Right, definitely not the best looking pin bar, but it was where it occurred at that made me take it…in a weakening market showing rejection of the 8 day EMA… I saw a large reward for a relatively small risk so I took it, that’s how I trade…
There have been some quality price action setups lately. Today there is some action in the AUDUSD and the GBPJPY. Both are looking like they have plenty of room to the downside. However, I am personally going to enter short this GBPUSD 4 hour pin bar. It is clearly a good signal, it is a short with the recent downtrend. I will update the thread as this trade progresses…
Sell stop: 1.5505
Stop loss: 1.5605
Target: 1.5305
Risk to reward = 1:2
No question that your example is a classic pin bar, I hope it goes well for you. I personally don’t trade short (sell) when the pin bar closes higher that its open or long when the close is below the open. Much safer but fewer trades so I suppose it is all about one’s risk & MM tolerances. Will you keep this open over the weekend? d.
dobro,
Yes, I held it, its looking nice right now. Stop is currently at break even. Well update this thread with a chart once it closes out either way. 
Target hit today at 1.5305 for +200 pips. Yes, I held the trade since entering on 8/26…this is how I trade, very stress free. I literally almost forget I had the trade on after moving to break even, checked it today and saw my target got hit. Price action rules. 
Hi t2000,
you sound very much like nial fuller and even your style of trading, your approach… to be honest with you mate, nial fuller’s forex course is not worth buying because what you get from paid or subscribed course is very much the same as the free courses he posted on his website.
Just wondering, is this another advertisement of learntotrade??? I belong to a group of unhappy clients of nial and not to mention his tech support is very lousy… just to answer a simple question will take ages.
peace man!
goodluck to you.
p.s. if you can show your blotter next time will be much appreciate.
First off, what is a “blotter”? I have no idea what that means. I am not affiliated with learntotradethemarket besides also being a member of Nial’s website…I don’t see why you or anyone else would be unhappy to be honest. I thought his course was very well done and a great comprehensive guide to the strategies he teaches. Do you participate in the member’s forum ? It is very active. Sorry your experience has not been as good as mine, but I have become a much better trader as a result of joining Nial’s site. Just my opinion
my apology my friend didn’t mean to intrude and wreck havoc on your good thread here please continue don’t mind me at all, my bad.
peace!:o
No problemo my friend! Keep following my thread! Peace to you!
I love your trades and analysis.
Keep up the great work !
lallous,
Have you seen the pin bar on the GBPJPY that formed just before the Japanese news release? This was an insanely strong fakey price explosion…
Yes indeed, I saw it on the daily TF.
Did you take the trade?
No, unfortunately I did not. I try not to trade against the trend generally, unfortunately a consequence of this is that you sometimes miss really big moves like this one on the GBPJPY. But, the flip side is that you stay out of many losing trades.
Yes I am trying to avoid trading against the trend.
What TF do you usually use to determine the trend? I usually use Daily/Weekly.
I use the daily and weekly too in order to determine the trend. I tend to then look for price action setups on the 4-hr charts on counter-trend pull backs, to trade in line with the daily and weekly trend. For instance, if the weekly trend is up, but the 4-hr chart is rotating lower, I will watch for a pin bar or some other price action confirmation signal to get long; in line with the higher time frame. Make sense?
Makes perfect sense ! Thanks for the elaboration.
New trade setup: pin bar reversal
Sell GBPUSD at 1.5590, stop loss at 1.5730, target at 1.5390.
Risk to reward: 1:1.4
Hey trader2000! Great thread.
In fact my trading methodology is somewhat similar to yours. I take entries off the 4 hr and dailies. 1 hr is unless a beautiful pb is formed with strong s&r levels.
Well couple of pairs you may want to have a look at.
eur usd daily formed a pb with fib at 78.6% and following the main trend on the weekly, which is downtrend.
aud usd daily formed pb with weekly chart showing strong resistance that has been tested quite a few times.
gbp jpy has another pb and the candle has penetret the bullish candle quite deeply
happy trading!
Hello Trader2000,
What do you think of Aud/Usd
Hey lallous, well, as you can see this fakey setup never really came off to the downside. I typically try to avoid counter-trend trades like this one. For example the Australian dollar has been both technically and fundamentally very strong recently, therefore I decided not to take this trade. You are always going to have counter-trend setups in the course of strongly trending markets as a natural result of price movement, however most of them are not worth taking. FYI: Speaking about not trading against the trend, this is one of the things Nial Fuller talks about in some of his videos, a good example would be the tutorial found in his website, where he is trading the GBPJPY and talking about sticking with the trend and filtering the trade using confluence, this might give you a bit more understanding into why I’m not keen to trade against the trend, a lot of his tutorials talk about trading with the trend as opposed to against, that said, I have seen some good counter-trend setups of Nial’s come off, I guess it just depends on your level of experience to know if you are ready to trade counter trend setups or not, I am certainly not there yet and still learning a lot.