hey phil it would be great if you do some more analysis over the weekend and share with us your results. I like your style of reading price.
me ill keep an eye on my eu outside bar but honestly it is a b trade at best and really a c.
like you for me timing is everything where did an ib form or where did a pin bar form?
anyway i look foward to a chart or two from you mister 
Phil, thanks for your insight. Iām excited to give this method of trading a try, and incorporate it into what Iāve already been doing with S&R and scalp lines. I have three questions:
When you evaluate and chart your trend lines, do you do so on the 4 HR chart or on the daily TF and then verify the points that the lines are touching on the 4HR? It seems like youād have the opportunity to find smaller trends on the 4 hr, but when you zoom out to daily you tend to see them as corrections of a larger trend.
My second question regards S&R zones. Iāve got a good handle on scalp lines, but charting more historical S&R is a bit more of a challenge. Like your trend lines, do you do this on the 4hr chart or look for the bigger picture on longer time frames?
Finally, Iāve got a scenario question. If you have a really wide S&R zone, say 100 pips, and you find that your logical stop loss for a long trade lies 150 pips away behind the S&R resistance. Do you think twice about the trade if the nearer S&R support or a bottom of the trend line are less than 150 pips away? This would seem to give you the possibility of a larger risk than reward for a potential trade if you exit on a bounce and reversal from the closer line.
Cody
hi phil! i just finished reading your ebook. i must say its very well written and extremely easy to understand. and your mm is very similar to mine, very good for long term investments.
a while back, i was also playing around with price action. what i tried back then was to look for the number of pips moved from recent lowest low or highest high on the h1. eg if the price has gone up 60 pips from recent lowest low, enter long for another 40 pips. basically the idea that i have is that once the price had moved a certain number of pips, it should have already be in a trend and continue that way. i got good results from a few pairs that way but only during certain times of the day. those times are specifically at eastern 2am to 6 am daily. during those times, my sr is virtually nearly 100%. but outside of that time period, i think i scored nearly 0% :D. iām poor fundamentally, but maybe if fundamentals are added in, i couldāve skipped a few of the bad trades.
in the meantime, iām back-testing your method and it seems very profitable! i just need to check the charts every about 2 hours or so, so that i will not miss any action.
thx
yantz
Hi Cody!
I do 95% of my charting on a 4H chart. In my opinion thereās really not much you can see on a D1 chart that you canāt see on a medium zoom 4H chart. 
If someone is else is trading a D1 chart and Iām trying a 4H chart we should still pretty much be seeing the same thing. I just like the little bit more detail you get a 4H chart.
As for your scenarioā¦ I normally wouldnāt take a trade if the potential R:R is less than 1:1. But (thereās always a butā¦ :))
If you have a trade, for example, that needs a 150 pip SL, has a strong S+R zone 100 pips away, and then the next strong S+R zone or strong trendline is 500+ pips or so away I would take the trade. Thatās a really good R:R ratio, if the price gets through the first line. I would be watching it really close, and if price reversed around that first S+R area I would get out of the trade around the breakeven point. That way you still have a chance for a really good winning trade, but your risk isnāt too bad because you picked a third option (breakeven) instead of just win or lose.
Thatās one of the reason I like 4H charts and above. Because weāre going for larger ranges of pips you donāt have to worry about the fundamentals too much. Only really big fundamentals will move the larger timeframe charts. Small fundamentals that move price 20-50 pips isnāt too much of an issue when your SL and profit targets are in the 150+ pip range, but if you were trading 1H charts with 40-60 pip targets then it would be.
I think your 1H strategy would work just fine if you stayed out during low volume times and threw in some fundamental analysis. I personally hate dealing with fundamentals though, but thatās just me!
Also, donāt underestimate how helpful price alarms can be! They can help keep you from having to check your charts every couple of hours. If youāre looking for action around recent high/low areas just set alerts to go off when the price gets around those areas.
Hey Phil, Thanks for sharing, it really helps us newbies out. Iām going to give your method a try. oohh! and donāt worry Iām sure Iāll be asking for help. LOL
Thanks for the pdf Phil
Thanks for the explanation, Phil. Iām working with charting S&R zones on a few pairs this weekend and doing so against the 4hr TF. Would anyone be able to post their S&R lines for the gbpjpy, so that I know Iām picking the right areas?
Cody
If nobody minds, Iļæ½ll throw my hat in the ring for what itļæ½s worth?
