JÄWÄ's Price Action Trading Method

I think that the rango of moves you are selecting are harmonic numbers. And the 71-79 are not harmonic.

Hey Sith if you have Skype it’d be great if you add me, username is benjrome. It would be fun to shoot some ideas at you :).

I’m going to demo trade this next week, exciting stuff!

Do you trade all days of the week? Or certain days only? Also what do you do on Major news…do you trade during that time as well?

It will also be good if you post your trades this week so that we can all follow when and why you entered the trades and how did they go for you. thanks

If SithJawa follows Nial Fuller then he would probably ignore fundamentals since he just trades purely on price… “Trade what you see” sort of mentality

did backtesting - the bollinger bands are a helpful indicator with good candlestick patterns.

sorry with the late responses, i have a horrendous cold :[

@Benjamin: i dont actually have skype :open_mouth: but you could either message me on here or start a thread for brainstorming or something, im sure lots of members would have great ideas and critiques :slight_smile:

@Kimonz: I trade every day of the week, i start trading at 8PM EST on sunday and stop trading 12PM EST friday, this way i ignore some of the flat price at the beginning and end of the week, i also dont keep trades over the weekends unless i see a strong trend brewing

And jangez is correct, i more or less completely ignore news, although i do get all the news announcements texted straight to my phone so i can see them, the only times i really dont trade is when a major news release causes a huge shift in price, like last week we had the announcement of the technical UK recession, price was action crazy, it shot up a hundred pips then straight back down a hundred pips (roughly), so i stayed out of those markets, and since it was on thursday ( if i remember correctly) i just didnt trade those pairs the end of the week, which was unfortunate in hind sight, had the news not been released and i traded as i normally would i wouldve caught huge down moves on all the yen pairs :3

The way i see it the price and candlestick patterns are the psychological trading reactions to news and economies and such, so it is in large part not affected by news releases IMO

@jangez: yeah because they are just deviated average prices (the Bollinger bands), they work well as psychological S/R levels as well as good buy and sell zones :slight_smile:

I woke up at 4AM EST this morning to trade and discovered i was horribly sick, so i just went back to sleep :stuck_out_tongue: i probably wont trade the rest of the day but had i have traded this morning i wouldve seen this on the EUR/NZD 4 hour chart

this pin bar is below the center bollinger band so we know that it is a buy zone, so now we zoom into the 1 hour

and we can see that it is failing miserably to break through the dynamic supports (and for those who like fib lines it tried to break through the 38.2 retracement level of the small upswing before it, and faaailed four times), and there is a pin bar working in our favor as the second candle

and yeeees, it moved up, i wouldve taken half profits at 40 or 50 pips, and id still be in the trade right now

p.s. as you can see from this terribly snipped screenshot

there are POTENTIAl trades setting up on the yen pairs i trade, look at the dojis at the end, they could form pin bars or reverse pin bars

my heart is happy, my trader senses tingling, my trigger finger jumpy :smiley: look at this setup forming on the EUR/NZD 4 hour chart (my favorite chart today)

It is a potential pin bar in the sell zone, bouncing off a trend line, bouncing off a fib line, and look!!

on the one hour an evening star is forming right on the trend line :smiley:

i do only trade using price action, i dont even use trendlines to get trades but it is fun seeing the extra confluence :slight_smile: thats why this is more of a methodology, you can add all your knowledge to your trading rather then relying on a rigid system :slight_smile: (although my system is pretty awesome)

lets hope the bears can keep pushing down, if not then it will probably continue going up (mr obvious is in the building)

what GMT is your broker. The pin bar on my chart was formed and closed below the mid BB while yours is above. IS it still valid for sell?

GMT-5, are you using standard settings :|? yeah i sold it and GBP/NZD, they are teetering right now at a slight profit, i hate the slow times of day D:

Hi Sith,

what country are you in? (just by curiosity) as one of the reasons why i can’t trade 4 hour candles is because most of the volume occurs when it’s sleep time… (11pm to 7am - i live in NZ)

also you like using a lot of NZ currency crosses… my broker is weird on this; for example you use EURNZD, if i were to use EURNZD my broker has a 8 pip spread… but if i use NZDEUR - it is now a 3 pip spread

i live in Washington D.C. in the U.S.A

and wherever you live you’ll still have to get up for five minutes for one candle, i have to get up for a candle at 4AM, but im only awake for ten minutes when i do :slight_smile: and yeah the spreads are higher then normal (mine is around 7.5 per NZD pair), but they have MUCH larger moves, its really whatever your taste is :slight_smile: if you like smaller spreads i have had lots of success on EUR/USD, USD/CHF, and GBP/USD, very low spreads, consistent signals, the only thing is you rarely see move greater then 150 whereas on the pairs i trade now moves like that are common, i think the average move on those pairs is around 60, i could be wrong though :3

SJ, do you draw your EMAs off the Close?

yes I used the BB standard settings 20,2. But why is that it was formed under mid BB? Since your rule is to buy if pin bar is formed under BB, then it might be loss on this trading.

Has that 4am candle ever netted something profitable for you? (just wondering if it’s worth it to wake up for it…)

@MerchantPrince: yes i use the close of the candle for the EMA’s

@mario777: it formed above the Center line on my charts :3 thats odd… yes a piece of the wick was touching below the line but the majority of it was above the line, and it closed above the line, and we had the 1 hour confirming, and its confluent pair acutally had a perfect pin bar, so i SOLD, not sure why your charts would say it was below :3

@jangez: YES!! there have been so many times i was too lazy to get up and regretted it later :stuck_out_tongue: it only takes a minute or two to look at the charts and place orders or manage open ones, and for me the 4AM candle is right in the middle of the london market, and right before the US open candle so its a great time to trade :slight_smile:

@jangez I live in NZ as well … Still trying to find a system that work for our times … Any suggestions? May be we can start thread for all those from NZ!

@SithJawa … Have noticed that the pin bars only for you to take the trade and you determine the direction from the BB … Is that right?

@Kimonz: im not sure what the question is exactly? yes you determine whether to but or to sell depending on the candles being above or below the center line of the BB

Yes this answers my question… I meant that some pin bars look like reversal bars but you go with the direction of the trend based on where the pin bar in relation to the BB.

Hi, great thread and thank you for sharing. I am hoping you can describe things you look for on 1hr to confirm reversal. You mentioned dynamic resistance at moving averages. I am assuming a stall of prices as well, especially at S/R levels. What if PA show a reversal candle on four hour and on one hour candles show steady increase or decline with no sign of reversal. Would you wait for something to show up on one hour or just ignore?

Do you determine the direction of the trade based on the PA and BB on the 4 hr chart ignoring where they are on the 1
hr chart and just determine whether it is a confirmed trade or not form the 1 hr chart?