Price Action That Matters

[daydreamer65]

It is a real money account and i understood it could happen over the weekend. But it happened overnight last night while i was sleeping. Was unaware that could happen during the week. Is this my brokers fault for not getting a trade executed in time? Or just a consequence that has to be lived with in a volatile market such as EUR/USD was?

Contact your broker & see what they say.

[keiichi2]

Hi everyone.
My name is Alen, Im from Melbourne and I have been trading FX for around 18 months. Mostly loosing all the time LOL.

Started reading about price action recently and have been reading this thread for a couple of weeks now, so i thought I may aswell join and say hello.

I got stopped out on a couple of trades last night long USD/JPY and EUR/USD which is hurting a bit at the moment
Im now looking at the USD/CHF and wondering what you guys think for a short if it breaks below the indecision Candle.

[krugman25]

I think the candle closed a little too bullish and as you can see from the screenshot tried to break below the trend line and was rejected and shot higher. That doesn’t mean it won’t eventually break lower but it is giving more of a bullish outlook on the pair. I am not sure what you meant by the indecision candle. That is more of a bearish hammer or rejection bar.

[keiichi2]

Sorry guys that screenshot came out quiet bad.

[keiichi2]

Thats what I meant Aaron but couldnt think of the name.

If you had to rate it, what would you give this setup

[krugman25]

Thats what I meant Aaron but couldnt think of the name.

If you had to rate it, what would you give this setup

I would give it a 2. This candle is so large that a standard entry/SL makes it a very poor RR setup. You could enter at the break of the candle, but you would have to have a modified stop loss to get a decent RR. There is also the issue of it closing above the trend line, and more bullishly that I would like to have seen.

[wm247]

Hey WM27

Yes it fits one of my other trading plans that wouldn’t meet the requirements here. But I do sometimes trade news explosions with extremely tight stop losses, usually 15 pips. The reason I used the 15 min chart today was that I could see price had dropped rapidly with the ECB announcement and had temporarily consolidated waiting for the figures from the US that created a nice box. I decided I would go with momentum, and set my order just below the current candle. Obviously this can back fire which is why it is important to have a tight stop loss which also allows slight movement before the explosion. When it works, it works great! But this isn’t for everyone, and I only do it when an opportunity presents itself.

My senior does that all the time, and he’s really good at it. Me? Not so much.

So yeah, trading news can work, especially if it’s red. Blue and orange can also work, but the odds are obviously lower, though.

Speaking of news, NFP once again lies ahead. Seems like I’m going to take an early leave this weekend.

[cyanidez]

It is a real money account and i understood it could happen over the weekend. But it happened overnight last night while i was sleeping. Was unaware that could happen during the week. Is this my brokers fault for not getting a trade executed in time? Or just a consequence that has to be lived with in a volatile market such as EUR/USD was?

Hi jpw0100,

Just remember that whenever your stop loss is executed, somebody needs to “buy your stop loss” on the other side of your trade direction, so if you are stopped out of a buy, somebody needs to be willing sell the currency pair at the same time in order for your stop loss to get filled… if somebody else didn’t think it was a good place to sell, your stop loss would be hit price-wise but would never actually get executed, or it could take minutes to hours!

Luckily we have huge volatility in the currency markets and we get ours fills almost instantaneously, but in this case, with the news, things were so hectic that your order simply could not be filled before the price that you eventually got out on.

Hope that helps,
Cheers

[EternalNewB]

It is not only friday it is also NFP day

Quote of the day

“To trade or not to trade that is the question”

[mancamy]

I looked at the GBPUSD but nothing really stood out to me. The higher high/higher low pattern has been broken but I am looking at it is a range, with slight bullish bias. The pin bar that did form is right in the middle of the range so your SL would not have much protection and your TP is greatly diminished. If that pin bar was 150 pips lower, I would definitely be trading it.

