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Trading Strategies Using Price Action & Order Flow

  • #1
  • First Post: Edited 2:08pm Aug 31, 2017 1:42pm | Edited 2:08pm
There are two entry methodologies I use:

1. A break of flip between support and resistance areas, the higher the time frame, the better.

I first wait in order to see that the flip area was indeed broken, if that's the case, I enter on the retest to that area.

Those flip areas are an aggregate of bar lows and highs.

Here is an example:

Attached Image (click to enlarge)
Click to Enlarge Name: EURGBP 4H.png Size: 24 KB


Here is the retest (price had retest that area twice, so in fact we had two opportunities going short):
Attached Image (click to enlarge)
Click to Enlarge Name: EURGBP 4H retest.png Size: 16 KB


2. A break of a candlestick pattern called a PB and an OB. you will see and read in other places the a PB is also being called as inverted hammer or a Pinocchio bar,

but the meaning from the price action point of view is the same. you can Google and read about this further.

I must add that those patterns must occur on a resistance or support area in order for me personally to trade it.

Here is a nice example for a PB on the daily chart with a great location on a weekly resistance level

Remember, we are going short only after the pattern will be broken:

Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSD Weekly.png Size: 19 KB


Here is where we can see what had happened after the pattern had broken, you can see that this move gained us a nice ROI to our account (no matter where you had closed the trade).

Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSD Weekly closed.png Size: 17 KB
  • #2
  • Edited 2:32pm Aug 31, 2017 2:21pm | Edited 2:32pm
Here is a long trade I took today (EUR/USD) with very little DD.

We can see a major flip of support and resistance around the blue box with all the Red arrows

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD.mH4.png Size: 47 KB

We can see just before the imbalance move marked with the high with Black arrow confirming that this is where we have last trapped sellers.

I got in long on the retest to the upper area of the Blue box, my SL now is @ BE

Going to TP around last major high which is 1.2070.
  • #3
  • Sep 1, 2017 1:48am Sep 1, 2017 1:48am
Quoting jacob12
Here is a long trade I took today (EUR/USD) with very little DD. We can see a major flip of support and resistance around the blue box with all the Red arrows {image} We can see just before the imbalance move marked with the high with Black arrow confirming that this is where we have last trapped sellers. I got in long on the retest to the upper area of the Blue box, my SL now is @ BE Going to TP around last major high which is 1.2070.
I had closed this one for almost 1R since price didn't show it wants to go higher above the major first resistance which is also a kind of minor flip of support and resistance.

Attached Image (click to enlarge)
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  • #4
  • Oct 31, 2017 7:17am Oct 31, 2017 7:17am
Took this 4H BEOB on the NZDUSD

I had entered on the retrace to the flip of support and resistance and will take final profit in last low

Now I'm in BE, free trade
Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 42 KB
  • #5
  • Oct 31, 2017 7:26am Oct 31, 2017 7:26am
Nice trade Jacob do you always trade off 4hr?
Health Wealth and Happiness
  • #6
  • Oct 31, 2017 7:38am Oct 31, 2017 7:38am
Quoting FireEater
Nice trade Jacob do you always trade off 4hr?
Hey FireEater,

No. I trade all TF with a minimum of 30M charts.

The market doesn't care about the bar shape nor the TF you are trading.

The lower the TF the quicker you have to be in order to make the right decisions.

I tend to look at 30M or 1H charts and only on flip of support and resistance.

Best,
Jacob
  • #7
  • Oct 31, 2017 9:31am Oct 31, 2017 9:31am
The trick of this game is not how to win but how not to loose.

You should ALWAYS get to a point where you move your SL in order to protect your capital.

Remember, don't over leverage, protect your capital, you can't trade without it

Jacob
  • #8
  • Oct 31, 2017 9:40am Oct 31, 2017 9:40am
Nice flip of support and resistance on the GBPUSD pair with hard break above that box.

Could be a great place to go long on the retrace

Jacob
Attached Image (click to enlarge)
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  • #9
  • Oct 31, 2017 2:31pm Oct 31, 2017 2:31pm
Quoting jacob12
Nice flip of support and resistance on the GBPUSD pair with hard break above that box. Could be a great place to go long on the retrace Jacob {image}
I like the look of this Jacob. I'm hoping for a decent pull back to support. What level is your support line at, do you use the large round numbers? Not sure we will pull back enough for a decent entry though as the market seems to be factoring in the predicted up coming rate hike on all the GBP pairs
Health Wealth and Happiness
  • #10
  • Oct 31, 2017 2:40pm Oct 31, 2017 2:40pm
Quoting FireEater
{quote} I like the look of this Jacob. I'm hoping for a decent pull back to support. What level is your support line at, do you use the large round numbers? Not sure we will pull back enough for a decent entry though as the market seems to be factoring in the predicted up coming rate hike on all the GBP pairs
Hey FireEater,

Since price had went to last swing major point which is really the FTA, I will revoke the order.

