Pure Price Action For Dummies

Aretes · December 18, 2013, 1:03am

guys and girls, the direction of market for most of major pairs are not clear huh for this week? seems to be ranging. am i right?

Nikitafx · December 18, 2013, 1:07pm

[QUOTE=“Aretes;579744”]guys and girls, the direction of market for most of major pairs are not clear huh for this week? seems to be ranging. am i right?[/QUOTE]

Welcome to the end of the year Aeretes.

From now until the second week of January, market will start to range in a small area.

Best not to trade, or trade min15 etc.

Aretes · December 19, 2013, 8:43pm

Nikitafx:

The trick to day trading is in the day charts.

Make sure that your day candle closes at NY close. That would be GMT +5.

Anything else and you are on your own.

The H1 and H4 candles dont matter because they are the same regardless what time your D TF candle closes.

Many would say this is the real D TF chart. It coincides with one day in forex, the extreme most western market closing and the extreme most eastern opening.

AU D TF

This is the D TF chart that I use to decide if I am going to buy, sell, look for some other pair or just stay out for the day.

This is the first time I am posting from this chart because its a pain in the backside to draw lines and label it on tradestation.

The trick is to not only watch for price bounces. You should also be watching the price extremes, or the wicks.

This not only works for the D TF for Intraday trading but also the weekly charts for a swing ( this one I figured by watching Yunny1’s trade entries ).

Im up a 100 pips for today. I am in no rush for tomorrow.

Maybe AU will not be as clear, some other pair maybe.

But whatever it is, I dont take a bounce or a BPC on H4 or H1 if I cannot see where I want to buy or sell on D TF.

This is the final instalment to this trading method. The last piece to the puzzle.

I dont get burned badly when my trades go against me because of my SLs. Where do you think I get SL as small as 10 or 15 pips on Min 5?

You would be mad to trade Min 5 when you dont know if you would buy or sell at a certain level.

So when I say hey dont go contra and just follow bias, its so that those who are still trying to figure out can get the basic concept first.

If you are comfortable with that, than you can go the next step and really use the chart to decide on where to buy or sell, taking the guess work out of trading.

Remember, if you cannot get the first part right, than D TF is not going to be of much help.

So there you go guys.

The last part of this entire thing.

Good luck.

Remember, if you dont know, than dont trade.

Nikita, could you please explain on the price extremes/wicks part?

Nikitafx · December 21, 2013, 12:17pm

Remember key price levels people talk about?

0.800, 0.850 etc etc are key price levels yaddaaaa yaddaaaa yaddaaaaa.

Well it doesnt really work like that.

Small TF traders do mad stuff trying to trade these key levels.

Key levels should come off the charts.

Now its not a hard fast rule, but nothing is in forex. Its all about probability.

So what is our core trading method? We trade support and resistance.

How do we trade it?

We wait for the BPC patterns. Breakout, pullback and finally continuation. Its important to wait for this to happen.,

What indicators do we use? Candlestick patterns.

Where would we look for BPC? At key price levels from the chart.

Examples of EU WTF

Each line shows the extreme end where price had reversed previously. That would be the circles on the left.
The circles on the right show how price comes and often touches the same levels with a different of few pips before flying off again.

This is what the real key level is.

So what is our trading method? We wait for price to first break that level and go up. We than wait for it to comeback and touch those areas again.

What would be the direction of our trade? Well we follow the direction of previous candle as in the monkey see monkey do.

Once price touches these areas, we can than drop to H1 or H4 and we will see a candlestick pattern that will give us a signal to enter.

This is our entry.

Our SL will be based on the candle pattern or LL or HH formations prior to entry on the smaller TF.

Every weekly candle and monthly candle more often than not will form, touch a previous corresponding TF high or low before going in one direction to finish for ing that candle.

This is where we will find the best entries.

The rest we dont have to look at and guess entries.

Every week, keep an eye on one pair and watch how the candle opens, forms and ends in weekly TF.

I had a very good run with GU after looking at its candle pattern two months ago. It was a clear sign GU was going to fly up.

So I keep looking at GU.

Nikitafx · December 21, 2013, 12:22pm

The first pic is a rejection trade.

Previous week can be considered as a reversal candle. This week goes and touches the same spot and falls.

SL of about 50 pips on a pending order in this areas is often very very safe.

Aretes · December 23, 2013, 4:35am

EUR/USD & USD/JPY ��target | Nikita FX

Nikita, you own that Japanese page huh?

Aretes · December 23, 2013, 7:44am

Nikitafx:

Its important to have the period separator switched on, especially for the Hourly chart. Period starts and ends at new york 5 pm.

Than watch D TF. You will see, usually the wick of todays candle will bounce off yesterdays support or resistance area in the Hourly chart.

That is the technique of entry. Most of the time, SL will be about 15 pips or there abouts. Definitely not more than 30pips.

Keep watching and marking these two things.

You will than realize how simple of a trading method this is.

Same goes to weekly candle sticks. The wicks always go and touch an area engulfed by the previous candle, before flying off in the same direction.

How do we see what that area is? Zoom in to the smaller TF, as opposed to looking for buys or sells based in candle patterns o lower TF and getting burned again and again because we havent got a clue where price is going to go!

Stop chasing the market.

Its possible to have foresight.

Just understand that price moves in waves, and daily candle opening develops a wick because of this wave.

Simple as that.

Good day nikita! Thank you for replies.

Nikitafx · December 23, 2013, 9:49am

[QUOTE=“Aretes;581289”]EUR/USD & USD/JPY[/QUOTE]

Who is that?

Nikitafx · December 23, 2013, 9:50am

[QUOTE=“Aretes;581342”] Good day nikita! Thank you for replies.[/QUOTE]

Min15 range trading.

Nikitafx · December 24, 2013, 10:43am

[QUOTE=“Nikitafx;581362”] <img src=“301 Moved Permanently”/> Min15 range trading. :P[/QUOTE]

Merry Christmas to all!

Aretes · December 25, 2013, 4:12am

Blessed christmas

blackhand · December 25, 2013, 5:02pm

Merry Christmas to all.

Ihsanyilmaz1959 · January 1, 2014, 4:49am

Merry Christmas to all

BenzaPips · January 1, 2014, 2:40pm

Nice thread and exactly what I want to learn now.

Subscribed as I still read other good PA on this wonderfull site…

Nikitafx · January 2, 2014, 10:24am

au dtf.

Nikitafx · January 3, 2014, 10:48am

AU H4. No other option for SL. Lets hope the weekend does not hit it.

Nikitafx · January 5, 2014, 8:17pm

Tighten stop further.

Not valid PA as its still Monday but rather have the first trade of the year for 65 pips than nothing at all.

anishrei · January 5, 2014, 9:28pm

Hey Nikithafx!

Just popping by to say hello. Just started following you.
I love your concept of ‘less is more’
I am also from the land of M1 - but expensive svc provider! Hope the 4G is gng good too.

i have just cleared out ALL of my indicators and lets see how it goes for next 2 weeks.

Nikitafx · January 6, 2014, 12:00am

[QUOTE=“anishrei;585179”]Hey Nikithafx! Just popping by to say hello. Just started following you. I love your concept of ‘less is more’ I am also from the land of M1 - but expensive svc provider! Hope the 4G is gng good too. i have just cleared out ALL of my indicators and lets see how it goes for next 2 weeks. :P[/QUOTE]

LOL.

4G on an Ipad is very very expansive as it is a data hungry monster, although I cant complain about the speed.

I wish you luck in seeing the market as I do.

smartpipping · January 6, 2014, 3:03am

Nikita … what you looking at this week? Any good trades coming up?