Price Action That Matters

[wafikjabra]

Hello everyone,

I am so glad to find this thread. I would highly appreciate your comments on why this pinbar trade had failed, Thanks

[EternalNewB]

@wafikjabra

Hello everyone,

I am so glad to find this thread. I would highly appreciate your comments on why this pinbar trade had failed, Thanks

Hello and welcome

Regarding your setup please keep 3 things in mind

1. there is nothing like a 100% sure setup we deal with high probability so any setup might be a looser even the best one
2. read Krugman’s explanation of a pinbar (good and better) here http://forums.babypips.com/free-forex-trading-systems/58037-price-action-matters-62.html#post551662 and you will notice that yours is not that good since it barely touches the S/R
3. you entered the trade too early, you need to enter it at the break of the pin bar. Krugman’s like to play it with a 10 pips buffer so 10 pips below the lowest point of your pin bar, if your order was set to that it wouldnt’ have been triggered and you would have saved yourself the money
4. you have too much “noise” on the left you are trading directly into strong support

[EvilCrust]

[QUOTE=“wafikjabra;551730”]Hello everyone,

I am so glad to find this thread. I would highly appreciate your comments on why this pinbar trade had failed, Thanks

<img src=“301 Moved Permanently”/><img src=“301 Moved Permanently”/>[/QUOTE]

Just a newbie’s two cents, but 1) there looks to be a support area right below, and 2) for me to go short on this the pinbar would need to a bearish pinbar and not the bullish pinbar that it was. I read this as a continuation pinbar, in this case a sign that the price would continue up from the bar’s close.

[peterma]

Hello everyone,

I am so glad to find this thread. I would highly appreciate your comments on why this pinbar trade had failed, Thanks

Cad buying on the US news - see the usd/cad for guidance, draw a horiz on 1.0380 daily to see better.

See this posted 5 mins ago for a perspective on the cad.

canadian dollar technical-analysis Oct 16 2013 | ForexLive

Sorry for intruding

[Piping_Hot]

@Piping_Hot

Here is an order I placed last night on NY close. CADCHF 1day Pinbar.

Pro’s: Size of the Pinbar
Level at which it happened
With the “trend”

Con’s: Strong bullish candle before it but it only means that it won’t go down further than my TP .
Trouble area at 0.8755. Failure to break will have me move trade to BE

To add a bit of fundamentals, market is getting nervous as we approach dept ceiling deadline and this usually favors safe haven currencies like CHF or JPY so another move down at least to recent support makes full sense.

I decided to place SL 10 pips above recent resistance instead of above the Pinbar’s wick to limit the risk as the setup isn’t perfect.

Rating: 2

Just an update on this one, I cancelled the order as price broke top of pinbar which makes the setup invalid.

[wafikjabra]

Hello,

Thanks so much for your kind replies, It has certainly been useful for me

[peterma]

Cad buying on the US news

Oh, btw the US news has been ‘expected’ for some days, look at the cad/chf 1hr for guidance on how price would likely react, see the higher highs and higher lows since Oct 9 right up to close yesterday - not good to sell when that is happening.

[EternalNewB]

I went long on AUDUSD when the market opened a few days ago and made a few pips when it hit resistance @ 0.9528

upside momentum looks still valid and the pair has now broke resistance at this level turning it into support and “kill zone”

waiting for retracement to go long

[cosminc77]

@krugman25

Welcome to the community! Can I ask, what specifically were you doing in IT? Johnathon has some great teaching over in his thread. I actually spent a long time over there as a contributor before starting this thread.

I probably would trade that as an engulfing bar as I want my price action pattern to stick out past all other candles in that swing low(I made an exception if it is on a trend line). It is a morning star, but is really sub par quality. its best to have the 2nd candle(the star) to have a longer lower wick, kind of like a pin bar. You also want to star to be towards the very bottom, but in this case since the 1st red bar had gapped down, the star is closer to the middle. It does pass the requirements, and may end up really taking off, quality wise it’s not the best. These are the hardest to find on the daily TF, every once in a while a really high quality one will for on the 1 or 4 hour chart. Because they can get to be really long in size, they are prime candidates for retracement entry.

