yes, a little choppy to start, but just initiated a small long on AUDUSD at 1.0223 as this was a swing low from feb 20/21st which price just broke above after six 4hr bull bars in a row, suggesting the bulls are attempting to reverse
although i prefer with trend trading, i like the low risk, high reward on this one as i can function with a tight stop and potential upside is quite solid.
EURUSD is still struggling, and tells me to sell it on rallies.
GBPJPY was a good short at 141.44 which I talked about being a key intraday level last week, and it offered some good intraday price action signals shorting yesterday, with a nice double top on the 5m, and another rejection in early london today. if the bulls break above this, then will look to sell higher, but if the GBPJPY fails to break above this, then more sellers are likely to come in.
And just to show I’m actually in this trade, and not just talking hot air about it being ‘widely discussed in the members forum’ and 'many traders making money off of it’ when nobody is actually trading it, here is the actual trade below from my broker chart.
Entry is where I stated, currently up +21 pips with a 12 pip stop, so about a 2:1 reward to risk play as is, but targeting a little higher if it can break through current intraday resistance. Worst case scenario will get out for BE + spread should it pull back.
Chris, hopefully you can answer my question ASAP. Im looking into trendline trading, as a PA trader I see that trendlines are respected far to often and offer better R:R trades then waiting for a trade via pinbar or inside bar etc…
What do you think of entering a trade on a trendline with the stop below the previous point that touches the trendline, I seem to be able to get 3:1 plays on a daily basis with it, what are the problems you see with it? and why dont you use it to enter trades (if you dont.)
I think trendline trading can be useful on higher time frame trend lines. Otherwise, S/R levels are far superior, simply because traders tend to have a short term memory, not a long term one.
Also using dynamic support and resistance can be powerful when done with trend.
There are various patterns around both trendline, along with dynamic s/r levels when one learns to read the price action, so these can be powerful when used correctly.
Far better than using plan pin bars or inside bars which are the result - not the cause of order flow.
Though it should be noted the latter patterns can be useful as a secondary price action tool, not a primary one.
Hope this helps, but you’d need the proper accompanying price action to support trend line trading.
I guess you use the 20 EMA as a sort of dynamic S/R level, I think i remember you saying something like that on one of your FXStreet videos… That would mean the 20 EMA would be a good place to enter trades.
fib levels are generally disregarded if they do not line up with prior s/r levels and price action, so this should tell you it is subservient to PA and S/R levels
thus, I prefer to just use PA S/R Levels as I find them more efficient
I find that fibo’s are not necessary when you learn to read S/R levels well. And fibos are also subjective, but where price action reacted in the past is much more clear.
If you feel fibo’s work for you - great, keep using them.
I personally do not feel the need to use them to trade successfully, and it has not affected my trading.
But as always, the key is to finding what tools feel most natural to you, and to just be comfortable with your trading.
Everyday eyeing on your thread. Very good explanation on using Fibo’s for trading. Personally I also don’t use Fibo’s for trading. PA trading more powerful than anything. Would like to see more valuable posts from you. Good luck on your thread.
Hey Chris, you talk about orderflow and how the PA pattern is the key to entering the trade, but not the actual reason why… Could you give me some good articles/videos you and others have made to learn how I too can read order flow?
I really want to understand this as much as I can.
im not sure Babypips will allow me to post direct links here to your question, so PM me and ill send them to you.
but perhaps its time i do another content article on reading order flow via the price action
was this particularly related to breakouts as its quite a big subject if its just ‘general’ reading order flow from price action?
Was thinking in general how to read the order flow through PA, and like I say, I want to know as much as I can about it so breakouts, ranges and general reading of order flow please… If its not too much to ask ofcourse!
And get well soon Chris, not feeling to well myself atm…
And regarding the order flow material, I cant figure out for the life of me how to send a PM on babypips, so i’ll email you then you can send me the order flow material, you should know me already so no surprises haha.
