on your charts. If your trade plan is simply trade A class setups, and there are no class setups, then wait until an A class setup occurs then trade it. No point trading when the A++ setup occurs on someone else chart.
Hi Bocajunior,
The placement of the stop will be a few pips below the next PPZ in the way down. If the price will break it, it’s usually the end.
Usually I do not put lines on my chart for spotting PPZ, I see them immediately in my head. All those lines make me dizzy lol. In the other pic I just wanted to explain and make it clear so I draw a line.
Can you guess where will be the next PPZ?
If you will go down to lower time frames you will find it right away. Another good way that works for me is just searching for the next few crowded highs of lows - usually it’s the area where the price will find troubles next.
Here is a pic showing the PPZ (still on 4H):
Ben
I have just downloaded a software of MT4 demo…that’s all I know :o
Ben
Yes, I have noticed my time zone is different. I go mad many times when I see good setups on others charts but not at mine 
I think I will chance my chart.
Ben
PS- Matt, I have answered you as well in the post below