Pure Price Action For Dummies

[Aretes]

Happy deepavali!

[Linfan_01]

Sold the AU @ .9510 with a 20 pip SL. Was watching the 9520ish SR zone and got my price. Targeting TP at the next WTF Support at .9320. The DTF looks to be a BPC as well and last week was a solid Bear. H4 gave me the signal after consecutive candles signaling weakness of buyers.
Up 40 pips and very tempted to move SL to BE. However, practicing on waiting for a LH to form on either H1 and H4 before moving to BE. Or is this a bad idea/practice? will not be the first time I’m breaking up my rules. hehe. We’ll see how this goes.
Comments will be gratefully appreciated.
Again sorry still not enough posts to put up charts.

[Linfan_01]

Stopped out at BE.got bias wrong.need to do better on my analysis and its the first wk of the month.Why don’t I always follow the rules…:34::34: …Still lucky I got out at BE I guess.

[Nikitafx]

[QUOTE=“Linfan 01;560913”]Stopped out at BE.got bias wrong.need to do better on my analysis and its the first wk of the month.Why don’t I always follow the rules…:34::34: …Still lucky I got out at BE I guess.[/QUOTE]

Yesterday was a strong up, so have to be careful to call shorts for today

[Nikitafx]

GBPJPY.

I hate it when I miss trades like this.

Had the level marked out last week but was away without the internet for two days.

This is what I just got home to see.

Nice SL too!

WTF and H1.

[Aretes]

hi nikita, just would like to know if you had drawn a support and resistance at a weekly’s candle high and low?

[Linfan_01]

Yesterday was a strong up, so have to be careful to call shorts for today

Yup. Always looks much clearer on hindsight. Guess need to work a lot more, thanx nikita.

[Nikitafx]

[QUOTE=“Linfan 01;561305”] Yup. Always looks much clearer on hindsight. Guess need to work a lot more, thanx nikita.[/QUOTE]

Hindsight is the biggest problem with this method.

I still have it today.

Thats why its important not to guess.

Only take what u can see for sure and it confirms wih the method

[blackhand]

Entered but stopped out…any thoughts on this trade? Is it just normal ‘first week’ movement?

[sharebazar]

GU pair looks go down, what every body thinks about this pair.

[Nikitafx]

[QUOTE=“blackhand;561625”]Entered but stopped out…any thoughts on this trade? Is it just normal ‘first week’ movement? <img src=“301 Moved Permanently”/> <img src=“301 Moved Permanently”/> <img src=“301 Moved Permanently”/>[/QUOTE]

That doji or indecision candle the day before you bought.

Becareful with that candle.

The rule book says wait for another day if such a candle appears. Wait for the new candle to finish forming, and if it closes above the wick of the doji than its a continuation of a buy, if it closes below than market is for a sell.

Off lately a doji on DTF usually just means trend continuation.

Secondly ur SL, based on H1 chart needs to be a few pips higher. It always pays to put the SL above the wick, not on opening and closing price, as the wick is what defines a wave.

This was a tough call though.

[Nikitafx]

[QUOTE=“Aretes;561247”]hi nikita, just would like to know if you had drawn a support and resistance at a weekly’s candle high and low?[/QUOTE]

Its best to take the wick into account as its the wick that defines the peak and bottom of a wave in smaller TF.

PA on smaller TF will usually form at this area.

If a significant wick is not present, than the opening and closing prices would do just fine.

[blackhand]

Thanks for the help. Thanks for reviewing my trade. One tiny step closer.

[Aretes]

anyone see any opportunities tonight? couldnt see anything on mine. :17: looks like market is ranging, isnt it?

[Nikitafx]

[QUOTE=“Aretes;561935”]anyone see any opportunities tonight? couldnt see anything on mine. :17: looks like market is ranging, isnt it?[/QUOTE]

My euro buy just hit BE on US opening.

[Aretes]

1…,The day time frame rule is still valid.

Only invalid ones are correlation between EU and GU, plus AU and NU.

I still watch correlation, just as an extra measure sometimes, but its only for EU and UCHF.

Other changes that I have done is to cut down the number of trades per week to no more than two on full projected risk.

The other trades, if I am very tempted, I cut risk to really really low numbers. Just a trade to satisfy the itch.

2…

This in turn has forced me to pay more attention to Weekly candle stick.

I tend to only go for trades that follows the bias of both DTF and WTF.

