Understanding Price Action by Chris Capre

[2ndSkiesForex]

@perryfx

Hello Guys,

We have new members here. Welcome everyone.

I long UJ off the double bottom and NFP pushed UJ to further high. I am going to hold this long for a while. Hope you guys got some pips this week. See you on next week.

This is a great trade, buying at a good level, lots of wick rejections - too many to be discounted (likely accumulation), then strong buying in one bar after, so likely continuation - overall a great play so well done (golf clap).

Kind Regards,
Chris Capre

[ApexPredator]

Hi Perry,

Great trade! I sold my long position just under the 99 by the first signs of rejections of the resistance around 99,20. Got a bit more than a 1:3 on that one.

Hi Apex,

Nice achievement!! Nothing is better than having consistency in your trading!! Is this only 4 hr trading or also intra day trading?

Have a nice weekend all.

Happy pipping,
Rob

Hi Rob, Its mainly intraday, however it is possible to get 10+RR on 4 hour with pin bars and outside bars.

Happy trading.

[ApexPredator]

Hello Guys,

We have new members here. Welcome everyone.

I long UJ off the double bottom and NFP pushed UJ to further high. I am going to hold this long for a while. Hope you guys got some pips this week. See you on next week.

<img src=“301 Moved Permanently”/>

Quality trade mate! Well done! Personally dont like holding weekend positions, but hope it works out for you.

[SimonTemplar]

why did the double top form the top and the low in the place it did? thought about that, then the double top becomes less important to your trading and the reason for the double top becomes more important then the double top itself. Therefore your very intention to enter on the double top was formed after traders entered and took profits and the levels that resulted in them leaving a double top in there wake. Therefore does that mean for some simple reason traders set there take profit area some hour before on the high of the top! so by taking into account your reference to a double top being a major event for entry. For sure it was a good formation. But its a trade on the result of some clever traders leaving that formation in there wake. Trading is awesom

I didn’t understand the sentence ‘so by taking into account your reference to a double top being a major event for entry’, that doesn’t make sense, sorry.

But obviously you are absolutely right that there is a reason behind every formation, and I also agree that trading is awesome - as long as we each of us trade consistently and mechanically within the context of our own effective then we can each make money. Just the last few posts of this thread illustrate that: I made money short USD/JPY, Perry made money long the same pair. What’s not to love!

So I agree with you, I think, although I don’t understand that one sentence.

ST

[dennis14685]

I didn’t understand the sentence ‘so by taking into account your reference to a double top being a major event for entry’, that doesn’t make sense, sorry.

But obviously you are absolutely right that there is a reason behind every formation, and I also agree that trading is awesome - as long as we each of us trade consistently and mechanically within the context of our own effective then we can each make money. Just the last few posts of this thread illustrate that: I made money short USD/JPY, Perry made money long the same pair. What’s not to love!

So I agree with you, I think, although I don’t understand that one sentence.

ST

From the way I trade which is not unique at all as it standard for hedge funds, I trade monthly and weekly pivots with mid points. Every thing that happans between those points seems to be crowd following, Seems all trend start on those pivots and end on the next one. So H/O is just normally a formation on a major pivot level (Offcourse not the Rule) so bascially if I am at S1 weeekly im going long, if im at R1 weekly I am going short if thats counter to current trend. Between those pivots in general I see price action as just fresh air what ever the formation or trend. Im looking at the market, Buying one level to the next. So offcourse it will not always work out the 200 pip move over the day to next level. But covering some profits and first opportinity and letting the rest run for TP at next pivot basically means the entry is covered and you have peice of mind to leave the trade to run. If I sit and watch I am going to close early. 80 pip trades soom become regular and 200 pip trades then happan sometimes once a week. and average trade 15 to 30 pips. more then plenty to survive.