Near term ceiling up at last weeks high (160.23) marries up with a couple reaction points through May & June, might be worth noting on any upside travel.
Visible downside from here bookmarks the 154.75 region, which if you dial out to end of May, was the pre-cursor to that thrust move thatļæ½s been re-tested on a couple more occasions during Juneļæ½s trading activity.
In fact that shaded area Iāve marked up around the 153.20 to 154.75 zone would certainly get my attention next time around as it hots up.
Further out to the downside, 150.0-151.50 is another visible activity zone that attracted decent strength as it broke out.
My zones line up pretty well with Andreās.
Not perfectly, but every traderās zones/lines will be a little different. Thatās why we use zones instead of single point lines!
Please let me know if the lines should not be there?
SL pips > TP pips
I am also watching this pair and would take a long position if following happens.
Reason: itās less risky and risk:reward ratio is 1:3 or 1:2 ā¦
Itās just my way of doing thingsā¦
One thing to note, as you can see it was ārangingā previously? High = 1.1652, Low = 1.1417, and it may hit your stop loss if it decides to range for a bit longer?
ETA:
I need some hand-holding from phil838!! haha!
Just a quick note so no one thinks Iām ignoring themā¦
Iāll be on vacation until the weekend. See you guys on Saturday!
have a great vacation phil send me a postcard lol!!!
Thanks for the ebook phil. great read.
Putting all that knowledge into practice i see a possible long set up coming on gy. price is currently sitting on a rising channel support which has been in place since jan 23. we can see that price has bounced from this support area twice on april 28 & may 18.
i would post chart to illustrate but not sure how to but you can see on your daily or 4h chart by drawing a line connecting jan 23 low with todays low
is anyone else looking at gy now? Whould appreciate your views
I see your channel marker yeah. The lower line hits on c153.80, which price has acknowledged during todayļæ½s descent to current levels.
I tick-boxed this area (154.75-153.20) yesterday as a noteworthy area on continued downside momentum & 53.20 is receiving a cushioned shoulder thus far.
If price is going to get a lift, then this would a good a place as any to begin considering your move I guess.
Personally, the short through that 154.75 marker into the bearish early London momentum, with a partial pare out at the 153.20 step appears the higher odds/lower risk deal?
If it pops down further from here youļæ½ve got a value seat, if it breaks back up above 153.90 (minor swing high) you can cash out & maybe look to switch camps.
Depends how youļæ½re looking to play the current flows? & what your mid-term aims are.
This is what could currently be described as āa 30minute-a-throw-marketā at the moment ļæ½ by that I mean the flows & bias are being contradicted virtually 2 or 3 times per day & flipping sides on the spin of a dime.
I donļæ½t know about you, but Iļæ½m finding the keener value is to play it off highly visible intra-week levels via a shorter timeframe view until the price action stretches out a little more.
This is my setup for GJ longā¦I am betting on it as a reversal? Not sure if I am on the right track~
ETA:
opps, it hit the entry
Depends if your track is a short-range one or a long-range one.
I think it needs to base around here & attract a little more (upside) participation before laying any money down on a kickback punt.
I donļæ½t see any value in it just yet a while.
Iļæ½d certainly want to see some serious higher high-higher low peak/trough behavior taking place above this 153.20 floor, or clear basing activity at the very least before considering playing the ļæ½longļæ½ card, even via the smaller timeframes.
The clear bias today is to the short side. The only saving grace that prices might just hold their lower limits into the New York action is the fact this pairs 10 day average daily range of 220 pips & 20 day range of 250 pips has been well stretched.
Todayļæ½s top to bottom shuffle has so far printed 345 pips, which appears to confirm the 153.20 level as a reasonable take-profit zone off the earlier short orders through 154.75.
See what kind of pressure the New York volumes bring to bear on it. That stretched average daily range might encourage a little profit taking. If it does you might just get your lift.
The higher odds were to roll with it this morning though. Iļæ½ve always found that London volumes are a better bet if youļæ½re seeking to catch a ride on a momentum train.
Iād sure rather have my shorts in the bag than try pick a ālongā cherry at current levels, but thatās just my view - yours might well be entirely different.
I am of the same opinion of Andreā¦ Currently the bias is downward. I have my short currently initiated at 154.00 with a TP for 153.10. I heard that 153.07 is very critical support. If this fails, the price will see below 152 level.