When making S/R lines, does the line go directly above the body of the candle? Or above the entire wick of the candle?
How about just a little bit of the wick sticking out past your line in order to make the line fit better with previous candles?
If i identify a good area of resistance and a few weeks back the same line acts as resistance, except for a wick protruding past (but the entire body is still below the line… Is that still a good resistance line?
Thanks for the help
Hmmmm… that’s actually an interesting question, BA.
IMHO, we only ignore the signal during the day of NFP, but after that we should treat the candle as a normal bar in our chart. So yes, as long as it fits my trade plan, I will trade the A+ signal formed once the NFP day has passed. I still have difficulties to translate the system to 5-star standard, but as long as the system looks tradable (not merely 1 or 2 stars), I will consider taking it.
Hi all,
Everyone busy choosing the best setup ? I will be half on AUDUSD, half on EURAUD if things stay as they are for the next 15 minutes !
Wish you all a great trading day !
Yves
PS: I will post charts and analyse after candle close
[QUOTE=“Piping Hot;554704”]Hi all, Everyone busy choosing the best setup ? I will be half on AUDUSD, half on EURAUD if things stay as they are for the next 15 minutes ! Wish you all a great trading day ! Yves[/QUOTE] Thanks yves
Ok, let’s talk AUDUSD. I decided to only take this one.
I am showing the weekly chart just because it would look to small on the daily.
Price has reached a key level that has acted as support in the past.
I am now watching the daily as it matters because that’s were my sr lines come from:
From the daily, the road is clear all the way to 0.9542 if price breaks BEEB candle.
Now, the 4hr chart to show you the signal, as well as my entries, TP and SL:
PA Signal is huge
happens at a very key level
With the trend, if you consider the daily chart which is what matters to me again as line are drawn from there. The 4hr chart only serves to spot the signal to enter earlier.
I decided to set 2 entries, one at the break, one on a retracement (just like Aaron did on another trade)
I will cancel the other one once it gets triggered. If the break gets triggered, I won’t do anything else. If the retracement gets triggered, I will move SL to BE once it reaches BEEB candle close price just in case it can’t break through that area.
No EMA lines on the way so fits my plan.
Yves
Salut Yves
I am liking your posts more and more way to go 
I hope you can post more of these
My only comment for the reason why I can’t take this trade it is because it is CT and I don’t do CT in my plan .
If you enter on retracement you have a lot of noise to fight
Good luck
i think going long will more likely be profitable.
Salut Eternal !
I would place more if there was more to post ! 
You will most likely get trades on the daily today and they will be safer than on the 4hr as there is probably going to be a lot of volatility today. The reason I took it is because I consider the long term down trend and this signal to be the end of the retracement but I am aware what the reasons behind the sellof are so I know it’s a risk but as long as I am ready to take it and that I don’t risk much of my account…
Talk to you later,
Yves
Could be but that BEEB could also be the start of at least a retracement. Traders may want to get it down to my TP entry in order to get long on a bargain.
[QUOTE=“wm247;554690”]
Hmmmm… that’s actually an interesting question, BA.
IMHO, we only ignore the signal during the day of NFP, but after that we should treat the candle as a normal bar in our chart. So yes, as long as it fits my trade plan, I will trade the A+ signal formed once the NFP day has passed. I still have difficulties to translate the system to 5-star standard, but as long as the system looks tradable (not merely 1 or 2 stars), I will consider taking it.[/QUOTE]
Hey Wm247
Thanks for responding to my questions, that was really interesting about NFP day, in future I will take the whole day off so that I am not tempted to take any signals until the day after. I like this way of thinking! I also have difficulties translating the 5 star and still prefer to refer to the A+ grading. I didn’t take the trades I posted earlier but they have begun to play out for a few pips.
How’s your week going Wm247? Looks like things could pick up today!
Thanks again
BA
hi piping hot my chart looks abit different from yours. im using the vantage mt4 for mac. are u using the new york close?
Hi Bizzaro,
As far as I know, my broker uses NY close charts. Can you post a chart so that we can compare ? Like the AUDUSD 4hr for example ?
