Price Action That Matters

[krugman25]

I’m interested in this one. Krugman, this may be an out-of-stretch request, but can you post the example of the best setups that fits your 5-star standard? And I mean, trades for trend trade, counter-trend trade, and ranging trade that you will definitely give 5-star rating yourself? Thanks.

I have about a dozen trades I captured when I had my old blog, I will look through them and see if any of them fall in that 4-5 star category. I won’t have any CT trades to show because I don’t trade CT, but I have seen some very nice ones in times past, and I will see if I can find them on the charts. I believe I have a fairly strict set of things I look for, so I have a lot of faith in my trades I would deem 3 stars and up. If a trader is being honest about the quality of trades he is taking, over time he should begin to see a trend that the very high quality trades truly do have a higher chance of reaching their profit targets, and the lower quality ones tend to fail more often. Then the trader can start being smarter and more strategic with how he/she risks capital on trades, and put the bigger risk on the trades they believe have a better chance of success.
In general though, what makes a trade better than another? Overlapping S/R levels(horizontal + trendline + fib, etc), very large signals, well defined signals, Signal breaking well through S/R, the body of the candle closing just above/below the S/R area, candle is protruding and sticks out past other candles in the swing, low volume on the pullback with a large spike during the PA candle, Little resistance or noise from entry to TP, large distance for take profit(good RR). This is just a few that jump into my head but there are a ton of dynamics for any given trade, and all of these should be considered. Figuring out trade quality isn’t a cookie cutter thing, it’s just understanding the market and then experience taking hundreds of trades. It really isn’t important if someone agrees with your ratings or not, the important thing is you understand how you rate, because that will become your standard for how you trade.

[krugman25]

I hope you are all enjoying what’s been done so far, I know I have been!

[wm247]

Figuring out trade quality isn’t a cookie cutter thing, it’s just understanding the market and then experience taking hundreds of trades. It really isn’t important if someone agrees with your ratings or not, the important thing is you understand how you rate, because that will become your standard for how you trade.

Agree with what you said. It’s just some people -like me for instance- can simply learn better if they have a visual example on hand. I’m not saying that I will 100% blindly follow it just because Master K did this so it must be correct all the time. I usually try to analyze that visual example and see which aspect fits my personal strategy and which one doesn’t so that I can easily modify that into my trade plan.

It’s easy to simply write down the checklist like you have here ( [B]Overlapping S/R levels(horizontal + trendline + fib, etc), very large signals, well defined signals, Signal breaking well through S/R, the body of the candle closing just above/below the S/R area, candle is protruding and sticks out past other candles in the swing, low volume on the pullback with a large spike during the PA candle, Little resistance or noise from entry to TP, large distance for take profit(good RR)[/B] ), but it’s different with looking at a real trade example myself. It’s like a cooking course. It’s easy to simply read the cookbook recipe myself, but it’s different with looking at how a real chef does his cooking in practice.

[krugman25]

I wanted to leave the thread with a little nugget before I left. I noticed a potential trifecta of PA setup awesomeness on the AUDUSD. For it to play out price would have to reach that level sometime in the next day or so, or else the trendline is not overlapping anymore, but you could still have a pullback to the 50% fib and key daily which are almost perfectly on top of each other. The icing on the cake would be a nice price action candle with all of the great qualities we would be looking for.

[krugman25]

Agree with what you said. It’s just some people -like me for instance- can simply learn better if they have a visual example on hand. I’m not saying that I will 100% blindly follow it just because Master K did this so it must be correct all the time. I usually try to analyze that visual example and see which aspect fits my personal strategy and which one doesn’t so that I can easily modify that into my trade plan.

It’s easy to simply write down the checklist like you have here ( [B]Overlapping S/R levels(horizontal + trendline + fib, etc), very large signals, well defined signals, Signal breaking well through S/R, the body of the candle closing just above/below the S/R area, candle is protruding and sticks out past other candles in the swing, low volume on the pullback with a large spike during the PA candle, Little resistance or noise from entry to TP, large distance for take profit(good RR)[/B] ), but it’s different with looking at a real trade example myself. It’s like a cooking course. It’s easy to simply read the cookbook recipe myself, but it’s different with looking at how a real chef does his cooking in practice.

I understand, I am the same way. That is why I try and make my chart analysis as detailed and possible, and I am ridiculously detailed in some of my live trade analysis, because I do want my thought process to be visual. I will be the first to say that how I trade is more complex than others, but I also believe it is a better and more realistic approach to the markets. Even all of those things I mentioned in my list aren’t yes or no questions, for example some volume spikes during pinbars are stronger than others, or sometimes volume remains fairly elevated going into the pullback. I do want to make how I trade more use friendly and try and get out on paper, it will mostly serve to help the trader remember all of the things they are looking for. Right now it just poors out into my analysis, i will be putting some serious time getting it out and making it more step by step(with real life examples).

