Pure Price Action For Dummies

Beginner Questions Candlesticks, Chart Patterns, and Price Action
3860

Ok this one shows price back to the line we drawn.
DTF.

We have to remember our decision to buy here is based on WTF bias and entry signal.
If DTF showed a signal, than this would be a better trade, but it does not.

This is smaller TF entry signal and possible SL options.
H1 shows price unable to break below the level.
SL of previous wave is 100 pips.m

Another wave seen for possible SL option.
H4 chart.

Also wave on H4 for SL options.
Smaller SL is possible on higher TFs also.

Note that last two H4 candles show indecision, not a supporting entry Signal.
So that is a red flag when coupled with DTF.
Dismiss options of having a very tight stop on this trade.

Often been bitten by H1 signals that ranged for a day or two forming many pinbars indicating a price reversal only to have it hit your SL by one massive candle against your trade after the long range?
This is a good signal to minimize that.

Smallest valid SL on H4 is 35 pips.
Decide where is the Sl going to be before deciding on how much you are going to trade.

So currently this is the trading status at this moment.

Monthly at support but bias is still sell.
Entry signal trade Weekly TF.

DTF bias does not support a call to buy. Atleast not yet.

H4 signal shows price might go further south.

H1 signal is good to go.

So monday started with visualizing and planning trade.
Now we are see the price move as anticipated.

Buy? Yes, but Pending on H4 entry signal.

So the current status of this trade is wait for H4 signal.

If it doesnt form one than I skip this entry.
So for the next 15 or so hours until UK opens, I just monitor H4.

This is how I like to trade.

Step by step.
Follow the steps weekly, no different from running any other business.

Form a ritual.
Its very important to have rituals in trading.
When you do it becomes much easier to follow your rules.
Also it allows us to see what we are still not doing right.
But most importantly, it gives us clarity on our own actions by allows us to store our memory more systematically.
We will learn much more quickly this way.

Dont open a chart, look at something and decide to buy or sell like how we all used to.
Break that habit. Thats not trading, thats guessing.

Always remember, The train might leave by than.
It often does. But its ok.
Always Better to catch another train than getting run over by one because we rushed. .

3861

I think waiting is over now, open position because 4 HR candle signal to go long on EUR/AUD also the SL will be only 20 pips.

Let’s see what happened now.

3862

[QUOTE=“sharebazar;648304”]I think waiting is over now, open position because 4 HR candle signal to go long on EUR/AUD also the SL will be only 20 pips. Let’s see what happened now.[/QUOTE]

I didnt cause im already holding one at that level.

Secondly it was too close to Friday so decided to ditch and wait.

3863

Have a great week-nd i closed shop for the week.:42:

3864

Hey Nikita,
Have been reading and re-reading your posts so as to understand the concept completely.
As you said in your post earlier to identify price levels and wait for the price to reach there and give an entry signal.

This is what I did today start of week, identified price levels on D TF. Have I got it right?

D TF (The green line is the nearest price level as per me)

Thanks for all your help.

Kam

3865

Ok. Here is the outcome of the above trade. The price did drop to the price level (and below).

I got in at the green horizontal line (forth candle from the right).
However am not sure if the SL that I choose was good, cause I got stopped out. Any suggestion from forum members as to what would have been the right SL?

I was wondering if I should have entered the trade after the forth candle close or is it fine to enter it as long as it reaches your price levels?

Hope to decipher all my trades and learn from each. Thanks all for being a great help.

H1 TF

Thanks,
Kam

3866

Its always a good idea to take the trade after the close of the candle Kam.

3867

Thanks tonyro44, that goes it in journal for sure.
Am still at the trigger finger stage, hoping I can build the patience to wait.

3868

Hi Nikita,
While marking HH or LL what do you consider as an important area to look out for? Is it beginning of the up / down trend where the first HH or LL was formed?

Kam

3869

Not sure if its just me or this week was just one of those really stale trading weeks…

3870

Last week was really slow week don’t get any decent setup only got 20 pips, but week before was a very bad week for me. Hope this week we will get some pips…

3871

Good start of the week closed my NZD/JPY pair with 53 pips.

