And what about yesterday’s rejection on EUR/USD? Here the market isn’t going sideways is it? What do you think DnB?
I guess so. I’m using FXCM Trading Station II. Probably is something with the settings. What settings do you guys use? And I mean all of you: Lucariga, DnD, Machal, Paddy and everybody!! LOL. Let me know.
[QUOTE=It does look like a monster signal.[/QUOTE]
What do you mean by “Monster signal”?
The daily close of FXCM TSII is 5pm NY time. Probably there is an issue with the server you are connected with. Your settings doesn’t matter.
HI DnB
Unfortunately today I was stopped out on EURGBP… Is there anything I could have done to better manage this trade (SL to BE or something like that)?
Hi, Lucariga
I know you asked DnB, but I’d like to give you my insight because I also took a loss on this one. Also I need to do this as a mean of self reflexion to help me become a better trader, and at the same time would like you and DnB to give your opinions.
Here is a picture showing my entry and exit points.
First it is important for me to say that I consider loses as a normal part of this business and since we are looking for a minimum 3:1 RR we don’t need to win all the time.
As for the trade at hand, my entry was correct, I followed my plan, looking to enter long at a retracement. Then, I noticed that the day after I entered, the market did an inside pin bar. Personally I don’t like when market does several inside pin bar(s), because to me this is an indication that market has lost momentum and there is no buying pressure (in this case) to bid prices higher. This I learned by experience and I noticed after tons of hours of looking at the charts, this is simply a thing of mine.
So, this inside pin bar made me suspicious that price could resume its downtrend. Anyway I didn’t close the trade at the time because I needed more confirmation. What I did was to move my SL to the low of the inside candle to reduce the risk.The confirmation I needed came yesterday when I saw the market open violently and break the weekly high early on the asian session, and as DnB always say “I don’t like early asian breakouts” LOL. I guess this is another thing one can only learn by experience, just as “I don’t like several inside pin bars”.
Looking back, I knew by then that there was a high probability that price made a false breakout, but for some stupid optimism I didn’t close the trade when it was showing some profit. Anyway I looked at the charts at the open of the NY session only to find out that price lost all its ground on the european session, and that was all I need to confirm that this trade no longer represented an opportunity for me and that’s the reason I closed the trade manually for a small loss.
Well, that’s all folks. I hope you find this helpful and please feel free to drop me your opinions.
What do you think about my catharsis, DnB? I’d love to hear your comments.
Thanks in advance.
Here are some examples of the “Several Pin Bars” thing that I don’t like. It does not have to be inside bars all the time. Just several pin bars in the same direction, each without breaking significantly previous highs or lows. The formation looks like a triangle with potential to break to the upside (in those cases), but for some reason they don’t.
Evermore F, from my limited understanding a pin bar is most only a signal when it’s on or near some area of support/resistance, ema. The rest can be tossed as non-signals. Since the market will make all kinds of bars from day to day they have to be understood in context of S/R, EMAs etc.
Just 2 words: AMAZING ANALYSIS
As for DnB rules to aim at minimum 1:3 R:R, I didn’t move my SL but the setup was good in my opinion and I don’t care too much about the loss. I’m looking forward…
Hi,
Yes, you are correct. But imagine the following scenario: You spot what looks like a textbook pin bar, you proceed to set your order whatever way you trade a pin bar. Next day, market shows you and indecision or inside or pin bar. Well, at this point I get suspicious and if next day a don’t see a significant move in my direction or I see an early asian breakout, then I close the trade.
Would like to see a reversal bar form tomorrow on the USD/JPY for a nice confirmed sell signal. Things are not always that easy.
Well done, that’s the wat to go, just letting it go.
Btw, thanks for your two words.
Hey guys, just quickly
I see there is a lot of posts I have to respond to here,
I am rushing around today doing a few things so I’ll be back on later to answer everybody.
Looks like Evermore has the bridge while I am gone!
This was a false breakout of the second inside bar. In my opinion if price breaks the high of the inside bar formation it could go up until next resistance.
Quote Originally Posted by DnB Price Action View Post
You don’t trade early Asian Breakouts.So it’s mean that when it break again in London or NY u will enter ?
When I say early Asian breakouts, I mean within a few out after the new Daily candle opens. I don’t mind the trades that get triggered during the later asian session but not 1 hour after the Daily candle has just opened, if you see that happen I can tell you from experience they often fail - not always but often enough to make me avoid them.
How many trades do you have a week?
Hmm at peak probably about 3 or 4, If I am in a good trade I just tend to leave it and let it run. I don’t like to enter new positions until all my current trades are set to break even at least. I don’t like having 2 or 3 trades open at a time with the potential to get stopped out.
And what about yesterday’s rejection on EUR/USD? Here the market isn’t going sideways is it? What do you think DnB?
I don’t have a rejection candle like that on my NY charts, I see it gapped up then caved back down into the gap, Ill post a pic below…
EURUSD is a tough one for me to make a call on at the moment, I don’t think I’ll do anything with this market until a clear break above or below them two levels I have marked out on the chart, that way i know which direction it wants to go in. At the moment this chart is a little bit congested and lacks direction.
What do you mean by “Monster signal”?
Lol, as in gigantic, huge , monstrous!
HI DnB
Unfortunately today I was stopped out on EURGBP… Is there anything I could have done to better manage this trade (SL to BE or something like that)?
You can’t win them all man, I didn’t enter that one because I had a trade already open, but I would of got stopped out too. The key to my success is the positive money management, always aim for high returns like 1:3. I’ve even pulled out 1:10’s in strong moving markets, I just let the thing go and ride the trend. Think about it, one 1:10 trade and you can lose 9 trades in a row after that and still be ahead. But be realistic 1:2-1:3 is a good starting point.
Yes, you are correct. But imagine the following scenario: You spot what looks like a textbook pin bar, you proceed to set your order whatever way you trade a pin bar. Next day, market shows you and indecision or inside or pin bar. Well, at this point I get suspicious and if next day a don’t see a significant move in my direction or I see an early Asian breakout, then I close the trade.
Thanks for the backup Evermore :D, some good points there about trade follow-through.
Generally I don’t like to fiddle around with my stop loss as I feel it can trigger emotional responses. That’s why I just like to have only one trade open with risk exposure (potential to be stopped out at a loss) and just say to myself, " Well this trade is either going to get stopped out, or hit target". Simple as that, that stops me with fiddling with things, sometimes the setups don’t take off straight away, price might stall or consolidate for a day or two then explode.
If you enter the setup for a good reason , then I just say leave it alone, let the market take care of it. No one should be frightened to be stopped out because we know then next time we catch a good trade it’s going to return us what we lost + a lot more.
I’ve read some professional traders have a losing rate of like 85% but make a lot of money! How?, because the trades they do win are the 1:10 R/R trades where they have just ridden a nice trend.
If you can make yourself some rules about moving your stoploss in certain conditions then feel free its your money, but just ask yourself are you moving your stop because your getting emotional or because your trading plan needs you to. Personally I just leave it alone, only moving to break even when price is far ahead in profit.
I hope you enjoyed that light reading lol
@DnB
Lol 1:10 RR is very rarely 
and to reach a 1:10 RR you can’t have wide stop losses and the risk to get stopped out is also higher.
I know, I’ve pulled that off a couple of times but I did hold the trade for weeks, but I was just using that as an example.
@DnB
Anytime, bro.