Today the AUD and NZD had very impulsive and large moves. These big impulsive moves are helping price move back into key daily S/R levels and may provide an opportunity to get into a trade before and ride the trend again. The AUD and NZD had both been moving very bullishly and many price action traders we able to make very decent RR trades over the past 2 weeks on from these currencies. Getting into a trade during a strong trend on small pullbacks can be very profitable with a fairly low amount of risk. One thing traders do need to be aware of are movements of price that are moving too far, too fast. It’s during these extreme price levels that the market can snap price right back. If price moves too fast and too far, the market can perceive that as overpriced/underpriced. I am a believer in the market always wanting to revert to it’s mean or average. This mean is often perceived as “fair vale” and you can see these extreme price highs and lows get pulled back. Much like we saw the AUD and NZD today, I watched carefully for any reason the market might find to have price come tumbling back.
My advice to traders is don’t avoid a trade because you think it is “too high”. One of my favorite quotes is from famed investor Jesse Livermore “Remember that stocks are never too high for you to begin buying and too low to begin selling” . Many traders lose money because they are always trying to trade the major reversals or sell into highs. Don’t try to predict when a currency will top or bottom. If there is a strong trend in play, join the trend at a good pullback with proper PA signals, and protect your capital along the way. I will trade major reversals, but I don’t let it keep me from also trading strong trends. If both methods of trading are profitable then why not trade both?
[QUOTE=“cyanidez;555074”] Hi jpw0100, If I may interject here, there certainly is a way to save your charts in Marketscope… layouts! So when you have a couple of charts open and all your lines drawn etc, click on File -> Layouts - Save Layout. Next time you log in, it should load all your previous charts but if it does not, simply go to File -> Layouts -> Open Layout and then select the one you saved earlier - easy! Take care[/QUOTE]
krugman25 didn’t get ILovePizzaMore banned. Nobody can get any member of the community banned. It’s only the individual’s own actions that can get him warnings/infractions/bans.
I think this could make for a good counter trend trade. I personally don’t take counter trend trades, I am not opposed to others doing it or discussing it in my threads. I think for a CT trade it is at a key level and we could see price reaching .9500 before picking up demand and heading higher again. Without taking a retracement this trade doesn’t fall into the minimum RR requirements here of 1:1. Although taking the retracement puts you at greater risk for the EB never playing out and price just continuing upward. What I teach are all of the dynamics mentioned here, figuring out the overall risk, the potential reward and basing whether to take your trade on that information. If you do take this setup please post it here as the chart analysis will be valuable to other traders.
Thanks for this very helpful assessment. Actually, I ended up not taking it, precisely because it was CT and any GBPAUD potential setup you mention would clearly be with the trend. Will keep an eye on AUDUSD in the meantime…
Hi Aaron
My name is Haj Abbas from iran and a muslim .father .husband and fulltime trader.i tyy a lot of strtegies .but i think price action is all things.
I want to be a master in P.A by helping of you according promise me in skype chat.
I am looking for price to get a little closer to my green S/R level. There is some resistance on the chart where price was at where I took the screenshot but you are really looking for those price action candlesticks that poke up and through the S/R levels.
Hey Haj good morning! From talking to you I know you really want to learn price action and become a better trader. As you have found out I can be hard to get a hold of 1 on 1, but still keep checking out my videos and articles that I put out here. I will continue to try and get good learning material out at least once a week. I’m glad to have you here and a part of the community.
Welcome to the community, Haj! We have more and more Moslem traders coming, this will be interesting as I know there are special Forex account for Moslem traders (no swap), that can also be useful references to discuss in our PA community in the future. Are you using no swap Forex account in Iran, Haj?
Just looking at the GBPJPY chart, it’s basically in a long term uptrend. I have a s/r level marked at around 156.80 - still some time to go before today’s NY close - but it’s looking like an inside bar…Aaron/anyone consider a long entry from this signal?
Thanks
I have taken a short on GBPAUD - it was at key resistance level in line with the daily trend - there was a very nicely formed PB on the 1h chart. RR potential is good, 4R down to last swing low on the daily. would be interested to hear “cons” against the trade (even though I am already in this) and will try not to let it affect my psychology!
Just looking at the GBPJPY chart, it’s basically in a long term uptrend. I have a s/r level marked at around 156.80 - still some time to go before today’s NY close - but it’s looking like an inside bar…Aaron/anyone consider a long entry from this signal?
Thanks
Okay, I’m a newbie, but I would not take a long from the daily from this inside bar. The top of the mother bar for this inside bar is right around a resistance that has held three times recently. I would be trading into resistance, Personally, from the daily time frame, I would wait until price broken that resistance and retraced back to it as a support.
1.Identify the market structure(trending or ranging)
2.Identify key S/R levels and wait for price pullback
3.Once price pulls back watch for price action candle such as a pin bar or engulfing bar
From your question I can tell you never read the introduction post(post #1) or the rules post(post #2). They can be found here http://forums.babypips.com/newbie-island/58208-price-action-matters-beginners.html#post549599. This thread is for discussing price action, and any topic outside of that is in violation of the rules of this thread. If you don’t intend on providing any value to the price action topics discussed here, then move on.
Sorry Mr Police Officer, after reading that you have six months experience I skipped the rest of your long winded introduction, i’m sure you will understand why I made this assumption. I’m now moving on, you’ve lost my interest already… GLGT
Anyone looking at USDCHF to go long ? My charts aren’t NY Close, but looks like a pinbar formed on daily on my charts and one on 4H also. I would post chart, but have tried a few times without success.
Take care[/QUOTE]
