Understanding Price Action by Chris Capre

[ApexPredator]

Okay, here is the AUDUSD 4 hour, some quick analysis I did… Dont trade off my advice, you have brains for a reason… And there is a double bottom so maybe the validity of this behaviour is invalid now… But if we break those lows I reckon we are on to something!

Apex.

[danyrexy]

Watching the EUR/JPY this morning and from a price action viewpoint, the pair has been thrown into yet another consolidation range between 128 and 125.00. Though already breached the EMA 20, the pair has found resistance around the upper barrier at 128.00 and has formed a number of candles indicating that the possible end of the bullish run, Including an engulfing pattern and looks all set for another journey down for a possible 200 pip drop to the minor support around 125.

DAny

[alanamc]

@ApexPredator

Okay, here is the AUDUSD 4 hour, some quick analysis I did… Dont trade off my advice, you have brains for a reason… And there is a double bottom so maybe the validity of this behaviour is invalid now… But if we break those lows I reckon we are on to something!

Apex.

Hello Apex,

I am also eying the same but low liquidity at the moment. Let’s see what we can get here

Cheers Mate

[alanamc]

Tried to long cable several times but grabbed only a few pips or SL hit at breakeven.

Though yesterday was bearish, Daily candle closed with a wick to the downside & failed to go below 1.5550 mark.

I am really interested to long the pair as we are on a previous R level and high possibility turned this level into a new support.

[TradeViper]

Folks, Bernanke speaks today, low volume = not much follow through. Be cautious

The Ever Cautious VIPER

[GRIX_FX]

Gotta say am looking at clear cut entries in front of the screen, but with bernanke on the way, guess we just have to enjoy the moment and watch CNBC…

Cheers guys

[ApexPredator]

Folks, Bernanke speaks today, low volume = not much follow through. Be cautious

The Ever Cautious VIPER

Yeah its a bit of a rubbish day, I hope theres going to be movement over the summer holidays, or Im going to be very un happy.

I think Im going to take the rest of the week off…

Thanks for the warning though, its appreciated.

Apex.

[ApexPredator]

Hello Apex,

I am also eying the same but low liquidity at the moment. Let’s see what we can get here

Cheers Mate

Hi mate, lets hope it works out!

[dollareuro]

Mr. Capre this response will have them burning you in effigy in Babypips town square…

The Never Burning VIPER

lol…

[dollareuro]

@sandlent

Looking at the daily EURUSD, looks like it is at a key resistance area. If its successfull at breaking it then its probably still a good idea to get into a long position after a pullback.

good pick up man…

[dollareuro]

Hello MNS,

So just a heads up - this thread is focused on PA, not ichimoku cloud. Now if you want to discuss the price action elements in a chart, feel free to do so, but if you can, help me keep this thread succinct.

Thanks in advance

Chris

I do not understand ichimoku till now! I see a green cloud after the previous red clouds so why not look for long after this red cloud! Why he is looking for short!

[dollareuro]

@2ndSkiesForex

Hello Traders,

Taking a look at the kiwi and the pin bar rejection off 7760. Notice the two days of buying after which were quite impulsive. But since then, the three days of selling haven’t even taken out the lows of the last bull bar. I suspect bulls are going to try and hold the line, and try and make a reversal out of this as short term, they are currently absorbing the selling pressure (chart below).

So I’ll look for buy signals between 7850 and 7815, targeting the big figure at 8000.

Good hunting for today.

Kind Regards,
Chris Capre

So the pin bar was a reversal PIN bar and a valid one! Is for for the reason that it has a long tail than the head? Sometimes tis type of PIN do give false signals, so I just want to know how (if any reason) you/we can judge whether it a valid signal or not? I mean what else make things clear!

[GRIX_FX]

So the pin bar was a reversal PIN bar and a valid one! Is for for the reason that it has a long tail than the head? Sometimes tis type of PIN do give false signals, so I just want to know how (if any reason) you/we can judge whether it a valid signal or not? I mean what else make things clear!

