I’ve been informed by numerous members of this thread that various PA teachers suddenly became more active in their contributions to the threads they run, at the same time this thread started up. Maybe I am touching a money stream or something, i’m not sure but good to know I am having a positive effect on the world of price action, haha. Some of their posts suddenly are using terminology from the articles I’ve written here. It’s good to know I am helping teach the teachers.
Seriously I did feel so too. HAHA!!! Many of them suddenly become more active in replying ~ You are bringing a huge effect and impact as well. !! HAHAHA!!
I just want to help people become better traders, anything else is an unintended consequence! I would like to believe that they are doing it because they genuinely want to get back to helping people more, but the unfortunate truth is most of them use threads like these as vehicles to get people to there website and purchase overpriced memberships. So it is most likely I am hurting their traffic. I’m not here to pick on PA salesmen, but I couldn’t help but bring it up though because it’s so painfully obvious.
The community here has been great and I can’t wait to see it grow. All of the founding members here will be great pillars of this community months and years down the road. So I want to personally say thanks to everyone here.
Hello, back again with another plan that has come together on the 4hr chart EUR/NZD:
Green: Entry
Red: Stop Loss
Pink: TP
Pros:
This pair has been ranging but has recently broken out and below
This trade would be with the down trend
Nice space to move into
Cons:
Pin bar does not stick out as much as I’d like but is at a swing high.
Rating: 3??
Nice catch and great analysis. There is a lot to like about this setup. All of the pros you mentioned are valid. I zoomed down to the 1 hour chart and there was a hammer that could have been entered on the break that if played out to the next major support would offer a 1:5 or 1:6. The only problems I see are near term resistances that could cause this trade some problems. If it is able to break through these areas, it could run very quickly to the next support.
I am planning on adding hammers because I think they can provide the same quality signals as a pinbar. Essentially for a hammer they are played just like pinbars. In the case of a bearish pinbar, like the one in this trade, the upper wick need to be at least 2x the length of the real body, and there needs to be very little to no lower wick. Pin bars are actually apart of the hammer class of PA candles, but have a slightly different set of rules.
Note: My screenshot didn’t catch all of the candles that make up the minor S/R. You will need to open your charts and zoom out to see why I picked those 2 areas. Also on lower timeframes they tend to be messier with a lot more S/R areas. You just have to be prudent in figuring out which ones are major enough to cause your trade to have problems, and which ones are too minor to pay attention too.
Hi BA and Krugman,
I see it a little bit differently. In my opinion it is not at a swing high, but at a swing low. Also there is a 2BR just before it, although the bullish one is not as impressive as the bearish one. Not saying this cannot evolve into a good result, but I’d rather wait for either of two things to happen:
- If price does go lower, wait for a retest of the former support (and now resistance) and look for short PA signals.
- If price goes back up, wait for retest of the support zone and look for long PA signals.
Good luck though, hope it works out for you.
I think you identified the bigger problem of this trade and that it is in an area where multiple S/R levels have formed. So one can make an argument for a long while another makes one of a short. If a range forms at the intraday level, trades can be made either long or short in this area, in the same way we play large ranges on the daily. Just as long as the proper RR is there.
[QUOTE=“krugman25;550549”]
I think you identified the bigger problem of this trade and that it is in an area where multiple S/R levels have formed. So one can make an argument for a long while another makes one of a short. If a range forms at the intraday level, trades can be made either long or short in this area, in the same way we play large ranges on the daily. Just as long as the proper RR is there.[/QUOTE]
Thanks Aaron and Elunar
I understand what your both saying, I can see that it could perhaps find another minor line of resistance. Ill have to downgrade it to a 2 rating 
I’m counting on the momentum of the break out to continue its descent downwards, could be wishful thinking though. I have the trader firmly clenched and turned up to factor nine.
NZDUSD H4 Inside bar followed by fakey pin bar.
Pros:
- Inside bar followed by fakey pin bar
- Formed at swing high
- Following the recent up trend
- Formed at near resistance area
- Nice RR
Cons:
- If it can break through the resistance then it will boost up
- If can’t break , it will go another way
Rating : 3 stars
[QUOTE=“shane;550568”]<img src=“301 Moved Permanently”/>
NZDUSD H4 Inside bar followed by fakey pin bar.
Pros:
- Inside bar followed by fakey pin bar
- Formed at swing high
- Following the recent up trend
- Formed at near resistance area
- Nice RR
Cons:
- If it can break through the resistance then it will boost up
- If can’t break , it will go another way
Rating : 3 stars[/QUOTE]
Hi Shane
Nice analysis, wish I could comment but I don’t trade inside bars as I don’t really understand them. I’m sure the experts will comment soon, in the meantime if you would like to trade a snicker bar for your inside bar please let me know. I have a box full of them here since doing those awful adverts.
Hi B A,
Thanks. Actually this is the first analysis of mine on the Inside bar + fakey pin bar after I saw the AUDUSD analysis that made by Aaron and some other mates here. Hope to get some feedback and comments to gain more experience on this setup.
By the way, I personally do trade according to pin bar, engulfing and 2 bar. I think we are in the same line.~
I actually agree with Elunar, it has formed at swing low, so it would be shorting straight into the support AREA. Also the Pin Bar doesn’t stick out at all, it’s just surrounded by bunch of candles, but I guess there is no wrong or right, I just try to stack odds in my favor.
