Understanding Price Action by Chris Capre

[ApexPredator]

Hello Apex,

Looks like you are trading lower time frames.

Use any indi with price action or only do price action trading ?

Yeah, mainly pa patterns, and a mix of indicators I designed myself and popular one like parabolic SAR and moving averages.

[ApexPredator]

Who says I don’t trade summer? I trade it all the time, just a bit less.

And as to the 10+RR trade, do you have a screenshot from your broker showing the actual trade?

If you can, share screenshots of trades you take with actual lines from the broker showing entry/exit so we can all see. All the others are doing it, and seeing the actual trade from the broker chart helps to inspire confidence in others, so if you can, would be appreciated.

Kind Regards,
Chris Capre

Im using the babypips app right now on my phone, but tommorow, ill post a screenshot of entry and exit… If you remember from a while back I said I was demoing a 5 minute system, well its the same system and it appears to give me good winners on a daily basis.

So look forward to that. If you look at a AUDUSD 5 minute chart, youll clearly see the bull move Im talking about. I dont have fixed stops, it all depends on how big the trigger candle is.

Btw: For babypip app developer, you need to add in a feature to like other peoples posts, because right now I cant do that on your app!

[2ndSkiesForex]

Im using the babypips app right now on my phone, but tommorow, ill post a screenshot of entry and exit… If you remember from a while back I said I was demoing a 5 minute system, well its the same system and it appears to give me good winners on a daily basis.

So look forward to that. If you look at a AUDUSD 5 minute chart, youll clearly see the bull move Im talking about. I dont have fixed stops, it all depends on how big the trigger candle is.

Btw: For babypip app developer, you need to add in a feature to like other peoples posts, because right now I cant do that on your app!

are you using MT4 or what platform are you using?

[2ndSkiesForex]

@sandlent

After bagging +193 pips yesterday, I took another shot at the USD/JPY pair and bagged another 96 pips today.

I could’ve had more but I had to be away from the computer for a bit so I set a take profit target just above yesterdays support and walked away.

Right now it only equates to only a few dollars profit with trading 1 micro lot but when I start making consistent trades then I will increase the lot size. The knowledge that I am getting is far more valuable than the dollar amount at this point.

Some very nice trading sandlent. Good snag on another with trend trade. Entry and target were really well done.

And yes, very good attitude about being focused on the knowledge building and process first. I just wrote an article on my site about this, and the fastest way to become successful at trading - so well done on your part.

Kind Regards,
Chris Capre

[ApexPredator]

are you using MT4 or what platform are you using?

We had this talk before if you remember? But again, I use MT4 for charting, but I actually execute using my brokers order form/ticket, which works for me.

So ill post a screenshot of my MT4 chart tommorow.

Hope that helps.
Apex.

[2ndSkiesForex]

We had this talk before if you remember? But again, I use MT4 for charting, but I actually execute using my brokers order form/ticket, which works for me.

So ill post a screenshot of my MT4 chart tommorow.

Hope that helps.
Apex.

Interesting
So you actually have nothing on your broker chart which shows the actual entry and exit other than lines you draw?
If I’m correct, MT4 has a feature you can go into the activity log or journal, and it will pull up the chart with the actual entry and exit.

But if its just lines, no need mate, as I like people to see the actual charts from the broker which gives them confidence they can do it when they see real trades from the brokers charts. This actually activates ‘mirror neurons’ in a person’s brain, which help their brains to do successful trades as well - hence why I want people to see the actual broker showing the entry and exit.

Kind Regards,
Chris Capre

[TradeViper]

“When you are trading a 5m chart, a 30m chart, a 1hr, chart, or ANY time frame chart - you are always using the context/story around the price action (be it a pin bar, inside bar, engulfing bar, etc.) to validate the actual signal.”

Mr. Capre, at the risk of sounding like a “chin wiping fanboy”. You usage of the term "Context’ is excellent. I would like to add to this “premise”, IE pin bar etc. Every trader should know three things before entering a trade, Risk/Stop, Context, and Premise.

The Ever Pibe VIPER

[2ndSkiesForex]

“When you are trading a 5m chart, a 30m chart, a 1hr, chart, or ANY time frame chart - you are always using the context/story around the price action (be it a pin bar, inside bar, engulfing bar, etc.) to validate the actual signal.”

