Pure Price Action For Dummies

[Amanfx]

Maybe we arrange for regular meet ups in Singapore sometime in the future. One or two times a fortnight, some coffee and beer.

A place where everyone can come with their laptops and charts and throw around ideas and maybe get some help.

I wish I could join.
Would be nice to find a group in Chicago.
Any traders here from Chicago?

[salimvp]

Not a single trade this week, I was thinking to enter but lack of time unable to do it, but I am hoping to get some good setup next week.
Have a nice weekend all.

Yeah lot of news this week which prohibited traders to take trades. But I took some trades this week. All of them from Cross pairs and exotics. Honestly say this week is my best trading week till date. EUR/CHF alone gave me +18% ROI after holding it more than Five Months.

Let’s start next week with a bang.

[carl89]

Maybe we arrange for regular meet ups in Singapore sometime in the future. One or two times a fortnight, some coffee and beer.

A place where everyone can come with their laptops and charts and throw around ideas and maybe get some help.

Count me in

[sharebazar]

Congratulation Salimvp, nice to hear that you made very good return.

I want to go to Singapore to have at least 100 forex coffee.

[salimvp]

Congratulation Salimvp, nice to hear that you made very good return.

I want to go to Singapore to have at least 100 forex coffee.

Lololololz…

I agree… It’s worth to spend some money to see her in personally rather than invest in EA’s or someone’s mentor-ship.

[LydiaH]

Maybe we arrange for regular meet ups in Singapore sometime in the future. One or two times a fortnight, some coffee and beer.

A place where everyone can come with their laptops and charts and throw around ideas and maybe get some help.

It is a great idea Nikita, I do like to come even I have to fly to Singapore from Jakarta.
Just tell us when and where.
Thanks.

[Ryan91]

Maybe we arrange for regular meet ups in Singapore sometime in the future. One or two times a fortnight, some coffee and beer.

A place where everyone can come with their laptops and charts and throw around ideas and maybe get some help.

Nice! Maybe you can tell us when you are more or less settled in Singapore!
Btw, i’m from Malaysia too, and currently staying in Singapore.

[jami]

HeyNikitafx,
i just discovered your wonderful thread,so can you please write down the numbers of pages that’s important?
thanks,keep it up.

[InvestorX]

Lol…You can’t be serious

[carl89]

Great thread. I have one question though, how much one does risk on a trade ? I see that starting up initially with 100$ or 200$ and then trading risking 2% aiming for 1:2 is not going to help unless the capital itself is some thousand dollars. It is advisable to risk more on a trade.
I see it this way, Many newbies including myself lost the whole account on a single trade without any proper SL and such. Instead of doing like that, i feel risking 5% or 10% a trade is better. But, only if one is sure about the trade and taking 5 or 6 reliable trades per month.

[Ryan91]

Great thread. I have one question though, how much one does risk on a trade ? I see that starting up initially with 100$ or 200$ and then trading risking 2% aiming for 1:2 is not going to help unless the capital itself is some thousand dollars. It is advisable to risk more on a trade.
I see it this way, Many newbies including myself lost the whole account on a single trade without any proper SL and such. Instead of doing like that, i feel risking 5% or 10% a trade is better. But, only if one is sure about the trade and taking 5 or 6 reliable trades per month.

Hi carl89, im a newbie myself too. But from what i understand, we should never risk more than 1 - 2 % of our account balance on a single trade. Personally, i find 5-10% is way too risky. I recommend you to watch the money management video by ICT for more details. It’s very informative!

Happy Pipping!

R

[2ndSkiesForex]

Great thread. I have one question though, how much one does risk on a trade ? I see that starting up initially with 100$ or 200$ and then trading risking 2% aiming for 1:2 is not going to help unless the capital itself is some thousand dollars. It is advisable to risk more on a trade.
I see it this way, Many newbies including myself lost the whole account on a single trade without any proper SL and such. Instead of doing like that, i feel risking 5% or 10% a trade is better. But, only if one is sure about the trade and taking 5 or 6 reliable trades per month.

Hello Carl,

Not sure why risk management was mentioned but am going to disagree with you on this one for a few reasons;

1. lets say you risk 10% per trade - as a developing trader in the market, there is a good chance you could go on a losing streak and easily lose 5x in a row which means 50% DD. now you’re working with $100 capital but need at least $50 at 200:1 margin to place a trade so that means at 10% risk again, you have now 5pips to work with on your next trade - doesn’t really work.

2. with $200, trading should be more about learning how to trade instead of the money because you’re not going to pay rent with $200. In fact in the beginning, trading should not be about the money but learning how to trade consistently over time. By risking 10%, or even 5%, it only takes a few bad trades to take you out of the game (something you never want to do)>

3. every one has an equity threshold - a level where psychologically, once they are down that much, the psychological stress piles up too much for them to just trade with discipline and focus, instead of trying to get the losses back>
   I’ve seen this working with traders at the broker, on my trading teams at the hedge fund, and with my 1000’s of students over the years

4. 5-6 trades per month. Will you become a good golfer hitting the ball 5-6x a month? Will you become a good piano player practicing 5-6x a month? Will you become a good archer practicing 5-6x a month? No!

The same applies for trading. 5-6x per month to get what? 2:1 reward to risk plays>? There are plenty of high quality 2:1 reward to risk plays out there every day and every week. You just have to learn how to spot them.

Learning to trade has to be challenging and engaging enough - otherwise the learning process will get stale and uninformative. Each trade offers a feedback loop and the more reps you get, the better. This does not mean taking 100’s of trades a month per se, but it definitely means being more engaged than 5-6 trades per month.

