3 candle morning/evening stars only. Sometimes going higher T/F turns what you posted into a good 3 candle star. I checked this out very quickly earlier and if I remember correctly, it didn’t pass the requirement for a minimum 1:1 RR. I think the chart zoomed out had a resistance closer than the one you had market. Although I could be wrong. Star candles are good candidates for a retrace entries to achieve a better RR.
Textbook flags are super rare at higher time frames. I use them both to get into a trade, keep a trade running or increasing my position. I find patters more subjective and harder to trade. I am going to refrain from getting too deep into talking patterns until I get some good material out for price action candles. But feel free to discuss them in the meantime, I believe there are a few here who have some of these patters in their own trading plans.
I’m glad you are finding the information useful. I put more emphasis in some of these topics I discuss than most PA traders I have met.
Regarding the real body of a pinbar, to me it is another one of those little details that I take mental note of when taking a trade. While a pinbar is valid when it passes the check-off list; total candle size, real body size, real body position, protruding past previous candle, touching or protruding past key S/R level. But the candle itself can hint to it’s quality.
For that picture perfect candle I want to see the body of the candle close within the body of the previous candle, not just the wick. I want to see either a razor thing real body, or a real body that closed well in the direction I will be trading. I want to see very little or no which on the side where the real body is. I want to see the which peirce WAY into the S/R level. I want to pin bar to be positions in a way that the real body forms right up next to the S/R line(for maximum space for profit). I want high volume on a pinbar, compared to the previous candles. If I zoom in on the pinbar at a lower timeframe, I want to see certain volume levels as the pinbar is forming(more advanced volume analysis). These are just the things that quickly come to mind when I and figuring out what quality of pin bar I have going here. A pinbar that just follows the core requirements are very successful, but they are certainly not all equal.
I want to emphasis again when a trader is just starting to trade pinbars and such, to look at them all the same, and trade them with a very methodical cookie-cutter approach. This helps the person learn how to identify and trade a pinpar without trying to figure out all of the dirty details.
I wanted to cover real quick the flag mentioned earlier, after zooming into the chart to get a more detailed look, it actually is a pennant that is forming. Right now the upper trendline is slanting more than the bottom. Price could still shoot up and bounce back to create the right angled upper trendline. My other complaint is that the potential flag is not slanting very sharply. The more a flag slants against the trend, generally the most explosive the move once it breaks out. The flagpole is darn near perfect. In the flagpole you want price to move upward fairly quickly and consistently, or you want to the move to become parabolic as the flagpole reaches its top.
Waow ! This thread is on speed. It won’t be long until new joiners get told to read the first 50 pages before posting even though you plan to organise it differently which is definitely a good idea ! 
I was also short on that pin with the same stop as you had. Luckily I was on my computer at the time of the reversal and caught some of the profit manually. The level where it reversed was a relatively major support back in August and I guess the bulls got the best of it although price didn’t have much of an issue with that level before. Looks like a 2 bar reversal just formed on that pair but I don’t think the situation justifies taking it short at this point. Like you said, on the daily it is appears to be mostly bullish. I also don’t like how there is a support right below the 2 bar at around 1.33, didn’t bother me before but it does on this setup. Although price had little problems with that level previously in this range, you could kinda see it become prevalent in the past few days. Either way, I’ll be keeping an eye on this one.
How do you think of this EURGBP D1 Inside bar, since inside bar was listed in this thread for discussion, so I will post it up here.
EURGBP D1
Inside bar formed at previous Resistance , with the recent downtrend, since august it started to form the highest point follow by lower low. But there is an dangerous area at 84058 .
Regards,
Shane.
Hi Krugman,
Could you please explain about inside bars? is it a valid candle to trade if it is at relevant support / resistance and with the trend? Usually I trade Engulfing & Pin bars only.
I don’t like how there’s some traffic. There’s a psychological level (84000) close by that could act as a major support. Also, the way I see it, the price is currently at a support level. If you take a look at the daily or even lower time frames, you’ll see that around Sept 9-10, that level of resistance was rejected and price later broke through it. Now it’s acting as a support (you could see on the lower time frames that it’s giving price a little trouble). Either way, the price doesn’t have much space to move. Even if you took this trade disregarding that potential support, the psychological level (84000) isn’t far away, so you would either have a lower R:R or you would set a risky, small stop loss. Both are unfavorable IMO.
Aaron, this may be slightly off topic as it doesn’t pertain to your trade method, however it does pertain to price action. But what is your POV on doji setups ? I’ve been trading them the past few months and have found them to a very profitable candlestick setup and I’m curious to why you don’t use them. I’m completely aware that every trader develops and builds on what they already know and not everyone chooses to take the same trades. Everyone trades differently even though price action is our medium and this just might be one of those preference situations. Just curious to hear your input on them.
Thanks
Morning all
Thought I’d post another chart, I took this pin bar in the early hours of the morning on the CHFJPY 4hr:
Pros:
Pin sticks out
Pin is roughly same size if not larger than previous bar
At a strong line of support.
With the trend (On daily).
Cons:
Trading straight into my 200 Moving Average which can work as R/S (And currently is :()
BA
I will have to differ to you wm,
Not everyone will be in the same level. There are different people with different level of knowledge. People dont post their chart for just confirmation. They might want to LEARN. If whatever they analysed is correct.