So my point is, Im not right I am just saying, I used to follow trends, I used to follow chart patterns even on micro level candle stick formations. Then I learned from someone else that aint the big picture. So for me to survive in this Forex landscape we all have to be sceptical. Chart patterns and formations taught me that lesson expensively. The way I see it, hay this is me, Im not right but how i Trade, I dont care about anything that happans with price action unless its at a major level in which I would consider entering a trade. And once in profit taking half profit and covering stop, I do not care about any impulse legs or pullbacks. I se the Target based upon pivot and entry based upon pivot and everything else once im in profit is just noise. So I walk away and check my trade later on before bedtime. That to me is trading a bigger picture. Thats just me, there are others that will disagree. Im sharing only, I normally get hounded on this site but I will help anyone.

[SimonTemplar]

From the way I trade which is not unique at all as it standard for hedge funds, I trade monthly and weekly pivots with mid points. Every thing that happans between those points seems to be crowd following, Seems all trend start on those pivots and end on the next one. So H/O is just normally a formation on a major pivot level (Offcourse not the Rule) so bascially if I am at S1 weeekly im going long, if im at R1 weekly I am going short if thats counter to current trend. Between those pivots in general I see price action as just fresh air what ever the formation or trend. Im looking at the market, Buying one level to the next. So offcourse it will not always work out the 200 pip move over the day to next level. But covering some profits and first opportinity and letting the rest run for TP at next pivot basically means the entry is covered and you have peice of mind to leave the trade to run. If I sit and watch I am going to close early. 80 pip trades soom become regular and 200 pip trades then happan sometimes once a week. and average trade 15 to 30 pips. more then plenty to survive.

So my point is, Im not right I am just saying, I used to follow trends, I used to follow chart patterns even on micro level candle stick formations. Then I learned from someone else that aint the big picture. So for me to survive in this Forex landscape we all have to be sceptical. Chart patterns and formations taught me that lesson expensively. The way I see it, hay this is me, Im not right but how i Trade, I dont care about anything that happans with price action unless its at a major level in which I would consider entering a trade. And once in profit taking half profit and covering stop, I do not care about any impulse legs or pullbacks. I se the Target based upon pivot and entry based upon pivot and everything else once im in profit is just noise. So I walk away and check my trade later on before bedtime. That to me is trading a bigger picture. Thats just me, there are others that will disagree. Im sharing only, I normally get hounded on this site but I will help anyone.

Interesting stuff, thanks for expanding on that. I have weekly and monthly pivots on my charts, I have the midpoints, too, although font directly trade them - I keep the, toggled off to keep the chart clearer, then once I have spotted a setup I toggle on the midpoints to see whether there’s a reaction there, so effectively I am using them as hidden S&R.

But that’s an interesting take on some of the things I already have on my chart - I basically trade EMAs and the Monthly Pivot, with a little Fib and looking for divergence - so I’ll look into stuff. Thanks very much for sharing. I happily hold trades over weekends/weeks, so anything that helps me with that is very welcome.

Most of us get hounded from time to time, I just try to stay fair and balanced and it keeps most of it down.

Anyway, thanks again, I always like to hear a different perspective on the stuff I use.

ST

[dennis14685]

Interesting stuff, thanks for expanding on that. I have weekly and monthly pivots on my charts, I have the midpoints, too, although font directly trade them - I keep the, toggled off to keep the chart clearer, then once I have spotted a setup I toggle on the midpoints to see whether there’s a reaction there, so effectively I am using them as hidden S&R.

But that’s an interesting take on some of the things I already have on my chart - I basically trade EMAs and the Monthly Pivot, with a little Fib and looking for divergence - so I’ll look into stuff. Thanks very much for sharing. I happily hold trades over weekends/weeks, so anything that helps me with that is very welcome.

Most of us get hounded from time to time, I just try to stay fair and balanced and it keeps most of it down.

Anyway, thanks again, I always like to hear a different perspective on the stuff I use.

