Hey BA, your right the pin did look nice but you were trading into major selling. When trading in huge selling you want your signal to be fairly large, like around twice the size of what that pinbar was. All of the highs/lows of the candles that are all bunched up to the left each extert a bit of minor resistance, so your entry is hitting traffic before it ever really gets moving. Overall as CT trades go, 1-2 star rating.
Ok, I try it.
EURGBP 4h BEEB
Pair is ranging.
PROs: PA Signal is huge ( huge enough to validate a less than D1 setup) and it engulfs quite a few candles
The level it happened is right on top of the range and the rejection seems pretty clear
It has room to move, a good TP area would be 0.8342
Cons: There is noise on the left but that is often the case in a range, isnât it ?
Good question. I technically trade dojis as they are part of the morning/evening star combination. The reason I donât trade them solely is because they can signal either continuation or reversal and are very much up for interpretation. There are PA candlesticks out there more clearly show reversals such as pinbars, or more clearly show continuations such as IBs. There are over 100 documented candlestick types, I have picked the handful that I consider giving the clearest signal to the trader of what to do.
Haha, I just want to dangle some carrots out there, and keep you coming back. In all seriousness though, I have 10/14 marked as the day my Market Monday article will come out. I still will be writing articles in the meantime just laying out a foundation for how trades should be identified, like the one I wrote yesterday. I am glad you guys are eager for more!
[QUOTE=âkrugman25;547475â]
Hey BA, your right the pin did look nice but you were trading into major selling. When trading in huge selling you want your signal to be fairly large, like around twice the size of what that pinbar was. All of the highs/lows of the candles that are all bunched up to the left each extert a bit of minor resistance, so your entry is hitting traffic before it ever really gets moving. Overall as CT trades go, 1-2 star rating.[/QUOTE]
Thanks for the feedback Aaron, very interesting. So ideally I want to see a few more buy candles to the left when looking to buy? I will make sure I pay more attention to this in the future. I now have the conundrum of letting this play out or taking my small profit. The last bar closed above the 200 moving average which is encouraging so will need to think about this, maybe Iâll just go to break even.
Thanks again
BA
Itâs going to need to be a good balance. I am going to keep producing articles and videos that will become the guideline for how we trade and discuss PA topics here, which is actually coming along quite well already. Then itâs just going to take people who know and can enforce that here, and I think we will do just fine. You can take a look at threads that here that have been running for months or years, and they all suffer from getting off track, and poor quality posts. The ones that do the best have a core group of members that are always working to keep it on track, and keep everyone focused on what the guidelines are.
On websites like this, newcomers will visit here on a daily basis, it will be that core of regular members here that help keep things on track and set the course for how discussion will go. I am going to keep laying out those core guidelines and method principles in future articles and it should keep getting easier for everyone to understand âhow we do it hereâ.
I appreciate everyoneâs concern with keeping the forum valuable and focused. Itâs people like you that are going to help this thread thrive and grow, so I thank all you guys!
No, I am saying when price is swinging low, you want a âclean swingâ. You ideally donât want a swing that kind of falls apart and gets choppy at the bottom, where candlestick start piling up. Because each one of those candles start exerting their own amount of resistance, so if they really pile up you can have traffic problem. Which is what everyone calls traffic or noise. There isnât a specific S/R line they create, but just the nature of having a bunch of candle like that create a range of resistance. Now like you said, the daily is up, which is a pro of the trade, but remember as we get farther away from the daily timeframe, the important the daily is to our lower TF trades. A better way to say that may be the farther away you get, the less power the daily momentum is exerting on the lower TFs. I havenât gotten into EMAs yet, but that is my Market Monday article. I only use the values from EMAs at the daily level. I keep them on my screen because its annoying removing them if I drop down in TF.
[QUOTE=âkrugman25;547495â]
No, I am saying when price is swinging low, you want a âclean swingâ. You ideally donât want a swing that kind of falls apart and gets choppy at the bottom, where candlestick start piling up. Because each one of those candles start exerting their own amount of resistance, so if they really pile up you can have traffic problem. Which is what everyone calls traffic or noise. There isnât a specific S/R line they create, but just the nature of having a bunch of candle like that create a range of resistance. Now like you said, the daily is up, which is a pro of the trade, but remember as we get farther away from the daily timeframe, the important the daily is to our lower TF trades. A better way to say that may be the farther away you get, the less power the daily momentum is exerting on the lower TFs. I havenât gotten into EMAs yet, but that is my Market Monday article. I only use the values from EMAs at the daily level. I keep them on my screen because its annoying removing them if I drop down in TF.[/QUOTE]
Thanks again Aaron, I think your the first person who has explained traffic and noise in a way I can understand. This has been a massive flaw in my trading as I didnât really get what people meant by traffic until now. That now makes complete sense and hope to post better set ups in the future. So ideally the swing low or high will be sharp with a PA and then BOOM a reversal baby!