Mr. Capre, at the risk of sounding like a “chin wiping fanboy”. You usage of the term "Context’ is excellent. I would like to add to this “premise”, IE pin bar etc. Every trader should know three things before entering a trade, Risk/Stop, Context, and Premise.

The Ever Pibe VIPER

Hello TV,

Very well said Viper - could not agree more on the three things you mention being necessary before each trade.

And thanks for the positive comment.

Kind Regards,
Chris Capre

[2ndSkiesForex]

Hello Traders,

So I’ve been discussing over the last few days, buying the EU and GU on dips into dynamic support. yesterday I recommended a buy on EU around 1.3250 and the 4hr 20ema. This played out to the tee (see chart below), bouncing over 90pips from the dynamic support - so hopefully you profited from this.

If the model still holds, traders not already long can look for pullbacks into 3300 and 3275, targeting 3350 and 3450.

Good hunting.

Kind Regards,
Chris Capre

[flam]

Hello Flam,

I’m expecting pullbacks to be bought. It may or may not manifest as a squeeze, but I’m expecting them to be bought which they have thus far.

Kind Regards,
Chris Capre

I see. Thanks for the insight. I’m currently in a bad position, i shorted at 13197 as it looked like it was about to return to the norm at 12997. Now it doesnt appear to be so until it goes to 1.34x before turning to visit 127 again?

[2ndSkiesForex]

I see. Thanks for the insight. I’m currently in a bad position, i shorted at 13197 as it looked like it was about to return to the norm at 12997. Now it doesnt appear to be so until it goes to 1.34x before turning to visit 127 again?

Hello Flam,

Well its hard for me to comment because I don’t know the strategy you used to get in.
Did it have a stop? Has the stop still not gotten hit?

Reason I ask is, it looks like you had a 200 pip target, and although not sure of your stop, it seems like a 200 pip stop, thus making the R:R about 1:1.

If thats the case, did you risk a fixed % of your acct to start off with? Did you accept the risk from the outset?

Perhaps you can answer a few questions before I respond.

Kind Regards,
Chris Capre

[flam]

Hello Flam,

Well its hard for me to comment because I don’t know the strategy you used to get in.
Did it have a stop? Has the stop still not gotten hit?

Reason I ask is, it looks like you had a 200 pip target, and although not sure of your stop, it seems like a 200 pip stop, thus making the R:R about 1:1.

If thats the case, did you risk a fixed % of your acct to start off with? Did you accept the risk from the outset?

Perhaps you can answer a few questions before I respond.

Kind Regards,
Chris Capre

I have been trying to read up on PA strategies and it appears to me oddly that if the price gets higher, the bigger the fall later albeit the larger the distance the longer the time taken. I’m still quite new to this so figuring out RR ratios is kinda confusing. I once had 40pip target with 40pip SL trading intra day but i keep getting stopped out only to have the price return to my TP and even lower.

So it may seem silly but I’m thinking if I have a larger draw down I will aim a bigger TP? I’m prepared to blow my first trading account to learn so that gets the monetary psychology out of the way first.

[2ndSkiesForex]

I have been trying to read up on PA strategies and it appears to me oddly that if the price gets higher, the bigger the fall later albeit the larger the distance the longer the time taken. I’m still quite new to this so figuring out RR ratios is kinda confusing. I once had 40pip target with 40pip SL trading intra day but i keep getting stopped out only to have the price return to my TP and even lower.

So it may seem silly but I’m thinking if I have a larger draw down I will aim a bigger TP? I’m prepared to blow my first trading account to learn so that gets the monetary psychology out of the way first.

Hello Flam,

I think its not the best idea to go with the idea ‘oh, its climbed so high, so it has to fall farther’. This is not by any means the case. Price doesn’t have to do anything but follow the order flow.

I think you need to draw a line in the sand and say (ok, i’m not going over 1:1 R:R), and then if you get hit - you get hit.

Also, notice how much time, energy and mental capital this trade is taking from you? You need to be focused on new trade opportunities, not playing damage control.

