Understanding Price Action by Chris Capre

Ha, yeah, well the PM did sell off about $40 if you see the intraday chart
but rebounded in the end a good chunk
now sliding some more

What do we expect for Gold now? What are the key resistance level for short breakout? 1448?

This was the original post:

Hi All,

Thanks for the warm welcome!! And mr. Capre thanks for the invitation to question your method in more detail or on points which are not clear to me.

Let me start with the first one:
How do you enter your trades? For instance in your chart on euro you pinpoint the resistance and support levels. Do you trade them based on pending orders or do you wait for confirmation from the levels.

Me myself am relatively defensive in my trading, maybe to defensive. Most of the time I put my orders (pending) on the latest key role reversal level or at the low (support) of the range that is broken. For instance my level on yen, since last week, was at 97,30 with sl at 96,85 and cable at 1,5270 with sl at 1,5240. Both missed my trigger by some pips.

Happy pipping,
Rob

Still slow and in a short term uptrend. So I cannot identify possible levels . But we can expect some action sooner.

Definitely we can expect the fundmentals at the US open to move this price overā€¦I am counting on a short on this PM but today is a day when we watch the market more than trade itā€¦Lets wait for Draghiā€™s chantsā€¦:37:

hi Grix,

Are you in Montreal Canada? What are you trading hours than, during your sleeping hours

Happy pipping,
Rob

Hello Flashmark,

Gold still has key resistance level at 1480/84 for now, but it seems to be liking the comments out of Draghi about neg. deposit rates me thinks. Downside support still comes in at 1448, but the push higher in gold is definitely being fueled by draghi comments

Hello Rob,

Ok thanks for reposting this for me.

Your question is not just a simple straight forward one, because I donā€™t just have one entry trick in my toolbox. I have models/systems/strategies for trading price action, and depending upon which one activates would determine how I enter.

I have both market order systems and entry order (pending order) systems.

Sometimes I trade role reversal levels, sometimes I trade breakouts. Sometimes I trade the levels, sometimes I wait for confirmation (depending upon the price action surrounding the move). Really just depends upon the price action in real time, how my models are viewing the price action, then I determine whether I need missiles or guns.

Hope this helps.

Kind Regards,
Chris Capre

Hello Chris,

I saw the XAUUSD chart when the previous candle hasnā€™t been formed yet. To me, the highlighted area is a good place to short as it offers at least 2:1 reward to risk ratio.

As we can see, the current candle pushed thru w/ the zone. You are absolutely correct in being adamant w/ your resistance at 1484.

May I know what were you seeing that I didnā€™t from an order flow perspective.

Thanks.


Hi Mr. Capre,

Thanks for the reply. Butā€¦ā€¦ (ha ha)

During the webinars I got the impression that you have limited screen time and Iā€™m aware of the fact that you have several systems (short as well long tf systems). But Iā€™m only interested in the longer tf (from 1hr and above). I specific want to know from you, the levels you mentioning in your webinars or in your daily suggestions, so the levels you are watching (support or resistance) on the 4hr tf, do you take them with pending or are following the price action by sitting in front of your screen (so a lot of screen time)?

In one of your webinars, you replied to a question from the audience that you are just watching the charts a couple of times a day. Limit that time to a bare minimum, so you can have a life besides trading!

Happy pipping,
Rob

Hello Rob,

I do intra-day trading from NY open to London close.

Then set-and-forget trading after NY daily session close (so only a few hours in my evening).

So limited screen time for set-and-forget, but active during the morning.

But I donā€™t look at it like having a life outside or inside of trading. I choose to spend my time any way I want, whether thatā€™s working or not, vacationing or not, trading or not. I like trading, both intra-day or set-and-forget, so for me, I donā€™t look at trading as some torture and that everything outside of it is having ā€˜a lifeā€™.

My life is my enjoyment of what I do (work or play), and trading is not torturous for me. Its enjoyable, challenging, and engaging.

Yet I also try to have time away from the screens to engage in other activities. Both are useful to me and a part of my growth.

I know this is more of an answer than you wanted, but I felt the necessity to clarify it.

So to sum it up - both pending and market orders.

Hope this helps.

Kind Regards,
Chris Capre

The mark of a successful trader - balance.

I can confer that my trading dramatically improved when I started having balance in life and started enjoying life moreā€¦ But that only happened when I started seeing results with my trading.

As far as intraday trading is concerned, because I live in London, I trade a few hours before the London open to a few hours after the London close.

Just my views.

Apex.