ST

I really like that, I guess you got the monthly long EU NFP, I Took the short side down from weekly missed the long, tunnel vision taking profit on the short. Im using SMA and not EMAs filters. 20 -50 -200 and adding RSI at 5 the rest standard but the Levels expanded to 85 15. Not the grail but I take note of the RSI only only trade against it in rallies. And I trade with the trigger on the 15 min chart for entries.

really i want to see that box formation around the pivot to enter, but on a fast impulse move i dont mind selling first touch. thank you for sharing…

[2ndSkiesForex]

From the way I trade which is not unique at all as it standard for hedge funds, I trade monthly and weekly pivots with mid points. Every thing that happans between those points seems to be crowd following, Seems all trend start on those pivots and end on the next one. So H/O is just normally a formation on a major pivot level (Offcourse not the Rule) so bascially if I am at S1 weeekly im going long, if im at R1 weekly I am going short if thats counter to current trend. Between those pivots in general I see price action as just fresh air what ever the formation or trend. Im looking at the market, Buying one level to the next. So offcourse it will not always work out the 200 pip move over the day to next level. But covering some profits and first opportinity and letting the rest run for TP at next pivot basically means the entry is covered and you have peice of mind to leave the trade to run. If I sit and watch I am going to close early. 80 pip trades soom become regular and 200 pip trades then happan sometimes once a week. and average trade 15 to 30 pips. more then plenty to survive.

So my point is, Im not right I am just saying, I used to follow trends, I used to follow chart patterns even on micro level candle stick formations. Then I learned from someone else that aint the big picture. So for me to survive in this Forex landscape we all have to be sceptical. Chart patterns and formations taught me that lesson expensively. The way I see it, hay this is me, Im not right but how i Trade, I dont care about anything that happans with price action unless its at a major level in which I would consider entering a trade. And once in profit taking half profit and covering stop, I do not care about any impulse legs or pullbacks. I se the Target based upon pivot and entry based upon pivot and everything else once im in profit is just noise. So I walk away and check my trade later on before bedtime. That to me is trading a bigger picture. Thats just me, there are others that will disagree. Im sharing only, I normally get hounded on this site but I will help anyone.

Hello Dennis,

I appreciate you sharing your thoughts on pivot points - however this thread is focused on price action, so as per the forum thread rules in the beginning, I’d like to keep it that way.

This thread is being used to talk about how to trade price action, and I’m not just talking about price action patterns as those by themselves are a sophomore way to look at price action (imo). I’m talking about understanding the order flow behind the price action in real time, particularly at key levels, which is where the largest clusters of orders will be.

So if you want to discuss price action, order flow, or the techniques as part of this thread - you are welcome to share.

Otherwise, I’d ask you to keep discussions of pivot points to other threads which focus on that particularly, so the content, ideas, and things being discusses/taught in here are succinct.

Thanks in advance for your help on this.

Kind Regards,
Chris Capre

[2ndSkiesForex]

Interesting stuff, thanks for expanding on that. I have weekly and monthly pivots on my charts, I have the midpoints, too, although font directly trade them - I keep the, toggled off to keep the chart clearer, then once I have spotted a setup I toggle on the midpoints to see whether there’s a reaction there, so effectively I am using them as hidden S&R.

But that’s an interesting take on some of the things I already have on my chart - I basically trade EMAs and the Monthly Pivot, with a little Fib and looking for divergence - so I’ll look into stuff. Thanks very much for sharing. I happily hold trades over weekends/weeks, so anything that helps me with that is very welcome.

Most of us get hounded from time to time, I just try to stay fair and balanced and it keeps most of it down.

Anyway, thanks again, I always like to hear a different perspective on the stuff I use.

ST

Hello Simon,

Good to have you back as it seems like a long time.

So not hounding you here, just asking if we can keep the content, discussions, ideas succinct as per the goal of this forum, which is to keep it contained around price action.

I do trade pivot points, but perhaps I’ll save that for another thread I’ll start in the future.

But for now, I appreciate you helping me keep the discussions in here focused on the topics of this thread.

And I’m sure you have ideas on trading price action, so you are welcome to share your price action trades here.

Thanks in advance.

Kind Regards,
Chris Capre

[dennis14685]

Yes Chris sorry mate understood and thank you for a great thread

Hello Dennis,

I appreciate you sharing your thoughts on pivot points - however this thread is focused on price action, so as per the forum thread rules in the beginning, I’d like to keep it that way.