Alright, now [B]weâre in business![/B] 
Krugman, another great suggestion to put in the front page of this magnificent thread. 
[QUOTE=âkrugman25;547495â]
No, I am saying when price is swinging low, you want a âclean swingâ. You ideally donât want a swing that kind of falls apart and gets choppy at the bottom, where candlestick start piling up. Because each one of those candles start exerting their own amount of resistance, so if they really pile up you can have traffic problem. Which is what everyone calls traffic or noise. There isnât a specific S/R line they create, but just the nature of having a bunch of candle like that create a range of resistance. Now like you said, the daily is up, which is a pro of the trade, but remember as we get farther away from the daily timeframe, the important the daily is to our lower TF trades. A better way to say that may be the farther away you get, the less power the daily momentum is exerting on the lower TFs. I havenât gotten into EMAs yet, but that is my Market Monday article. I only use the values from EMAs at the daily level. I keep them on my screen because its annoying removing them if I drop down in TF.[/QUOTE]
Hi again Aaron, I decided to cut my losses and get out with a 20 pip profit and wait for a better set up. I was looking at taking 50 pips but it looked a little iffy so I am happy to escape in profit.
Thanks for your help!
BA
EUR/GBP chart is Perfect Pipinghot, even I am also waiting to enter trade.
Hi there, my name is Christopher im finishing my masters degree in computer science and econometrics. Im a movie, sitcoms, games and comedy junkie. In one word im a geek :P. Im on the forex for about 5 years (sort of in and out), but Im consistent profitable from june when i finally stumble upon PA thread of Mr J. Im hoping to find a job in trading or make a living from my own trades. I admire Your enthusiasm and knowledge Aaron. I hope to learn a lot in here.
Without commenting on the chart layout, S/R areas, etc. I can say yes that is a GREAT looking morning star. The first candle is nice and bearish, the 2nd candle or star portion of the formation is great. You want the wick facing the 2 bars small, and side facing away from the 2 bars as large as possible, much like the shape of a pinbar. And finally the 3rd bar is very bullish and full with almost no upper wick. This is what make high quality pinbar. Pinbars are great candidates for retracement entries to get better RR in your trades.
In the near future I will make a diagram of a proper morning/evening star and checklist for a valid formation. In all great looking PA formation there.
By the way, welcome to the thread! Iâm glad to have you here, I look forward discussing PA in the future.
As I like to say, âNow were cooking with gasâ, haha. On my rules post I do have a requirement that all charts posted need to have SL, Entry and TP levels clearly labeled and all charts must have a quality rating, 1-5 stars. This way people are at least doing some amount of trade management and chart analysis with each post. I stated that making a list of Pros and Cons for each trade was optional, but preferable if they could.
Do you guys think I need to make a basic proâs and conâs list a requirement, or will that make it hard for people who may not have time to go into that depth of analysis when posting?
Can You discuss how do You enter trades with morning/evening stars?
Thanks for the comment. I do agree the poor RR setup. Will look for better RR setup and post here again =)
Exactly right! I have always been surprised that some of the topics mainstream PA teachers either donât discuss or have a hard time explaining clearly. Some of these topics I teach, I have never found very good explanations in all of my searching and studying so just had to come up myself a way to explain it clearly and accurately. We are only in our 3rd day here and you are already learning new stuff, thatâs great! And weâre only getting started here =)
Johnathon is a good teacher and has a good method. A few of his principles I have adopted into my own trading, or tweaked in some way to make my own. We are glad to have you here.
without getting into the dirty details, they are traded just like a pinbar or EB. They should be treated like any other price reversal PA signal. They do make great candidates for retracement entries which I will get into more detailed in future discussion. But itâs good enough for now to know they are good reversal signals and should be traded like any other reversal signal.
Welcome to the thread and the community here! Iâve never heard of econometrics, but itâs a pretty cool word! haha. Johnathons free information which you can find here at babypips can help lay a good foundation for PA trading. We will cover both basics and advanced topics here, and many topics you wont find any mainstream PA teacher discussing. And best part, its all free! =)