Understanding Price Action by Chris Capre

[BRAZILIANFOREX]

Hello BrazilianForex,

Where in Brasil you from as I lived in S.A for some time and spent some time in Brasil?

But thanks for the positive comments and good to have you hear as well.

As to your first question, I’m not sure I totally understand regarding the D1 charts and holding a position - could you clarify a bit for me?

But as to using the daily time frame, I think by itself is a little limited and you will miss a lot of high quality setups that form every day - even on the 4hr. I’d suggest adding a companion time frame, perhaps 4H to give you a slightly different perspective and a little more nuance.

But if you can give me more feedback and clarity around your question - that will help me understand it better and give you a more complete answer.

Kind Regards,
Chris Capre

Hello Chris!

Thanks for your reply, I’ll try to clarify a bit more of my questions but actually I do not speak english I only one I use google translator to be able to communicate here on the forum.

But come again, what I meant in my first question was about the long position, this form of trading where you open a position in trade and leaves to close only here for 20 days or a month ago here. I just wonder if this form of trading swing trade is safer? What do you think about the swing trade positions open for 20 or 30 days?

Is it safe to be exposed so the market for so long and then you can reap more pips as some traders think? These types of position harvest averaged 400 to 900 pips, but one must be very cold blood when the market goes against our tendency and need to leave open the position and still have a stop loss far greater than ordinary. I wonder just what you think about this? Some say that is how banks negotiate, and that is the best way to harvest pips within the forex market without having to open and close positions daily.

And lastly I wondered about the graphics D1 to make these types of position, it would be better to do it with D1 or 4H?

[GRIX_FX]

Hey guys, I hope your are all watching the swings that the EUR/USD has been having since yesterday
between 1.3040 and 1.3175. 200 pips already bagged…PA is the way to go!

[ApexPredator]

Hey guys, I hope your are all watching the swings that the EUR/USD has been having since yesterday
between 1.3040 and 1.3175. 200 pips already bagged…PA is the way to go!

Congratulations! Thats fantastic mate! I didnt get a signal to trade it, why did the eurusd drop so bad?

For a big day, I managed to get into a less volatile AUDUSD and pick up 1:1 risk reward.

Happy trading everyone! Loving the increased activity here!

[2ndSkiesForex]

Hello Chris!

Thanks for your reply, I’ll try to clarify a bit more of my questions but actually I do not speak english I only one I use google translator to be able to communicate here on the forum.

But come again, what I meant in my first question was about the long position, this form of trading where you open a position in trade and leaves to close only here for 20 days or a month ago here. I just wonder if this form of trading swing trade is safer? What do you think about the swing trade positions open for 20 or 30 days?

Is it safe to be exposed so the market for so long and then you can reap more pips as some traders think? These types of position harvest averaged 400 to 900 pips, but one must be very cold blood when the market goes against our tendency and need to leave open the position and still have a stop loss far greater than ordinary. I wonder just what you think about this? Some say that is how banks negotiate, and that is the best way to harvest pips within the forex market without having to open and close positions daily.

And lastly I wondered about the graphics D1 to make these types of position, it would be better to do it with D1 or 4H?

Hello Brasilian Forex,

Ok, thanks for re-phrasing as it helped me understand what you are asking now.

In regards to your question about leaving trades open for 20 days or so, unless you can really and honestly consistently grab a 10R trade + (10x your risk), I think its a waste of time.

Why?

Because pips by themselves are meaningless without pips risked to get them. You could make 1000 pips on a single trade waiting 20 days, but if you risked 500 pips to get it, then all it is, is a simple 2R trade, that a 100 pip winner and 50 pip stop would have netted you the same.

There is no difference if you are keeping equity % risked the same, so why bother waiting 20 days for something you can get in a day, or less than that? You are not paid by the hour…nor to sit around watching the charts doing nothing. You are paid by what you make per trade, and if you wait 20 days, but the trade ends up a loser, then I consider that wasted time and lost opportunity imo.

Now, having said that, if you really have the passion, desire, and natural mindset to trade like that, then I say go for it, as trading is about getting comfortable with what feels most natural to you. But if its not natural, then don’t bother with it, and find something that fits easily with your natural mindset.

I hope this helps.

Kind Regards,
Chris Capre

[fartist]

Hello Brasilian Forex,

Ok, thanks for re-phrasing as it helped me understand what you are asking now.