I’m not posting it to stick up for the trade because it’s not one I would personally take. But I do disagree that it is at a swing low. From what I can tell you are determining the swing of an intraday trade based on the daily chart. If I have my daily S/R line drawn, I can see a clear breakthrough and pullback to that line on the hourly chart, and the pullback formed in almost perfect fashion. While it’s important to make your most major S/R lines based on the daily chart, if you are going to drop down time frames to make a trade, you need to view the trade in that time frame only.
On the daily chart we can see the candle is at a swing low, but the hourly actually swung low, pulled back to the daily S/R line and formed a reversal signal. This is why you need to base all of your opinion about a trade in the timeframe the price action formed.
Not going short on a 1 or 4 hour trade because the daily is at a swing low is like not shorting a daily trade because the quarterly price is at a swing low.
Great analysis. I haven’t gotten around this it yet but I am going to add to the guidelines to keep inside bars just to the daily time frame. They can and do play out well on other time frames, but they are best played on the daily. As a matter of fact right now I am watching the CADJPY and there is a really nice IB setup that goes along well with the weekly IB/pinbar combo. If it closes as an IB, I will definitely be posting a thorough analysis of it here for members to consider trading.
Coming back regarding the flag pattern on the NZDUSD we talked about earlier. You were right in your predictions Aaron and price pushed up to form a nice flag and now it looks like we are getting some action supported by an increase in volume.
Thought i post it for future reference since you have not covered patterns yet. We got the opposite action on the EURNZD (bearish flag, breakout to the downside). The patterns is not as clean as on the NZDUSD though.
I am glad you posted that, it reminded me to show some flag patterns that made me a truckload of money. These were all analysis’s that I made and posted on facebook before they ever broke out. This chart doesn’t have prices but it is actually the spike that happened on 9/18 and the bottom of the flag was 1.3100. The price target of a flag is anywhere from 1/2 to 1 full length of the flagpole, which for this specific trade was 450 pips. Fast forward and we all know this flag played out perfectly, as the price target for this flag was 1.3550. Which is actually where the pair is running into resistance right now. I think the risk on that trade was somewhere in the 40-50 pips range, so anyone playing the full length of the poll would have made a 1:10 risk reward. Not to shabby huh.
Here is another fun one regarding patterns. This was the EURAUD trade where I doubled my account in 1 trade. I was doing this analysis as the trade was playing out and posting it live to my website. I like to post trades before they happen, only old goofball can post a winning trade after it’s already happened. Anyways back to the setup, I believe the pennant is a 1 hour chart. At this point I was up about 1:10 RR, I was thinking about taking profit and walking but the pennant convinced me to move up SL up and let it run some more. That pink horiztonal line that cuts through the flag is called the “apex”, this is a great place to move your SL to as these often act as support if price pulls back after breaking through a pattern.
The next pattern is called a rounded bottom pattern which are pretty rare. This rounded bottom wasn’t that great of quality, but it still was a rounded bottom non the less. This also helped solidify my plan to let the trade run much further than your standard 1:2 RR.
[QUOTE=“krugman25;550599”] <img src=“301 Moved Permanently”/> I am glad you posted that, it reminded me to show some flag patterns that made me a truckload of money. These were all analysis’s that I made and posted on facebook before they ever broke out. This chart doesn’t have prices but it is actually the spike that happened on 9/18 and the bottom of the flag was 1.3100. The price target of a flag is anywhere from 1/2 to 1 full length of the flagpole, which for this specific trade was 450 pips. Fast forward and we all know this flag played out perfectly, as the price target for this flag was 1.3550. Which is actually where the pair is running into resistance right now. I think the risk on that trade was somewhere in the 40-50 pips range, so anyone playing the full length of the poll would have made a 1:10 risk reward. Not to shabby huh.[/QUOTE]
Yeah, flag patterns are the patterns with the absolute highest chance of producing a winning trade. And they are really rare on the daily charst. I’m almost tempted to trade this one my live account instead of demo. 
How do you trade them Aaron? Since the breakouts often are quite explosive and fast after these patterns have formed and we get a breakout, waiting for a pullback could be a waste of a good opportunity since price may not come back for a retest of S/R. So i guess trading it aggressively directly on the breakout or trading a fib retracement during the upward move would be prefered?
Regards,
Sascha
PS. Soon i will introduce myself properly to the thread and also start contributing more. Right now my life is crazy stressfull though so bare with me plz. 
[QUOTE=“krugman25;550604”]<img src=“301 Moved Permanently”/> Here is another fun one regarding patterns. This was the EURAUD trade where I doubled my account in 1 trade. I was doing this analysis as the trade was playing out and posting it live to my website. I like to post trades before they happen, only old goofball can post a winning trade after it’s already happened. Anyways back to the setup, I believe the pennant is a 1 hour chart. At this point I was up about 1:10 RR, I was thinking about taking profit and walking but the pennant convinced me to move up SL up and let it run some more. That pink horiztonal line that cuts through the flag is called the “apex”, this is a great place to move your SL to as these often act as support if price pulls back after breaking through a pattern. The next pattern is called a rounded bottom pattern which are pretty rare. This rounded bottom wasn’t that great of quality, but it still was a rounded bottom non the less. This also helped solidify my plan to let the trade run much further than your standard 1:2 RR.[/QUOTE]
Fantastic stuff Aaron! Love the quality of your posts. Keep em coming!
