james16 Chart Thread

He did say you can enter on retracement if you're game enough.

is this an FXPro chart?

we cant simply take a PB (or any PA setup, regardless of size) before the break, after the break, or on a retracement & just expect to make a profit.
there is a lot of discretion &/or factors involved in trading, & this is a big part of what we have to learn about.

Just playing around with some UK stocks. RIO could be setting up a nice breakout & continuation of downtrend after a bear flag. Needs more action to confirm yet I know, but that isn't the basis of this question.

On 4h I have marked a gap, this is followed by almost a pinbar, it isn't because where the open/close are in relation to the left eye.

However, because we have a reasonable expectation the the gap would be filled, is this a tradeable setup? In other words, does the almost pinbar hint that there is a nice long to be had?

I know it worked on this occasion, but if I see similar in the future should I be taking notice?

Thanks

Art

I closed this position for +35 pips. Enough for this pair. Translates to +52 pip in USD currencies.

Hey F

I personally rarely if ever play retracements, but what you want to look for on the retracement is a confluenced reason not only for your bar to work but also for your retracement area. Specific bars are built better for retraces. For example this bar to me was not a very strong selling bar as opposed to a breather bar. So a break of the bar gave some nice FTA targets, but playing on a retrace to me becomes to early in a case like this where there is nothing to hold us from going higher on a retrace(as opposed to say an outside bar that is engulfing a range of bars and creates a PPZ on a retrace, straddling say a round number).

Retrace is definitely trickier but that's just how I view them

Best
Mike

price finally broke and close above this resistance area in H4. Now if daily will close above too..

Hey Art

Gaps are much more frequent in equities market. While they tend to fill, they don't tend to fill as fast as FX markets. I LOVE that pattern your drew and this makes the market look heavy. I personally don't like to trade within that pattern when price gets so tight, it can chop like crazy. I like to wait for the breakout and confirmation outside the pattern(which this one looks like its beginning to fall)


Well I just re-read your question and the above doesn't apply at all lol

I wouldn't trade that, without more confluence. I would say with a break of the high the gap is likely to fill. But I am not one to play markets that gap a lot in equities. I like it to be smoother(which this is relatively smooth). But when it isn't, I just kepp moving up timeframes. The weekly smooths many equities out to a more chartist friendly environment.

Best
Mike

Hi, Im not comfortable playing retracements too. But just for understanding, the red line in the picture would be a good place to short if you're into retracements won't it? there is a resistance to the left bar and price did bounce around that level months before.


also, what is a breather bar?

Hey F

It's sort of all integrated to me from the start of this setup. Meaning I didn't take this as a strong setup from the start and for that reason I would look to have MORE confirmation (such as a break). When a pinbar forms we have to remember the orderflow that was selling and creating the wick has been absorbed(maybe some is left, may more sellers are willing to come in again BUT we have to think about that in relationship to the rest of the scenario). In this case if you sold at the "left" eye, it's sitting up so high on the current pin that price is likely to want to test ABOVE the high of this pin, if the true selling wasn't good the first time(path of least resistance now becomes where price heads). This is why a pinbar will never be enough to just trade blindly.

A breather pin to me means one not created by signficant selling but possibly less significant selling. So price may break down in this case hit our FTA and/or BRN and move higher. Why higher, well there is simply more support under us and price broke out VERY strong. So I don't want to fight the wave without the proper backing. A breather pin to me is not one to fight the oncoming wave, if we are I want confirmation and I will be very focused on FTA(or quick hitters as I call them).


Here were some posts yesterday I made(the person who asked this question had the same PPZ you marked and that is why I am posting this).

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I think your chart with your trouble areas are fine

My comments would be (although sort of irrelevant to the trade and your mgmt areas) that the PPZ you are marking is not very strong to me in terms of being significant PPZ. Also I wouldn't use such a minor swing point to use for my fibs. To me this pinbar looks like a breather pinbar with minor selling, and the BRN we are trading back into could become good support area. So basically I wouldn't put much weight on the PPZ you drew, its not to important to me, nor is that fib. To me those are more trying to find reasons to short when you nailed it with your trouble areas which are more important. So if one is comfortable trading back into the BRN(think back to todays webinar) then focus on your FTA as you have them
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Hey M

For the area you are using to me the flip that occurred back earlier this year was very minor. So it's not that it may not be playing "some" role here but for me it's just not something I would consider in this situation. To me this is a situation that is purely played based on trouble areas and where price is likely to go. Neither the fib or PPZ would have any bearing for me based on the ones you drew. Again this is an art not finite, so that is an opinion.

The fib around 1.325 would be one I would consider if anything(still pretty minor for me) but the way this pair is moving it doesn't really mean much to me. If you look at yours there was never a real swing high put in. Just a spike up. So to me the use of the fib doesn't play as strong of a role as when price can make a very clear swing point.

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and a chart to summarize , and yes this all ties into the retracement idea, because if you take the retracement in a "weak" selling area price has a better chance of pushing higher to me then being support to move lower.

After getting rejected by two IT companies..Larsen & Toubro,Infosys etc..and ineligible for other IT companies
i finally got placed in Atos Origin(major European IT company)..badly wanted to get placed in this Company...its all about waiting guys and being patient..and picking the right pluck..hope this helps for the traders(including me) all over the world..
Happy Trading..!!!!!

congrats buddy

thanks Mike..my message was to convey to be patient n hold up ourselves n wait..wait. wait instead of losing minds.....n taking 1 best rational decision instead of 10 poor decisions..which usually happens in trading...

NZD/USD at an interesting PPZ level full of confluences

retraces are an acquired talent like anything else worth getting good at. everyone should remember that its just a bar that looks like a pin bar until it breaks. its not a pin bar unless it does break. the beauty of retrace entries are the incredible small stop sizes they present. retrace entries are useless without a very strong reason to believe your entry area will hold and reverse price. if it doesnt work then your out with a very very small loss. you will fiond woth practice that the more confluence you have the better odds of success you have.

why such a direction? I thought the opposite

@ James

Thank to you (and the other Seniors here) I ve had 3 consecutive profitable months (after 15 months demo) and I'd say all of those trades (10 in total) have been selling retrace, with strong PA, off a Major PPZ / BRN with HTF trend.

Ive been stung a few times (EUR - AUD) but I think the thing with retrace trades is that with patience and taking the best ones they are golden. For me, entering on HTF PA are the best but harder as I have to wait.

Its a pity that some of the others want to disrespect you and the great working at FF.

Thanks again

Anthony

thats great. i dont take it personal. this business beats the shit out of people. i learned from my own journey thru trading hell that the worse thing you can do for a new trader is give them trades. there is just too many things they can and will do wrong. much better to show them how and then force them to learn thru actually doing it.

jim

Bingo. This is all about PRACTICING. We have to learn what items on the chart are most likely to cause reactions and to what extent they likely will.

Ryan

chart

Wow. Just looked at all of the charts and the USDXXX charts are showing amazing bullishness. Will be interesting to see how everything closes.

Ryan