Price Action Trading

[FXSchoolOnline]

Hello all,

I can not find a dedicated thread that discussed trading forex with Price Action. I figured I may as well start a thread and see if I could get some like minded traders involved in some solid discussions and Price Action setups.

I must say up front (no hidden agendas) I am a full time trader and also part time educator/mentor. I am here however for interesting convos and discussions on all things price action trading.!

I will post a few recent setups in the next post.


Safe trading,

Johnathon Fox

 

[FXSchoolOnline]

Recent Price Action Setups

In the chart below you will see a solid pin bar at resistance with the short term trend. This pin was of the daily chart of the GBPUSD and fell into support as expected.




The following chart shows a Pin bar at a recent swing high. This formed on the 1 hour chart and just goes to show how powerful they can be when played from the right areas. This was against the short term trend however Pin Bars are reversal signals and quite often the market will change direction after a solid pin bar.





Feel free to add any comments or current or pending Price Action setups or queries.

Safe trading,

Johnathon

 

[FXSchoolOnline]

The following setup was on the 1HR TF of the EURUSD. This setups is known as the Bearish Engulfing Bar and is very simple but very reliable when traded from the right areas and managed correctly. To qualify as an engulfing bar the last bar must completely engulf at least 1 previous bar. The engulfing bar can engulf more than 1 previous bar. See below chart for very good example:



Regards,

Johnathon Fox

 

[FXSchoolOnline]

EurUsd has been in a runaway trend of late. The 4hr chart below shows a possible pullback area that traders could look for Price Action to get aboard the trend.



Johnathon Fox

 

[matthewdean]

EurUsd has been in a runaway trend of late. The 4hr chart below shows a possible pullback area that traders could look for Price Action to get aboard the trend.

View attachment 45746

Johnathon Fox

Interesting posts, I can only see one of your chart images...

I use price action as my third indicator in my forex trading plan. I use it along with the MACD and SMA/EMA lines... I don't place a trade unless I have all three signaling for the direction I wish to trade.

Do you use any other indicators to back up your predicition of the pullback area, I would post a chart with my analysis but I am not at home.

 

[Mike Kshemaraja]

This is what I am looking at, is 10.47 am my time.

My TF is 30 seconds, the yellow line are level of support/resistance, the blue lines are lines of round number( 20, 40, 50, 60, 80 and 00, the ema is 20.

What I am looking for? There are battle going on all around, my job is to spot them and join in only when one of the part does let go of the rope.

Clear focus is needed, only when I am sure of it, I take a trade, many time I miss good trades, but I do not care, I trade my odds, if all the condition are not there I pass. My best position is to stay aside.

 

[Mike Kshemaraja]

Tough day, today.

Market very much into the range, not trades for me till now.

From bottom to top lines only 9 pips distance.

Lets see.

 

[Mike Kshemaraja]

In the actual marker, however, things may not be so evident as they tend to appear from the safe distance of hindsight evaluation. In fact in the reality of a live trading environment it is very easy, and common to even miss the best looking set ups, purely a trader, at the time, does not expect the market to behave like it does. This is why it is important to not limit your thinking by imaging what is going to happen next and then needing to see it materialise. Particularly on the verge of exploiting a technical situation, this little mind-game of predicting how a set up will present itself, as if to prove your skills to some fictitious bystander, can have a detrimental effect on your ability to see the price action in its proper light. The moment you expect the market to behave and break in a certain way, and the market defies that, you stand to lose your face in your own scheme of things and it may hurt your ego just long enough to completely miss the alternative break.

"a little thought from my friend Bob"

 

[Mike Kshemaraja]

First trade, keep in mind that I have been working, monitoring at the chart for more then seven hours, not intensively but more of a tactical overlook.

Prices broke the bottom line of the range (1), a long range, pulled back to the broken line and printed a doji bar (short bar), as soon as prices broke his low by one pip, I entered at market.

My SL was placed 1 pip above the last swing (2), because those kind of break without pre-tension tend to pullback to the last swing, normally, not in this case though where price just stalled at the broken line and once the bull let go of the rope they became bears as well.

Made my full 7 pips, 2%. Hard day though but all part of the business.

I do not mind make 2% every day.

 

[Mike Kshemaraja]

My second trade of the day, similar to the first but the range was smaller.

The left side of the chart, clearly shows that the trend is down, market pulls back and forms
a range defined by the lines, also forms a double top (1 and 2).