It looks even better now. Retraced and gave a good entry at the open of today. Looks like all set for some more pips.

[ApexPredator]

So the pin bar was a reversal PIN bar and a valid one! Is for for the reason that it has a long tail than the head? Sometimes tis type of PIN do give false signals, so I just want to know how (if any reason) you/we can judge whether it a valid signal or not? I mean what else make things clear!

What else makes it clear? Look at the context mate that it forms in.

A few things to look out for, maybe Chris can step in if I miss anything, but basically

1. the strength of the buying and selling, theres alot of resources out there teaching you how to read this, Chris has good articles on it aswell. Look for wicks, size of candles among others…

2. Where does it form? In a tight consolidation or in a trend? Only take them at the tops and bottoms and avoid consolidation…

I use some indicators which furthur helps me decide, but I wont mention that here since this is a PA thread - I just want to let you know there are endless ways to trade it, just see what fits for you!

Hope it helps.
ApexPredator.

[danyrexy]

Watching CNBC here and the markets have received a good slap, with everything heading downside. True enough when Bernanke speaks, we shut down the screens and watch CNBC…

[2ndSkiesForex]

@sandlent

Chris, what do you think about the current price action on the 4 hr GBPUSD?

Now that the 20 EMA has been breached and the previous resistance has come into play, would this be a key level to go short after a pullback?

Yesterday’s high was rejected off a key resistance from a year ago on the daily chart.

There is a tiny pin bar formed at resistance on the 4 hour chart.

Except the EURO everything else went down against the US dollar.

Hey Sandlent,

Sorry for the delay, was out a large portion of the day preparing for a trip coming up in a couple days.

First off, this is some very good analysis. the line above you marked failed to hold in a mature trend, so when it fails to hold, and we see counter-trend selling more dominant then the buying, it usually means the bears are taking over, and the key role reversal level closest to the top often translates into a resistance zone to sell. If it fails, the trend will attempt to resume, or a range will ensue.

That plus the change in the relationship to the 20ema you spotted - so some really good analysis here.

Excellent work imo.

Kind Regards,
Chris Capre

[2ndSkiesForex]

So the pin bar was a reversal PIN bar and a valid one! Is for for the reason that it has a long tail than the head? Sometimes tis type of PIN do give false signals, so I just want to know how (if any reason) you/we can judge whether it a valid signal or not? I mean what else make things clear!

Hello DE,

So I wrote more about this on my site in more detail, so check out the article there, but I give a few hints when talking about the 2 days of strong buying, and 3 days of weak selling. That plus the dynamic resistance breach, gives this a greater chance.

There are more clues, but try thinking about those, and see what you come up with.

Kind Regards,
Chris Capre

[danyrexy]

Hey traders, After Bernanke decided to screw the market as usual, the EUR/JPY has been on a uptrend and barely retracing and making it harder for conventional trend traders to enter the market. One of my PA systems spotted this inside and this was a good opportunity for some pips. A higher than usual profit target of the target here but with such momentum after Europe’s open, 100 pips at a 1:1 R/R is just the deal here.

DAny

[GRIX_FX]

@danyrexy

Hey traders, After Bernanke decided to screw the market as usual, the EUR/JPY has been on a uptrend and barely retracing and making it harder for conventional trend traders to enter the market. One of my PA systems spotted this inside and this was a good opportunity for some pips. A higher than usual profit target of the target here but with such momentum after Europe’s open, 100 pips at a 1:1 R/R is just the deal here.


DAny

Good touch there Dany, keep it up

[perryfx]

@danyrexy

Hey traders, After Bernanke decided to screw the market as usual, the EUR/JPY has been on a uptrend and barely retracing and making it harder for conventional trend traders to enter the market. One of my PA systems spotted this inside and this was a good opportunity for some pips. A higher than usual profit target of the target here but with such momentum after Europe’s open, 100 pips at a 1:1 R/R is just the deal here.


DAny

Nice trade mate. Normally I don’t trade during special announcements.

am looking at EU now. Good area to place longs ??