Pure Price Action For Dummies

[Nikitafx]

Nikitafx am sorry if I’m too slow to get this entry rule. If yesterday was BUY today will be BUY does it mean I will BUY when the price crosses the opening price up on 1H chart?

The buying when price bias is a buy and it crosses daily opening from below or selling when price crosses daily opening from above was just an example I gave to explain the logic behind trading price Bias to a forum member by the name of Tom82.

It was just so that he could see the logic behind trading bias.

Although a trader can technically do the same thing and be profitable, we also have to take into account other factors before we can do so.

One of the obvious would be our SL. Most of the time, entering a trade when the price crosses daily opening levels is not a good idea because of the huge SL.

The idea is than refined further to include S&R areas and candlestick patterns so that our SL can be as small as possible and we enter the trade as early as possible.

The logic and the trade idea behind trading price bias is very simple.

The hard part is bringing ourselves to believe in the trading method and taking the entries in a very patient and disciplined way.

Those who have been trading for sometime and are going through what all newbies go through will have the psychological problem of taking the trade with bias and holding it, until price hits our TP level. This includes me and I still have this major issue. The way I see it, this and not having enough patience are my main and only issues.

Most of the time, we cut it off way to early, happy with whatever that we have banked in. But this is another very damaging habit. We should hold till our TP is hit, especially when our trade was entered with price bias in our favour.

Not putting SL is not the only way that we damage our balance. Not holding for more is also another cause for our account not to grow simply because there will be losses in the future and not maximising profits increases the damage.

So dont be too hard on yourselves if you are still making mistakes or not holding for more when you know what bias is etc etc. Keep a clear head and practice.

Finally I should end this with a major warning, Trading or entering a trade when price crosses opening levels is very dangerous when market is ranging, especially on higher TF. What this essentially means is you are entering a buy right at the top and selling right at the bottom when prices are in a range. This only means maximum damage.

So do not try this with a real account.

Its just a method to make a point.

[Nikitafx]

Hai Nkita,

What about the E-book. I also waiting. It will be much helpful to revisit the rules and strategy. It’s immeasurable treasure for all traders, not only for the newbies.

I learned much from this thread. But, what I should say? I don’t know what happened to me. I read a lot. Expert in using many indicators, Listening to experts, Watching news, More Knowledge about the market. All of these spoil my trading ability.

[B]I want to know from the thread followers how many of you strictly follow Nikita’a trading strategy?

I forget to trade by the rule. I broke my trading plan many many times. The Forex geeks and news analysis gave me much fear to enter a trade.

[/B]
What I learned now a days is not listen anyone. Any news, no matter what impact, most of the time it will go to the direction of current bias and trend. Just trade in the direction of the bias.

In this market more intelligent will hurt you seriously. Just be an innocent. Less knowledgeable. It’s enough for a better life in the world.

So all newbies just follow the trading rule. Avoid all indicators and news.

Thank you Nikita for your Awesome thread.

Best regards,

Salim

I break my own rules often and most of the time I pay a price for doing so.

Discipline in trading is not something that can be achieved easily, atleast for me I guess.

I am still on Money Management.

I have yet to prepare the charts explaining BPC and S&R areas.

And I have yet to do the other supporting parts.

I have finished Risk, Candle patterns, S&R areas, waves, Do Not do section etc etc.

I havent been getting the sort of calm hours where I feel like writing or typing off lately, hence the delays.

Please be patient. I hope to have the book out very soon.

[sharebazar]

Hi Nikita I will be waiting for the e-book, it does not matter how long it’s take. Hope you will do it soon.

[sepramfx]

Hi sepramfx welcome to the thread, rule is when you know the bias we wait until the price crosses the opening price, we only trade in the direction of the bias. when the price crosses in 1H time frame wait for the candle to close near support/resistnce.we determine the bias with the daily candle and enter in 1H time frame.

For example suppose yesterday daily bias was bullish so we will only look for long entry today.

. Hummmmm! U are an eye opener thanks alot its really cool. Nikitafx thanks for this thread. Sharebazar am realy gr8ful.

[sepramfx]

The buying when price bias is a buy and it crosses daily opening from below or selling when price crosses daily opening from above was just an example I gave to explain the logic behind trading price Bias to a forum member by the name of Tom82.

It was just so that he could see the logic behind trading bias.

Although a trader can technically do the same thing and be profitable, we also have to take into account other factors before we can do so.

One of the obvious would be our SL. Most of the time, entering a trade when the price crosses daily opening levels is not a good idea because of the huge SL.

The idea is than refined further to include S&R areas and candlestick patterns so that our SL can be as small as possible and we enter the trade as early as possible.

The logic and the trade idea behind trading price bias is very simple.

The hard part is bringing ourselves to believe in the trading method and taking the entries in a very patient and disciplined way.

Those who have been trading for sometime and are going through what all newbies go through will have the psychological problem of taking the trade with bias and holding it, until price hits our TP level. This includes me and I still have this major issue. The way I see it, this and not having enough patience are my main and only issues.