UUMMHā€¦Balance in life and tradingā€¦simply a necessityā€¦
Since I learned how to walk away from the screen, I now own a gaming parlor and you can guess what I do during much of the time when the market is looking all crazyā€¦:59:
Although I am awake during the three sessions, I majorly trade Europe and the US openā€¦
Nice balance Chris and Apex

Thanks mate, must be pretty cool to be awake for all the sessions, and gaming business? Very cool! Sounds like a good balance to me. Well done! hope its all going well for you!

Apex.

Hello Traders,

Yesterday in my market commentary, I posted a false break + pin bar signal on the Euro, specifically talking about how the pair failed to hold above the key resistance and swing high at 1.3200.

The fact the pair had rejected after breaking above, and then closing below the 1.3200 level setup a short signal opportunity where I recommended getting short at 1.3200.

The pair went a few pips above, and then sold off about +140 pips as you can see from the chart below, so hopefully you profited from that.


Iā€™m expecting more downside, but also trading should be muted a few hours before the NFP tomorrow, so pullbacks towards 1.3127 could be looked at to sell a move lower prior to the NFP announcement.

After that - all bets are off so good luck tomorrow.

Kind Regards,
Chris Capre

Hello Chris,

Nice to hear that you are having a well balanced life. I still remember during my early trading days, I used to watch the screen more than 16 hours per day. Sometimes without a single trade. Later I realized that this is a waste of time and I learned set and forget method. That is a very good technique specially for me to remove emotions to let the winners run and cut the losses early.

Now I trade less than 04 hours per day, mostly in the early London session and after NY open.

Hello Chris,

Good day to grab a few pips from EU shorts. I am waiting for a possible retracement may be early in the London session to take a short opportunity. Good luck to you and other traders as well.

Brendan

Hey Guys the EU is seems to be fueling after yesterdayā€™s -ve interest chantsā€¦all geared up for another shorting opportunity to close the weekā€¦

Hi mr. Capre,

Thanks for the extended answer and to have us insight in your trading schedule.

Like Brendad mentioned, I was there to trade the 10 to 12 hours a day on lower timeframe waiting for signals based on some indicators. I do not qualify trading as a torture but sitting 10 to 12 hours and waiting for signals, is torturing yourself in my opinion.

My trading on lower tf (5 min or even less) is devastating to me. It seems that I always choosing the wrong direction. I even have tried to trade contraire. But even that did not worked out. So for now I leave the lower tf although I would like to master it because it can be so profitable. And Iā€™m sure that one day I will!!!

Currently I analyze my charts after Londen close during the late US session. I set or adapt my levels with SL and put pending orders in the market. During the day I just watch the market a couple of times a day to see if my orders are triggered and to see if I have the expected reaction to the levels. The disadvantage of the method is that you need quite large sl most of the time (averaging around 50) cause of possible overshoot or stophunting. This means that to get a good RR the market has to move quite a bit.

I really admire your way of trading the 4 hr tf. As you showed us in the webinars it is based on just some 4hr candles, while my style is based on 4hr fractal trading. And during times of large 4hr ranges or if the market is strongly trending without significant retracement, it is hard to get my entries. Maybe I have to change from setting levels pending towards knowing the levels, see if they are holding and trade the retest or the pull back towards the formal level. This would indicate that I more have to read the order flow around the levels than to just let my trading depends solely based on support (demand) and resistance (supply).

Once again many thanks for your time to answer my question more extended, really appreciate it.

Happy pipping,
Rob

Hi mr Capre,

Great call on the euro yesterday! Congratz.

But pls can you clarify to us why you think is it is going further down and not qualify the move as break out retest of the 3050 level. Last week we have left this level in a, accordance to me, impulsive way (even with a weekend gap). Currently we are still above the 20 ema.
Why is this not a place that the market (read institutions) will buy in on the cheap?

Is it because of the false break out on the topside? That probably a lot of money is long and has to turn and further fuelling the move down? But is this not the case in every break out pull back? There is only one big 4 hr candle down with till now, from the close of London till now (just before London open) no substantial follow up from the sellers (nor buyers although they manage to absorb the further selling pressure during the period after London close).

Thanks for your time in advance!! Hope to speed up my learning process by not only react based on other peoples advices but would like to learn from them by understanding their thoughts. As Anthony Robbins always says, it is better to mirror successful people first and after that you can start adapting it with your own style.

Happy pipping,
Rob

P.S. if Iā€™m annoying or in a sense bothering you with my more than ā€œnormalā€ questions, pls let me know and I move on!!!