If you think it’s a rubbish set up tell them it’s a rubbish setup. Tell them what’s wrong with it so next time they will know what to take into consideration while looking at the chart. I believe that you will learn a lot more if you teach something to others than simply learning yourself.
You might have grown as a trader but there are people who are just starting on PA. And we as a community, we are here to learn from seniors and teach to juniors isn’t it ?
Cheers,
boynep
EDIT: Spellings!
[QUOTE=boynep;547431]I will have to differ to you wm,
Not everyone will be in the same level. There are different people with different level of knowledge. People dont post their chart for just confirmation. They might want to LEARN. If whatever they analysed is correct.
If you think it’s a rubbish set up tell them it’s a rubbish setup. Tell them what’s wrong with it so next time they will know what to take into consideration while looking at the chart. [U]I believe that you will learn a lot more if you teach something to others than simply learning yourself.[/U]
You might have grown as a trader but there are people who are just starting on PA. And we as a community, we are here to learn from seniors and teach to juniors isn’t it ?
I totely agreed with boynep. newbies r not posting char to confirm their buy sell entries, but for purpose to learn from seniors traders, Tell them what’s wrong with their analysis and help to find out the true picture of market
thnx,
Hi boynep,
there is one thing to post chart that fits your trade plan that you also want to discuss together with the community, and there is another thing to simply ask everyone’s explanation because you are not doing your own ‘homework’ first before taking any trade. If your idea of learning is simply by having the others do the thinking while you do not even try and simply execute whatever the results they told you, then you really have very wrong idea of learning the trade here.
Even Krugman has the similar idea of learning the trade:
The reason for my previous post is that new traders tend to get it backward. They simply jump to any tempting setup and ask for everyone’s else opinion about the best trade plan, while [B]it actually should be the total opposite[/B]. Traders should have their solid trade plan first, and then use that when they encounter a great trade setup!
Not many traders have any solid trade plan in their arsenal, but then again not many traders gain profit consistently in Forex world. Go figure.
Think about it from business perspective, will you succeed in any business if you have no business plan? I once said this, and I’ll say this again. It’s never personal, it’s always strictly business.
Thank you for your quick reply will,
Don’t get me wrong on that. I have never said posting a chart for commentary is a good thing. I am saying lets analyze charts together.
[B]Before anyone posts a chart let’s make a rule…They must post points why it qualifies as good trade “for them”. What are the good points and what are the bad points of that particular setup. It encourages everyone to better analyse their chart.[/B] If you know their analysis was absolutely worthless and wrong let them know here is your mistake.
We only get things covered if one person asks and other provide answers…If there is anything that needs further explanation Aaron and other senior members could probably write an article about it or explain in videos. We can’t expect Aaron to answer every posts. He has got bigger fish to fry.
Now Aaron, it’s Market Monday what have you got! 
Edit: Identifying Trend Article. Sorry didn’t see it. :24::24::24:
P.S Let’s not clutter this beautiful space with our gibberish talk.
Cheers,
boynep
No Wm247 is right if we’re not careful what started as a promising forum is just going to degenerate into something overwhelmed with people posting any old crap,if you need to know really basic stuff you should do a bit of work first and find what you can on the net,there’s heaps of knowledge out there,so no excuse really,we don’t mind helping people with good questions but lets not be too lazy
Hey shane, there were quite a few IB daily setups that formed yesterday. Only 1 of them I considered tradable which was AUDUSD. All of the other ones were either trading into too much traffic or offered poor RR. In this case I initially liked the trade you posted, but after reviewing further, I think what is going on to the left is too noisy and the next key S/R level provides a poor RR setup. The momentum leading up to the IB is very bullish. While it is a valid setup, I would only give it 1-2 star quality.
hey rc, IB can be valid in almost any setup, but it depends on the market structure. If you read my article on trends, you can see how a trend, counter trend and range trade are all looked at differently and traded differently. This even applies to IBs. So if price is stuck in a range and kind of meandering sideways, the best setup is going to be when price breaks through an S/R line and immediately forms an IB. Then you trade the breakout to continue the trend and use the S/R line as a stop loss buffer. In a strong trend, I will trade IB regardless of whether they are at a key S/R. The trend is already giving your trade an extra edge, and the breakout is likely to be with the trend. For right now I only trade IB with momentum or trend, but they can be traded as price reversals. IBs have to be traded carefully because they technically have almost a 50% chance of breaking out in either direction, and have a high rate of being faked out. When I get to writing about IBs here I will dig into entries, SL and trade management to help with successfully trading IBs.
EBs and PBs are great to start off with. I personally find them to be the strongest signals for reversal. Since most traders learning PA start with trading price reversals using PB, EB, 2BR; it’s a bit of a shift trying to learn IBs as they are continuation signals.
Hi Aaron ,
Am Fahd from Jordan and from previous thread i loved all your posts and thank you for your help .
Attached chart EURJPY -4H , i marked on chart which i think its Morning star formed in good BRN area ,Is these valid Morning Star ?
Note: I programmed 3 indicators for PinBar ,InsideBar, Engulfing and Morning & Evening star i will post it here after test period may it help to identify patterns quickly ( i will test them in October )
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