My Price Action Trading Strategy

Hey guys, me again lol.
Wanted to start another thread with my trading strategy. I don’t really have friends that trade and here is about the only place I get to chat with like minded folks about trading. My wife just turns her head sideways once I start talking about charts and her eyes gloss over. lol. I enjoy getting other’s opinions and bouncing ideas off each other. Never know what you’ll learn plus keeps my mind off my charts as trades are running.

It is price action based mostly from this thread on babypips.


I backtested for about 6 months before I started trading live with this strategy as well.
Read through the first 3000 or so pages and built it from there, I have a few different changes I do.

I trade based off support and resistance zones(usually placed around round numbers), use inside bar, engulfing(outside bar really), pin bar, and 3 bar reversal. Along with seeing the chart and what the whole picture says, just don’t trade based on a candlestick pattern but use them as a confirmation. Also have a few rules I go by.

  • Trade off 4HR charts.

  • Look for reversals and trend continuation(after breaking through a zone and retesting).

  • I cancel if I place an order and the order isn’t active for 5 candles after(which is 20hours). Or if the following candle retraces past the high/ low of previous candle.

  • Support and Resistance: Usually place them around a round number. No one ever says “hey, you think AUDCAD will get to 0.93156?”. No, usually in conversation traders talk in round numbers such as 0.93000. Doesn’t mean it always happens like that but the important zones are usually around round numbers.

  • Entry is placed at the high/low of entry candle, with the stop being placed at the other. So if it’s a bullish candle and our position is long the order is placed at the high and the stop loss is placed at the low.

  • I set two profit targets, my full take profit(FTP) is at the other zone, support or resistance, I also set one usually half way or where I think there may be trouble, I call that one take profit 1(TP1). Once at TP1 I close half my position and move my SL to BE.


Candles/ patterns I look for, for entry.

*Inside Bar : the more inside bars inside the mother bar the better. But I will play just a two bar inside bar. I play the break of the mother bar but depending on if I’m sitting on support or resistance. If I’m sitting on support I look to play the break of the top of the mother bar with my stop at the bottom of the mother bar. I cancel the trade if it heads the other direction or if by 5 bars it hasn’t triggered my trade.

*Pin Bar : Trade them at the top against resistance or the bottom sitting on support.
Example of how I manage a trade.

*Engulfing : Trade them at the top against resistance or the bottom sitting on support.

*3 Bar Reversal : Used as a reversal as well. For example as a bullish reversal, first bar is bearish, the second bar close is lower than the first bars close. Third bars close is higher than the first bars open.(You’ll see an example on my charts below)

*5 Bar Pattern :

I’ll start posting charts as I go through the weeks. I’ll have a few I’ll post from this week. Feel free to ask any questions or comment. Also recently became a funded trader through FTMO, so excited about that as well.


Weekly Results: W-L Pips
Week of 7/11/21 9-4 375.4
Week of 7/18/21 5-2 240.9


Totals 14-6 616.30 pips

4 Likes

Charts for the week and my thoughts behind them.
7/12/21
AUDCHF - First lost of the week : -32.7 Pips. (Inside Bar)

NZDCHF - Hit TP1, moved SL to BE. Trade ended up hitting my SL. : 25.0 Pips (Pin Bar)

NZDJPY - Same as NZDCHF : 50.0 Pips (Pin Bar)

NZDUSD - Hit Full TP : 66.8 Pips (Pin Bar)

USDCZK - Hit TP1, SL moved to BE, Trade ended up hitting my SL ; 1050 points(exotics are a little different) (Engulfing)

XAUUSD - Trade still running but profit is locked in and SL moved to BE (Engulfing)
7/19/21 Update: Trade came back down and hit SL at BE.

7/13/21
AUDNZD - Hit Full TP : 32.8 Pips (Inside Bar)

EURAUD - Second Lost of the week : -58.3 Pips (Inside Bar)

EURJPY - Hit Full TP : 97.5 Pips (3 Bar Reversal)

GBPUSD - Hit TP1, moved SL to BE, trade ended up hitting my SL. : 45 Pips (3 Bar Reversal)

USDHUF - Hit Full TP : 2716.0 Points (Engulfing)

USDTRY - Hit SL - Can’t win them all. (Inside Bar)

7/14/21
USDSEK - Hit SL : -247.2 Points

Results so far this week.
W-L
9-4
Majors/ Miners : 375.4 Pips
Exotics : 3147.8 Points
Gold: 2222 points or $22.22.

Hope that wasn’t too much. Was trying to get the week caught up. I’ll be able to post live charts next week as well. Or at least when I get home in the evening.

Also this week seemed to be a busy week for me. I usually only have between 5-8 trades a week. I did take a couple counter trend trades this week, which is something I don’t always do.

wow thank you, Sir for sharing ,I am quite interested in being mentored and be part of you. I as well dont have many people who like trading, in my community its is looked at with high negativity,Away from that I am excited to look at next week charts from you.

Thanks for the kind words.

Are you demoing at the moment?

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Yes ,after blowing out my accounts ,i have decided to read, research until ,I find out my own strategy currently.

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That’s good to hear. Don’t worry we all have blown accounts once or twice lol.

Once you find a strategy that fits you and is simple you’ll be about 20% there. The other 80% is physiological.

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I appreciate ,thank you.

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Hello Sir, good trading. Can u help me read your chart please? I’m not clear where is your entry SL andTP points. I need to understand what the boxes and colours stand for.

By the way,I use price action strategy too. I am still learning.

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Certainly, I have attached a chart below to show. Let me know if you have any other questions.

Good to hear, I think we’re all still learning nor will that process stop. Best of luck to you.

Hope everyone is having a good start to their week.

Here is the first trade I’m in this week.
USDZAR - TP1 hit, SL moved to BE

EURHUF - A lost for the week. : -1238 Points.

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Trade I opened this morning.
7/20/21
USDTRY - Ended up hitting stop loss : -423.3 points

EURNOK - Full TP Hit : 1098.0

Slow week so far, I haven’t been able to watch the charts this week due to being away from home.

Trades I have orders for today.
7/21/21

AUDCAD - Hit Full TP : 40.4 Pips

EURCAD - Hit Full TP : 99.3 ips

USDCAD - Hit Full TP : 67.0 Pips

Are you trading your strategy manually or using an EA?

And any limitations on what pairs you trade?

Super long thread!

I trade manually. No EA’s, it would be difficult to code an EA I believe with the process I go through. Since you kinda have to read what’s going with price. But I could be wrong.

No, I trade 43 pairs at the moment. Plus Gold, Silver, EURGOLD and AUDGOLD.

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Hi @Alg626

I see small labels that says pin or eg or 3r… are these your notes that tooken manually or are they a indicator or something like that??

They are an indicator to help me spot them. I didn’t originally write the scripts but fine tuning them to make them label what I want that qualify as a pin or engulfing etc…

I did learn to read a chart naked and learn without any of the indicators. But now it just speeds the process up a little for me. My platform is Tradingview for chatting.