Most of the time, we cut it off way to early, happy with whatever that we have banked in. But this is another very damaging habit. We should hold till our TP is hit, especially when our trade was entered with price bias in our favour.

Not putting SL is not the only way that we damage our balance. Not holding for more is also another cause for our account not to grow simply because there will be losses in the future and not maximising profits increases the damage.

So dont be too hard on yourselves if you are still making mistakes or not holding for more when you know what bias is etc etc. Keep a clear head and practice.

Finally I should end this with a major warning, Trading or entering a trade when price crosses opening levels is very dangerous when market is ranging, especially on higher TF. What this essentially means is you are entering a buy right at the top and selling right at the bottom when prices are in a range. This only means maximum damage.

So do not try this with a real account.

Its just a method to make a point.

Now I knw why u are an HONORARY MENBER I think all active traders in this thread should come together and crown u with a title. May I sugest in advance, I think u should be the HONORARY FXLORD. Less I forget, remenber this thread is specially for DUMMIES so permit me to ask another dummie-like question. Although Sharebazar had shed more light on this kudos to him. With the use of S/R, if yesterday was bullish I will only look for bullish entery today. Does that implies that I will BUY when price closes above Resistance or I should BUY when price is being rejected by Support line? Thanks for sharing your knowledge and valuable time with a dummie like me

[sepramfx]

. Hummmmm! U are an eye opener thanks alot its really cool. Nikitafx thanks for this thread. Sharebazar am realy gr8ful.

pls how can I get auto pivot to install on my Mt4

[livescalptrading]

Hello Nikitafx

Very Good thread

A coulpe of questions

1/ Lets say we have pin bar on a D TF and if i,am right the next bar would be the confirmation candle, Do u trigger the trade on the open of the 3rd candle to go long or do you wait for a retrace of the 3rd candle and go long on the hourly chart on a pattern.

2/ You say if yesterday was a long today is long, was yesterday the pin bar or the confirmation bar or the bar after.

Many thanks

Tony

[livescalptrading]

I am going to throw a couple suggestions to you and let you play with them o figure the best for you. Yes you can enter at the bullish/bearish formation on the one for optimal risk. Or take out your fibs draw the fibs from where you plan to take profit to where you plan on having your stop loss. Enter on the 38% fib. This will normally confirm price has reversed and give you a little better than 2:1 R:R. Using the second suggestion you will sacrifice some pips for the confirmation. Play around with both of them as the first will give you maximum profit potential but I find a lower win rate. The second will give up some profits but I find has a higher win rate. Over time you will learn to read charts better and know when to use what entry.

[B]Hello[/B] bobmaninc

Please when you have time could you post an eg of the 2nd option

cheers

Tony

[Nikitafx]

Now I knw why u are an HONORARY MENBER I think all active traders in this thread should come together and crown u with a title. May I sugest in advance, I think u should be the HONORARY FXLORD. Less I forget, remenber this thread is specially for DUMMIES so permit me to ask another dummie-like question. Although Sharebazar had shed more light on this kudos to him. [B]With the use of S/R, if yesterday was bullish I will only look for bullish entery today. Does that implies that I will BUY when price closes above Resistance or I should BUY when price is being rejected by Support line? [/B]Thanks for sharing your knowledge and valuable time with a dummie like me

Ahhh, a good question.

Why is this a good question?

Because this question highlights a fundamental problem in learning how to trade off a technical chart.

We can read all the books or participate in as many forums as we possibly can, but unless we start entering trades, regardless whether its a demo or real, we wont be able to see what the other trader is watching for.

We wont be able to understand what a certain concept really means or how concept A ties in with concept B.

This is the basic reason why a trading method works for some and not for the others. This is also the prime reason why many cannot make a profit from the market. They simply do not understand what the other person is talking about.

Your question highlights this problem very clearly.

I am sure you have read many postings on this thread and many others talking about Support and Resistance. I am sure you had also read that we should always buy low and sell high. The second statement has been repeated like a mantra on this thread and many others. Everyone knows this.

And I am sure that you understand what Support and Resistance mean. You are also capable of drawing these simple horizontal lines on your own chart.

But you wont really see how it works until you start entering trades and ask yourself, atleast once a week, on where were your mistakes on the trades that went bad. No point looking at the trades that were winners. We look at the once that didnt go well and see if we are repeating a mistake. Its usually there.

So coming back to your question,

We all know what S & R areas are. Draw a simple Support and Resistance line on a chart. A chart where prices are bullish or look like they are going up.

In a bullish chart, support will be at the bottom, resistance will always be at the top. Correct? So if you buy when the price has broken the resistance, are you buying low or buying high?

Buying when prices break out is a definite sure fire way of ensuring that you never make it in forex. You are buying high on a bull market. Matter of fact, every loosing trade that you will have will ensure that you suffer the maximum damage possible because you bought right at the peak.

See what I mean by reading and understanding it by doing are not the same?

The question of “Do you understand what that means?” takes a new level of depth when it comes to learning how to trade.