There is a little bit of bullish bias on the AUDCHF, but the bar that formed gives us a very bearish near time signal. Another way to look it this is that we actually have a pennant forming, and the candle today did a false break of the upper trend line of the pennant, giving credence to the possibility that it may break lower. This would be a bearish pennant since the trend leading up to the formation of the pattern was bearish. Here we have another case where the candles have almost reached the apex, which lowers its quality. You can also take a look at the Aussies big brother, the NZD, and see we also have a large bearish pin bar. Between the two the Aussie gives us a much better setup.

Yes, the main downside is that it’s in the middle of the range and it’s a narrow range, although the risk reward still works…

It’s good to hear your views on the cons it helps to keep me disciplined and from over trading. My plan states that I should only take range trades at the boundaries unless the trading range is large…so I will stick to my plan and have removed my pending order. Thanks. Good weekend, everyone.

[krugman25]

It wasn’t just the RR or the range, but for me it simply hadn’t formed off of a key level. What makes price action candlesticks so powerful are the key S/R levels they form on, without those levels it’s just another candle. Perhaps you were looking at it forming off the the 21 EMA, but we only use EMAs for S/R when the pair is in a textbook trend. I am glad to hear you are working on discipline, that is just as important as a good trading method. Any trader who can get both will be quite successful.

[mancamy]

Thanks for this - when I first started price action I was focusing too much on the emas and not enough on the s/r levels and was losing more than I was winning, once I shifted my focus to the horizontal levels it made all the diff to my results…I think I was erring back into my old ways, so thanks for getting me back on track

It wasn’t just the RR or the range, but for me it simply hadn’t formed off of a key level. What makes price action candlesticks so powerful are the key S/R levels they form on, without those levels it’s just another candle. Perhaps you were looking at it forming off the the 21 EMA, but we only use EMAs for S/R when the pair is in a textbook trend. I am glad to hear you are working on discipline, that is just as important as a good trading method. Any trader who can get both will be quite successful.

[Mr_B_A_Barracus]

[QUOTE=“wm247;562329”]

My senior does that all the time, and he’s really good at it. Me? Not so much.

So yeah, trading news can work, especially if it’s red. Blue and orange can also work, but the odds are obviously lower, though.

Speaking of news, NFP once again lies ahead. Seems like I’m going to take an early leave this weekend. :D[/QUOTE]

Hey WM247

Does your Senior have a system for this? It’s definitely an area I am very interested in. My main trading plan is price action but I have always hoped to fine tune a second one designed to catch pips during news explosions. I’m still tweaking my very infant system at the moment but believe there has to be away to turn consistent profit by catching these things because if your on the right side of the bang, you can make 50 - 100 or more pips in just one pop. But one of the dangers is the potential for slippage as mentioned earlier, Im not sure how to get past that. Any way I’d better not discuss it anymore here but if you’ve got any more info feel free to send me a PM.

I’m done for the weekend now, I no longer trade Fridays unless I have an open order and with the NFP today (A bit too volatile to catch pips for me) I will be putting my feet up.

All in all it’s been a mixed week for me but I finish it with a small profit of 3.3% profit to my account which mostly came from the NZDUSD trade long and then short I took.

Have a great weekend

BA

[MikeWolski]

Hi guys.
Yep, it’s NFP friday.
I so wanted to make a trade this morning before I got to work, for the day, but didn’t. So, like I always do, I put down a pretend trade on paper, and see what would have happened. And I wanted much more on the trade also.
I really think the USD will drop today. So, of all the pairs I’ve looked at, the CAD looks the best, to the USD. The weekly shows bearish. US can’t continue on up, after recent gains, (I think anyway). CAD shows strength lately. GBP and JPY seem to be most strong across the world.
Just my thoughts. I know it’s definitely gambling. As opposed to proven PA signals.
So, now that it’s on paper, and in print here, I think it’s good to see how much I was wrong after the fact.
I’m trying to strike a balance between technical analysis and fundamental market movement. I do think the seesaw tips towards technicals though.
Thanks for listening.
And good luck for those who have a gut and are in the market today!

