The USDJPY is moving in the complete opposite direction as EURUSD, I don’t see that very often.
I entered UJ long, let’s see how the day closes.
I think that the markets are too risky to trade in at the moment, most of the major pairs are stuck in consolidation and that GBP/CAD chart doesn’t look any better. Remember it’s best to take these signals with market momentum, if there is no momentum or direction then the signal is going to be extremely risky.
Guys,
Just wanted to say Hi and that I’ve read the whole thread over the last 3 days. Will be posting up questions soon enough. Still on a demo account and just started looking at Price Action trading in the last couple of weeks. I think I could like it!!!
Russ
Just looking at these markets, what a mess!
I’ve been long EJ for the past few days, hasn’t gotten anywhere. AUDJPY looks very bullish, other than that most markets are a consolidating mess.
Great thread dnb! Very difficult markets to trade this week! What are your thoughts on this, is this due to news and what’s happening in Europe?
True that DnB. I tried trading this week and made a loss across a range of pairs and so I’ve decided that I will sit back this week. I think it would also be wise to stay out of the market for now, especially since the Greek elections will be held on Sunday and I have a feeling that that could have a potential impact on the markets…but it may not be instantaneous. Either way, a bird in hand is worth 2 in the bush, i.e better to hold onto your money now and wait for good set-ups than to throw it away through low-probability trades.
Btw, thanks for keeping on posting. I dont use your post as signals per say but it is great when I have an idea and then you post something as confirmation. Keep it up!
I think it does not matter why the market does what it does, because for us, as retail traders, to have an answer to this question would be imposible. For me, what is really important is to now WHAT the market is doing in order to speculate what it would do on the future. At the moment is obvious that the market is consolidating, and I have strong gut feeling that the market is going to resume its recent uptrend, anyway I’m certain that market can do whatever it wants to do, meaning that it could break to the downside as well and, as a trader, I have to be prepared to take advantage of whatever information the market is giving me and profit from it.
I want to share with all of you this funny anecdote I found in a book I’m currently reading to illustrate the point that we will never know for sure why the market did what it did. Here it is, enjoy:
"Several years ago, a trader came to me for help. He was an excellent market analyst; in fact, he was one of the best I’ve ever met. But after years of frustration during which he lost all his money and a lot of other people’s money, he was finally ready to admit that, as a trader, he left a lot to be desired. After talking to him for a while, I determined that a number of serious psychological obstacles were preventing him from being successful.
One of the most troublesome obstacles was that he was a know-it-all and extremely arrogant, making it impossible for him to achieve the degree of mental flexibility required to trade effectively. It didn’t matter how good an analyst he was. When he came to me, he was so desperate for money and help that he was willing to consider anything. The first suggestion I made was that instead of looking for another investor to back what ultimately would be another failed attempt at trading, he would be better off taking a job, doing something he was truly good at. He could be paid a steady income while working through his problems, and at the same time provide someone with a worthwhile service. He took my advice and quickly found a position as a technical analyst with a fairly substantial brokerage house and clearing firm in Chicago.
The semiretired chairman of the board of the brokerage firm was a longtime trader with nearly 40 years of experience in the grain pits at the Chicago Board of Trade. He didn’t know much about technical analysis, because he never needed it to make money on the floor. But he no longer traded on the floor and found the transition to trading from a screen difficult and somewhat mysterious. So he asked the firm’s newly acquired star technical analyst to sit with him during the trading day and teach him technical trading. The new hire jumped at the opportunity to show off his abilities to such an experienced and successful trader. The analyst was using a method called “point and line,” developed by Charlie Drummond. (Among other things, point and line can accurately define support and resistance.) One day, as the two of them were watching the soybean market together, the analyst had projected major support and resistance points and the market happened to be trading between these two points.
As the technical analyst was explaining to the chairman the significance of these two points, he stated in very emphatic, almost absolute terms that if the market goes up to resistance, it will stop and reverse; and if the market goes down to support, it will also stop and reverse. Then he explained that if the market went down to the price level he calculated as support, his calculations indicated that would also be the low of the day. As they sat there, the bean market was slowly trending down to the price the analyst said would be the support, or low, of the day. When it finally got there, the chairman looked over to the analyst and said, “This is where the market is supposed to stop and go higher, right?”
The analyst responded, “Absolutely! This is the low of the day.” “That’s bull****!” the chairman retorted. “Watch this.” He picked up the phone, called one of the clerks handling orders for the soybean pit, and said, “Sell two million beans (bushels) at the market.” Within thirty seconds after he placed the order, the soybean market dropped ten cents a bushel. The chairman turned to look at the horrified expression on the analysts face. Calmly, he asked, “Now, where did you say the market was going to stop? If I can do that, anyone can.”
- Excerpt from Trading In The Zone by Mark Douglas.
Hey guys, what do we think about this inside candle? Looks nice to join the downtrend. Drop your comments.
What do you say DnB?
EUR/CAD
Cool post Evermore, I knew there was going to be a twist at the end like that.
That Inside bar looks like it’s good for a break higher to me, but overall conditions there are sketchy there too.
It really has been a s**t week for trading, I am sure a lot of people would have gotten frustrated and lost some money this week.
Yup, s**** week, I’m not sure of the E/C anyways because of the greek thing. I guess im not taking it.
Hey DnB, do you mind if I use your thread as my trading journal. I think is important for me to express my thoughts in order to have some sort of control of what I’m doing and since we are all using the same strategy… :39:
P.D. what’s with the chicken! lol
Hey! Watch the Aussie… it broke the triangle. Looks nice for a long
Evermore,
Are you trading the 1Hour or just using it for reference?
Anyway, back to your chart, I don’t think it’s going anywhere since the market closes tomorrow and there is a rumor that something may happen in Greece over the weekend (can’t be news since we don’t believe in news, so it must be a rumor 
). Monday will be a very different chart most likely.
Russ
What about the IB on EURNZD, EMAs just crossed over, price just broke though support, bearish IB and with longer term trend as well. I think this could test the recent lows what does anyone else think?
Why did you enter EJ long -> countertrend?
Was it because of the Major and strong Support Level level near 97.00 ?
Here is my EJ chart
This setup has hardly had not much follow through, it could easily fall back in on me.
Hey DnB, do you mind if I use your thread as my trading journal. I think is important for me to express my thoughts in order to have some sort of control of what I’m doing and since we are all using the same strategy…
Sure as long as it’s Price action trading, you mean post up the trades you take etc?
How many currency pairs would you monitor at any given time? Do you try to limit yourself to less than 10 or do you look at the majority of pairs that your broker offers?
Given that Price Action trading is not as simple as watching a simple line cross for an entry signal I just wanted to get some peoples view on this. How many pairs can you trade at the same time without loosing the “analysis edge” of price action or worse will trading too many pairs cause you to feel the need to make a trade because there is so many possibilities to choose from.
I will wait for everyone to give their thoughts on this.