In regards to your question about leaving trades open for 20 days or so, unless you can really and honestly consistently grab a 10R trade + (10x your risk), I think its a waste of time.

Why?

Because pips by themselves are meaningless without pips risked to get them. You could make 1000 pips on a single trade waiting 20 days, but if you risked 500 pips to get it, then all it is, is a simple 2R trade, that a 100 pip winner and 50 pip stop would have netted you the same.

There is no difference if you are keeping equity % risked the same, so why bother waiting 20 days for something you can get in a day, or less than that? You are not paid by the hour…nor to sit around watching the charts doing nothing. You are paid by what you make per trade, and if you wait 20 days, but the trade ends up a loser, then I consider that wasted time and lost opportunity imo.

Now, having said that, if you really have the passion, desire, and natural mindset to trade like that, then I say go for it, as trading is about getting comfortable with what feels most natural to you. But if its not natural, then don’t bother with it, and find something that fits easily with your natural mindset.

I hope this helps.

Kind Regards,
Chris Capre

Hi Chris!

When you mentioned grabbing 10R trades consistently, how often is consistent?

once a week, a month?

Thanks!

[bull4ace]

Hey guys, I hope your are all watching the swings that the EUR/USD has been having since yesterday
between 1.3040 and 1.3175. 200 pips already bagged…PA is the way to go!

200 pips bagged in just 2 days, that’s awesome! :35:

[GRIX_FX]

taking a eur/jpy long after retest of 127.49 support zone. Waiting to see how this one works out

[perryfx]

Guys,

Not much trading these days. Yesterday took very good profit from both Gold and EU short scalps.

[perryfx]

Was lucky to close the Gold trade on time. Double bottom held nicely and Gold quickly moved to the next resistance level. Very interesting area at the moment . Again short or breakout trade ? :13:

[perryfx]

@GRIX_FX

taking a eur/jpy long after retest of 127.49 support zone. Waiting to see how this one works out

Nice trade mate. Good luck with that.

[perryfx]

Congratulations! Thats fantastic mate! I didnt get a signal to trade it, why did the eurusd drop so bad?

For a big day, I managed to get into a less volatile AUDUSD and pick up 1:1 risk reward.

Happy trading everyone! Loving the increased activity here!

Apex,

Hope everything ok with you. I also love to trade AUD/USD due to low volatility. In the meantime managed to get some profit from EU drop. Safe trading mate.

[bull4ace]

Hi all,

Let me share my current take on the GBP/USD pair:

2 sell POs activated.

A. Sharp down move.
B. No definite bottom.
C. Price bounced off resistance just above 1.5400. New Swing High.
D. Lower Low.
E. Lower High
F. Massive selling pressure slicing thru the level.
G. Current low. Double Bottom

Buy stop is @ 1.5310 (30 pips).

I’m looking for a 4:1 reward to risk.

Congratulations to those who cornered a lot of pips…

[ApexPredator]

Olá BRAZILIANFOREX, eu admiro o fato de você usar o Google traduzir para comunicar aqui. Estou aprendendo espanhol, mas eu quero aprender português brasileiro depois.

Mas de qualquer maneira, eu traduzido em português para que você não precisa.

só queria dizer que espero que você continue postando aqui, você pode aprender muito com a integração aqui.

eu amo o futebol brasileiro, ansioso para os Jogos Olímpicos ea Copa do Mundo!

falar em breve.

Apex.

hello BRAZILIANFOREX, i admire the fact that you use google translate to communicate here. i’m learning Spanish, but i want to learn brazilian portuguese afterwards.

But anyway, i translated this in portuguese so you dont have to.

just wanted to say hope you continue posting here, you can learn much from integrating here.

i love brazilian football, looking forward to the Olympics and world cup!

talk soon.

Apex.

Hello Chris!

Thanks for your reply, I’ll try to clarify a bit more of my questions but actually I do not speak english I only one I use google translator to be able to communicate here on the forum.

But come again, what I meant in my first question was about the long position, this form of trading where you open a position in trade and leaves to close only here for 20 days or a month ago here. I just wonder if this form of trading swing trade is safer? What do you think about the swing trade positions open for 20 or 30 days?

Is it safe to be exposed so the market for so long and then you can reap more pips as some traders think? These types of position harvest averaged 400 to 900 pips, but one must be very cold blood when the market goes against our tendency and need to leave open the position and still have a stop loss far greater than ordinary. I wonder just what you think about this? Some say that is how banks negotiate, and that is the best way to harvest pips within the forex market without having to open and close positions daily.

