Would welcome some thoughts on the chart and pin bar below.
Up until now I have not traded using price action, just using S/R levels, trendlines, 50% fib and round numbers - i.e. as per 'Jacko's' style of trading. However, I'm always looking to learn new methods that can compliment my existing trading style hence been slowly reading through some posts and watching some guest videos on J16 group website.
My analysis (be gentle!) of the pin bar in question is as follows:
1. The low of the nose is within 13 pips of the recent high bearish bar
2. The low is protruding near the 61.8% retracement of the July / Oct 2008 high / low
3. the low is protruding near the 23.6% retracement of the recent swing high.
4. Pin is not at a swing high / low in that it is not signalling a reversal...it is signalling a continuation.
5. MACD is showing divergence.
6. If I took the break of the top of the pin bar...where would we expect the price to head:
a) 1.4767 - recent swing high
b) 1.4800 - next round number
c) 1.4867 - 22-09-08 daily high
Thus, if I were to take this trade (top of pin is at 1.4744), maybe it would be prudent to wait for a break of the recent high before entering i.e.1.4770 for example. Or you could enter at the top of the pin and then move stop to B/E when/if price gets to the swing high...
Where would you put your initial stop...length of the pin is 98 pips...thus not attractive from a risk/reward perspective.
Up until now I have not traded using price action, just using S/R levels, trendlines, 50% fib and round numbers - i.e. as per 'Jacko's' style of trading. However, I'm always looking to learn new methods that can compliment my existing trading style hence been slowly reading through some posts and watching some guest videos on J16 group website.
My analysis (be gentle!) of the pin bar in question is as follows:
1. The low of the nose is within 13 pips of the recent high bearish bar
2. The low is protruding near the 61.8% retracement of the July / Oct 2008 high / low
3. the low is protruding near the 23.6% retracement of the recent swing high.
4. Pin is not at a swing high / low in that it is not signalling a reversal...it is signalling a continuation.
5. MACD is showing divergence.
6. If I took the break of the top of the pin bar...where would we expect the price to head:
a) 1.4767 - recent swing high
b) 1.4800 - next round number
c) 1.4867 - 22-09-08 daily high
Thus, if I were to take this trade (top of pin is at 1.4744), maybe it would be prudent to wait for a break of the recent high before entering i.e.1.4770 for example. Or you could enter at the top of the pin and then move stop to B/E when/if price gets to the swing high...
Where would you put your initial stop...length of the pin is 98 pips...thus not attractive from a risk/reward perspective.