Let’s say you have a bullish signal, during the Asian session I like to see price retrace down against the signal then as the session draws closer to london price starts to build up and start moving back higher.
What I don’t like to see is, you have a bullish signal. During the early hours of Asia price breaks up higher then as london grows near price starts to cave back in on the setup. Obviously this is the opposite for bearish signals.
I have never tried this and maybe someone can step in here and answer this, but I am sure that you can set a time on your pending orders so they are only valid between a specific time.
Generally you will find that daily sessions that break the low or high too early in the Asian session will quickly reverse in the other direction, power on past the other side of the daily candle and this is how the Outside bar signal will usually form.
The false break that traps them early traders, then the true movement with the smart money behind it kicks in and pushes price back the other way through the London/NY session. Sometimes this creates large moves, and outside bars that need unrealistic stop loss sizes. But one thing you can do if you key into these sorts of movements is trade outside bars live, yes before the candle closes.
For example, if there was a false break below a candle LOW during early Asia, then price shoots back up and breaks the high of the previous candle you could look to go long. However I am being vague here, you still must consider where on the chart price is, is the market trending in the way your looking to trade, factor in mean value etc etc.
Just an idea I thought I would throw out there for all you knowledge thirsty PA traders, something for you to look out for and experiment with.
I wouldn’t worry about the 1 hour chart too much, it’s noisy at the best of times. All the good intra-day movements will manifest themselves into a signal on the daily chart which paints a much clearer picture.
Charts I’ll be looking at tomorrow are the EURCAD, some nice rejection goign on there from that swing level, and the AUDNZD is looking good at the time I write this post, lets see how these candles close tomorrow.
Well it is a TL break and a false break of an inside bar with trend (fakey to some) BUT then again its a relatively small candle just above decent Resistance so l’m on the fence, which must mean out for the moment l guess!
These days USDCHF is an almost exact mirror of EURUSD but more costly to trade.
Again candle is small and more corrective than impulsive to me and there’s almost a better argument for going short…its closed below the 20ema and the last 7 candles have failed to take out even 50% of the previous large bearish bar…not for me Evermore if l am honest.
USDCHF, I am going to say I don’t like it. Yeah nice candle form, but the overall momentum is down and seems to be zig-zaging down inside a downward channel, which price is currently located just under the upper channel level. The market conditions just don’t line up with the signal so I won’t be touching that one.
EURGBP just is small in range for me to take notice, plus your candles are not closing whit NY close, your EG candle looks different to mine, looks like you’re an hour off or so.
I think EURCAD is a good signal, rejection of a swing line in a downtrend, and I also spotted an Inside Bar on CADCHF which looks good.
Trying to get a good trade out of these markets is like squeezing water out of a stone, so hopefully there are some good follow through moves here so we can all make some money!
hi dnb ,
last week have u take a trade in gbpchf ,signal after tuesday close.i missed that train.
Are you talking about the Inside Day that formed? I don’t remember talking about that one, although the trade worked out I would not have touched that one. Price too far from the EMAs to short and the market momentum was too bearish to consider a long.
Hi DNB,
I followed this call and so far it has worked out nicely.
Thanks.
You’re welcome highspeculation, just remember to take trades on the back of your own reasoning though, don’t just blindly take trades that I put up because I am not the trader god, not all of my trades work out. Some traders disagree with some of the setups I post and that’s fine, I do welcome the constructive criticism from everyone :).
I understand what you’re saying there completely. But you’re missing one key ingredient and that’s to trade WITH a trending market, in hindsight that setup looks great, but if you asked if I would go long on that one at the time I would of said no.
Why?
Because look to the right of the inside bar, the market had been falling downward, Price was closing on the bearish side of the EMAs and the EMAs were pointing down, so I would of not been looking to buy into that one, there had been too much bearish movement if you know what I mean. Yeah good point there was nice support there, if there was a strong bullish rejection candle off that support level maybe, but not an inside bar, especially with it and the candle before having long upper tails. I prefer to trade Inside Bars with a moving trend, to use them as reversal signals can get tricky, in my opinion.
Hi I am new to this forum and have been reading this thread for a while as it is a system that I would like to learn to follow. I was trading 1hr and 4hr charts to some success but it became to stressful trying to check the markets whilst I was at work.
I will be contributing my analysis to the thread for discussion when I can to try and develop my price action skills.
One thing I was thinking of was defining a way to say that a market has been over extended too far from the mean. Maybe if the market is extended from the 20EMA by X ATR then the trade is not worth the risk and I should sit on the sidelines till the price reverts back to the mean. What do you guys think?
Also @DnB am I right in saying for example if price is in a downward trend, it has over extended from the mean and is in the process of retacing back to the EMA’s I.e It is making a correction. You would then only look for bullish rejection (Pin Bar) to form for a reversal and continuation of downward trend. In other words after a correction you would look for a pin bar to resume trend not a inside bar at the top of a correction?
I totally agree with you about getting or not in trades you talked about. This is the reason I like this thread, because here I get different ideas, some of them contrary to mine.
Redarding your comment about the NY close on my charts, I do use it. Thing is my platform allows me to view bid and ask prices, I’m using the bid price, probably you’re using the ask price.
I’ve attached two charts to do the talking. Compare to yours please and tell me if it makes more sense.
hi DnB,
i’ve noticed many times adding a 50 ema could help a lot,
let me explain with a recent example:
eurgbp obviously daily chart,
during a good retracement, price spotted an indecision candle, stopped by the 50 ema,
next day an inside bar and then price retook the trend:
watching other charts we could see how the 50 ema act as support or resistance,
obviously it should be used in addiction to 10,20 ema and the main trend!!