And lastly I wondered about the graphics D1 to make these types of position, it would be better to do it with D1 or 4H?

[2ndSkiesForex]

Hi Chris!

When you mentioned grabbing 10R trades consistently, how often is consistent?

once a week, a month?

Thanks!

Good questions F’ist…

In regards to the 10R, this was in reference to BrasilianForex’s suggestion about possibly taking trades that last 20-30 days, thus only taking a few trades a month at max.

My thinking is, if he’s going to do this, take 2-3 trades a month, that I would only do it if he could find 10R trades, and be say 66% accurate. This would mean his net R at the end of the month is 10.

But here is the kicker. One could easily find 10R trades on the 4hr, or 1hr, or even intraday time frames. My students pick these up pretty consistently.

Even if you can only pick up 3R trades, 3 winners will equal about the same as the 10R effort, yet could be done in much less time, and enjoy most of the month off in comparison to the 20-30 day waiting period.

Just taking nine 3R trades, winning 6 of 9 would yield a better return than the 10R net he walks away with, and again, all done in less time.

Plus, in this environment, holding periods of a month or so leave a lot of uncertainty as so much can change in an instant, so to me, to wait this long, for a 10R return is not worth it imo, when the results can be achieved in much less time.

Hope this clarifies things a bit.

Kind Regards,
Chris Capre

[GRIX_FX]

200 pips bagged in just 2 days, that’s awesome! :35:

got the first 100 up and 100 down…all based on Price Action

[hbb322]

Just finding out about this thread and I’m currently taking Chris’ course on price action. Very excited to follow the posts here to learn more!

[2ndSkiesForex]

Just finding out about this thread and I’m currently taking Chris’ course on price action. Very excited to follow the posts here to learn more!

Hello Hbb322,

Good to have you here and welcome aboard!

Kind Regards,
Chris Capre

[2ndSkiesForex]

Hello Traders,

Some very choppy price action, which is part of the reason why I did not post yesterday as I was anticipating this.

One of the interesting ones today though was the Euro, which formed a combo inside bar + inverted pin bar. This is interesting, since it was in a range for 4 days, consolidating after the recent upmove. Then it broker higher, only to do an immediate about face.

Usually false breaks like these, mean more consolidation, or possible break down, especially after long mature trends. This was in not, but upside resistance short term should come in around 1.3121, so bears can watch here. A failure here sets up a test of the range bottom around 1.3030/20, and a break below the big figure opens up 1.2951.

Good luck tomorrow.

Kind Regards,
Chris Capre

[fartist]

Good questions F’ist…

In regards to the 10R, this was in reference to BrasilianForex’s suggestion about possibly taking trades that last 20-30 days, thus only taking a few trades a month at max.

My thinking is, if he’s going to do this, take 2-3 trades a month, that I would only do it if he could find 10R trades, and be say 66% accurate. This would mean his net R at the end of the month is 10.

But here is the kicker. One could easily find 10R trades on the 4hr, or 1hr, or even intraday time frames. My students pick these up pretty consistently.

Even if you can only pick up 3R trades, 3 winners will equal about the same as the 10R effort, yet could be done in much less time, and enjoy most of the month off in comparison to the 20-30 day waiting period.

Just taking nine 3R trades, winning 6 of 9 would yield a better return than the 10R net he walks away with, and again, all done in less time.

Plus, in this environment, holding periods of a month or so leave a lot of uncertainty as so much can change in an instant, so to me, to wait this long, for a 10R return is not worth it imo, when the results can be achieved in much less time.

Hope this clarifies things a bit.

Kind Regards,
Chris Capre

Well i understand where you’re coming from and it really depends on the trader itself. If he has a fulltime job then looking for trades on the smaller timeframe may not be really possible.

And i do understand trading on the smaller timeframe do offer more opportunities. E.g. with a decent entry and assuming 10 pip stoploss and we know that EURUSD does a daily average range of 110 pips, it’s quite a decent shot of getting least a 1 to 5 risk reward within the day itself.

When you said your students consistently picked up 10R trades, how often would that be?

Thanks!

[ApexPredator]

Hey traders, the markets appear to be in consolidation at the moment, this is confirmed by the fact that most of the currency pairs I trade are in the kumo. Therefore, looks like my week ends +2 risk:reward. Not bad considering its been a mixed, volatile week.

See you guys on Monday.

Happy Trading.

Apex.