So set a stop, and then just let it hit TP or SL so you can move on. Other options are; 1) just close it and move on. it only has 45pips to go 1:1 negative, yet 360+ to hit TP or 150 just to get to BE, other option is 2) find an area where you can get some of your losses back, exit - then move on.

Hope this helps.

Kind Regards,
Chris Capre

[flam]

Hello Flam,

I think its not the best idea to go with the idea ‘oh, its climbed so high, so it has to fall farther’. This is not by any means the case. Price doesn’t have to do anything but follow the order flow.

I think you need to draw a line in the sand and say (ok, i’m not going over 1:1 R:R), and then if you get hit - you get hit.

Also, notice how much time, energy and mental capital this trade is taking from you? You need to be focused on new trade opportunities, not playing damage control.

So set a stop, and then just let it hit TP or SL so you can move on. Other options are; 1) just close it and move on. it only has 45pips to go 1:1 negative, yet 360+ to hit TP or 150 just to get to BE, other option is 2) find an area where you can get some of your losses back, exit - then move on.

Hope this helps.

Kind Regards,
Chris Capre

Thanks… that sounds like good advise… I also understand that new traders like me should focus on 1 currency pair first…
The E/U pair seems to be on a strong up trend since last week of may. but it looks like its gonna complete wave 5 of the Elliot Wave targeting 1.3475? I have a fib 61 level there down swing from july 2008 to may 2010.

will a short there give a good RR? assuming the fib levels provide rejection…

[2ndSkiesForex]

Thanks… that sounds like good advise… I also understand that new traders like me should focus on 1 currency pair first…
The E/U pair seems to be on a strong up trend since last week of may. but it looks like its gonna complete wave 5 of the Elliot Wave targeting 1.3475? I have a fib 61 level there down swing from july 2008 to may 2010.

will a short there give a good RR? assuming the fib levels provide rejection…

Two things;

1. I don’t trade elliot wave so cannot comment on that.

2. why are you looking for shorts when you’ve recognized its in a good uptrend?

Trade with the trend as much as possible.

Hope this helps.

Kind Regards,
Chris Capre

[ApexPredator]

Interesting
So you actually have nothing on your broker chart which shows the actual entry and exit other than lines you draw?
If I’m correct, MT4 has a feature you can go into the activity log or journal, and it will pull up the chart with the actual entry and exit.

But if its just lines, no need mate, as I like people to see the actual charts from the broker which gives them confidence they can do it when they see real trades from the brokers charts. This actually activates ‘mirror neurons’ in a person’s brain, which help their brains to do successful trades as well - hence why I want people to see the actual broker showing the entry and exit.

Kind Regards,
Chris Capre

Fair enough, I understand… 10+RR does sound dubious, I tell you what though, ill set up a FXCM demo, because I really dont like executing on the MT4 platform, and I couldnt stand being called a liar, if thats what your suggesting?
But I understand in any case, ill open a FXCM demo since they show entry and exit.

Hope that helps.
Apex.

[2ndSkiesForex]

Fair enough, I understand… 10+RR does sound dubious, I tell you what though, ill set up a FXCM demo, because I really dont like executing on the MT4 platform, and I couldnt stand being called a liar, if thats what your suggesting?
But I understand in any case, ill open a FXCM demo since they show entry and exit.

Hope that helps.
Apex.

thanks mate
tis appreciated

[piptronix]

Hi Chris

A few days ago you mentioned a write up about consistency, is this still going to happen, or are you waiting for more responses first?

[flam]

Two things;

1. I don’t trade elliot wave so cannot comment on that.

2. why are you looking for shorts when you’ve recognized its in a good uptrend?

Trade with the trend as much as possible.

Hope this helps.

Kind Regards,
Chris Capre

I can go long till the fib level but it has held a few times so my guess is that I should exit there and maybe watch?

[GRIX_FX]

I see. Thanks for the insight. I’m currently in a bad position, i shorted at 13197 as it looked like it was about to return to the norm at 12997. Now it doesnt appear to be so until it goes to 1.34x before turning to visit 127 again?

Hello Flam, and why are you still in a bad trade with so many chances on the upside? Don’t be weighed down by the disposition effect. Cut it and move on!