PURE PRICE ACTION TRADING SETUPS
Since we have lot of Price Action thread, I decided to start a thread of Price Action Trading Setups for us. We will apply what we learned from here.
I stumbled in this thrilling world last year January. After 1 years of demo I jumped to Live trading. Within three months I lost 60% of my account. I read lot of books which are available in net as pdf. Even day and night I thought about strategies, making millions in a year, girls, big home and car etc. You might have these types of dreams. May be some of you have this right now.
My all losses occurred when I use all of those indicators like Stochastic, Bollinger Bands, Parabolic Sar, RSI and Trendlines. All of them not worked for me. (it will work but some certain conditions).
I remember that after these looses I found Nikita’s http://forums.babypips.com/newbie-island/39634-pure-price-action-dummies.html thread. (I’m not sure whether I missed the thread before my losses or I just didn’t noticed). Any way I can remember I didn’t loss much after applying that strategy.
Okey with that being said, the core purpose of the thread is find high probability trading setups and trade them. Remember, it’s not created for providing signal. Only for learning purpose. You can trade them if you are damn sure with the setups. All responsibilities up to you.
The system already available in thousands of threads, forums and books. I’m not an experienced trader to teach anyone. By the way everyone can learn something from this thread on the way.
The Trading Plan (or System?):
Trading Based on Daily chart only. For trend direction we can use monthly or weekly.
Use New York Closed Chart with 5 candle per week.
Trade entry based on Pin bar or Inside bar with support and resistance only.
Chart should be a Naked chart. With white or black back ground. Remove the dotted grid lines. I prefer white candle for bull and black candle for bear.
Don’t do this… (for understanding easily to everyone)
Do not post chart lower than daily.
Do not complicate charts with many indicator, trendlines and support & resistance lines.
Please make sure that never post a chart which include more than three lines on them.
Please do not post charts with the terms like head and shoulder & 123 patterns etc. otherwise Pin bar or Inside bar on daily or weekly chart.
How we use this thread…
I will post charts every morning if there are any high probable trading setups. It’s best if I can post just after closing the New York session. I hope somebody do it if they are interested.
We are not much concerned about fundamentals and news.
It’s clear that this system not provide trading setups every day. Two or three trades per week some times more. But there is a exception when we use Nikita’s Commy system. We can try on the go.
I think all pairs are tradable. So I will post Currencies, Commodities and Indices.
Always remember your Money management when you trade.
Here is a chart of EUR/JPY that showing a support and resistance area. Just for Illustration.
Green candle is support and Rose is near term support and Black is Resistance.
I know, Here there are some experienced Price Action Traders. I learned from them. Like Simon Templor, Bobmaninc, Yunny, recently HoG who send me some materials. And ofcourse Nikita. Sorry If I forget to mention any name. I wish they will do some inputs to correct us from the mistakes.
I invite all of you to participate in this thread.
If god wish, I will post charts from next week. (remember I usually don’t trade Monday, so no charts on Mondays. Sometimes, some weeks we couldn’t get any setups. So no trade for a week. There is no need for eagerness to trade and post chart. Patiently wait for something to happen on the chart. We can make millions but slowly…. Patiently…)
Okey guys, I’m done for today…. C U next week.
PS: I’m really sorry for my bad English. Actually I learned some good English words from this forum. Don’t laugh at me. My Mother tongue is another.