I just set the order at that level, there is no point trying to tackle this signal any other way, you’re stop is going to be two large and you won’t achieve a decent risk/return on the trade. Unless of course you hold for about 3 months and hope the market moves down 1000 pips lol.
thanks mate i’ll have to test that out
really liking this price action stuff i’ve been trading [not very successfully] with trend following and indy strategy for couple of years and finally decided to try something different, so far so good.
thanks again DnB for explaining pa in a way that everyone can understand.
I managed to get out of this trade at break even, when I seen that large 4 hour candle form I knew some sort of economic news or event had taken place, lucky I did this market really tanked.
I am kind of annoyed that I held this trade all week and it ended up being a wipe, but on the other hand excited for a possible shift in trend here. If this sort of bearish aggressiveness continues then we could see the JPY become a bullish market again.
At the moment I am waiting for my EURUSD order to be filled and watching this bullish price action at the AUDUSD weekly support level. I’ve been waiting all week for price to test this level.
You are very patient, that’s what a trader need to be. A break even trade is a winning trade, you can always take that trade again at a better price.
hey DnB do you always manage sl on 4h charts?
No I just noticed the daily candle had dropped a lot quickly so I had a peak on the 4 hour and seen all the bearish move was concentrated into one 4 hour candle. You see that all the time with severe news releases, so I just posted what I was looking at when I decided to move my stop.
I just wanted to share with you guys a counter trend signal that I’ve taken on the AUDUSD market.
Straight up I understand how risky counter trend trading can be so if this one doesn’t work out I won’t be that disheartened. On the flipside if this trade does kick off it has massive reward potential.
I’ve been waiting for AUDUSD to test this weekly support level all week, when price reached the level we had the bears try to push price underneath. This move was rejected by the market creating that breakout trap effect for the bears.
Now the daily candle closed nice and strong to the bullish side and is excellent in form, plus the fact that we are dealing with a major turning point in the market.
I targeted the previous day low as a retracement entry point, to tighten up my stop loss and now it’s up to market.
Watching this one closely, would have liked to see some bullish price action in friday’s close but the weekly closed pretty bear heavy.
We knew this signal was a high risk setup, however it won’t be invalidated until the lows are breached. Monday will most likely make or break this signal.
Well the AUSUSD counter trend signal didn’t work out, and the AUD bears continue to steamroll the chart.
I manages to get out at a few pips loss using the retracement last session, I thought the bulls were going to pick up and take off but after spotting an aggressive bearish 4 hour candle I cut my losses with that trade.
The candle closed as a small bearish rejection candle, but I’ve missed the entry.
Hey dnb what do you think of eu/us there’s a bearish engulf bar formed yesturday that looks interesting
Sorry there’s no chart I’m at work at moment
That’s not a signal, that’s just a bearish power day. The signal was the bearish rejection candle two days before it.
I see the one you mean just thought being a friday could be a bit of a false signal.
What are your thoughts on signals that occur on Mondays and Fridays
Friday signals can usually be wiped out with weekend gaps and changes in sentiment for the new week but if the signal is good I will still trade it. Monday signals are usually ok but it’s rare for a good signal to form on a monday.
I’ve noticed the best signals form on wednesday and thursday candles.
Yeah I agree the nz looks like its heading down against a few pairs
Looking at some AUD price action again today…
This is what I call that ‘perfect trend setup’. We’ve got a stable trend here, chart looks very buoyant floating on top of the mean value. The EMAs are stable and pointing towards that two o’clock angle which displays healthy trend momentum. Signal rejected a swing point within the trend and closed higher than the open.
If this setup plays out we should net some decent return here, we need it after some recent bad conditions.
AUDCAD has recently stalled after slamming into this weekly support level. However the support level is not producing much of a response from the bulls, each attempted to bounce off here has been overwhelmed by bullish price action. This level has not shown any signs that it is going to hold at all.
We’ve just had a bearish rejection candle form last session where price closed aggressively into the support line. I don’t normally trade into weekly levels, but all attempts to bounce off here have failed and now we’ve got a bearish signal putting heavy downward pressure on this key level.
If the signal plays out and the bears do breach the line, there is plenty of room for the chart to move to the downside. It will probably be an explosive price action event that has good potential to produce excellent returns.
Taking a look back at the GBPAUD that I spoke about in the previous post, as expected it has taken off nicely. I’ve taken profit at 1:8 which is an excellent return on risk. If you risked $300 on this one then you would have returned an easy $2400.
This was the ‘textbook perfect’ setup with a nice stable trend, price floating gracefully above the trend mean value and volatility in one direction only.
Taken profit here because price has started to gap away from the mean value now and I don’t want to lose all returns on just made on a retracement. Plus I don’t want to start getting greedy either.
The AUD markets have produced some killer trends, EURAUD and AUDCHF moving nicely!
Hello,
can You tell me please what is happening with your website ? Its offline. Thanks
Because the War Room is so busy, the chat room overloaded the servers again.
I just had to purchase a dedicated server for the chat room alone.
It should be fine now.
Great educational thread, DnB! What is your website, I must have missed the link?