Hi guys, sorry I havent posted for a while… Its been a very busy time for me recently…
But I have continued to follow the thread (so I dont miss out on anything!) And you guys are talking about risk management again?
My opinion is that as traders, we are actually risk managers, I move the stop to BE 0.5 risk reward into the trade…
Yes, the market does often continue for a dash after hitting you out at breakeven…
However, for me, accuracy is important, and I know that my performance on Chris’ risk of ruin tables is VERY insane indeed, and therefore, I dont think I need to worry about anything.
But I guess it depends on your system, maybe trend traders shouldnt move to BE so early because you might have to wait a while before a trend matures… But it all depends on your systems.
Hello Katerina, welcome to the best Price Action Thread. Here we are all winners!
To prevent such from happening, you should always give your trades some little breathing space. IE dont move your stop loss to BE until the first retracement has been completed. This way your SL at BE is unlikely to be hit any time soon.
Again welcome to the thread, its always good to have a new member.
Great analysis, I dont trade oil… But your right in that the pin bar was not a very good one… The main problem for me is that it did not form at the end of a move, but rather in a sort of range bound environment.
So yeah, pin bars need to form at the bottom of a move to have any significance for me.
Had a fantastic morning session… AUDUSD and EURJPY were the highlights of the session for me grabbing me almost 20 risk reward with my shorts… So another rewarding day… If this continues, I will be trading this with my live account in no time!
Im not going to be able to post an afternoon session of trading today due to other working commitments, anyhow, Im off to the Mosque now for Jummah prayers, and I want to wish you all a blessed and enriched Friday, however you decide to spend it.
Hello Apex, didn’t know you had trades today. Me am done for the month and now reviewing the trade journals of the month. Be back to the market on Monday. Nice weekend!
It should be noted pin bars in a range are workable - being in them does not preclude their success or failure.
The first pin bar worked out well, and would have been a good one to trade.
It was the recent price action leading into the second pin bar that told me a no-go, not the fact it was in a range, which would actually have been workable by itself - if it didn’t have the accompanying impulsive selling leading into it.
Gracias for the clarification, personally I wouldnt have taken either pin bar because I dont trade ranges, and I dont take reversals close to value either…
Infact, given recent performances, I need a new challenge for the market to engage me furthur, a new objective, since making money is easy enough, I want to master other forms of trading aswell.
I know that the market ranges something like 80% of the time… Maybe I should start looking at how to effectively range/breakout trade… Range/breakout trading has always been an area of weakness for me, and maybe now is the time to address that.
I dont know if youve written your weekly article, but maybe one on range trading would be a great idea.
I’m sorry, but this makes no sense. A full time trader makes all of his money from trading, so if you are on demo you cannot be a full time trader. Unless you are being sarcastic?
Hi bull4ace
My apologies, I should have thought of that. Sorry for the misunderstanding and I hope your situation improves.
At least you have a lot of time to learn.
Actually I was in a similar situation about two years ago, and I also spent most of my time on demo. But I wasn’t as advanced then as you are now, so I’m sure you’ll do well. Looks like you are in the right place too.
Keep it up
A new week has started, and more chances to profit - make money.
One chart that looks particularly interesting to me is the bearish engulfing bar setup on the gold daily chart. Notice how the last two bull runs have shown weaker angles from the 1st to the 2nd - suggesting the gold bulls may be running out of steam to push back on the bearish pressure.
The bearish engulfing bar to end the week sold off over $35 in 16hrs rejecting at $1420. Corrective intra-day pullbacks into $1415 can be viewed as a bearish signal to sell short, targeting 1387 and 1363. Bulls will need to take out 1420 for more upside, or wait for a bigger pullback towards 1363 and 1335.
Interesting analysis there but one I have to agree with. I do like the way you judge trend strength. Its pretty basic but yet from what I can tell effective.
The short term resistance zone coincides with the EMA 20 acting as potential trend continuation area. After the bearish engulfing on D1, reversal around the 1400 area may take us back to 1350
I wonder how many of us have the South African Rand on their charts. Probably a few? Or none? Well just a heads up to all the Price action traders out there. A strong pinbar on the D1 closed last week and this is an excellent opportunity to go short for long term traders out there.
Chris, I am gonna need a commentary on this one!
USDZAR??? Haven’t traded this one me thinks
but it looks workable
Emerging market currencies have been getting killed lately, and the ZAR was not spared this
with such an imbalanced trend, id rather wait for a second touch on the level, perhaps a LH (lower high) before getting short as we don’t have much evidence (save the pin bar which is one bar in about 20) showing any counter-trend players
So i’d wait for more counter-trend PA before getting short.