1 HR TF

3872

well done!!
I m still recovering from a disastrous week.
Trading on demo again to gain back my confidence. – Going very well actually. But the burn on the past live trades has really ‘damaged’ my confidence… :frowning:

3873

Thanks anishrei, You can only get better when you don’t stop trying to achieve something. Hopefully soon we will see the improvement on our trading and we can have more successful trading career then before if we keep trying.

3874

Quieting is not an option , we all have a little miss step once in a while just don’t make it bigger than what it is. What i do when i get hit, i still trade life but i bring my pip value to the smallest amount. Its really a mine thing, just the same, you did the right thing.

3875

I have a question for the experts. I noticed that in the last few posts that all taken trades were near or hitting the SR lines (correct me if I am wrong). I just went through the 380 pages of this thread (hoping to quit my fulltime job and hit a million pips ASAP :):18:

Please have a look at the following screens (Monthly, Weekly and Daily) for CHF JPY pair.

My understanding of the bias

Monthly bias is up (SR marked with Red lines)
Weekly bias is up (SR marked with yellow lines)
Daily bias is up (SR marked with light blue lines)

At the moment price is :

54 pips away from the monthly and weekly SR (For me M and W SR are almost the at the same level, about 10 pip difference)

14 pips away from D SR line

My questions is, in this situation do we take a trade based on the week TF, or do we wait until the price reverses or breaks the Daily SR?
I did notice that lot of trades were taken at the weekly SR. Not sure whether any attention was given to the daily SR levels. If this was answered before, I apologize for duplicating the content. I just couldn’t find the answer.

Any help is greatly appreciated.

3876

Hi sharebazar,

I am new to forex trading. Just opened a live account 2weeks ago and lost badly >50% of the total account. I would like to ask you how long do you normally hold for an open position? Example: for your recent Nzd/Jpy trade? And what is your normal stop loss in terms of pips?
As I have finished all the 380pages of this tread, twice, I thought I have grab the essence of this daily bias method, but failed badly for the third week of August. (15Aug-25Aug)
The reason I ask you is I want to know whether if this ‘daily bias’ trading method is still valid upon H1 entry, or do I have to switch to ‘weekly bias’ method as per Nikitafx way of trading?
I understand that you have come a long way since you start posting on this tread & I aspire to be able to improve my trading like you.
Would appreciate your help, Thanks.

3877

Hi Gssg,
Daily and weekly bias are both Nikita’s method and both is valid. Only things is matter is valid setup and valid entry according to SnR. When you get weekly and daily in same direction then there is a high probability that you will get a profitable trade.

I am still having problems regarding the open position, how long I can hold it for, what I do at the moment to reduce my risk I move my SL to BE as soon as possible and try to move up manually if I can monitor the trade otherwise put on Trailing Stop and let the price run. As NZD/JPY there was a resistance around 87.50 so I just moved my SL and put TS which is closed around 87.40.

My SL is always different according to the entry but I don’t hold the trade maximum of 40-50 pips loss.

Hope answer your questions.

Try not to rush your trade, if you had bad trades wait don’t open another trade to get the money back. Let the price come to you according to your setup and see how much is SL, then open position.

3878

Hi Sharebazar,

Thanks for your explanation. Just to double confirm, if I were to trade according to daily bias, entry based on H1, its still ok rite? As per the saying, ‘if yesterday was a buy, today is a buy’.

You are rite, as a beginner, I always have an urge to want to get back my money after a losing trade, guess this is where I have to control my emotions.

As per Nikita saying on the weekly bias, how many setups are you able to get per week? N is how many pairs should we keep a lookout for?

Thanks.

3879

Hi Gssg,

Daily bias is still valid as I said before and 1 hr entry is also valid. “Yesterday buy today is buy” is ( pure golden rule) when you follow the method when you open a position.

But it is always good to see the weekly bias before you enter the trade which give you more profitable trade. And also see the 4 HR candle and 1 Hr candle for entry.

You can get 1-4 setup in every week but it all depend on your loss management, how many trade you can open in one day or 1 week. It is always good to open only the high probability setup like 1 or 2 entry per day or per week that way you save your capital for next trade.

For starting watch the major pairs.