Pure Price Action For Dummies

[Gssg]

I see you are doing very well. You will be a millionaire soon!

Can you also show sometimes your plan Where do you put your SnR and what is your Bias I see there are many questions about these subjects.

Yes Sharebazar, it would be great to be able to see how do you derive & draw your SnR as I think it would help us to plot out the important areas, and where to look out for be it monthly,weekly & daily…

Thanks a million…

[frxbee]

Hi frxbee,

Sorry, I have a question to ask u as I really can’t figure out. With regards to your post on Eur/Gbp & Usd/Cad, I don’t quite understand y you say that the monthly bias for these 2 pairs is up. As on my chart, they both shows bearish candles. Or is it the difference in brokers? I am using IC markets, which is a five candle week chart.

Thanks

Gssg,
Apologies for the incorrect post. I just noticed that my charts in MT4 are not updating. I was thinking that the market is really really slow as the price didn’t move one pip. Then for some other reason I had to re-start my vps and noticed that the price suddenly moved huge number of pips. For some reason, MT4 stopped updating my charts and I didn’t notice that when posting. Apologize for that.
Not sure whether it was a broker or my VPS provider issue.

[donsls]

Took a long position on gbp chf. Attached is the H1 chart.

Reason for the trade:
M1 bias is down, but W1, D1 bias up.
Price is above W1 SR and the previous candle is an inverted hammer or shooting star.

Solid red line is weekly SR.
Comments are appreciated.

I already move sl to BE after it moved 20 pips. Price came 2 pips closer to my tp and retraced and hit sl. So a BE trade.

[sharebazar]

Hi frxbee,

Where price touches more than 2 times in same area in last 12 months we can take it as a valid SnR according to the Monthly TF.

Same rule apply to weekly time frame if the price touches more than 2 times in same area within 4 weeks or lower time frame like Daily, 4 HR or 1 HR that is also a valid SnR.

But as our trade based on daily and weekly bias it is good to look for higher TF SnR which is more reliable.

[frxbee]

Hi frxbee,

Where price touches more than 2 times in same area in last 12 months we can take it as a valid SnR according to the Monthly TF.

Same rule apply to weekly time frame if the price touches more than 2 times in same area within 4 weeks or lower time frame like Daily, 4 HR or 1 HR that is also a valid SnR.

But as our trade based on daily and weekly bias it is good to look for higher TF SnR which is more reliable.

Thanks sharebazar. That’s how I do it too. I just got confused and though that you are using only one month data to draw monthly SR.

[donsls]

eur gbp is just below my daily sr @ 0.8029
D, W and M are up.
Do you guys think I should go long or short?

[tonyro44]

Wait for the daily to close , but i see the pair is ranging now and the upside is limited. However it looks like it will go up some, before it retraces.

eur gbp is just below my daily sr @ 0.8029
D, W and M are up.
Do you guys think I should go long or short?

[donsls]

Wait for the daily to close , but i see the pair is ranging now and the upside is limited. However it looks like it will go up some, before it retraces.

But what if the price goes down and I am at the middle of my SR area. Then there will be n trades tomorrow correct? I know there always be another trade somewhere else, but I need to know how to trade in this case.

[tonyro44]

True you will be able to get in at a better price where you can make decent pips, having said that you have to reevaluate the pair.because right now your on the line of fire heavy traffic.

But what if the price goes down and I am at the middle of my SR area. Then there will be n trades tomorrow correct? I know there always be another trade somewhere else, but I need to know how to trade in this case.

[Gssg]

Hi sharebazar,

Thanks for your explaination on the SnR. I would like to ask if we were to draw monthly, weekly and daily line, would our chart look very cluttered since we have so many lines on it. And if prices were to come near those lines, wouldn’t it be very confusing in the case that which lines should we look out for?

Ex: lets say price touches the daily resistance, and form a reversal pin bar, but it has not touch the weekly resistance yet, should we do a sell on the next day? Or should we wait for it to touch the weekly resistance first? (in the event that weekly is resistance is not very far away)

This is something I have been struggling (confusing) a lot, as my chart seems to have many lines (monthly, weekly, daily).

Thanks.

[donsls]

Hi sharebazar,

Thanks for your explaination on the SnR. I would like to ask if we were to draw monthly, weekly and daily line, would our chart look very cluttered since we have so many lines on it. And if prices were to come near those lines, wouldn’t it be very confusing in the case that which lines should we look out for?

Ex: lets say price touches the daily resistance, and form a reversal pin bar, but it has not touch the weekly resistance yet, should we do a sell on the next day? Or should we wait for it to touch the weekly resistance first? (in the event that weekly is resistance is not very far away)

This is something I have been struggling (confusing) a lot, as my chart seems to have many lines (monthly, weekly, daily).

Thanks.

Great question Gssg. I too am struggling with this and would like an answer.
I want to add one more question to that. Sometimes we go to 4H and 1H to find a suitable entry (minimum risk). Do we draw SR levels here too or wait the price to touch the the SR levels of higher TFs?

Still I went ahead with 2 trades in Demo. See the charts below.

Bought nzd usd and it hit SL -25
Sold gbp chf and it hit TP +38

Do note that these were all pending trades as I am not up during Asian and UK sessions.