I will start to get ready, she breaks the bottom line of the range and I do nothing because of the way she broke, she pulls back and prints a doji just at that line, I am in at market 1 pip below that doji, she pulls back twice and forms another double top (3 and 4), now I feel is working in my direction, but Im ready to get out also in case things do not work out (above the double top).

I had a larger TF and SL due to LO, my target was reached, made my 10 pips, another 2%.
4% total for the day.

Sound easy, doesn't? But is not. Doable for sure but not easy, passion will help.
Done for the week (trading). Take care.

 

[Vixs]

I have been getting back into Forex after my last foray into it led to me finishing up after a whole lot of trades with exactly what I came with.

Lessons learned were many, including that I need to be more disciplined with sticking to my risk management strategy and sometimes less indicators are more useful.

I have found my most successful trades over the last few days were just trading on pairs that were stuck in a channel, buying/selling as they rebounded off the support/resistance.

Pay day next week and with it my first deposit into a live account.

There is interest in the Forex forum here I believe, it's just very quiet.

Happy trading.

 

[jr689]

Hi guys, very new to ASF but hoping to get involved with some forex related discussions from here on in... Will be looking to get involved with stocks too, but for now I'm happy with forex.

Big fan of price action trading, so I'll be watching this thread like a hawk to see what other like minded traders are thinking.

If you haven't heard of price action before I'd suggest you do a bit of a research into exactly what it is, as it is a very simple approach to trading and it's the most consistent, but that's just my opinion.

Anyways a pair that I'm currently looking at is GBPJPY. There is a bullish Pin Bar on the daily formed off of a support, the daily trend is up, EMA's have crossed over suggesting bullish bias and we are at a swing low of the recent bullish move.





I will be setting a long pending order as per all of this and see how it goes. Would be good to hear people's comments and opinion's.

jr

 

[jr689]

My setup is as follows:

GBPJPY
Long @ 124.309
SL @ 123.425
TP @ 126.477

SL is placed 10pips below the low of the pin bar, TP is placed targeting previous near term support/resistance.

jr

 

[CanOz]

My setup is as follows:

GBPJPY
Long @ 124.309
SL @ 123.425
TP @ 126.477

SL is placed 10pips below the low of the pin bar, TP is placed targeting previous near term support/resistance.

jr

Price action is just so incomplete without volume. I think i would only trade FX again using the futures contract. Otherwise an automated system. Discretionary trading from a chart only just doesn't work, for me.

Good luck.

CanOz

 

[jr689]

Thanks for your comment canoz, each to their own I guess. You should give it more of a solid shot I think?

As for automated trading I'm guessing you're talking about a robot? I wouldn't touch one of those with a barge pole to be honest

jr

 

[CanOz]

Thanks for your comment canoz, each to their own I guess. You should give it more of a solid shot I think?

As for automated trading I'm guessing you're talking about a robot? I wouldn't touch one of those with a barge pole to be honest

jr

I just don't see how you can get an edge looking at a chart intraday? Chart patterns don't work as well as they used to, Thomas Bulkowski has proven that recently. They've lost thier edge.

Perhaps you can change my mind with some clever examples of Real Time trades.

CanOz

 

[jr689]

That's fair enough mate.

Well that GBPJPY long is a 'real time' trade.

I have just taken a GBPNZD long which I will post up now for you.

I'm not saying any of these trades will definitely come off or that price action, pin bars, etc, etc, are foolproof but they definitely do work well from my findings as long as they tick all the boxes and meet all the criteria.

jr

 

[tech/a]

Price action is just so incomplete without volume. I think i would only trade FX again using the futures contract. Otherwise an automated system. Discretionary trading from a chart only just doesn't work, for me.

Good luck.

CanOz

Yeh I think it will give an edge if you understand what its telling you.
Still you can pattern trade without it.
Must go and pack my parachute.
Then again I could jump without it.

 

[jr689]

GBPNZD
Long @ 1.97896
SL @ 1.96690
TP @ 1.99507





jr

 

[jr689]

Yeh I think it will give an edge if you understand what its telling you.
Still you can pattern trade without it.
Must go and pack my parachute.
Then again I could jump without it.

What sort of patterns are you referring to if you don't mind me asking? Have you or do you trade in this manner and with what sort of success? Cheers tech/a!

jr