Price Action System 1min charts

I am building a price action system on 1m charts. I trade EUR/USD. GBP/USD, USD/CHF, USD/JPY. I would like to share ideas with others to hlep build this system.

GBP/USD,
I hope the attached chart is readable. I am posting this because I want to see what others think or if others trade this way. This works well for me. .

I have noticed in the GBP/USD that after a new high it will form this pattern. Like in this chart way back from 12/2/2009. The GBP forms a high, A 1.66948, dips B 1.66759, rises C 1.66871, dips D 1.66485, rises E 1.66839, dips F 1.66504, rises G 1.66724 and then falls usually to a new low, H 1.66291. When the move from C - D is larger than 20 pips, this move results in a new low. When the move from C-D is 30 pips or more, the total move is over 100pips with a retraction that is lower than G.

The way I trade this is I enter at E, or a little lower. Since the move from C-D is so big, I know the move will result in a new low. After G happens and if there are attempts to reach that price, I will add to my postion.

In this chart the difference between A and G is 65 pips. Now, what I have noticed after looking at about 3 months of data, is that because the move from C-D is so large, this move isn't done. That 1.66706 candle with a big wick would be a good chance to enter wait for a move 40 pips below the H level.

The hard part of this is waiting for E to develop. You could jump in at C but this move may not develop. Or price could just fall almost straight down.

I hope this was helpful and I hope someone can help me with this pattern. I have noticed it in the EUR/USD and USD/CHF pair. I have seen it in the USD/JPY also but it looks a little different.

I will post more. There are more types of moves I have noticed. The more work I put into analyzing my charts, the more my confidence will grow when trading. The more I talk, write, about my charts the more I analyze them. See how it works.

Hi Daniel
Sounds interesting, but I am unable to read your chart

you need photoshop to view this one

It sounds interesting, I hope that it works for you. I have learned to stay away from trading timeframes like 1 and 5 minutes, it's not for me. I prefer to trade 4 hour and daily charts and sometimes sit with a position for 1,2 or 3 weeks.

Will a system on a 1 minute timeframe work in the long run? It means you have to do tens if not hundreds of trades.

Thanks for the responses. I attached as a JPEG. I hope that help.

I trade IM charts. I am only looking for 5-10 trades a day. Each trade making 20, 30 or in some cases 100 pips. My stops are tight usually 10 or less pips. 1m charts work for me. If you trade 4H charts and it works for you, that is great. Please add your comments to another thread. Thanks.

This chart, I hope you can read it, is an example of how the above move can fail.

This is the GBP/USD on Thursday Jan 14th. This would be just a little before the New York market open.

A, was the high at 1.6320. B, 1.63104. C, 1.63215. D, 1.62844. E, 1.63119. F is the next Dip and G is the next rise. H, is 1.62865 which is higher than D 1.62844. This should have been my exit signal that this move is false. The next singal that this move was false would have been the rise at 1.63167, which is higher than the previous rises. The final exit singal was the 3rd large dip.

I had entered at 1.63111 and was stopped out at 1.63212. I set my stop loss just below the high, or what was the high.

For lack of a better term, I call this move failure to make a new high.

Sorry daniel no matter what I try I cannot see any detail

Thanks and I apologize to those who have been trying, but unable, to read the charts. I yet to master the art of posting charts. I am reattaching the first chart as a jpeg and a pdf. I tried to keep the resolution around 100 instead of taking it down to 72.

Sorry Daniel I give up. still cant see any detail

The previous posts were about identifying resistance after a new high is formed. I gave, tried to give, an example of the GBP/USD. The EUR/USD, USD/CHF and some times the USD/JPY have similar patterns. I will discuss them next.

The other discussion that I would like to start is identifying support after a low has been made and when the market turns.

Following that I will discussion some unique patterns that I have noticed and how to play them.

I guess I should have named this thread, pattern action 1m charts. Either way, I only use price action no ma's or any of that stuff. On my daily charts I have 50, 100, 200 MA's. I don't use them as an indicator only to see where support or resistance is and what other traders would be looking for.