This thread is being used to talk about how to trade price action, and I’m not just talking about price action patterns as those by themselves are a sophomore way to look at price action (imo). I’m talking about understanding the order flow behind the price action in real time, particularly at key levels, which is where the largest clusters of orders will be.

So if you want to discuss price action, order flow, or the techniques as part of this thread - you are welcome to share.

Otherwise, I’d ask you to keep discussions of pivot points to other threads which focus on that particularly, so the content, ideas, and things being discusses/taught in here are succinct.

Thanks in advance for your help on this.

Kind Regards,
Chris Capre

[2ndSkiesForex]

Yes Chris sorry mate understood

no worries at all mate.

and you are welcome to share your thoughts on the PA or any trades you made using PA principles if you use them, which it seems like you do to some degree.

but no worries at all

Kind Regards,
Chris Capre

[SimonTemplar]

Hello Simon,

Good to have you back as it seems like a long time.

So not hounding you here, just asking if we can keep the content, discussions, ideas succinct as per the goal of this forum, which is to keep it contained around price action.

I do trade pivot points, but perhaps I’ll save that for another thread I’ll start in the future.

But for now, I appreciate you helping me keep the discussions in here focused on the topics of this thread.

And I’m sure you have ideas on trading price action, so you are welcome to share your price action trades here.

Thanks in advance.

Kind Regards,
Chris Capre

Okay, sorry - I hope my Double Top trade counts, in future I’ll only answer the PA bits of questions in here and bump other stuff to PM. Yes, been a while - had a baby (well, my wife did) and I basically left BP during the whole ICT thing.

Anyway, sorry, will be more focused in future, I will leave it as read that when I take a PA trade one of the confluential factors I look for is often a Pivot. (I trade PA out if areas of S&R so had counted those areas (inc Pivots) as part of my PA-based trading.) I’ll be focused like a PA laser going forwards, I promise. Let me know if you want me to remove the posts.

Simon

[2ndSkiesForex]

Okay, sorry - I hope my Double Top trade counts, in future I’ll only answer the PA bits of questions in here and bump other stuff to PM. Yes, been a while - had a baby (well, my wife did) and I basically left BP during the whole ICT thing.

Anyway, sorry, will be more focused in future, I will leave it as read that when I take a PA trade one of the confluential factors I look for is often a Pivot. (I trade PA out if areas of S&R so had counted those areas (inc Pivots) as part of my PA-based trading.) I’ll be focused like a PA laser going forwards, I promise. Let me know if you want me to remove the posts.

Simon

No worries at all Simon. Totally not thinking about it anymore - and it was an innocent thing, with only good intentions.

But having a baby is definitely a good reason to be gone, so congrats on the new addition to the world.

I can see people leaving after ICT - a little dis-heartening and un-professional the way it was handled IMO.

But good to have you back and no need to remove the posts.

Kind Regards,
Chris Capre

[bobmaninc]

Kind of ironic Chris that you would be saying this. As I remember not on this thread the op asking pure price action setup on the daily to be mentioned and you went on there telling him the importance of the 15 min and his R:R

http://forums.babypips.com/newbie-island/48951-pure-price-action-trading-setups.html

So what is it is it ok for you to do it to others but not them do it to you? I get it and I wont derail your thread any more but you teach S/R and the orderflow around these levels do you not? S/R is S/R weather it be a 200 MA, pivot, trendline, fib or all of the above. Dont always have to be a straight line for it to be valid. I am sure you know that. So I dont see what the big deal is here. But its your thread so I will respect that and let you get back to the good work that you do.

[2ndSkiesForex]

Kind of ironic Chris that you would be saying this. As I remember not on this thread the op asking pure price action setup on the daily to be mentioned and you went on there telling him the importance of the 15 min and his R:R

301 Moved Permanently

So what is it is it ok for you to do it to others but not them do it to you? I get it and I wont derail your thread any more but you teach S/R and the orderflow around these levels do you not? S/R is S/R weather it be a 200 MA, pivot, trendline, fib or all of the above. Dont always have to be a straight line for it to be valid. I am sure you know that. So I dont see what the big deal is here. But its your thread so I will respect that and let you get back to the good work that you do.