My friend who trades for a tier 1 bank had to do 4000 trades before the bank let him trade with live money. How long would that take at 5-6 per month? Why sit around for days not making a trade when there are plenty of quality setups out there on a daily basis? A 200pip winner with a 100pip stop is the same as finding a 100pip winner with a 50pip stop. Can you find more 200pip winners in a week or more 100pip winners in a week?

Obviously the latter, and if you break it down even further, can you find plenty of say 80pip winners at 40pip stops? Absolutely, not hard at all and my students do it daily. And that carries the same amount of profit if you are risking the same % of capital per trade.

So overall, am going to disagree with you on many accounts here from my 12yrs of trading experience, along with currently managing a fund with an 9yr audited track record, and working with 1000s of students.

Food for thought.

Kind Regards,
Chris

[tsrun]

Retail price is the entry price of a trade that had cost us money.

Wholesale prices is the entry price that made us a nice profit!

Wholesale prices are putting in an order right at that redline based on previous history. We can see very extreme prices on previous pinbar or pullback wicks on the higher TFs. D TF and above.

Ever had a trade that went on a negative and just kept on going south without even a chance to cut it off at BE or a lower loss? Well those were the times that we had accidentally got on the wrong side of the wholesale price.

Wholesale and retail is just another term, just like oversold and overbought or support and resistance.

Thanks for your reply Nikita, when you mentioned retail and wholesale prices I thought there might be more to it. It all basically boils down to BPC, recognising/anticipating the setup and entering at the best possible price. Thanks again.

[tsrun]

This post cleary explain’s the answer for you question.

301 Moved Permanently

Thanks gs8888 that was the chart I had in mind

[Ryan91]

Hi Niki and all,

I have question regarding the PA when it involves S&R.
For beginner, i understand that i should stick to trades that follow the daily bias.
e.g: If today bias is up, i should only be looking for buy setups.

However, what if today’s bias is up and there’s a significant resistance.
So should i look only for buy trades or should i also be looking for the potential reversal trade setup?

Thanks in advance.

R

[bobmaninc]

Hi Niki and all,

I have question regarding the PA when it involves S&R.
For beginner, i understand that i should stick to trades that follow the daily bias.
e.g: If today bias is up, i should only be looking for buy setups.

[B]However, what if today’s bias is up and there’s a significant resistance[/B].
Thanks in advance.

R

Days like this stay out the market. This is not a perfect system but avoiding days like you speak of will prevent you from taking loses. In the end your greatest chance of success is knowing when to sit it out. Trade only when things are clear let the rest of the fish swim in those shark infested waters. Not worth getting your feet wet

[sharebazar]

Days like this stay out the market. This is not a perfect system but avoiding days like you speak of will prevent you from taking loses. In the end your greatest chance of success is knowing when to sit it out. Trade only when things are clear let the rest of the fish swim in those shark infested waters. Not worth getting your feet wet

Very well said, when you know to stay out of the market then you will automatically will know when to enter the market.

If you see bias is up but there is significant resistance then move to different pair. Or follow bobs advice.

[Nikitafx]

Very well said, when you know to stay out of the market then you will automatically will know when to enter the market.

If you see bias is up but there is significant resistance then move to different pair. Or follow bobs advice.

This week has been one of the best trading weeks I have had in a long long time. I opened the charts on monday, drew my levels on GU and EU and told myself I think Monday is going to be a bear and it will bounce of here and here. If it doesnt, I dont want to take that trade.

I guess trading takes another dimension when you really dont feel that you need to take a trade. I guess for the first time all this years I really did not feel that I wanted to trade when I was watching the market. No urge or compulsion to do so at all.

The Communist system did not pull back to the level where I wanted it to on Monday to go long. But Tuesday gave me a good entry on GU and Wednesday was beautiful pullback on EU.

GJ was also the same, though it went against me by about 30 pips.

And for the first time I spent less than 30 minutes on H4 and H1 chart. Instead the bulk of my time was spent on the D and W chart. There was no stress at all.

The other thing that was different with the three trades was that I had held it for a few days. GJ was the shortest for 2 days. I had not done that in a long time because of my psychological issues after a major loss more than a year ago.

Wednesday and Thursday was already my profit, holding on to Friday was my bonus payout.

35++ % up on balance on last week alone. Not because of Risk taken being large but because held and RRR hit as high as 1:6 in the best entry.

Am I trading next week? If I see price doing what I think it would, than yes. If it does not, than its not in the mood to do a BPC and I dont get an entry.

I need to work on my patience and discipline and take it to another level. That is what I hope to accomplish by end of this year.

No more predicting or guessing and giving money away needlessly.

I hope my zen feeling is back and here to stay!

[FringFX]

However, what if today’s bias is up and there’s a significant resistance.
So should i look only for buy trades or should i also be looking for the potential reversal trade setup?

go with the bias but be flexible as well.

if bias is up and resistance is ‘significant’, then either the ceiling blows or you get a rejection off it.
with experience, you will know which of the two will have a better chance of happening.

[2ndSkiesForex]

Support and Resistance levels are not giant walls that cannot be broken. They are just areas where the institutional players are more likely to park their orders (on either side rejected the level or taking a breakout play)

The key to this is;

1. to be able to read the strength of the level based on how prior price action reacted to it
2. how is price action behaving in real time, is it showing impulsive or corrective price action characteristic

you can learn to read these things in real time with practice but that is the key, along with trading with the trend as much as possible.

Anyways, hope this helps

Kind Regards,
Chris Capre
2ndSkiesForex