Well, I decided to take a 50% retrace entry on the pin bar that formed and look for 1:2 reward trade. Worked out nicely. While the breakout did not occur in the same candle as the Asian session trap, that day resulted in a tradeable bearish pin bar. Here are the levels I was looking at…
Onto the next one…thanks DnB.
Good one DayTraderDad…
I didn’t get triggered on the GBPUSD trade setup 
I am targeting the previous day high as a retracement entry point. There may be another retest of this level so I am waiting for that. I being very discipline here and want that entry price or nothing, no one ever becomes a winner chasing price.
It’s pretty incredible how hard it is to resist chasing price movement on the shorter time frames. I just read your article (second time) and definitely need to up the ratio of setting traps versus falling into them…
Thanks!
Hey thanks Hutch.
After speaking with a few traders who are having trouble with their trading I decided to write another article on journaling. Most traders think journalling is about recording lots of boring numbers, but I think it should be used as a self improvement tool and really play a big part in building a winning mindset in the markets. If you guys are interested you can read more about my views on Forex journalling here…
How to make your Forex journal your own private trading mentor
Thanks for the article! I thought I already kept a detailed journal until i read that…
Am in the midst of using more PA in my system, which I’m afraid is still indicator heavy. Although I am on the verge of ditching ADX/DI as it seems to give zero predictive value. And of course I’ve read your autopsy 
. However I still cling onto my other indicators for now. The system seems profitable on demo but is massively stressful.
Looking for obvious price action today at NY close and for me the Aud/Usd pair presented and obvious signal to look for a trade to the upside.
I’m targeting the support level as a logical place to enter on a retrace and there is 1:2 reward available before resistance comes in. Let’s see what happens.
I am currently long on this AUDUSD rejection candle, we did see the Friday session close a bit negative but still did demonstrate some lower rejection of prices in the candle. Hopefully there are no severe gaps over the weekend, this setup is still in play until the lows of the rejection candle are breached.
Lots of traders concerned about the overhead resistance. My philosophy is, in trending conditions you can expect these levels to be broken as the market steps upwards. If you study the price action in your chart history you will see clearly when trends are established, support and resistance levels are continuously broken as the core trend pressure prevails.
The AUDUSD trade is looking healthy now after some bearish pa at the market open, we got a nice strong bullish close to the end of day price.
Checkout the price action on the S&P…
This breakout trap past the market top could be an indicator that the bulls don’t have any strength left ant this market could be at a potential point of exhaustion. Watching for any bearish follow through here, especially if the market drops below the previous day high.
nzdusd got breakout in early asia ,now the bull trap is in charge ,so possibly reverse trade can trigger.but strong resistance is at 0.8400 .
An inside day has formed from price churning and compressing under an important resistance level. There was a bearish pin bar signal here but there has been hardly any bearish follow through. Now price is remaining buoyant above the mean with the bullish pressure wedging price into resistance.
We could see a breakout to the highside form this inside day into new highs.
What a shame hey,
Lots of the markets have fallen into consolidation, which really is bad for business. There is no way to determine when this is going to happen, it just does. So now we’ve got to wait for signals with the bearish momentum if the market continues trading at these lower prices.
EURUSD price movement has stalled during the last two week as price boxed up and churned above a support level that was aggressively broken prior to the consolidation. Earlier during this weeks trading the market took a dive back down below the support level and actually close under.
The market was unable to maintain these lower prices, which was evident the following day when the bulls pushed the market back up above the level closing as a bullish rejection candle. EURUSD did close higher than it’s open price and also showed rejection of the mean value area. If prices break the highs of the rejection candle we could see the next extension upwards by the bulls.
Looks like you got a great result with the Eur/Usd. I couldn’t get a retrace entry so I didn’t chase the breakout when highs were broken. However, I did get a winning trade on my second trade this week and that was with the CAD/CHF pair. Really simple way to use price action to get a 1:1 winning trade. Thanks DnB.
EURUSD price movement has stalled during the last two week as price boxed up and churned above a support level that was aggressively broken prior to the consolidation. Earlier during this weeks trading the market took a dive back down below the support level and actually close under.
The market was unable to maintain these lower prices, which was evident the following day when the bulls pushed the market back up above the level closing as a bullish rejection candle. EURUSD did close higher than it’s open price and also showed rejection of the mean value area. If prices break the highs of the rejection candle we could see the next extension upwards by the bulls.
Looks like you got a great result with the Eur/Usd. I couldn’t get a retrace entry so I didn’t chase the breakout when highs were broken.
Yes a nice result from the EURUSD signal, especially after the disappointment from the AUDUSD produced this week…
A good level now to consider taking profits as the market has gapped away from the mean and rammed into strong resistance. You could hold longer term but expect to sit through a retracement first.
Also looking at this strong bullish rejection candle on EURNZD…
A nice range setup here, this candle communicates very strong bullish control coming off this range support level here. Will be watching this one next week, a retracement entry would offer good risk reward ratios.
An update on EURNZD…
An asia breakout trap occurred during this Asia session which is a warning flag for us in the war room. We generally don’t trade asia breakouts as they tend to end up like this. Now the Asia session move has been rejected we will likely see bearish continuation into London/NY and make even get a breakout trap & reverse trade trigger.
audusd has got bo in asian session,looks like a breakout trap occured and now price returning to either side for short trade
Nice one Vas I also just spotted this. Quite a large 4 hour rejection candle has formed also so we could see some lower prices develop during this London/NY session.
The Asia breakout rejection on the EURNZD that was discussed in the previous post has seen lower prices develop also…
Excellent thread. Thanks DnBand everyone else. I have been trading with indicators for the past 1.5 years. I have a negative balance to show for that.
I am hoping that I could turn my trading around with PA. I will be demo trading this for the next couple of months.
If everything goes well, I am hoping to retire from my full time job, and buy a private jet to go places by the end of 2014 :32::55:
OK, could some one have a look at the following daily chart (USD CHF) and tell me whether it is a correct signal? Blue line is the entry. Any help is greatly appreciated.
