Price Action That Matters

Trading Systems Free Forex Trading Systems
82

Hi Krugman,

Great to see you start your own thread as I have seen your valuable contributions on another thread here.

Quick question-what broker and platform are you using? Cheers

83

Hello evrybody,

I am Reddy, from Abu Dhabi (UAE). Recently I have started trading on Demo account. I am intrested in PriceAction trading.

84

Ah yes, the broker and the chart setup we use for discussion is an important issue, that we all must agree before even discussing any of the trade setups.

I strongly recommend we all only use New York Close chart brokers in this thread. Specifically, 5-day New York Close bid chart. We cannot make any meaningful discussion if each and every member see too different charts in this thread. :58:

For MT4, some of the brokers we use here are:
FXPro
FXDD
Pepperstone
HotForex
Axitrader

For MT5, some of the brokers we use here are:
MarketForex
InstaForex
LiteForex
WelTrade
RoboForex

But of course, we only use 5-day New York Close bid chart for the sake of discussion in this forum. If you have a NON-5-day New York Close bid chart, you can simply input the number from your 5-day New York Close bid chart to your live chart, and you will be alright. For example, I myself use Pepperstone for the sake of discussion in this thread, and then I simply input the number to my live account at Forex.com. I can make my life much simpler if I also open a live account at Pepperstone, but thatā€™s an entirely different issue for another day. :slight_smile:

PS: Krugman, feel free to add any of this suggestion as this is your thread. Iā€™m hoping that you actually put this broker list in front of your page as this is one of the most important thing we all have to agree before discussing anything here. :wink:

85

Hello Everybody,

My Name is Saeed. im from Pakistan, Im newbie and just learning how to trade
Many Congratulation to Krugman for this useful thread.

It`s very admirable that anyone spend part of his/her time to help others.
I hope to be part of this great thread, and its potential.
.

86

Wow.
Aaron.
Thanks.
Just read the first 9 pages now.
Your my hero.
Iā€™m in.
Finally a real smart person, helping us all out.
Thank you!

87

Hi Krugman,

Iā€™ve checked DailyFX, and I think there is a change of plan. USD does not seem to have any High-Impact news this Tuesday. No NFP and all that stuffs for Tuesday.

88

Hi all,

One thing that could be useful for everyone. I did a quick check to see what time it is now in Iowa in order to know pretty much when I can expect Aaron to pop in. So whatever time it is in your location, below picture is the time there so you can calculate the time difference.

timezone.jpg700Ɨ394 37.7 KB

Thanks to confirm Aaron,

Yves

89

Hey Mr. B I just wanted to bring up the fact that if the blue line was your S/R line, price action would dictate that price broke the Support and is now looking for that area to be possible resistance since old support becomes new resistance. Also if you look at the close of the candle it pretty firmly closed below that line; also hinting that price will move lower with the trend

90

Yea this one looks like it may go lower imho, if you look back towards prior price action every time price touched this level there was some kind of dramatic reaction towards the upside. This time youā€™re looking at a pretty strong short term downtrend that gave more of a Dogi candle than pin bar. The only thing i would say it has going for it is that definitive close above the support level.

91

Hey semmee, you wonā€™t be ignored here, I will make sure of it. Itā€™s been a passion of mine for a long time now to both become an expert in price action, and then using that in helping others. So I will make sure either I or one of the more experienced regulars here have answered the questions that come up. I think the format here will promote healthy debate and help everyone grow in their knowledge and understanding of price action.
So to answer your question, I do take into considering how price action signals have played out at key levels in the past. I donā€™t know if I am fully understanding your question but I donā€™t break it down and look if it was a pinbar, or BEEB etc. For the most part all PA candle signals pretty much mean the same thing, which is a rejection of a given price level. If historically price has been strongly rejected at a price level and was able to run a long distance before reversing, I make a mental note of that and use it to gauge the potential risk of my trade and what kind of quality I think the trade is. I also use that to figure out how far my take profit area(s) will be, what RR I will shoot for, and how I manage the trade. I donā€™t get too crazy about it though because market dynamics change constantly, and the things affecting price 5 years ago may not be the same things affecting price now, sentiments may be difference, etc.
I would say for beginners, to have a very cookie cutter method and try to manage all trades similarly. Such as shooting for a specific RR, only using horizontal S/R, only playing 2 or 3 PA candlestick formations, having a very specific way you enter and exit trades.
As you get better you can use that historical information to help you tweek your trade management and hopefully take as much profit as possible from the setup.