[EternalNewB]

I do feel the need to say that retracement entries tend to take longer to go in your favor. Since you are essentially getting in when the market is going against you it can take a while for price to turn around, all the while hovering precariously close to your stop loss. Retracement entries are riskier and sometimes a little harder to handle psychologically. But if the trader has disciplined himself to only trade the best setups, the retracement entry can be almost as successful as the break entry, but with significantly better RR.

When I entered at retracement I was ready for the battle but it has now moved in my favor.

Aaron could you please comment on my TP areas? Would reaching for the top too much?

[buster48]

[B]REPORTED[/B]

Just a few days ago, Krugman had ‘severe disagreement’ with those questioning his credibility and stuffs, also at his own thread that escalated rather quickly, and so he openly decided that trolling question is no longer tolerated. So according to your standard, Krugman also ‘has some sort of persecution complex’.

The only post I removed later at J’s thread at the end is because that post is about my complain to buster48’s rude and offensive post at the very end and it’s of course not related to PA learning at all.

Krugman, feel free to remove this post later once you deal with buster48’s trolling post as this is also not related to PA learning at all. You guys can see it yourself here the fresh example of the kind of trolling I had to endure from buster48 at the previous thread. If what I do here is called ‘some sort of persecution complex’ from ‘a not-so normal sane person’, then I am more than delighted to do it again if that ensures we keep the trolls away.

Oh for goodness sake man dont be so pathetic ,are you suggesting I was involved with “trolling”(your words)on this forum as I most certainly wasent,it seems a shame you’ve brought your rants here which was a nice friendly forum until you started.Have a look guys at how many posts he’s made on here since he started ranting and how many “likes” do you think he’ trying to prove something ?So lets leave all this rubbish and get back to trading again shall we.once again sorry Aaron.

[cams75]

I appreciate your help, cams. Can you post your list of all 10 - 12 NY Close chart directly here? Most of the times, they are showing standard NY Close charts if we know how to deal with their little problems such as: daylight saving, 6-day candle instead of 5-day candle, inconsistencies with Ask chart vs Bid chart as default chart, not enough data to scroll back, incomplete list, etc.

Even I myself am tired with all this argument of which NY Close chart is the best, and I’d rather list the chart here and discuss how to deal with their problem while we’re at it.

Here you go mate,

GoMarkets
Pepperstone
Global Prime FX
Think Forex
Vantage FX
Axi Trader
FXCM Trading Station
FXOpen
Alpari UK
Hot Forex
TradersWay
FXDD
FXPro
ATC Brokers
LiteForex
RoboForex
XeMarkets

Now I wouldn’t recommend opening live accounts with some of these brokers but all have NY charts. Some of the brokers are abit slack at changing from daily light savings and vice versa, so they may be out for a week or 2 around these periods. I usually have 2 or 3 demo accounts to make sure all good;)

[wm247]

Oh for goodness sake man dont be so pathetic ,are you suggesting I was involved with “trolling”(your words)on this forum as I most certainly wasent,it seems a shame you’ve brought your rants here which was a nice friendly forum until you started.Have a look guys at how many posts he’s made on here since he started ranting and how many “likes” do you think he’ trying to prove something ?So lets leave all this rubbish and get back to trading again shall we.once again sorry Aaron.

You may have missed my latest post about you from Krugman. I will optimistically think that you ‘somehow’ miss that, so I will once again repeat my offer of peace pipe agreement, and I’m hoping you also[B] stop any further confrontational tone in your post right here right now and in any of your post in the future[/B], and [B]I will do the same[/B].

Since you yourself said it, Krugman. I always value any good suggestion from my own Christian brother. And forgive us our trespasses, as we forgive them that trespass against us. I’ll be the first to initiate the peace pipe agreement.

This is an open request to buster48. I know we start off on the wrong foot on the previous thread and also at this thread. But [B]let bygone be bygone[/B], and once again we return to our initial motivation to let this PA thread becomes one stop shop for everything we all need to know about Price Action. In fact, I will swallow my pride and I will say that I apologize for any possible stuffs that I have said previously that may tick you off in the wrong way, whether I do it intentionally or not. Shake hands?

Read more: 301 Moved Permanently

[wm247]

Nope, you definitely do not want to open a live account simply because it has NY Close chart. You open an account firstly because you believe that your money is safe with them. The safety of our capital should be our top priority.

Once again I remind each and everyone of us here that we only need the NY Close chart for the sake of discussion in this thread, but feel free to open live account in any of your favorite broker.

Here you go mate,

GoMarkets
Pepperstone
Global Prime FX
Think Forex
Vantage FX
Axi Trader
FXCM Trading Station
FXOpen
Alpari UK
Hot Forex
TradersWay
FXDD
FXPro
ATC Brokers
LiteForex
RoboForex
XeMarkets

Now I wouldn’t recommend opening live accounts with some of these brokers but all have NY charts. Some of the brokers are abit slack at changing from daily light savings and vice versa, so they may be out for a week or 2 around these periods. I usually have 2 or 3 demo accounts to make sure all good;)

[slipp3ryWhippit]

@Krugman

The example graphs that you post seem to be extremely highly zoomed in.

