I am in exactly the same situation, but in Thailand. I am bringing up my little boy, who is 2 years old (his mum is at work teacher). I intend making a living trading but only need to make $1,000 a month to live comfortably. I am now at the end of my fourth month demo trading. The last 3 months have been profitable. Maybe next month I will use real money.
Hey traders, I wanted to let you know I’ve added a new article to my threads titled [I]“Step 3:Watching for Price Action at Key S/R Levels”[/I]. If you want to check it out just take the link over to the other thread. Also if you need to reference back to it in the future it has been added the to quick navigation area on the first post. Enjoy!
Thanks for that info Aaron. These lessons are in a nice bite size format that makes learning and understanding very easy.
Hey dwalther, I am glad you are enjoying the articles! This kind of feedback helps me know I am on the right track. keep checking back as I will try to do articles and videos on a weekly basis.
Hi Krugman,
I am interested in what you wrote in your other thread:
What is touch trading? Is it also Price Action, but in a weaker form? I know our definition on Price Action is actually stricter than the one originally favored by [U]the Father of Western Candlestick[/U], Steve Nison. Am I correct here?
That reminds me about the old discussion in Johnathon’s thread. I suggested that we actually can get away with weaker PA signal in above tf than D1, but the traders there did not like the idea and shot it down. In fact, not many traders are comfortable with the idea of letting their trades open for weeks or months, so I have difficulty to discuss this idea freely. 
[QUOTE=“wm247;556956”]Hi Krugman, I am interested in what you wrote in your other thread: What is touch trading? Is it also Price Action, but in a weaker form? I know our definition on Price Action is actually stricter than the one originally favored by the Father of Western Candlestick, Steve Nison. Am I correct here? That reminds me about the old discussion in Johnathon’s thread. I suggested that we actually can get away with weaker PA signal in above tf than D1, but the traders there did not like the idea and shot it down. In fact, not many traders are comfortable with the idea of letting their trades open for weeks or months, so I have difficulty to discuss this idea freely. :([/QUOTE]
I do remember that conversation. We have all said and agreed that the higher the timeframe an S/R level is formed the more powerful it is. We have all also said and agreed that higher timeframe candles are safer due to the larger stop losses. With those 2 things combined a higher timeframe trade is inherently safer. There is less risk to mitigate, which means the signals don’t have to be as large and commanding. I don’t want to put Js thread down but if you run a logic check on it, how can you say that lower timeframe signals need to be larger but not say that higher timeframe signals can be smaller to achieve the same quality signal. Not only that but the higher timeframe candles are generally not as large and define because much of the lower timeframe volatility is being absorbed into the large candle.
Touch trading is simple entering a trade based on an important level. The s/r levels are so significant that it alone provides a trading edge. These levels are view as key points in the market and can be areas where supply demand shift. Since the level is so powerful, no price action is required to enter. I don’t trade this way but I am sure there are touch trading methods that do give the trader an edge, and could compliment a traders overall trading basket. It may be something I look into more seriously down the road for my own trading.
That’s very interesting, indeed. Steve Nison wrote a lot more possible pattern of Price Action that neither you nor J ever considered as far as I remember. To be fair, Nison did mention that some of the patterns are stronger that the rest, thus I believe he implied that the weaker PAs may not be practical to implement in our trading.
However, this can change the whole gameplan if your hypothesis here is correct, Krugman.
If the real trading edge in higher tf lies on S/R levels instead of the strength of candlestick signal, we can implement even the weak PA favored by Nison then. I am interested in the concept of touch trading, as I also have investing mindset from stock market. Still, I may need to backtest this hypothesis a little bit, using Monthly chart.
One more thing, Krugman. Can you suggest me any good reference in touch trading concept? You know, books, movies, traders who implement it, etc. Thanks in advance.
I fully agree with Steve that certain patterns are more powerful than others. That goes for both individual candlestick patterns and the larger patterns like flags/double bottoms etc. There are literally hundreds of documented patterns, but only a handful have high success rates. Your trading edge is hugely dependent upon S/R levels. That is why it’s important to use daily/weekly s/r levels to look for price action patterns. A trade is safer and has a higher chance of success by entering on price action signals, rather than just blindly entering because of a key S/R level. I am sure touch trading high time frame S/R levels could be profitable, especially if you can achieve high RR on the winning trades, but I think trading price action filters out a lot more of the losing trades since you aren’t getting in until after the market is already signaling a reversal. I unfortunately don’t know of any books or movies about it. I have only seen traders talk about it in trading forums like these. I have researched it before but haven’t found much information about it. It is sometime you could back test and forward test on a demo account to find a method that works.
Hi Krugman,
you’re going to put a list of your approved broker here also, aren’t you? I hope you can also write a little elaboration why you approve those brokers for discussion in your threads. Not just ‘this has New York close chart, so use it’, but maybe a little more reasoning why the brokers fit our discussion here.
No broker is perfect, but if you approve it, then it must have little problems that can be easily solved. And to avoid any misunderstanding (just like some unfair accusations in J’s thread about him and Pepperstone), you may want to state which one is your broker at this point, why you choose it, and what things you like and dislike about that broker. Heck, maybe you can write it as ‘Aaron Kruger’s guide and tips to choose a broker’.
