hi seeking. thanks for your response. i appreciate the feedback because i am still learning this pa. i guess i have found that it works so well when you take the good setups that i start trying to "see" pin bars everywhere.
still, i would like to respond to what you said about that pin bar being a "gamble." you are right - the pins did not close within the previous bars range and the proportions are off, in the sense that the body (open-close) makes up more than 1/3 of the candle.
however, since i am now on demo i am taking these signals and i have found that they are working so far - these two i posted that were not technically correct pins (coffee and usd/mxn) were just the most profitable. i have a suggestion for why this might be.
i guess if you were just entering on a retracement of the pin OR just on the close of the pin as some traders do, then it would be a total gamble but i am always waiting until the next session and entering a few ticks under the pin. now what these patterns show me is that regardless of the length of the body, they have met some resistance, fib level etc and pulled sharply away from it which leaves a long wick. however, since the body is fairly large you have less chance of entering on a false signal e.g. the price dips below the pin by a few ticks and then comes back up - which seems to be what happened to a lot of people who took the kiwi trade recently. in the trades i have shown, the price has to have a siginificant fall (because the body is longer), meaning that it is more likely to be "reliable" in my opinion.
i may be completely wrong and would value others comment on this. i know that this is not the way james taught it - thats not really debatable but i wonder if there is any merit to what i am saying. it certainly seems to be working for me so far but that is the beauty of demo...if it stops then i can drop it
once again, thanks for your feedback. i love this pa stuff.
cheers,
tom
p.s. i'm about page 150 on this thread so far...can't wait to get onto the pf stuff when i've finished...trying to follow it all in order...free thread first and i'm reading as fast as my eyes can go..
I think you will find as you trade all these pinbars and such, that it is going to pay just wait for the best pinbars. This is because you will see so many bar setups, that you can be picky. The one seeking is talking about isn't technically a pinbar, but it was in a great spot,with the flip of S/R(hence the reason the signal worked regardless of the bar) So i think the important point is that you are looking for PA bars, and where they are located in relation to whats going on. After all it is more important where these bars are then the actual bars themselves.
keep it up
Mike
