In the beginners thread IBs aren’t in the list of approved price actions candles discussed here, but they are in the list over at our . advanced topic thread.
But I will still answer your question and hopefully it can help. Inside bars should always be traded at the break of either the child candle or mother candle. Entering at the break of the mother is generally a more safe entry. I am not looking at the charts myself but just from what you posted I would move my resistance down a little bit. By trying to take profit on the very tip of the next key resistance, you are reducing the chances of your TP being hit. Wouldn’t it suck to have price travel all the way and come within 10 pips of your TP just to reverse and hit your SL. Sometimes its better to take profit a little safer and give up the extra pips. If you were going to go long you could enter at the mother candle, set your SL on the opposite site of the mother with a 1-10 pip buffer, and set your TP a little lower. Again this is just from your chart posted, I am not sure if zooming out there is some other resistance you will run into along the way.
Hi Aaron.
Can you please clue me in on the “mother candle” business? I’ve never learned about that. Something like you have a mother, then children candles. And also how much weight do you give to that?
I’ve seen it around your other site, but just haven’t ever seen it explained.
Thanks.
(I’ve been with you the whole way here, and there, and plan on never leaving. I so appreciate every bit of work you’ve been doing. You ARE my hero.)
Hello everyone, I just hit TP on a live trade I posted yesterday. It is over in the advanced topics thread. Most of the live trades I post will fall into the advanced category, but I didn’t want to leave this thread without something to read on. Some of the chart analysis may be confusing, if so just please disregard, but the same price action principles apply.
I also was entered into a trade last night that I had posted about watching for potential setups. Shortly after that post a price action candle formed with volume confirmation. I posted a screenshot with chart analysis of the trade as it is unfolding right now. As of the post was at 1:5 RR with a 1:9 RR TP target.
An IB setup is a 2 or more candle setup. In it you have 1 mother candle and 1+ children candles. For the setup to be valid the entire mother candle(real body + shadows) must completely engulf the child(ren) candle(s). This is can sometimes mean there is a battle between bulls and bears occurring and price is winding up for a breakout. Another possibility is the market is taking profit and taking a breather before it’s next push higher. Yet another possibility is that there is just low volume and volatility, and it doesn’t really mean anything. I am going to eventually dedicate an article to inside bars because without the proper understanding of them, a trader will lose money trading them.
I appreciate the kind words and I am glad to see you are benefiting from all of this! That is what makes it worth my while! And just think we haven’t even been running for 2 weeks yet, haha. There is much more to come.
Hey mates!! thank you guys for the welcoming and the quick reply and of course your insights.
Sorry i didn’t know there was a different threat for IB (I thought that IB/OB fell within engulfing categories, my mistake still learning) and yes mates you are right I will adjust the T/P to my previous R lvl. and also have it in my radar to see if taste S 1st or break the MB High. either way I will take it
If the rating scale is based on the below features, I would say that this IB can be rated say, 3-4 starts. BTW, may I ask if that template used in the advance threat is included in the membership pack :)? just wondering. If shouldn’t ask, I apologize in advance for asking.
A valid price action signal must have formed, this provides the entry signal (Yep)
These price action signals must have formed at key S/R level(s) (Yep)
The trade must provide at minimum 1:1 RR, preferably 1:2 or higher (Yep)
The signal must not have formed in a choppy or noisy area of price (kind of yep, maybe given the nature of this signal i would say yep)
At a minimum the candle must be the size of the previous candle, or fairly close (define fairy close, experience I guess)
Pinbars are a staple for any price action trader. I think the video will be a great help and benefit for those starting to learn how to trade price action. Enjoy!
[QUOTE=“krugman25;552819”]I posted a new pin bar tutorial video over at the advanced topic thread
Pinbars are a staple for any price action trader. I think the video will be a great help and benefit for those starting to learn how to trade price action. Enjoy![/QUOTE]
Good analysis and trade quality rating. I would have to agree with you, after reviewing that IB, I would give it a 4 star rating. The IB is sitting right on top of a key level, the IB is very small(Better RR than large IBs), and earlier this week the pair confirmed it’s 1-2-3 pattern and started a textbook trend. Still with IBs, there is a certain learning curve that is required to be able to trade them successfully. Most traders are conditioned to trade reversals and have to get familiar with continuation signals. Also IBs have a fairly high rate of random breakout direction and false breaks.
We are all growing here and at different levels. No matter what level you may be at in your understanding of PA and your skill with trading, your contributions and chart analysis are always valuable. There is plenty of resources here to also help you learn more about PA and become a better trader.
I apologies but I didn’t understand the reference to" membership pack". Are you talking about my website? Everything I discuss regarding price action is free. I will cover the most basic to the most advanced topics and even cover my own personal techniques for no charge.
This thread is off to a great start this week. I think it will be a great place to use as a diving board to learn the basics and then jump into the deep end when you ready.
While all of the trades I took this week are outside of the scope of this thread, I was able to end the week with 3 winners and 1 loser for an overall 9% account increase. I can already see some setups forming that should give us a great start for next week. Everyone have a great weekend!