I have started as teacher ten years ago, teaching two years both Math and programming at highschool.
For eight years I am working in justice for High Court of Justice in my town. I have started with System, Network and Database administration as I was the only one on IT department.
After they hired more IT staff, I have specialized on databases in MS SQL Server and now I take care of everything that means database in MS SQL, from backups and security to reports.
I also recently started developing in PHP few internal website for the court personnel needs. I know it sounds strange PHP with MS SQL Server, but I have found PHP more intuitive and flexible than ASP.NET.

After all, I’m glad I discovered Forex because I have began to get capped in IT, and this new challenge gave me freshness and motivation to go further, both in IT and with new passion Forex.

And you? May I ask what do you do in IT?

Regards!

[krugman25]

@wafikjabra

Hello everyone,

I am so glad to find this thread. I would highly appreciate your comments on why this pinbar trade had failed, Thanks

Eternal hit on a few good notes but the other one that I factored in when looking at the bearish pinbars on the CAD are the contradicting bullish pinbars on the weekly. On many of the CAD pairs weekly charts there are 2 consecutive pinbars which is a very strong reversal signal. The daily pin bars that formed yesterday were against the weekly pin bars that had already formed. I mentioned this to a community member yesterday that different timeframes somewhat correlate to each other. The closer the timeframes the stronger the correlation. Since the daily and weekly charts are so close in timeframe, I considered the risk of trading against the weekly candles at the daily level. As the timeframe gets further away such as the 4 hour and 1 hour charts, the weekly has very little correlation with them.

It was actually the conflicting price action signals on the two timeframes that has kept me out of any CAD setups this week on the daily/weekly

It looks like the bullish momentum has steam rolled over the daily signal. I think we could see a move higher and possible a break of the trend line if the weekly pin bars play out.

[krugman25]

@cosminc77

I have started as teacher ten years ago, teaching two years both Math and programming at highschool.
For eight years I am working in justice for High Court of Justice in my town. I have started with System, Network and Database administration as I was the only one on IT department.
After they hired more IT staff, I have specialized on databases in MS SQL Server and now I take care of everything that means database in MS SQL, from backups and security to reports.
I also recently started developing in PHP few internal website for the court personnel needs. I know it sounds strange PHP with MS SQL Server, but I have found PHP more intuitive and flexible than ASP.NET.

After all, I’m glad I discovered Forex because I have began to get capped in IT, and this new challenge gave me freshness and motivation to go further, both in IT and with new passion Forex.

And you? May I ask what do you do in IT?

Regards!

I am a technical manager of a startup company that deals with ultrasonic gas and liquid measurement. Right now I spend a majority of my time programming for that product. I work a lot with SQL databases. The product we sell uses MS SQL, but for personal projects I use MySQL. I write in a lot of programming languages, Structure Text, C++, C#, Objective C, VB, PHP, LUA, MQL4, XAML. Some more than others. I’ve written in enough languages now that I can pick up and learn any of them in a few days.

I love programming and have combined that with my passion for trading. I am currently writing some advanced volume/price algorithms to help identify actual price rejections vs take profit bars or correction bars. It would be a supplement to the price action traders toolset, but I have actually found it to be accurate in predicting price movement without PA signals. I also am working on a trading journal for the iPhone, and run a website teaching price action and how I trade.

Overall a busy guy, haha. From one techy to another, I am glad to have you here!

[wafikjabra]

Eternal hit on a few good notes but the other one that I factored in when looking at the bearish pinbars on the CAD are the contradicting bullish pinbars on the weekly. On many of the CAD pairs weekly charts there are 2 consecutive pinbars which is a very strong reversal signal. The daily pin bars that formed yesterday were against the weekly pin bars that had already formed. I mentioned this to a community member yesterday that different timeframes somewhat correlate to each other. The closer the timeframes the stronger the correlation. Since the daily and weekly charts are so close in timeframe, I considered the risk of trading against the weekly candles at the daily level. As the timeframe gets further away such as the 4 hour and 1 hour charts, the weekly has very little correlation with them.