Still, it would be nice to watch that area for a PA bar in the future.

I don't use round numbers although I did looked for them when I began trading, I had learned that the you don't need them as long as you watch for those flip areas of support and resistance.

Best,
Jacob
  • #11
  • Oct 31, 2017 5:45pm Oct 31, 2017 5:45pm
Quoting jacob12
Took this 4H BEOB on the NZDUSD I had entered on the retrace to the flip of support and resistance and will take final profit in last low Now I'm in BE, free trade {image}
Closed for BE
  • #12
  • Nov 1, 2017 3:31am Nov 1, 2017 3:31am
I had posted this example on one of the forums.

Since price had moved quickly, I didn't have the time to post it in here as well.

https://www.forexfactory.com/showthr...9#post10447329

https://www.forexfactory.com/showthr...4#post10447384

Best,
Jacob
  • #13
  • Nov 1, 2017 3:37am Nov 1, 2017 3:37am
https://uk.tradingview.com/x/uj6fyCse/

I have a pending buy stop EURUSD @ 1.62 target 1 1.58 target 2 1.550 SL 1.65
Health Wealth and Happiness
  • #14
  • Nov 1, 2017 3:39am Nov 1, 2017 3:39am
Quoting FireEater
https://uk.tradingview.com/x/uj6fyCse/ I have a pending buy stop EURUSD @ 1.62 target 1 1.58 target 2 1.550 SL 1.65
Hey FireEater,

You are buying based on what ?

There is a major support that got broken to the downside and now acts as resistance, I won't buy in such market conditions.

Best,
Jacob
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  • #15
  • Nov 1, 2017 3:44am Nov 1, 2017 3:44am
Quoting FireEater
https://uk.tradingview.com/x/uj6fyCse/ I have a pending buy stop EURUSD @ 1.62 target 1 1.58 target 2 1.550 SL 1.65
Here are the 4H zones, very very risky

Best,
Jacob
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 51 KB
  • #16
  • Nov 1, 2017 3:48am Nov 1, 2017 3:48am
Hey Jacob

Do you have a key/Legend to the abbreviations you use for the candle formations. I know this is a dumb question but I am racking my brains trying to work out what BUOB BUOVB DBHLC and the like mean?

I can work out the obvious ones but was just wondering if you could point me in the right direction?
Health Wealth and Happiness
  • #17
  • Nov 1, 2017 4:00am Nov 1, 2017 4:00am
Quoting FireEater
Hey Jacob Do you have a key/Legend to the abbreviations you use for the candle formations. I know this is a dumb question but I am racking my brains trying to work out what BUOB BUOVB DBHLC and the like mean? I can work out the obvious ones but was just wondering if you could point me in the right direction?
Hey FireEater,

There are no dumb questions, always ask that's how you make progress.

If I have understood correctly, you want to know what each bar formation means?

BUOB - Bullish outside bar, where the bar low is lower than the prior bar low and its high is higher than the prior bar high (I like to see that the close is at the high of the candle as well).

BEOB - Bearish outside bar, just the opposite than BUOB description above.

BUOVB - I don't really know that term....

DBHLC - Double bar high lower close, it's basically a BEOB but the high are at the same point.

Is that make sense?

Best,
Jacob
  • #18
  • Nov 1, 2017 4:00am Nov 1, 2017 4:00am
Quoting jacob12
{quote} Hey FireEater, You are buying based on what ? There is a major support that got broken to the downside and now acts as resistance, I won't buy in such market conditions. Best, Jacob {image}
Apologies Jacob meant sell stop - based on the break of the minor pivot area (boxed) thanks for the feedback I will take another look having seen your 4hr S/R chart
Health Wealth and Happiness
  • #19
  • Nov 1, 2017 4:02am Nov 1, 2017 4:02am
Quoting jacob12
{quote} Hey FireEater, There are no dumb questions, always ask that's how you make progress. If I have understood correctly, you want to know what each bar formation means? BUOB - Bullish outside bar, where the bar low is lower than the prior bar low and its high is higher than the prior bar high (I like to see that the close is at the high of the candle as well). BEOB - Bearish outside bar, just the opposite than BUOB description above. BUOVB - I don't really know that term.... DBHLC - Double bar high lower close, it's basically a BEOB but the...
Health Wealth and Happiness
  • #20
  • Nov 1, 2017 4:04am Nov 1, 2017 4:04am
Quoting FireEater
{quote} Apologies Jacob meant sell stop - based on the break of the minor pivot area (boxed) thanks for the feedback I will take another look having seen your 4hr S/R chart
Hey FireEater,

No need to apologies.

I won't buy or sell blindly without seeing what price had done in that area.

You will blindly sell into a flip of support and resistance, first let price tell you what it want to do once it will be in that area.

In addition, it's a very tight range, very risky to trade within it, you will have to be super quick with your making decision.

Hope that make sense

Best,
Jacob
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