Thanks for the pivot indi! Will go and play with it and look at some more charts. Do you have a set of pairs that you only trade or? Do you trade anything else then forex?
-rikuaim
I prefer Euro for its low spread and it makes decent moves. Trading price action should work on any pair. I am unable to spend much time trading due to work. If not i will look around for setups in other pairs. I trade only forex and I trade 1 h charts mostly.
Regards
Muthu
Todayās price action trade is off Usd Chf 4H chart. Price was hitting a resistance as marked by red dots for the last four candles. A break through looked imminent during euro open. I was looking to go long at the break of resistance or get ready to sell this pair if it broke the trendline.
Hi, thanks for this very helpful thread. Iāve been reading a lot about forex the past 2-3 weeks and figured Iād give this a shot. Iām just trading demo right now but here was the trade:
I drew the Fib, red trend and S/R lines to help me see this more clearly. As I saw the price hit the bottom of the channel where there were 2 strong resistance lines (double bottom at horizontal, and bottom channel trend line), I had a feeling this price was going to go up. I checked the volume and saw it was heavy where I circled in white indicating buyers might push this up. I waited for it to break the 23.6 fib to confirm then entered long. I entered at 1.3581 and exited at 1.3611 for +30 pips. Comments? Suggestions? Luck?
Thanks again!
good trade audioproā¦
i have been using volume with this price action to help me make decisions and it does workā¦
i want to ask mastergunner or muthusai2000, do we take a trend just from today or go as far back as we need to?..
also if it is mondayā¦are we supposed to use last weeks trend and fibbsā¦to make decisions based on mondays tradingā¦or is it fresh weekā¦fresh start?
its hard to know where/when to draw fibbsā¦and this makes a big difference when plotting where price might goā¦in terms of what fibb levels it might hit.
thanks
I draw trends as far back as they are relevant. On a daily chart, this can mean that the current trend Iām looking at might be weeks old.
Same goes for Fibonacci. If you stick to drawing them at relevant highs and lows, then you should be solid.
There is no science to drawing trend lines or Fib lines. The art of it develops with practice.
Solid analysis. Good trade.
I like that you used several methods of confirmation. This is essential in my opinion when trading. You will miss winning trades, no doubt, but youāll also miss a lot of trades that would have ended up losers. And generally, youāll find that the more consensus youāll get the higher probability your success rate will be.
One question though, where would you have put your stop if the trade went against you?
thanks mastergunner
do you use this method mainly on h1 or daily?..which is the first place you look?
i dont really have trouble drawing fibbs, its just how far to go back, so thanks for that. cant say i bother with trendlines do you think i should?..
are there areaās on fibbs that you ignore? or once you see a retracement approaching any level (23.6, 38.2, 50, 61.8) you will trade?
thanks
p.s i would have had my stop loss just below the lowest pinbar on that screen (maybe 5 pips below)
Thanks for the reply.
Yes, sorry I forgot to include my stop info. In this trade I risked what my TP was, ~-30. That was mainly in case I had to walk away from my computer. I saw all the low wicks on many of the candles beforehand and didnāt want my trade to be stopped out by a quick bearish jolt. Had any candle once I entered [I]closed[/I] below the 23.6 fib line, I would have exited immediately.
Is there a better exit strategy here?
While I have traded the hourly charts, for quite some time now I have been trading the daily charts. Mainly due to the fact that it frees up a lot of my time and I still retain profitability.
I place a good amount of value in trend lines. It helps me determine if price is going to reverse direction, or continue in the current trend. Iām pretty decent at eyeing them up, so I donāt really place them on my charts anymore unless for illustrative purposes when Iām showing someone a trade.
As far as Fib ratios are concerned, they all have importance. I do not ignore any one over another. I watch what price does around them. I do often reference the Golden Ratio (61.8) as a bounce there is generally strong, but a solid bounce can occur at any level.
Great to see new guys joining in to explore the power of price action. Keep them coming to benefit us all.
Regards,
Muthu.
thanks mastergunner
do you trade much on mondays, or do you let price action develop into a pattern for the week before you decide when to enter?..
im also guessing you avoid news time, as this can have an impact on price actionā¦but how much by, 2 hours before and after?..
I donāt pay much time to what day of the week it is. I trade viable set ups. It could be any trading day of the week.
As I have a tendency of trading on daily charts, I pay little or not attention to news. The only news that catches my attention is the NFP. I am more cautious of my current trades when that day rolls along.
AUD/NZD has broken through a strong line of resistance on the weekly chart. daily shows a pullback in the form of a pinbar. Thoughts on going long on a break of the high of the pinbar?
So how did it go ?
Lets have a look at Pound Japan. A very scary pair to trade given its monstrous momentum that we need to deal with !
Price action looked to follow a channel for several hours as shown. Although in couple of places it did break it, price closed āintoā the channel. Waited for price action to break and close above/below channel. Price formed long upper wicks and also formed a doji. Candle after doji was also a bear candle and closed below the channel. Entered short at area marked. Stops were just above the round number 138.00. Lets see how the trade progressed.
Regards,
Muthu.
To be honest, I almost gave up on this trade as it threatened to take my stops. Luckily the big round number held on and price went in our way for a decent profit. Not the best of trades as far risk reward goes. However, i did manage to make some pips.
Regards,
Muthu.
Chennai.
India.
AUD/NZD hasnāt really moved at all. If I was using a real account then i would probably remove my pending order because it doesnāt look like a great trade, theres no momentum at all but as itās demo so i might as well wait it out and see what happens 
Noticed a possible setup on USD/CAD, itās broken through a strong S+R line which held prices all the way back in 2007. Price has retraced and formed a pinbar on the 4H timeframe so i have a pending short a few pips below