It was actually the conflicting price action signals on the two timeframes that has kept me out of any CAD setups this week on the daily/weekly

It looks like the bullish momentum has steam rolled over the daily signal. I think we could see a move higher and possible a break of the trend line if the weekly pin bars play out.

Thank a lot for the valuable information, that was a great help

[Piping_Hot]

Hi Aaron,

Is this of any value ?

[krugman25]

@Piping_Hot

Hi Aaron,
Is this of any value ?

I would really like to hear your own personal take on setups before I offer my own(or else no one is learning), but this time I will throw it out there. You actually have a major support right around .9080. You have to zoome out a little farther to capture it. You can see the current pinbar is actually right on the center of the two S/R levels. The price action signal would need to happen up in the S/R level for it to be playable.

[Rendezvous]

i wish you could start your PA for beginner’s thread again and Admin would allow posts there !!

[shane]

Just screen all the charts before I going to bed (my time zone is GMT+8) , nothing get into my consideration. Wait for tomorrow and hope to see some signal.

P.S: I missed out the EURCAD D1 today due to wake up late. ><"

[adamjn]

Hey, I seen this setup also, there was a pin bar on most of the CHF pairs, but what put me off is that it closed above my marked resistance line, now I understand that S/R is just a “zone” but it is important where you have these zones marked at. Drawing S/R, in my eyes, is the hardest part of trading to learn, and also the most important part.

This pin bar formed at a price flip zone, but, what I noticed was it was trading straight into resistance, if you look over more to the left (no on your chart) you would be trading into a swing low/high traffic area.

Now I know that if we always skip trades due to “traffic” we will hardly get a trade, but I seen quite a lot of traffic from around Jan/Feb 2013 time. Also, another point to notice was that my 21 and 8 day EMA’s where getting closer together, which could be hinting that price is going to rise, I know that isn’t the reason we use EMA’s, but I think it is a good point to note.

Just my 10 cents

Cheers
Adam

@Piping_Hot

Hi Aaron,

Is this of any value ?

[krugman25]

i wish you could start your PA for beginner’s thread again and Admin would allow posts there !!

I received an email from them today. I am hoping to have it up by tomorrow or Friday.

[Piping_Hot]

@krugman25

I would really like to hear your own personal take on setups before I offer my own(or else no one is learning), but this time I will throw it out there. You actually have a major support right around .9080. You have to zoome out a little farther to capture it. You can see the current pinbar is actually right on the center of the two S/R levels. The price action signal would need to happen up in the S/R level for it to be playable.

@adamjn

Hey, I seen this setup also, there was a pin bar on most of the CHF pairs, but what put me off is that it closed above my marked resistance line, now I understand that S/R is just a “zone” but it is important where you have these zones marked at. Drawing S/R, in my eyes, is the hardest part of trading to learn, and also the most important part.

This pin bar formed at a price flip zone, but, what I noticed was it was trading straight into resistance, if you look over more to the left (no on your chart) you would be trading into a swing low/high traffic area.

Now I know that if we always skip trades due to “traffic” we will hardly get a trade, but I seen quite a lot of traffic from around Jan/Feb 2013 time. Also, another point to notice was that my 21 and 8 day EMA’s where getting closer together, which could be hinting that price is going to rise, I know that isn’t the reason we use EMA’s, but I think it is a good point to note.

Just my 10 cents

Cheers
Adam

Thanks both,

I have decided to zoom out my charts a little bit as I am often missing what happened on the far west of it !

[Mr_B_A_Barracus]

Hi guys

Can anyone explain how to calculate pips on oil and gold? I’m looking at a 3 star pin on oilusd 4hr but don’t get how to work out lots and pips.

Thank you

BA