Is this the way you choose to view the charts or is it a function of trying to highlight the areas of interest more clearly?

[daydreamer65]

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

I have an Alpari UK spread betting demo account which has some indices on it.

However my Alpari UK live account does not.

When you get to the demo form from the Alpari site select “spread betting”

[buster48]

@wm247

You may have missed my latest post about you from Krugman. I will optimistically think that you ‘somehow’ miss that, so I will once again repeat my offer of peace pipe agreement, and I’m hoping you also stop any further confrontational tone in your post right here right now and in any of your post in the future, and I will do the same.

Since you yourself said it, Krugman. I always value any good suggestion from my own Christian brother. And forgive us our trespasses, as we forgive them that trespass against us. I’ll be the first to initiate the peace pipe agreement.

This is an open request to buster48. I know we start off on the wrong foot on the previous thread and also at this thread. But let bygone be bygone, and once again we return to our initial motivation to let this PA thread becomes one stop shop for everything we all need to know about Price Action. In fact, I will swallow my pride and I will say that I apologize for any possible stuffs that I have said previously that may tick you off in the wrong way, whether I do it intentionally or not. Shake hands?

Read more: http://forums.babypips.com/free-forex-trading-systems/58037-price-action-matters-94.html#ixzz2id54kg5f

Ok wm its not doing either of us any good I also apologize and shake hands it all got a bit out of hand eh.so lets study and make some money be lucky.

[cyanidez]

@buster48

Ok wm its not doing either of us any good I also apologize and shake hands it all got a bit out of hand eh.so lets study and make some money be lucky.

Thanks guys, both of you. Let’s go check out the charts and post what we see to contribute to Aaron’s awesome work so far!

[krugman25]

@Krugman

The example graphs that you post seem to be extremely highly zoomed in.

Is this the way you choose to view the charts or is it a function of trying to highlight the areas of interest more clearly?

I do zoom in on them since most of my analysis is done at the price action signal. When I am looking at them on my charts I have them more zoomed out though, so I can see the various S/R levels in play.

[Mr_B_A_Barracus]

[QUOTE=“daydreamer65;555343”]

I have an Alpari UK spread betting demo account which has some indices on it.

However my Alpari UK live account does not.

When you get to the demo form from the Alpari site select “spread betting”[/QUOTE]

Thanks for the info daydreamer and to everyone else who has listed brokers with New York close candles.

BA

[Mr_B_A_Barracus]

[QUOTE=“EternalNewB;555243”]

When I entered at retracement I was ready for the battle but it has now moved in my favor.

Aaron could you please comment on my TP areas? Would reaching for the top too much?[/QUOTE]

Hi Eternal

Damn that sunk this morning, when I saw it coming back down I jumped ship with a 7 pip loss so not too much damage done. Hope you took your profit! I was sleeping

[cyanidez]

Aaron, hope it’s going well man. Thanks for a golden thread… pun maybe intended!

I have a question if you don’t mind: when you get a nice pin bar and then draw your fibs but do not get filled and price moves a bit beyond the pin bar in the direction of the new supposed trade, do you keep extending the fibs in expectation of the pull back or do you only take trades where price pulled back inside the pin bar range and gets you in at that 50%?

Thanks, have a great day.

[wm247]

@buster48

Ok wm its not doing either of us any good I also apologize and shake hands it all got a bit out of hand eh.so lets study and make some money be lucky.

That’s a firm handshake, mate. I like it. Forex trading is already one dangerous journey, we will need every possible able-man to survive here as Price Action community. Since we all have the same goals, we really are in the same side, so we must not let our little differences stand in our way of success. We must all hang together or, most assuredly, we shall all hang separately.

[krugman25]

Aaron, hope it’s going well man. Thanks for a golden thread… pun maybe intended!

I have a question if you don’t mind: when you get a nice pin bar and then draw your fibs but do not get filled and price moves a bit beyond the pin bar in the direction of the new supposed trade, do you keep extending the fibs in expectation of the pull back or do you only take trades where price pulled back inside the pin bar range and gets you in at that 50%?

Thanks, have a great day.

Hey Cyanidez, first of all thank for you the kind quotes and I am glad you are enjoying the information in here. To answer the question about not getting filled. I usually set an entry at both some retracement area of the pinbar and also the break of the pinbar, so I am essentially guaranteed to get in the trade. The only time I wouldn’t set an entry at the break is if it doesn’t provide that minimum 1:2 RR I need. In which case I would set my retracement entry and if it doesn’t get trigger I move on. I believe when you are talking the fib, you are actually talking about drawing a fib on the pinbar to measure the retracement. While I use to always do a solid 50% retracement, I now try and find logical areas in the retracement that might act as minor S/R and make a good place to get in the trade. But to answer your question the fib gets drawn on the pin bar. If price moves beyond the pin bar, the fib doesn’t get moved and your entry doesn’t get moved.