Yves
Hi EternalNewB.
would retracement mean pullback? or is it a totally different meaning between these two?
And an update… i took a hit for my GBPNZD 4h trade =( i always seem to be on the wrong end… Guess i will have to stick to daily at least and not itch to find those on smaller TFs… lesson learnt.
Would the jump towards the uptrend be a result of the news? is that something i did not take into consideration?
Hey again WM247
I have just been speaking with an Alpari rep, apparently they don’t offer indices on demo accounts, classic accounts only. He also mentioned that they don’t offer New York Close candles which is strange.
I have a couple of New York Close demo accounts for forex but I really need one that also carries indices, any ideas?
Thanks
BA
As far as I know they mean the same but do wait for the confirmation from someone with more experience
Hi BA,
Not sure but I think hotforex have them.
Fibo have them at least on real accounts, not sure for demo.
Yves
Hi guys.
I do love reading from you all! I feel like we’re all friends. All you regulars, I so much appreciate seeing your charts and ideas thrown out there. I know I don’t contribute much, (many reasons), but be assured, I’m with every post here.
I’m just frustrated with the fact that I can’t trade much, being busy all day with my job. I’m in touch, but just can’t place trades. I do have 2 hrs before work, watch charts all day,(no actual trading), end of day possibilities.
How about this idea I have. Suggestions welcomed. Would it hurt much if I see a set up coming and place a limit order, and see if it takes? Like how Aaron just now is looking at the Aud/Jpy. Couldn’t I put in the order now? I just couldn’t manage the trade if it takes. For that matter, I could place all kinds of trades (entries, and parameters). They would just need to take.
Thanks guys.
Again, you all are great!
I like to use both the real body and the wicks to find my S/R area. It is a bit of an art but you can usually find where most of the real bodies have closed and then the area where most of the tops/bottoms of the wicks have reached, and this is your S/R area. You will almost never have an s/r where the candles are perfecting lines up with it, with no wicks poking through it.
You have it right, you don’t want to trade during the NFP because it can plow over any PA signal, but the candles that form during the report are still valid and can be traded like any other day. Sometimes the news that comes out for the day, sets the course for the currency for the next couple days or weeks.
It can be hard looking at trades as having various levels of success and chance of winning. This can be harder if you are use to looking at trades as either A+ or not, or “go, no go”. But if you were to line up for me 10 A+ trades, you will find some that were higher quality and had a better chance of success, and some low quality. I saw quite often people saying this is an A++, or A+++. I think because when people start learning how dynamic the markets are, they start to move to realize the various qualities of an A+ trade. Whether you say A+ to A++++ or 1-5 stars isn’t as important as understanding that not all trades are simply black and white, but rather amongst those we consider “tradable”, there are higher and higher levels of quality and chance of success.
I like to risk more of my account on those trades I think are very high quality, and limit my risk on those trades that may fall into the 2-3 star quality range.
Both the AUD and NZD had big impulsive moves because of some news that came out regarding Chinas liquidity. As traders there is really nothing we can do about this. This is just a part of trading and something you can’t really anticipate. I was in both AUD and NZD long trades, I knew both pairs were at extreme highs and were susceptible to any bit of news knocking them way back. So to protect my capital I moved my SL to BE before I went to sleep. I woke up to see that my SL’s have been hit and so they were just scratch trades. While hopping in strong trends can be very profitable, they are at risk for moving too far too fast and the market selling on the price extremes to pull it back to it’s “fair” value. We have seen the AUDUSD and other AUD pairs riding well above their 8 and 21 EMA for days on end, so it was ripe for a correction.
Also pullbacks and retracements can mean the same thing, but retracement is used in 2 different contexts. The first is a retracement in a swing in price, which we also call a pullback. This may mean a pair is in a strong trend, and we are waiting for price to retrace back to 61% fib level. The other retracement is the retracement on an individual candle. If we have a pin bar form we can enter on a retracement of that pin bar, which we are waiting for price to climb up the pin bar to get in the trade at a better price.