I went against bias on both trades
Reason being that the price touching my weekly Support level

Appreciate your comments.

[tonyro44]

Draw the S/R at the Daily and work yourself down to smaller T/F, 4hr and 1hr to fine the entry.

Great question Gssg. I too am struggling with this and would like an answer.
I want to add one more question to that. Sometimes we go to 4H and 1H to find a suitable entry (minimum risk). Do we draw SR levels here too or wait the price to touch the the SR levels of higher TFs?

Still I went ahead with 2 trades in Demo. See the charts below.

Bought nzd usd and it hit SL -25
Sold gbp chf and it hit TP +38

Do note that these were all pending trades as I am not up during Asian and UK sessions.

I went against bias on both trades
Reason being that the price touching my weekly Support level

Appreciate your comments.

[donsls]

Draw the S/R at the Daily and work yourself down to smaller T/F, 4hr and 1hr to fine the entry.

Thanks tonyro44. What I do is drawing the SR on M, W and D. Then go down to H4 or H1 to find a good entry.

Again couple of questions :

1. So drawing SR on H4 and H1 are not required?
2. We wait for the price to break or come closer to a higher TF SR in H4 and H1 and enter a trade with minimum risk?Watch for BPC

Back to Gssg’s question then:
What if the M1 , W1 and D1 bias show as up and the price is near / touched or broke the SR of D1 tf and show a pin bar, shooting star…etc, and the price is 50+ pips away from the next Weekly SR.
Do we stick to M and W bias and Buy or go against the bias and Sell ?

[sharebazar]

SnR can be bit different to individuals analysis but more or less same to everyone as almost everyone following the same rules.But only things matter is the valid setup around the SnR area and how individual open position according to the method.

I am looking to go short around 114.18 -114.50 area if I get signal on 1HR or 4HR TF, but I don’t know it will be a good trade or bad trade.I am not a professional trader like other members of this thread please advice if I make any mistake.

[sharebazar]

For some reason Weekly TF of CHF/JPY was not showing properly when I try to attached the screen short.

Please check on your platform for weekly TF.

[donsls]

All,
I would like to repeat Gssg’s and my questions again. Any advice is greatly appreciated as this will allow a novice like me to learn PA.

Questions :

1. Draw M, W and D SR levels
2. Drawing SR on H4 and H1 are not required?
3. We wait for the price to break / bounce or come closer to a higher TF SR in H4 and H1 and enter a trade with minimum risk? Watch for BPC

Back to Gssg’s question then:
What if the M1 , W1 and D1 bias show as up and the price is near / touched or broke the SR of D1 tf and show a pin bar, shooting star…etc, and the price is 50+ pips away from the next Weekly SR.
Do we stick to M and W bias and Buy or go against the bias and Sell ?

[Gssg]

Hi Sharebazar,

I think if I get you correctly, what u mean is if you get a signal on H1 or H4 (as long as it is in the region of your resistance- be it daily & weekly) you will put a sell to it.

Your example of 114.18-114.50 is the so call region. Most important must have a signal in the smaller time frames. Pls correct me if I get you wrongly.

So am I right to say that there is no exact SnR line, as long as it is within the ‘region’ it should be ok. And if prices is in between daily SnR or weekly SnR, as long as a signal candle shows up, we can enter the market?

Many thanks…

[sharebazar]

Hi Sharebazar,

I think if I get you correctly, what u mean is if you get a signal on H1 or H4 (as long as it is in the region of your resistance- be it daily & weekly) you will put a sell to it.

Your example of 114.18-114.50 is the so call region. Most important must have a signal in the smaller time frames. Pls correct me if I get you wrongly.

So am I right to say that there is no exact SnR line, as long as it is within the ‘region’ it should be ok. And if prices is in between daily SnR or weekly SnR, as long as a signal candle shows up, we can enter the market?

Many thanks…

Hi Gssg

You are correct in some way but according to the method we need to find the SnR very important elements of the method, the reason I mentioned the price reason because I don’t know where price will go,but we can predict where price might go and may be it will give a signal to go up or go down if we know the SnR.

You can call it a region or anything else because SnR price level can be vary 10-20 pips most of the time but price sometime respect the SnR price to the point.

If we know the Bias and if we know the SnR then we will wait for the lower TF signal to open position according to our risk management.

[sharebazar]

All,
I would like to repeat Gssg’s and my questions again. Any advice is greatly appreciated as this will allow a novice like me to learn PA.

Questions :

1. Draw M, W and D SR levels
2. Drawing SR on H4 and H1 are not required?
3. We wait for the price to break / bounce or come closer to a higher TF SR in H4 and H1 and enter a trade with minimum risk? Watch for BPC

Back to Gssg’s question then:
What if the M1 , W1 and D1 bias show as up and the price is near / touched or broke the SR of D1 tf and show a pin bar, shooting star…etc, and the price is 50+ pips away from the next Weekly SR.
Do we stick to M and W bias and Buy or go against the bias and Sell ?

Hi donsls,

I will not open position against bias in any market conditions. And if the SL is higher then 50 pips I will not open position.

[donsls]

Hi donsls,

I will not open position against bias in any market conditions. And if the SL is higher then 50 pips I will not open position.

Thanks sharebazar. Much appreciated.