My View:
Pin bar on your chart little different with mine (FXDD)
according to that i will not consider it a valid Pin Bar because its not close within bottom 1/3 also if its valid Pin Bar i will but my order 10-15 pips from the low of the candle.
Hey Steve
I got screwed on that too, actually I took a pin bar to go short yesterday on the hourly and then it exploded. In my case I took a pin bar that was in lots of traffic and one I shouldnāt have taken but to me yours looks good on your chart. The problem came last night when this happened - AUD is falling after RBZ Gov Stevens said that it is unusually high and not supported by fundamentals; itās likely to correct lower.
Here is a pin bar I have just taken on the hourly, I was entered on the break of the pin:
Does it open and close with in previous bar? Yes
Does it stick out? Yes
Is it in traffic? No
Is it at a downswing? Yes
With trend? Yes
Same length or longer than previous bar? NO!! A lot smaller.
5/6
I donāt think there is an advantage unless you want to hold the position to see if it breaks out of the range. If price was trending in 1 direction and begins consolidating, it tends to break out in the direction of the previous trend, the only problem is we donāt know when it will decide to break out. If you accept the extra risk and hold it to see if it breaks out, and it were to your profits could be significantly higher.
Good point made, we donāt live and die by individual trades. Apart from looking for any mistakes I may have made, I forget about my losses quickly.
No I didnāt.
Come on Mr BA ! Time to adopt some kind of discipline ! 
[QUOTE=āPiping Hot;557723ā]
Come on Mr BA ! Time to adopt some kind of discipline ! :)[/QUOTE]
I agree piping, I let the side down yesterday which is why I have glued my new check list as included in my last analysis above to my desk. I was doing well and fell into some bad habits so Iām trying to discipline myself again. This check list will help me rate my trades here. I have also returned to only entering trades on the break.
may i ask why not? u mentioned tht it was MAJOR trendline support. your input would benefit my education and would be greatly appreciated. cheers
No problem, donāt ever hesitate to ask, that is how we all learn. I have a couple reasons I didnāt take the trade. Before I get to my answer though I need to say we donāt just trade trend lines, horizontal line or any other type of S/R levels. A high quality price action formation is absolutely a must to take a trade. Regardless of how many overlapping S/R levels there are and how major the levels are, if there is not high quality PA signal, the trade is simply not taken. Now for the reasons I didnāt take a trade, the first is I didnāt see any price action candles telling me to enter the trade. At best price was bouncing around on top of the .382 Fibo line, but nothing that would signal a false break. The second reason is that I was looking to more seriously looking to the .9518 price area for price action as that was both the 50%retrace and major horizontal support. The third reason was that I was already in the EURAUD, and since the two pairs are correlated, it would have caused me to overrisk on the AUD.
Hi Aug, I like to get some kind of retrace into the pinbar for a higher R/R.(Only on daily) It is more risky but when it works out it usually makes up for any losses. In hindsight though entering 10 -15 pips below the low would have saved me this time.
Agree. The pinbar also does not look valid in my Pepper. Looks similar with your FXDD here. 
Even if I took this trade, I would have put the pending order below the pinbar with buffer, while shortening the SL by putting the SL just above the resistance, so I would have not entered this trade at the end after all.
However, as you use retracal entry on the other hand, thatās an entirely different scenario.
Correlation seems like a nice issue to discuss in this thread, Krugman. Any plan to discuss this in more details in any of your upcoming article? During my Dark Age, I once entered 4 trades of such highly correlated pairs. Letās just say I then experienced my worst drawdown in my Forex trading career, and I got shell-shocked so hard that some people thought that I was about to do the unthinkable for the rest of the week. 
