Understanding Price Action by Chris Capre

Hi Chris and others

Hope every one doing good. Wish you merry Christmas and a happy new year with more pippings. Good luck

Hola Perry,

Feliz Navidad to you as well, and may good health, abundance and good things come to you.

Oh and tons of forex growth and profits :wink:

Stay tuned as i’ll be posting a ton of new content which I’m already working on over the holidays.

Kind Regards,
Chris

Same to you. Yeah I am waiting for those. I want to improve my trading. Hope this thread will give the best.

Merry x-mass fellas! And a happy new year!!

Oh! DOes anyone know other sources to learn about Price action and someone that can teach me?

Looking forward to the new content :slight_smile: this is a great PA thread, helping my analysis no end. As much as It’s been good to learn the technicals, I find that its far less noisy when you strip the charts down and concentrate on PA. Enjoy the rest of the festive period :slight_smile:

Compared to other PA based threads across the babypips, I personally believe that this is the best so far. Looking forward to get more knowledge.

Hello Alanamc,

Thanks for the kind words. I take great pride in my work so hopefully this reflects in this thread and how I approach things differently from a Price Action perspective, not just espousing simple engulfing bars, or pin bars and passing that off as understanding price action.

But stay tuned as I’ll be adding a ton of new information and articles soon.

Kind Regards,
Chris

Welcome onboard mate. I am also really new to this thread. We both can get more knowledge about PA from this thread. Good luck

Guys, I highly recommend that you watch to the webinars on fxstreet, they will help tremendously with your understanding of this, I’ve only watched a few but learned so much already.

I’ve always been interested at looking at the order flow aspect of trading, the way Chris explains it makes so much sense.

Hello Stinsfire,

Thanks mate, the webinars are definitely a good start and intro to what I teach to my members, but definitely some good building blocks to learning how to read price action and the order flow behind it.

Kind Regards,
Chris

While the market is closed, I still find it a great time to study and learn, taking things to the next level.

Normally I am sharing my live price action trades, but I wanted to share some live price action and ichimoku setups from my members. Many of them were just like you only a few months ago - unable to profit, be consistent or successful in trading, while struggling to learn how to be profitable.

But each day another one turns the corner and shares another successful trade.

Below are a couple recent ones from my students, with one of them banking a 6.5:1 reward to risk play, snagging +78 pips in less than 2 hours!

So hopefully this inspires you to see how easy it is to turn the corner, and trade successfully and profitably.



NOTE: I’ll be back with my normal daily posts starting tomorrow when the market opens.

Until then, may an ocean of good health, abundance and positive things come to you in the new year.

Kind Regards,
Chris Capre

I actually took this trade that you posted there, the 6.5:1 reward-risk trade. I was looking at the chart and noticed it. I remember the explanation you gave in one of your webinars, that the sellers were being squeezed out and then bam, up it went :smiley:

congrats stinsfire. how did your trade work out? where did you exit, enter and what was your stop?

hmmmmm, be nice now!

Try FOREX PRICE ACTION in babypips, its not just espousing simple engulfing bars, or pin bars and passing that off as understanding price action, its ALLOT MORE to it.

You mean the Forex Price Action here? If so, yes, I’m not just espousing engulfing bars, or pin bars, basic S/R analysis and passing that off as understanding price action.

If you are talking about that other thread, I have statistically demonstrated the traditional engulfing bar entry is highly inefficient, and there is a much more optimal entry than that. 10 years of quantitative data will back this up, but I find the traditional buy/sell on break entry for the engulfing bar to be quite inefficient.

And again - trading pin bars at S/R levels is not understanding price action.

If it was that easy and all you needed to understand price action - then why are all the banks spending all this money and thousands of hours training their traders when it could be so simple?

Keep in mind, most of the time a pin bar is [B]not the cause[/B] of order flow. Most of the time it is the [B]result[/B] of order flow, not the cause. So when you are trading pin bars by themselves, you are trading the [B]result and not the cause[/B].

I teach traders to read price action in real time, so they can determine the cause, and not just trade the result which is reactive, not responsive trading.

Anyways, hopefully that clarifies the difference between what I teach and the vanilla stuff taught in the other threads.

Kind Regards,
Chris Capre

Yes I was referring to other thread and are you saying it will not work?

Hello Spongybob,

I am not sure what you are referring to specifically, but if you are referring to the engulfing bar entry, it will be far less efficient and offer less profit potential with higher risk than a statistically based entry I have found over 10yrs to be far more efficient.

Ironically, a student who’s been trading the engulfing bar entry with the sell/buy on break of the engulfing bar candle high/low emailed me saying this exact same thing and found the entries to be highly inefficient. And he did this with no quantitative data. His exact words were how his profitability has gone way down, and he’s look for a better method using this.

Again, the traditional sell/buy on break is trading a signal and not a setup, and trading it in a vanilla way, not really understanding the order flow behind an engulfing bar.

If you really understand the price action and order flow behind the engulfing bar, there is a far more efficient way to trade it. Sure, the other way may work a little bit, but the poor entry offers lower profit potential, and my 10 years of quantitative data backs this up across dozens of pairs, time frames, along with server time.

The last point is also not something talked about in other threads. The traditional ‘NY Session Close Time’ is boasted as being the most effective for trading price action - but I have quantitative data using the same strategies, that for some pairs it works, and others it does horribly. While in some cases GMT works best for that pair, and others not.

Food for thought - but this is a world of difference in how one approaches price action.

Kind Regards,
Chris Capre

Agree, the webinars are great there. There are also some excellent ones on Forexpros (I think they have changed there name to investing.com now)