The dominant trend is still up here. But I must agree with your Resistance Level above this indecision candle (on your chart it isn’t really an indecision candle, don’t know why). So in my opinion this trade is a bit risky beause the Indecision candle occurred below a resistance level. Surely price could break the high of the Indecision candle and moving higher, but could also be a false break and then breaking lower. So if you want to go sure you should enter on clearly countertrend movements/Retracements and then looking for a PA Signal.
Ask yourself: Why taking this trade if the market gives us a lot of other and better opportunities to trade?
So for me this is not an A+ trade setup.
But if you take a look on the EURAUD you can see a nice Retracement -> see DnB’s post.
The AUDCHF looks also nice with an inside bar (I am online with my phone so I can’t post images sorry :S)
I was just really confused when DnB said price look to go higher yet price during yesterdays session had gone through and tested before closing well of the sessions lows and under the resistance. To me that was a bearish signal that price could not close above the resistance so I shorted at the close and then looked and DnB had said he was looking for longs. I just wanted some clarification from DnB of what he is looking at…
I thought this was a good trade :29: woops.
I just can’t get a handle on inside bars. They are ther everyday but I am seam to always go from being in winning positions to stopped out at the moment.:17:
Below is a trade that DnB took on the EURGBP daily chart. Now what confused me what at the time my understanding of retracements and entering into trends was the same as your chart examples above.
I am still confused because DnB said that one candle can make a up a retracement. In other words this one candle has moved lower and formed a retrace. Looking at your examples above and the EURGBP chart however I can’t see how the retracements are the same and I am still confused how one candle can be classed as a pullback in the market.
I hope this make sense. It if doesn’t don’t worry about replying.
l saw the GBPAUD candle too but also noticed weekly bullish divergence on my oscillator and weekly price forming a doji on the long side of the 50sma giving me caution and a possible long bias…would appreciate your view on this.
I am not sure how to answer you, What oscillator are you using, I don’t use indicators. I see the Indecision doji on the weekly chart, yes if price breaks last weeks high then this setup is a wipe.
you still in this one? I took short with you and have nearly been stopped out but still in. Do we just let this play out?
Still in this one, just letting it go. The trade hasn’t had much follow-through which concerns me, but I don’t like exit early out of fear. I’ve done that in the past only to find when I closed the trade price took off and hit a 1:6 :/, so just trying to keep my trading emotional free and consistent. If it doesn’t work out, the next trade I will clean up the lost pips + more.
Can you explain the USDCAD a little more? I though this looks to be making a false break meaning it would go lower. Obviously I have read wrong here and would love your guidance.
Well, I just like the fact that price is closing on the bullish side of the EMAs, this market has been overall bullish, so long trades seem logical to me to play in the direction in the trend. If price [B]breaks higher [/B] then that could be an opportunity to join this strong market. I would move your resistance line up just a bit higher IMO.
There could be a false break of resistance above yes, I say that because anything can happen, with price so tightly tucked into the EMAs at the moment I would there is less risk of a false break. Usually you see false breaks after explosive moves or even price breaking S/R when stretched far away from the EMAs.
Anyway this one hasn’t broken it’s highs, if price breaks down below instead then that wipes this setup off. I am just posted any thing and everything I see, they might not all be A+ setups but it’s just fun to speculate with Price Action.
Out of two setup you posted - EURAUD and USDCAD, I prefer EURAUD which is a A+ setup. Indeed, AUDCHF has a similar setup but on an opposite site - both have IB, at the swing low of the up/down trend and at the support/resistance. FYI, I took AUDCHF trade.
In your example here this single bullish pin bar was a pullback because it touched/rejected the Support Level. It is not very obvious but it’s valid. As you can see this Support Level was also touched before so there are more chances (confluence) to a high probability trade. I think this was a valid signal but I can not look at my charts at the moment.
You must know that you never will win all trades. The market will decide what it wants to do so you can not control it. Only with money management you will make money.
Out of two setup you posted - EURAUD and USDCAD, I prefer EURAUD which is a A+ setup. Indeed, AUDCHF has a similar setup but on an opposite site - both have IB, at the swing low of the up/down trend and at the support/resistance. FYI, I took AUDCHF trade.
Good Work!
The EURAUD and AUDCHF setups certainly did have nice follow through, GBPAUD just seems stagnated, hopefully price will eventually grind down.
GBPAUD was a good setup, it just looks poor now because in hindsight price hasn’t hardly moved. Sometimes you open up the flood gate, but no water comes out
Usually only when price is well into profit. I like to see price make it’s first retracement first. After the first retrace, I move my stop to break even, that way I know if price breaks the last retracement high or low that was made then the trade has probably gone sour. If that makes sense.
That silver sell off looks nasty, if you’ve been stopped out at break even, just leave it and wait for the next signal, because I know you are probably thinking about revenge trading that and jumping back in. Am I right?
If you’re setting a pending order, make sure the current market price isn’t too close to your entry price. There is a minimum distance, if you’re trying to set a pending order too close to price it will throw out an error.
Hi Guys. I’ve been reading this thread for a couple days and was hoping I could contribute as well. What do you guys think of the inside bar setup on AJ? Its formed at a pretty decent level at previous resistance and at dynamic support with the trend.