Again a very good question. It highlighted something that I cannot share by posting charts.

[sepramfx]

Ahhh, a good question.

Why is this a good question?

Because this question highlights a fundamental problem in learning how to trade off a technical chart.

We can read all the books or participate in as many forums as we possibly can, but unless we start entering trades, regardless whether its a demo or real, we wont be able to see what the other trader is watching for.

We wont be able to understand what a certain concept really means or how concept A ties in with concept B.

This is the basic reason why a trading method works for some and not for the others. This is also the prime reason why many cannot make a profit from the market. They simply do not understand what the other person is talking about.

Your question highlights this problem very clearly.

I am sure you have read many postings on this thread and many others talking about Support and Resistance. I am sure you had also read that we should always buy low and sell high. The second statement has been repeated like a mantra on this thread and many others. Everyone knows this.

And I am sure that you understand what Support and Resistance mean. You are also capable of drawing these simple horizontal lines on your own chart.

But you wont really see how it works until you start entering trades and ask yourself, atleast once a week, on where were your mistakes on the trades that went bad. No point looking at the trades that were winners. We look at the once that didnt go well and see if we are repeating a mistake. Its usually there.

So coming back to your question,

We all know what S & R areas are. Draw a simple Support and Resistance line on a chart. A chart where prices are bullish or look like they are going up.

In a bullish chart, support will be at the bottom, resistance will always be at the top. Correct? So if you buy when the price has broken the resistance, are you buying low or buying high?

Buying when prices break out is a definite sure fire way of ensuring that you never make it in forex. You are buying high on a bull market. Matter of fact, every loosing trade that you will have will ensure that you suffer the maximum damage possible because you bought right at the peak.

See what I mean by reading and understanding it by doing are not the same?

The question of “Do you understand what that means?” takes a new level of depth when it comes to learning how to trade.

Again a very good question. It highlighted something that I cannot share by posting charts.

wow! Nikitafx I’m in short of words, I’m speechless. No wonder!!! Thnx for removing the veil that has been covering my eyes in the word of fx

[Nikitafx]

wow! Nikitafx I’m in short of words, I’m speechless. No wonder!!! Thnx for removing the veil that has been covering my eyes in the word of fx

LOL.

It took me nearly three years to figure that one out.

I use to trade breakouts when I first started too.

Used to curse my luck when most of the time the trades went sour.

There is no such thing as luck. You might be on the right side of an outcome which you are purely speculating on. But than you can also be wrong.

The rest of the trades that went wrong only means one thing. We are doing something wrong. Always remember its not the system, its you.

Figure what is it that we are doing wrong and you are one step closer to trading profitably.

[bobmaninc]

Nikita that was an excellent write up there.

[livescalptrading]

Originally Posted by [B]bobmaninc[/B]
I am going to throw a couple suggestions to you and let you play with them o figure the best for you. Yes you can enter at the bullish/bearish formation on the one for optimal risk. Or take out your fibs draw the fibs from where you plan to take profit to where you plan on having your stop loss. Enter on the 38% fib. This will normally confirm price has reversed and give you a little better than 2:1 R:R. Using the second suggestion you will sacrifice some pips for the confirmation. Play around with both of them as the first will give you maximum profit potential but I find a lower win rate. The second will give up some profits but I find has a higher win rate. Over time you will learn to read charts better and know when to use what entry.

[B]Hello[/B] bobmaninc

Please when you have time could you post an eg of the 2nd option

cheers

Tony

[bobmaninc]

I will later today when I get off work. But I stole that idea from luminious neos deja vu system in the holy grail section if you want to check it out.

[Brolin8]

Hi all, newbie here trying to learn PA. I have a question. How does that “take 50% profit and then break even” works?

[bobmaninc]

Take 50% means to collect profit on half your position. For example if you are short 2 lots takeing 50% would be to close 1 lot. Now you would move your stoploss to the price you entered the market at. This would mean that no matter what happens from then you have already put money in the bank and have no chance of taking a loss.

[Brolin8]

Take 50% means to collect profit on half your position. For example if you are short 2 lots takeing 50% would be to close 1 lot. Now you would move your stoploss to the price you entered the market at. This would mean that no matter what happens from then you have already put money in the bank and have no chance of taking a loss.

Thanks for the explanation, but what I don’t understand is how to do it in practice. Do you open two positions at the same time?

[bobmaninc]

Thanks for the explanation, but what I don’t understand is how to do it in practice. Do you open two positions at the same time?

Depends on your brokers. Oanda will let you scale out of a lot. Not sure how as I dont use them. Most other brokers will let you open multiple lots. If not then yes you would have to open multiple positions.

[Brolin8]

Depends on your brokers. Oanda will let you scale out of a lot. Not sure how as I dont use them. Most other brokers will let you open multiple lots. If not then yes you would have to open multiple positions.

Can you give an example on how would you normally do it with your broker’s platform?

[bobmaninc]

I will in a few hours I am still at work for the next hour or so. I rode my motorcycle in today and it looks like its going to rain so it might take a little while to get home today lol