[MikeWolski]

Well, 2 hrs later now, than when I would’ve place the trade, I just made 26 pips. USD/CAD just dropped to where I wanted.
It was a 26 pip tp, 36 pip sl. I know, not good RR.
So…what did I learn you ask?
It’s all a gamble.

[mancamy]

Glad I removed my long GBPUSD pending order last night… not enough protection for my stop in the middle of that range… GBPUSD reaction to surprise NFP news:

@mancamy

Yes, the main downside is that it’s in the middle of the range and it’s a narrow range, although the risk reward still works…

It’s good to hear your views on the cons it helps to keep me disciplined and from over trading. My plan states that I should only take range trades at the boundaries unless the trading range is large…so I will stick to my plan and have removed my pending order. Thanks. Good weekend, everyone.

[cyanidez]

Hi guys,

As we support each other in the bad times, we can also celebrate together in the good times. I would like to share my good times with you guys. Herewith my results since I started trading with price action 2 weeks ago.

Aaron, I want to thank you personally. I don’t trade exactly the way you trade but I have added tools to my trading from you sharing what you know and love. I am deeply thankful, especially for things like the entry technique for pin bars, waiting for a 50% pullback. It’s is astounding what you can achieve if you focus on minimizing your risk… the maths speak for themselves!

What a thread, thank you all and again, thank you Aaron. See you guys next week.

Cheers!

[EternalNewB]

@cyanidez

Hi guys,

As we support each other in the bad times, we can also celebrate together in the good times. I would like to share my good times with you guys. Herewith my results since I started trading with price action 2 weeks ago.

Aaron, I want to thank you personally. I don’t trade exactly the way you trade but I have added tools to my trading from you sharing what you know and love. I am deeply thankful, especially for things like the entry technique for pin bars, waiting for a 50% pullback. It’s is astounding what you can achieve if you focus on minimizing your risk… the maths speak for themselves!

What a thread, thank you all and again, thank you Aaron. See you guys next week.

Cheers!

cyanidez for whatever it is worth you are a great contribution to this thread, thank you for sharing and congrats

I had a good week too, erased last month losses and still have 3 weeks to make some profit ;o)

Cheers buddy

[mancamy]

Well done, cyanidez, that’s awesome…

I am turning my results around too since happening on Aaron’s thread have really turned a corner and making good returns, risking 1% per trade am up 4% in two weeks

Thanks to Aaron and happy weekend.

@cyanidez

Hi guys,

As we support each other in the bad times, we can also celebrate together in the good times. I would like to share my good times with you guys. Herewith my results since I started trading with price action 2 weeks ago.

Aaron, I want to thank you personally. I don’t trade exactly the way you trade but I have added tools to my trading from you sharing what you know and love. I am deeply thankful, especially for things like the entry technique for pin bars, waiting for a 50% pullback. It’s is astounding what you can achieve if you focus on minimizing your risk… the maths speak for themselves!

What a thread, thank you all and again, thank you Aaron. See you guys next week.

Cheers!

[Diablo1505]

[QUOTE=“cyanidez;562610”]Hi guys, As we support each other in the bad times, we can also celebrate together in the good times. I would like to share my good times with you guys. Herewith my results since I started trading with price action 2 weeks ago. <img src=“301 Moved Permanently”/> Aaron, I want to thank you personally. I don’t trade exactly the way you trade but I have added tools to my trading from you sharing what you know and love. I am deeply thankful, especially for things like the entry technique for pin bars, waiting for a 50% pullback. It’s is astounding what you can achieve if you focus on minimizing your risk… the maths speak for themselves! What a thread, thank you all and again, thank you Aaron. See you guys next week. Cheers![/QUOTE]

Impressive results!! Keep it up and thanks for sharing!