[QUOTE=āwm247;557763ā] Correlation seems like a nice issue to discuss in this thread, Krugman. Any plan to discuss this in more details in any of your upcoming article? During my Dark Age, I once entered 4 trades of such highly correlated pairs. Letās just say I then experienced my worst drawdown in my Forex trading career, and I got shell-shocked so hard that some people thought that I was about to do the unthinkable for the rest of the week. :([/QUOTE]
Haha, I have done the same before I was thoroughly educated on the subject. I use correlation to keep myself from over risking and I also use it in a hedging strategy where I hedge on correlated pairs right before a breakout. Usually one gets stopped out and the other shoots off for big gains.
I probably wonāt talk about my hedging strategy but I will put it on my list to write about over risking on correlated pairs.
Thatās good Mr BA ! Itās gonna take you to the next step, where I find myself and which is called a disciplined loser
I am glad to hear that BA. I truly believe that most price action traders are good at finding high quality setups, but they are terrible at filtering out low quality setups. Most traders think, if I could just get better at finding high quality setups, I could start winning. They donāt realize they are finding the high quality ones, and not differentiating them from the poor quality ones. While itās easy to talk about, itās hard to actually do. The reason is because even the poor quality setups can pass our trade filters. Thatās were the quality rating comes in. That will help you see that some trades that pass your check list may still be fairly low quality, while others are very high quality. I look forward to seeing how things improve for you.
[QUOTE=āPiping Hot;557769ā]
Thatās good Mr BA ! Itās gonna take you to the next step, where I find myself and which is called a disciplined loser :)[/QUOTE]
Disciplined loser? Thatās not good. Surely a disciplined winner Piping?
[QUOTE=ākrugman25;557771ā]
I am glad to hear that BA. I truly believe that most price action traders are good at finding high quality setups, but they are terrible at filtering out low quality setups. Most traders think, if I could just get better at finding high quality setups, I could start winning. They donāt realize they are finding the high quality ones, and not differentiating them from the poor quality ones. While itās easy to talk about, itās hard to actually do. The reason is because even the poor quality setups can pass our trade filters. Thatās were the quality rating comes in. That will help you see that some trades that pass your check list may still be fairly low quality, while others are very high quality. I look forward to seeing how things improve for you.[/QUOTE]
Hi Aaron
I decided I must have changed something in my trading plan when my profit began to fall back a little. Luckily Iām extremely tight on stop losses and so didnāt lose a great deal but it was a sign to me that I was getting sloppy. So itās back to retraining myself, I will mark my trades out of 6 when I post them. The EurCad hit my first TP and I took it which is good. I took this trade for a number of reasons, although the pin was small on the one hour I could see it forming a similar rejection of price on the 4hr. Opposed to using a volume indicator, I use RSI which I prefer, this also indicated to me that the market was over sold. What do you think to RSI?
BA
Itās good to look over your losses and figure out what you could improve on to have avoided the losses. Sometimes there is nothing, it was simple a loss, other times you can catch yourself breaking rules or maybe the trade wasnāt as good as you had originally convinced yourself. I would also say though, a string of losses doesnāt mean you are doing something wrong. It takes about 100 samples to get a good statistical average, so if you tried something 4 or 5 times, itās too little of a sample to know if it was random chance or what you are doing really doesnāt work. Itās kind of like traders new to price action, will take 5 or 10 trades, and lose most of them and determine that PA doesnāt work. When in fact if they would have stuck with it would could have seen a 5-10 winning streak. Iām not trying to tell you why you were losing, but I want to make sure everyone knows that it takes quite a lot of trades to determine the success of something. That is why you should stick rock solid to your plan, and donāt add in too many things at once or change to many things at once, or else you will have a hard time figuring out what isnāt working.
Volume is really in itās own league and is an apples to oranges comparison to RSI. RSI is a calculation off of price, and only gives you information about price movement. The only thing you can compare RSI to is other price based indicators like Stoch, MACD etc. Volume gives you information about the volume or orders behind all of the price movements in a given amount of time. There are a handful of volume indicators, but I donāt like any of them, I prefer using pure volume ticks.
