This one is tricky and not my favorite breakout pullback setup
its already tested it right after the breakout, then had one large selling bar, but then started to reverse. Where did the sellers go? Are they exhausted that they gave up control so easily?
The R:R is decent, but the bull candles being 6 of the last 8, with solid downside rejections isnt my favorite situation to be taking on, so i’m personally passing on this one.
If the last SL (swing low) from the prior breakout was much lower, then I’d be open to it as I’d have a lot more reward available - but not in this case, so I’d be selling really close to support - thus the pass.
Maybe i’m wrong, and I’m ok with that - but for now, very little seems interesting to me which is why I didn’t really post anything last night.
The European indices however are looking pretty interesting imo and are coming up on some heavy resistance levels soon, so watch for price action signals there.
hello traders, am new here and have been going through all the posts since yesterday.
Some strategies looked really positive. hope I will be learning more price action analysis from this
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Yes, we have a lot of good strategies and models for reading price action, along with some good traders here posting some strong setups, so absorb as much as you can, and make sure to participate/ask questions.
Would you kindly elaborate on the highlighted portion of your response. I didn’t quite follow you w/ regards to reward in relation to the height/size of the sing low prior to break out. Chart please, if you may.
I would love to trade other instruments to hone my price action/chart reading skills but indices and the likes are not available on my mt4 platform.
As suspected, the markets did not do much today and mostly just trotted in place, save for Crude Oil being the big mover today.
My radar is on the USDJPY where it is forming a price action squeeze pattern on the 4hr chart that you can see below. Between the USDJPY, EURJPY, and GBPJPY, this one is performing the best as its had the smallest pullbacks, suggesting it is well underpinned.
It also has formed a 20ema carry just under the 100.00 big figure, so a breakout seems likely either today or tomorrow. Buying at these levels seems precarious as most bulls will either wait for another pullback, or a breakout pullbacks setup, so watch the intra-day price action on the 4hr and 1hr charts for clues, but being long and rejoining the uptrend is the play.
I had a hard time digesting what you meant w/ the highlighted paragraph. All the while, I was thinking that the swing low you’re referring to was the little pinbar+piercing pattern just 2 candles prior to the break out candle off 1.0300.
That is why I cannot relate the connection w/ that swing low to the reward you are talking about. When I finally able to figure it out, it all does make sense to me.
The article you mentioned is another wonderful piece from you. It is one of your many write-ups that I compiled. I believe I am a trend trader and knowing what kind of trend the market is into is critical to my success.
Please pardon my lack of comprehension on the highlighted subject. Englsih is not my primary language.
This is why it helps to learn to read price action in real time, because then you can not be stuck using one static model to get into a good trade. There were definitely ways to get into this EU pin bar besides a fixed entry system.
okay, to be honest i missed my entry by a few pips, so i think i just need to enter a few pips before 50% next time to avoid being beaten to the finish again… but heres my chart, your input is appreciated.
What a trading day that was, I took a bite off the fundamental GBP/USD from an entry yesterday…good one:cool: but bit the dust after a long time on the EUR/USD…BE. did not see the pinbar coming…
Got my radar on Crude Oil which has been in an impressive bull run lately, gaining over $6.5 over the last 6 days, with the last two being heavily bullish.
On the 4hr charts below, the pair just formed an inside bar setup which is generally a good with trend setup when such a small bar forms. Its more ideal if its at the top of the A bar (bar prior to inside bar), but a break of the highs sets up an attack on 94.50 and potentially 95.75 if it clears the first hurdle.