92

Thanks Yves! I just woke up this morning to start working and was amazed by how many posts happened while I was sleeping. Your chart is correct, I am in CST which is -5 GMT. I work from home mostly, but I try to not do Forex related things while I am working. So most people here can expect me to pop in shortly in the morning 7AM, and again after 4-5PM on weekdays. I sometimes take a break around 12PM and skim through my threads. If I do see a good trade setup forming, I always try to screenshot and post it.

93

Donā€™t you think you should add a point/star from with trend or counter trend ?

I was very interested in this setup but it is CT and I will wait till it reach support to go short I think it is safer at my level today

94

I decided to keep watching for opportunities to go long. I donā€™t trade counter trend nearly as much as I use to. In this case you begin hitting serious traffic not to far down the chart. You will find traffic at every swing high, and the way the 2BR is laid out on the chart, it would make for a lot of risk and little reward. On all of pinbars and 2BRs that formed last Friday, I am waiting for price to retrace a bit and then form PA at key levels to get back into the trend.

95

Nothing wrong with going short on this trade, the first thing I always do is check the trend and figure out if I am trading with it or against it. In this case it is a counter trend trade. Now the candle did form at a key level. Entering at a retracement was really the only way to achieve a decent RR. I personally am not trading against trends unless the setup is what I would consider 5 star. I hope this works out for you. At TP1, how much % of your position are you getting rid of? If itā€™s a 50/50, then it looks like you would be achieving around 1:1.5 RR.

96

That looks like a spinning top, I donā€™t think itā€™s a pinbar because the body of the candle didnā€™t form in the upper 1/3 of the candle. Also the candle size is a little to small. Trading into a strong selloff leading up the to that S/R area, I would need a fairly large candle, especially at a lower timeframe.

97

Hey BA, for the price action candle to be valid it has to protrude past the previous candles, it canā€™t but ā€œup inā€ the swing. Also the last selloff was really string, so that looks to me that little area of green candles looks more like a temporary price correction and not a price reversal. That one of the trickiest parts of PA is finding the difference between a price reversal, and the market just taking profit and making price corrections. In a correction the market is just trying to find ā€œfair valueā€, so in a huge selloff price will rise a bit as price naturally corrects and then continue lower. The difference between taking profit/correction and a reversal all comes down to the size of the candle and how aggressive it rejects that price. That is what tips us off to a false break and potential price reversal.

98

hi krugman my first post here. what do u think of this chart?

eurgbpdaily.jpg700Ɨ525 70.7 KB

support flipped over to resistance. good trade to go short after the ny close?

99

Thank you for the kind comments. I never realized how many people read my posts. A lot of people forum creeping out there, haha. I appreciate you here, I look forward to talking more here as time goes on. I use FXCM and the platform is Trading Station.

100

So you have a shiny new account and trading platform and are ready to break it inā€¦ well you came to the right place! This thread is in itā€™s infancy, so itā€™s really finding itā€™s legs right now. I know many of the people here and they can answer any questions you have. Mainly what will be happening here is people posting potential setups, current trades and past trades, which is where you will learn the most about what proper price action is. My ultimate goal is this to be a one stop shop for all things Price Action, and a concentration of great PA knowledge and learning material from traders experienced in PA. I will be hitting be talking a bit on how I trade, and you may find value from that or take it and make it your own.

As soon as next week I will be regularly writing articles here about the various aspects of price action. They wonā€™t be old articles copied from my website, these will be hot off the press and only posted here. I look forward to hearing about your progress and how this thread has helped you. Be Blessed!

101

Thanks Willy, that helps out a lot. I am putting that on my to-do list and will be one of the first things I do after work today. I may modify and break it down, but I will be putting that on the rules post. Thanks again for the help.