Hello Bob,

I think there is a misunderstanding here.

The goal of this thread is to talk about price action, and various methods of using price action to trade the fx market.

Now have you ever really heard me once talk about pivot points on my own? No, not in this thread.

Now as said to dennis and simon, my goal was to get the conversation back to about trading price action, particularly the methods I’m constantly discussing, such as order flow, impulsive vs. corrective moves, types of trend, key areas where price has reacted before. The goal of keeping the conversation relatively succinct is to build a particular set of skills in this area.

I don’t have any problem with Dennis or Simon, but I noticed their conversation about pivot points was starting to build, so I merely wanted to re-direct the conversation to topics typically covered in this forum thread (pivot points, not being one of them), so hopefully that explains it.

However, if you feel like you want to bring the past up forever with impunity, it seems like eventually you are going to have to let that go. I apologized for that, and have not returned to that thread as promised. Is it fair to keep bringing this up ad infinitum till the end of time? I’m guessing you’d probably say not. At what point do we let it go? I don’t know the answer to this, but I think at some point soon, we have to.

But all in all, I feel I have been quite professional in how I have been communicating to Simon and Dennis about this, and they have been quite gracious in this as well.

So, unless you want to keep beating a dead horse, it seems like Dennis & Simon are more than happy to move on, and we can continue discussing and exploring the topics at hand.

Kind Regards,
Chris Capre

[ApexPredator]

Okay, sorry - I hope my Double Top trade counts, in future I’ll only answer the PA bits of questions in here and bump other stuff to PM. Yes, been a while - had a baby (well, my wife did) and I basically left BP during the whole ICT thing.

Anyway, sorry, will be more focused in future, I will leave it as read that when I take a PA trade one of the confluential factors I look for is often a Pivot. (I trade PA out if areas of S&R so had counted those areas (inc Pivots) as part of my PA-based trading.) I’ll be focused like a PA laser going forwards, I promise. Let me know if you want me to remove the posts.

Simon

Simon mate, Its seriously no big deal, dont worry about it, I talk about football on this thread which is less related to PA than pivot point trading!
Enjoy life with a new baby, new challenges await! And happy trading!

[ApexPredator]

Woop woop! Page 100 of the thread. Congratulations Chris! And here’s to 100 more! Its a shame page 100 is marred with controversy, although I guess thats what happens when you pack a forum with testosterone filled men! Haha.

Happy trading guys!

Apex.

[bobmaninc]

Wow congrats Chris. It is an honorable thread at that to. I have enjoyed following along.

Also dont worry about my harmless jabs from time to time. I just love to hate you. I remember I seen on you site you charged something like 450 an hour with you. For that I feel the need to waste your time everytime I get a chance. In the end though I cant knock your trading methods. They truly are solidand hey at least I am honest about it.

Now lets all get back to what we do best and continue trading. I got a couple setups that might be forming next week that go hand in hand with this method. If they show up I will post them. have a good weekend.

[GRIX_FX]

Wow congrats Chris. It is an honorable thread at that to. I have enjoyed following along.

Also dont worry about my harmless jabs from time to time. I just love to hate you. I remember I seen on you site you charged something like 450 an hour with you. For that I feel the need to waste your time everytime I get a chance. In the end though I cant knock your trading methods. They truly are solidand hey at least I am honest about it.

Now lets all get back to what we do best and continue trading. I got a couple setups that might be forming next week that go hand in hand with this method. If they show up I will post them. have a good weekend.

Hi Bob, you brought quite a storm here…welcome back on Monday and we can start a one-on-one on trading PA…
As per your confession the methods here are solid as a former students, I second you on that
…nice weekend sir!

[danyrexy]

Woop woop! Page 100 of the thread. Congratulations Chris! And here’s to 100 more! Its a shame page 100 is marred with controversy, although I guess thats what happens when you pack a forum with testosterone filled men! Haha.

Happy trading guys!

Apex.

well said Apex, no matter what controversy brews up here, the fact that we use these methods and make pips from them means that the noise does’nt mean nothing…hehe