Here is an example of support off of a low in the USD/JPY. The low was 90.812. About an hour and half later it makes a new day high at 91.029. Oddly enough there are three peaks near this high, 91.0279, 91.029, and 91.027. I have noticed this in the USD/JPY, three touches at a similar point. It can mean get in or get out now. Anyway, the price falls to 90.847 and doesn't go any lower. In fact, there are three wicks around this same price. This is a clue that the price will rebound and make a new high. In this case it went all the way up from 90.847 to a high of 91.457. I call this patter a non new low, or meeting support off the low. It is good move with lots of pips but very hard to get into. The stop loss would be the low or just above the low. Target is a new high. There are a couple of coniditions that need to met first. First and foremost, there needs to be a period of calming after a low is made. Secondly, something needs to turn the market around from the low to the high. Saddly, I didn't catch this move because I was still thinking about a silly move in the eur I did.

the way I do it:

a) if MT4, save the chart on ur PC. otherwise "Screen Capture" the picture --PrtSc button -- and save it on ur PC in Paint
b) upload to image hosting site like www.tinypic.com (open an account if u don't have any)
c) copy "IMG Code for forums ..."
d) in the FF message board click on the "mountain" button (insert image) and paste the code .

remember to remove [IMG] and [/IMG] from the code

hope this helps ..

this is how I have been doing it ... perhaps others might have a simpler version .. open to learning new methods too ...http://cdn.forexfactory.com/images/s.../yim/happy.gif


http://www.forexfactory.com/showthre...21#post3297021

Last week was really good. Friday was a good day for the GBP/USD. I was up nearly 50 pips. On Thursday, near the end of the New York session, resistance formed after the GBP/USD had formed a high. My entry wasn't the best. Instead of waiting for the second rise, I got in just off one of the dips. See above for examples.

My profit target was 30pips, I had a chance to get out at 25 pips but I stayed in until Friday morning. The pair hit my profit target. The first arrow on the chart. I jumed in again. I wasn't expecting it to fall so much, so I just but a profit target at 10 pips. That was quickly hit. The next entry was poorly placed. I should have looked for some reistance before I placed that order. Since the retail sales numbers were weaker than expected and the overall mood of the market was negative, I knew I would be ok. I still need work on placing orders but I had done a better job seeing the patterns and seeing resistance.

Taken to the cleaners . . . . GBP/USD

This was a trade yesterday that was going really well and then. . . .

This was premarket New York close to the open. My 1st entry was long and quickly stopped out. I put a short stop on that one. I thought it was going to ride that blue trend line but once that was broken I got out. The price rose to 1.61446. Stopped, formed reistance. (Should have entered there). Price feel and rose to 1.61317. I entered short 1.61259. I new it was going to make a new low. I looked at the 60M chart and found an area of support 1.60893. I set that as my target. It came within 5 pips and shot up. I should have exited after the close of the green bar that formed after the low. I shold have . . . I should have. . . .

I was really expecting it to retouch or come close to that low. Usually it does.

. . . . .

Hi daniel242,

I also used trendlines automatic indicator years ago, only wasn't able to decipher it at the time. You seem to have made some progress in this. I took a different path, having left TS and am looking for my own way to draw TL's from patterns on the 1'TF. So, I added some drawing devices I use to your picture that adapt the aTL's indicator for more effective trading. I hope you find them of value.

Hey Daniel,
This post may help your readers see your Charts more clearly...

http://www.forexfactory.com/showpost...stcount=183102

hth.
BMc

Thanks for the post. I don't really understand how the shapes are used though.

I was going for how the shapes are positioned in relation to your trendlines. What shapes you have here are fairly nondescript, to me, with only a little directional value in each shape.
I'm still demoing for a method which looks for TL's and midlines that align with each other to make patterns and, visa-versa, symmetric shapes that produce really good TL's and midlines that intersect pivots and such.

This is an example of how I play the news. I did the same move in the EUR/USD. I didn't get the best entry.

This is the USD/CHF. I went long at 1.05103. News came out, spike up to 1.05237. Then came back to 1.04989. A few bars later I jumped in. I set my target by looking at the 15M charts and saw a peak near 1.05479. I wouldn't be suprised if it went higher. The range and the 14 day average range are around 90pips. However, it is Friday. I might look for another long entry. I might just go and enjoy my Friday because I have had a good day. No need to spoil it.

I'm curious, how would other people see this chart. I saw something similar to this, this week. The chart is 1m GBPUSD from 12/18/2009.

As you can see it is making lower highs and lower lows but does start to turn. After my arrow there is a blue trend line. Also there are four candles close together, maybe a pip or two difference. Just in case you want to know, I was stopped out on this one. Would you trade it? Where would you enter? Why? Why not?