Need Price Action Guru Help

Beginner Questions
1

Hello All:

I’ve attached an image of what I recognized as an inside bar, mama and baby or Harami candlestick pattern. My understanding is that when the setup occurs within the trend, there is high probability of a strong continuing move in the direction of the trend the following perior.

How would you trade this scenario? What are the triggers? :confused::confused: Anyone who trades price action will help greatly.

Thanks,

David

inside bar question.gif700×278 12.6 KB

2

IMHO

candle patterns cannot be used alone. you need some kind of S&R, maybe BB or MAs or S&R lines.

in this scnario i would wait for the price goes to the resistance created by the 7th candle (from the right) and them look for a reverse or continuation, or to the 15th candle support (from the right)

don´t try to look just for the candles by them self

3

Thank you!!!

4

I recommend you look for (whatever) the candle patterns you plan to trade at a possible low or high, that is at a fib retrace level or a trend line in the direction of a trend from a higher time frame.

5

Hi David
I trade candle patterns and PA but in conjunction with SR and MA’s. there are some very good threads here that deal with candle patterns. If I may, I suggest you look at the joy of candle patterns. There is a PDF detailing the system
best regards

6

can you please tell the pair and the TF that you´ve posted

7

Try overlaying your chart with the following: 80:1, 20:1 and 5:1 bollinger bands. Try it out on a 15m chart. As well as the obvious 15m chart up, the bolls will aproximate a 5m chart and 1h chart. It will quickly become apparent when PA is over bought/ sold. :slight_smile:

8

Inside bar are breakout trades. Enter long at the high and short at the low. Some traders wait for a retest. After entry, enter your stop loss, watch and wait. Never let a [big] winner turn into a loser.

9

Sorry. This is the EURUSD Daily.

10

is what i thought

there´s a very strong trend line formed by Pa so you may consider it as a support too.

is very probable that the price will go down for a while until it touch the trend line. maybe tomorow we´ll see that down move if PA break the support line