[QUOTE=“krugman25;552953”] I can already see some setups forming that should give us a great start for next week. Everyone have a great weekend![/QUOTE]
Hi Aron, when you say u can see setups forming it normally get me confused because i dont usually know which of the currency pair so that i can also evaluate and see wether i will be able to see those setups…so i humbly suggest if could mention the instrument and the TF on which those setups are forming. Thank you
Hey heaveneze, I will post some chart analysis sometime this weekend. I normally don’t take any more trade once the US session opens on friday. So the only charts that matter to me on friday are looking at the daily candle closes for next monday. I will post the charts as I normally do which is a screenshot, pro’s and con’s and quality rating.
Hi, im 26 living in HK. Got involved in forex for few mths and read books from library extensively. It’s ur introductory part got my attention. Hope to catch the boat (this thread )early on.
This thread will move at a pace that will help you learn comfortably without overwhelming you with all of the “dirty details” of trade dynamics. I am glad you found this thread because I do believe this will be a one stop shop for everything you will need to go from day 1 to successful forex trader. Once you have mastered the topics discussed here and find yourself consistently profitable, you may be reading to move onto the other thread. I’m glad to having you apart of the community here, Weclome!
Hey Aaron. Some of the guys earlier in the thread had a point. Why don’t you start a new account with any MT4 broker that lets you trade 0.01 lots and connect it to Forex Razor to make the stats publicly available. If we do this early in the thread it will help us achieve several wins:
It will help any noob joining set their expectations towards the method.
It will help to collect and show all the stats, like drawdowns, win/loose %, avg pips etc.
It will help you to stick to just one type of system and limited type of trades, will help illustrate the edge and help you stay disciplined
With only 200, 300 bucks in, you could trade just 0.01 lots not risking too much of your money, after all, it’s stats and pips we’re after, same strategy applied to bigger account would amount to more $ value gains
You could also illustrate good MM principles and make it visible
Forex Razor is a one-time set and forget kind of system. The site automatically collects data from your broker without any effort on your part
Live account would stay there for years, unlike demo, which expires in 2-3 months. Who knows, maybe it will grow to a very good size over the years.
I think this would be a win-win for all of us! What do you think?
Parts of PA trading can be subjective and each trader will make his own method and rules that may be different from mine. A trader should expect his success to be a function of practice, wisdom, a good method, good money management and his own trading style.
The reason is much like the answer to question #1. I don’t teach a hard rule set here, every trader will trade differently. In my intro page I describe my trading style as “big and defensive”, so I aim for high RR setups at the expense of a lower win rate. It would be irresponsible of me show a live equity curve and cause traders to think if they learn price action they will achieve the same results. Many of the members here shoot for 1:1 RR setups and shoot for 50-75% win rates. Their draw down, avg pips, win/loss rate may be vastly different than mine, yet we may at the end of the year have made very similar profit. Traders are too unique, the market is too dynamic and the various trading styles are too many to be able to compare apples to apples.
I stay discipline because I am serious about trading, not because I have a public myfxbook account. My discipline is expressed throughout the dozens of chart analysis and trades I post each week. Most people that have read through my material know how strict and disciplined I am. This has come from dedicating myself to be a better trader, not by being in the public eye.
My money will make the same % gains whether it is put in a small account and traded separately or kept in my larger account. We look at gains in absolute terms as % gains/losses, not pips. I do apply this strategy to a big account(my account).
I often discuss MM and make it visible in the trade setups I post.
Another issue not covered is the simple fact that skeptics are usually never satisfied. If you read through the previous posts that unfolded last week you can see that with every skeptical question I answered, there were more asked, and more and more and they kept getting more personal. It ended up snowballing to the point of absurd. I actually posted my equity curve in Johanthon Fox’s thread a while back and all that happened were accusations about it being fake. I have covered this whole thing multiple times and I would say to anyone that doesn’t feel comfortable with what I am teaching or who I am, please move on and there will be no hard feelings here. I would challenge these same people though to look at what I am teaching and see if it is good quality and accurate, if it’s not I wouldn’t expect them to stick around anyways.
In my introduction post I have requested any of these type of questions to be direct outside of this thread so it can stay true to it’s purpose, which is teaching price action. You were very respectful in your questioning which is why I obliged to answer them. If you come to the conclusion that my answers don’t suffice then I wish you the best of luck and I hope you were able to pick up something useful here to take with you on your PA journey. I really do hope you stick around though because I know the things discussed here will help you grow as a trader.
I think that Aaron is far too tolerable !!
He is teaching us to fish for free and some keep on asking for proofs.
Excuse my french but he has nothing to prove to anyone of us, First he is not asking for any money nor anything else for what matters and he is offering his time and knowledge
If you are skeptical just follow his method/rules on your demo account until you are convinced or not
Also keep in mind that he is teaching us to trade and not offering a trading signal
Finally it is none of our business to look into his stats and pips I am sure he does a lot of hocus pocus that is too advanced for us, let’s just walk the journey and see where it takes us
I, for one, has enough “proofs” (or call it faith) in his methods and experience and I know a lot others here also
My name is Afolabi Yusuf and a muslim,a Geophysicist from Nigeria, newbie Forex trader. I have been learning forex for 3 years after trying several indicators, I lost my money and searching online I discovered forex is all about price action. I like to join your online community to learn as a beginner to advance price action trader.