Also, have you considered my suggestion for ‘Broker Discussion and Chart Setup’ forum at M2M website? Whether we like it or not, it’s unavoidable. New and old traders alike will always come with their questions about brokers, so it’s better if we have a forum to specifically discuss about brokers in our community.
[QUOTE=“wm247;557403”]Hi Krugman, you’re going to put a list of your approved broker here also, aren’t you? I hope you can also write a little elaboration why you approve those brokers for discussion in your threads. Not just ‘this has New York close chart, so use it’, but maybe a little more reasoning why the brokers fit our discussion here. No broker is perfect, but if you approve it, then it must have little problems that can be easily solved. And to avoid any misunderstanding (just like some unfair accusations in J’s thread about him and Pepperstone), you may want to state which one is your broker at this point, why you choose it, and what things you like and dislike about that broker. Heck, maybe you can write it as ‘Aaron Kruger’s guide and tips to choose a broker’. Also, have you considered my suggestion for ‘Broker Discussion and Chart Setup’ forum at M2M website? Whether we like it or not, it’s unavoidable. New and old traders alike will always come with their questions about brokers, so it’s better if we have a forum to specifically discuss about brokers in our community.[/QUOTE]
Being in the US we have a smaller selection of brokers. CFD trading is illegal here, which CFD selection is a big determining factor for many non US customers. All I know is what I have used, which is FXCM, and I like their software and spreads. What matters here is that we are all using the same charts. Beyond that there is spreads, software platforms, currency and CFD selections, customer service, etc. there are websites online that compare all of the major Forex brokers and compare all of the above plus more. I would still like to get a good list of Ny close brokers, and let the trader figure out which one best fits their needs.
[QUOTE=“wm247;557403”]Hi Krugman, you’re going to put a list of your approved broker here also, aren’t you? I hope you can also write a little elaboration why you approve those brokers for discussion in your threads. Not just ‘this has New York close chart, so use it’, but maybe a little more reasoning why the brokers fit our discussion here. No broker is perfect, but if you approve it, then it must have little problems that can be easily solved. And to avoid any misunderstanding (just like some unfair accusations in J’s thread about him and Pepperstone), you may want to state which one is your broker at this point, why you choose it, and what things you like and dislike about that broker. Heck, maybe you can write it as ‘Aaron Kruger’s guide and tips to choose a broker’. Also, have you considered my suggestion for ‘Broker Discussion and Chart Setup’ forum at M2M website? Whether we like it or not, it’s unavoidable. New and old traders alike will always come with their questions about brokers, so it’s better if we have a forum to specifically discuss about brokers in our community.[/QUOTE]
Also, I will be adding the broker forum to the M2M website. I think that is a great idea. This last weekend I put that on the back burner so I could write an article and fix some of the broken links and bugs. That idea and others will be implemented in the near future.
I just had this conversation in another thread and I thought some might benefit from it. This is how you can take RR and calculate out what your % win would need to be for break even. There is not as much benefit doing this on a single trade, as your RR for each trade will vary, but you can begin averaging out your RR over all of your trades, which will help you figure out what your win rate % would need to be if you maintain the same long term RR average.
Not so many trade ideas on this thread…
This thread certainly moves slower that my standard price action that matters thread. Unfortunately there are many that are beginners or at least a beginner in their understanding of price action, but would still rather be in the advanced topics thread. I will continue to post articles and videos as I create them, but my presence in these threads will be light for a while, as I will be traveling out of state quite a bit for my job. I will try and at least get some chart analysis and lookouts here once or twice a week.
I think its because we are waiting on more instruction and not trying to derail this thread with frivolous charts and info we are still trying to become familiar with. Just my take.
I tried to post a set up yesterday - bearish pin bars had formed at a Daily S/R level on the 1H and 4H USDSGN chart, but for whatever reason, I could not download my charts. I have taken a short position on a demo account (Entry 1.24211 and SL 1.24811)
I agree, maybe we should have a framework to which post should be posted where ?
for example maybe PA related to pinbar 2BR and engulfing bars should be in this thread since there are the easiest to start with and it should be restricted to one TP level but patterns fibo stars etc… should be in the advanced thread
Although this would make it harder for us to track but it is just a thought
If you compare the rules in this thread to the other, you can see this thread has a much smaller rule set. It’s just going to take more articles and materials. The other thread has a bigger advantage as those are traders with experience. I am going to be focusing on those foundational price action topics in the coming months. I believe that will help newbies more comfortable posting here.
I just posted a video about Why Pin Bars Form
I don’t think it is enough to trade a rule set, but a trader should also understand what gives a trading method an edge. pin bars are a staple for the price action trader. Looking at the market, I explain why pin bars form and what gives them high probability.
My name is Simon and part time Forex trader.
I have been looking at Price Action for a while and have been reading Krugmans price action matters here on babypips and thought it time to say Hello to everybody. I also wanted to say this is a great topic…