Pure Price Action For Dummies

Beginner Questions Candlesticks, Chart Patterns, and Price Action
3430

[QUOTE=“blackhand;570503”]Last trade for the week Made up for my 2 losses. Enduring the month in the green. <img src=“301 Moved Permanently”/> <img src=“301 Moved Permanently”/> <img src=“301 Moved Permanently”/> <img src=“301 Moved Permanently”/> <img src=“301 Moved Permanently”/> <img src=“301 Moved Permanently”/>[/QUOTE]

Im abit concerned about how the higher TF looked and how the H4 SL looked like.

While a trending market can be traded this way, especially when we see a few ranging/ consolidation bars on H1, where market tends to continue as per trend, its generally not a good entry as often, we can say for sure whether its trending or ranging after the movement is over.

Buy low sell high is most important on H4 and H1.
We see a range area and candles are bouncing up and down, say over 50 pips. Usually we will see signs of pullback candles both at the top and bottom.

As newbies, what we will probably do is wait for London open and than enter a buy or a sell the moment a H1 or H4 candle breaks out of that range.
We will than put a SL at the lowest wick on the opposite side of our trade.
Now our SL is the size of the range.

What happens in most cases is the market will reverse and go back into the range, often to the other extreme where our SL is.
For those who are still emotional and always interfere, they will start constantly watching the position and cut off with a loss, thinking our trade was bad. Usually this would be at the bottom of the range.

Another group will be those who put a SL too tight, right at the bottom wick and get taken out by 3 or 4 pips because there was no allowance for spread and stuff.

Either way, we are enlarging our risk, secondly we are reducing pips due to an entry position that was far from the origins of the move.

If we look at this sort of entry on the smaller TF, we will realise we have broke the buy low sell high rule on that TF.

Do not rush the higher TF analysis for direction.
The ideal entry will be identifying where price is going to end up for the week or day first.

Than we follow our system and enter when price is at the other extreme of the range area.
This will also allow us to be a little more generous with our SL.

Do not chase price.

3431

I like how EuroKiwi looks for this week.

WTF shows an inside candle.
Secondly monthly TF shows price is at the bottom of its range.

DTF is resting on a support area.

Now we have to just wait to see if a range area forms in smaller TF and try to enter a buy at the bottom of that range.

3432

I am watching this pair as well, I am in if the price drop little bit more between1.64150 - 1.64and candle makes good shape to go long.

3433

Hello everyone, looks like an inside bar on the h1 eur usd And hitting resistance Any comments?

3434

ENTRY / EXIT SAMPLES.

Euro GBP H4

This was the trade set up. The bottom greenline is SL wave, top is entry area.

Ok I opened two positions.
First position is like how I highlighted to blackhand about trading short range smaller TF breakouts and the common issues newbies face.
The small green arrow head on the left side points to my entry, when that H4 candle was looking like its pushing higher.
Always a bad idea, as you see what happened after that., SL was 50.
Second position on the right was a full position because it fulfilled all entry requirements.
SL at the bottom of the wave was less than 20.

Ok this pic shows candlesticks and how we read them.
These days I depend more on H4 entries as I find I dont rush in without looking at the charts long enough to see whats it doing.
I feel when I am on H1 or lower, i tend to rush and make mistakes.
The first circle on the left is my position entry that was not ideal, also problem with trading breakouts.
Ended up as a false breakout.

The second circle is the ideal entry.
We can see the smaller H4 support and resistance wave inside the bigger price wave clearly.
The the first pin bar candle inside the left circle is the entry.
The position allowed us another 8 hours to decide and jump into the position.
Also please see the candle i have marked with an arrow. Its an indecision candle, but often indicates price will continue in the direction of earlier trend.

For those wishing to lock in positions while giving room for more pips, this is the best way to do it.
Pic shows SL adjusted from minus 50 to positive. I picked this wave as the bottom of the first fully formed H4 candles wick on H4 TF.
When we look at it on H1, we see the bottom of a nice wave/entry. If its a strong move up, than it will not touch the bottom of the previous wave.

The trick is to pick the right wave.
Now we have to wait so that we can move the SL higher to the newest wave formed on our right.

But we cant move it yet as price needs to breakout of that range now.
Before all this, we need to see higher TF, both weekly and daily to see if we can see which direction price is going to go this week.
Once we can see direction, than we wait for entry.

People often say if well follow a system, we have to ensure we follow it without choosing and picking or thinking but just follow when the signals are there.
I tend to agree to an extent.

The part I couldnt agree is that instead of trying to see where a trader entered a trade, we should try to understand why they entered where they did.
That would give us the understanding of how the market moves.

3435

ENTRY EXIT SAMPLES.

Euro Kiwi.

We talked about watching this pair for a northbound moves.

This is how I look for positions, usually.

