early asia breakout occured?
It did, and as l am asleep during the Asia session l tend to put on any trade l think good at the NY close. l guess l could wait and get up early before London open to check but that might destroy the pleasure of end of day trading!However, l used a conservative entry stop on this, just 5 pips plus spread above the A bar at 1.5511 so l wasnât tagged and my entry order is still active for the moment.
That was a nice signal, GBPAUD that is. Then problem is when you see a nice signal like that and it starts breaking out durning early Asian you get trapped into thinking âoh crap I better jump in or I will miss the trainâ. It is a hard emotion to get under control and I donât think you will ever be able to fully get rid of it, only suppress it to manageable levels. Itâs this emotion that traps traders into bad trades.
But yeah it did break higher during Asia and caved in towards London, a classic sign that the signal isnât going to follow through. I am out of AUDJPY at -3pip, same thing happened there so I am not going to risk it.
If you are putting on a trade at NY close how do you handle your trade if your order is executed during a false asian break and the market starts falling towards London open? do you just close out the trade at the market? This is where i am struggling with this strategy. I get fear of putting on a trade due to the amounts of false breaks over night. 
Well. there are several solutions. Get up early before London opens but this too can be tricky. There have been long periods when price makes false breaks in the first hour or two of London then reverses, so you are caught out anyway. You can wait for the first 4hr close of the London session at 10am London time.You can monitor 4hr candles during London and NY for clues and entryâŚplus this can give tighter stops. Or you can be very selective in your trades and conservative with your entries so there are minimal false triggers.For example, putting entries where price would need to have made a significant move to trigger your trade, just as l did with GBPAUD yesterday and just avoided an unwanted entry.
There is no easy answer and always risk in trading.
Dnb likes to wait for the London open to place his trades l think, and l may have to start getting up early to place pre-planned trades or l may just continue with just placing A+ trades at NY close as l do now.
Sorry l have no definitive answer for you!
I lost 75 pips on the gbp/aud. I think the solution is to place the entry orders around london open. Im sure this wont filter out all bad trades, but some, God willing
Bad luck with that one Blessed TraderâŚlâm guessing your entry was just above the IB or perhaps you didnât allow for the spread if you put it above the AbarâŚotherwise you would have been safe. It would take a great Pin Bar or similar to make me move my entry from above the A bar to above the IB, although it can be tempting.l like my entries to be 5/6 pips plus spread above the A Bar or nearby S/R.
Letâs keep an eye on the pair and we may get another entry and get those pips back! A nice Pbar off the 20 ema would be nice!
Not seeing anything tonightâŚanyone seen anything on their pairs?
Michael Ji, thanks for the advice. I hadnt thought of placing my entry above the A bar. I went 6 pips above the Ibar, with my stop below the Abar. Are you placing your stops that way also?
actually my stop was below the Ibar, it wouldnt have mattered for either bar, though
Awesome I did exactly the same thing 
Above the ABar is the usual entry as you are asking the Ibar to show that it has the energy/momentum to break out of the range its in, although sometimes a more aggressive entry can be merited.
Also, yes l generally place my stop just below the A bar, just 2/3 pips usually.
As l said, l am quite conservative and some more aggressive traders would prefer to take the route you took.
Its what suits your trading personality the best, as its all about risk reward and conservative entries and bigger stops can cost you pips in one sense.Aggressive entries can mean more frequent losers but bigger winners.
With the who price action movement through the Asian session thing, as simple as this concept may seem it can be quite challenging to comprehend sometimes. This Price Action system is simple enough, itâs just the screen time you need with it to be able to really build up some confidence.
My recommendation to the beginners is to wait for Europe-London hours before setting your trades, this way if a breakout occurs, you can have some confidence that youâre jumping aboard a move which most of the market participants are behind.
When early Asian breakouts occur most of the world is offline, so theyâve got nothing behind them.
I am Looking at an Indecision candle signal on the EURJPY todayâŚ
What does Abar stand for!?
Hi Matt,
An IB set up is obviously a two bar (candle) set up, first,the larger outside bar and then the following inside bar. These are often labelled the A and B bars for easy identification - the B bar being the following IB, and the A bar the bigger first bar.We use the word bar because these set ups originate from trading in the days before Japanese Candlesticks were widely used and everyone used bars.
Hope this makes it clear.
Oh ok I have always referred to the âAbarâ as the mother candle. Thanks for the explanation.
l think âmother candleâ comes from Niall Fuller.Heâs a guy who l think knows quite a lot of decent theory but doesnât really actively trade very much at all imho, he seems to be almost exclusively into making money from his website. His analysis of price action that lâve seen seems to be mainly descriptive with very little insight into what underlies it and he rarely,if ever,commits himself to taking a view, so lâve lost respect for him. Heâs got great 20/20 hindsight though!
Looks like lâve got what l asked for yesterdayâŚanother set up on GBPAUD and a Pin Bar to boot. Comments welcome.
I will get back in this one only if it retraces to the 50% fib line and bounces up. I dont want to get burned again, 