I would also like to highlight the post on the previous page or two pages before where Blackhand had asked me to describe why I would not go long on EU and EA and why am I still maintaining a bearish bias even though price had hit a big support level in W and D TF.

I did take two buy trades based on just the S&R levels, but my first hit my SL, where else my second covered the first loss and than some.

I cut off EA before the European session. I had a UCHF also, which I took profit on.

The reason I did not hold for longer is that both do not have proper pullback candles or any other reversal patterns on Weekly or even monthly timeframe.

Weekly has been solid bear for a few candles now. We cannot say that it will bounce at the next significant level. Often, price might just break through and keep barreling south, only to pullback up to this level after 4 or 5 weeks to form a BPC and continue southwards.

When we trade purely based on S&R levels without all the extra signs, than we should be prepared for bigger SLs and using pending orders on the extremes of the previous price action. That does not suit me.

On the other hand, if we are trading the monkey see monkey do thingy, than we have to also make sure that we see whats happening on a bigger TF also.

The reason we do this is so that we can cut down on the number of loosing trades. Some trades just have a higher chance of being profitable, compared to others.

We should also beware and pay attention to market conditions. Trading SnR levels purely works only when weekly or monthly is in a range.

At the moment, market is trending after a breakout south. In this kind of situation, it pays to wait for a stronger signal before attempting a reversal trade.

“Often people ask me hey does this method work? Cause I see three buy candles in a row, than one sell candle, than a buy, than a sell before it continuing as a few more buy or bull candles. That is too many false signals.”

This is where your weekly candle comes in. The three bull daily candles were the body of one bull weekly candle. The two or three days of whiplashing was the previous candles wick, usually a friday, that goes against bias. This is than followed by new weekly candle going for a support area, than shooting back up even higher. That shooting up higher is the next series of bull candles in a row on DTF.

Price moves as waves inside a wave inside a wave, on and on and on.

So its important to have a perspective of what each is doing, if compared. While the rules of the system is straightforward, we must also understand the basics of what is happening on higher TF, if we are to make sense of whats the lower TF showing.

If say the weekly and daily are bearish, shorting the pair on significant resistance, especially when a pullback is observed, most often than not, will give us very healthy profits and a very small SL.

Going against this clear order, will often see a valid signal hit SL, just to go south by one more candle, and a new signal form.

I hope this post makes sense. Its 6 am and I have not slept.

Anyone not very clear with this please let me know.

hi nikita, i have a question regarding this whole long post. so basically if the previous week candle was a buy then this week would be a buy. then drop down to daily for bias again and finally entry on either h4 or h1 huh?

another thing is, regarding this paragraph, "
“Often people ask me hey does this method work? Cause I see three buy candles in a row, than one sell candle, than a buy, than a sell before it continuing as a few more buy or bull candles. That is too many false signals.”

This is where your weekly candle comes in. The three bull daily candles were the body of one bull weekly candle. The two or three days of whiplashing was the previous candles wick, usually a friday, that goes against bias. This is than followed by new weekly candle going for a support area, than shooting back up even higher. That shooting up higher is the next series of bull candles in a row on DTF.", could you explain more on this? i am a little bit confused.

[sharebazar]

No trade for me today, just following the price. Hopefully will get good set up next week. Waiting for the NY open.

[Aretes]

sharebazar, do you watch all pairs?

[sharebazar]

Yes I try to see all the pairs, but try to trade with the major most of the time.

[Nikitafx]

[QUOTE=“Aretes;562492”] hi nikita, i have a question regarding this whole long post. so basically if the previous week candle was a buy then this week would be a buy. then drop down to daily for bias again and finally entry on either h4 or h1 huh? another thing is, regarding this paragraph, " “Often people ask me hey does this method work? Cause I see three buy candles in a row, than one sell candle, than a buy, than a sell before it continuing as a few more buy or bull candles. That is too many false signals.” This is where your weekly candle comes in. The three bull daily candles were the body of one bull weekly candle. The two or three days of whiplashing was the previous candles wick, usually a friday, that goes against bias. This is than followed by new weekly candle going for a support area, than shooting back up even higher. That shooting up higher is the next series of bull candles in a row on DTF.", could you explain more on this? i am a little bit confused.[/QUOTE]

Its how price moves aretes.

In waves.

Never straight from one point to another.

Daily retrace is related to weekly, which is related to monthly.