First Weekly TF

The line highlights where I think price will bounce to form the wick for this weeks candle and head north.
Why north?
The last two previous candles highlight a strong up move.
So we just follow our monkey see monkey do thing.,

Why did I put the line there and no where else? Well look at the areas I circled and we can see previous support clearly, down to the last pip.
So I put a line there and wait for price to come down to that point first.m

DTF.

Yesterdays candle was a sell but since its a monday it usually shows us a false bias.
Well its not false bias, its retracement of the new weekly candle.
Now we see how we dont have a signal for a buy on this TF.

H4

Again no entry signal on H4.

There are traders who just trade price levels and dont look for entry signals on smaller TF.
They tend to be longer move players who dont blink at a SL of a 100 over pips on higher TF waves.

Many of their trades do not go into a drawdowns of more than 30 or 50 pips because this is how they analyse the charts.

Although I absolutely love to see the positions being filled with a few pips drawdown, I found that method does not suit my risk appetite.

Hence I always look at smaller TF for entry signals.

H1

Its the same line we drew on WTF.
Thats where I would be watching.
We see a nice candle forming to indicate direction change. SL can be tight, on the top red dotted line, or larger, at the bottom.

Draw the line, wait for price to us. Once its there. Flip through the smaller TFs every hour once to see if an entry has formed.

I didnt take this trade because DTF and H4 was not convincing enough for me, and I missed out on the H1 entry.

But this is how we generally do it.

Mind you its not every week we get to see something as clear as this.
Often we might have to wait for Monday or Tuesday to finish forming before we can see anything clearly.

We need to get rid of the urge to trade everytime we open the charts, something everyone would do when we first started and were demoing.

3436

Thanks Nikita! I do see what you mean by the higher time frame being at support. I didn’t see that at the time. Still studying what you saw on the 4 hour. But I will study it and it will come to me. Oh okay. I see what you mean on the 4hour too. Thanks again.

3437

Nice! step-by-step explanation nikita.

3438

Subscribed!.Funny how i’ve been following this thread and only found out haven’t subscribed to it yet. Done!

3439

Hi nikifafx, are u you using fxcm us or fxcm uk? Ny close charts right? And is trade interceptor the same on android tablets and ipad?

3440

[QUOTE=“Aretes;572202”]Hi nikifafx, are u you using fxcm us or fxcm uk? Ny close charts right? And is trade interceptor the same on android tablets and ipad?[/QUOTE]

Aretes, im on fxcm uk. The one on fxcm is new york closing time. Im not sure about the interceptor though. I tried playing with the closing times but i didnt see the H4 or H1 candles being that different from the earlier settings.

The FxCM chart is much more accurate but unfortunately the layout is not as simple as interceptor, nor is it user friendly as far as drawing lines n stuff r concerned. And its slow to load when changing TFs.

3441

Sorry but would like to kmow if u are using trsde interceptor.or.mt4.on ipad/ android?

3442

[QUOTE=“Aretes;572229”]Sorry but would like to kmow if u are using trsde interceptor.or.mt4.on ipad/ android?[/QUOTE]

Im on ipad aretes.

3443

I just purchased the newest ipad mini after learning that it shows the same amount of bars on the screen as the full size ipad. I also have the Galaxy S4 and the iPhone 5. All devices display the same amount of maximum bars except the iPhone. What do you guys use for journal writing? I use Evernote due to it beings being available on every device.

3444

December watch list

*Aud/usd had a strong bear bar last month (November) after hitting res. in October. I’m expecting another bear bar this month. Expecting the first week to be an up bar and the last week to be an up bar.

*Gbp/usd is hitting monthly res. and I’m expecting a either a bear bar or doji. Not really a good time to trade this pair but will keep an eye put for the movement.

*Aud/cad had a large down bar last month after hitting res. looking for a down bar this month after the first week goes up to form the monthly upper wick.

Eur/usd has had two consecutive doji with the first one hitting res. expecting a down move but should not trade this pair until direction is decided.

3445

Looks good analysis Blackhand.we just need to wait for the time and price to play according to the analysis.

Hope every body end this last month of the year with lotsss of pips.

3446

Thanks sharebazar. I’m sure I would’ve saw more if I checked more pairs. But I’m pacing it. Yes. I hope this month is full of pips.

3447

Gbp/usd monthly res. line has held so far this week.

3448

Excellent Analysis Recently Blackhand. It’s happy to see everyone back to this thread.

I don’t get from where you got the monthly resistance line. But My chart showing me other things.

Here is My chart of GBP/USD. I’m not explaining a lot about the chart analysis. The charts speak itself.

The monthly resistance as per my chart is at 1.6700 and 1.7000. Let’s look another chart of FXCM. I draw a trend line for a clear view. Both chart shows a breakout to upside.

Further more Fundamentaly the GBP is strong now for various reason. I’m not favour to short at current price. But I will wait to price comeback to my support level to go long. Better wait until next week. Tomorrow has the rate decision and friday we have Non-farm.

Safe trading. :slight_smile:

3449

Open 2 position on GBP/NZD closed with 102 pips and 67 pips.

15 MIN

1HR