Price Action, Pro, And Ichi Trading with 2ndskiesforex

Hola Traders,

Just wanted to show you a couple trades me, and some of my students took today.

The first one is on Gold, catching a with trend pullback which you can see in the chart below.



The second one is Oil, taking a counter-trend play and exiting right before it reversed.



Just some good examples of the price action trading I do and teach on a daily basis.

Hopefully you found some of these profitable setups as well.

Kind Regards,
Chris

Gold
Getting pummeled every which way but loose, Gold resumed its sell-off today, now at 6 week lows and barely holding above $1700. I am noticing how the buybacks have been getting shorter and weaker in angle each time. This would generally indicate a weakening buying or counter-trend presence. But that has also been accompanied by weaker sell-offs each time, with the latest being the weakest. This culminated in a large engulfing bar followed by an inside bar.

Perhaps now that most paper bulls are flushed out, the market will start to climb. If not, then aggressive selling should resume in the absence of paper longs. One other scenario I can imagine for the sell-off would be a large fund needing to cover for some bad positions, and started dumping Gold en masse. It doesn't quite make sense in a money printing environment, but regardless, bears can watch for intraday price action pullbacks towards $1713 and $1730 for areas to sell, while bulls can look towards $1697 and $1665 before adding longs. Short term its still bearish, but I suspect the current down-leg is weakening.



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Knucklehead, could you post some charts for the pro course? I bought the Price Action course, and I'm quite pleased with the material. I'm definitely interested in the Pro Course, but I don't have any idea of what it is actually about. Is it repetition of the Price Action course? Chris has posted some charts of the Price Action course to the Facebook page, but I can't find anything for the pro course.

What's an MSB?

Thanks!

Hello Traders,

Just wanted to share with you a price action trade I took earlier in the day on the AUDUSD which you can see below.



Good setups like these show up daily if you have a trained eye. I recently read a post whereby their 2-to-1 reward to risk trade finally came into profit after two weeks :-o Why in the world would you wait two weeks for a trade to hit its profit, when it's a simple 2x reward play? If you are risking 1% of your account, you still only made the same amount of money as someone also risking 1%, waiting a handful of hours, or even a day.

Sure, patience is a virtue in trading, but wasting time is not! You are not paid by the hour, but by how much you make per trade, and how often you make profit. So don't think you have to wait around for days, or even weeks to find quality 2x reward plays, because you don't. They happen every day if you learn to spot them.

I hope you found this post useful and welcome your comments.

Kind Regards,
Chris

Silver
As I had noted two days ago, Silver was showing reducing price action spreads which communicated it was likely bottoming out around $31.50. That is exactly how it played out, and has now broken above the dynamic resistance for the last 12hrs. If the $32 figure and dynamic support can hold, an attack on $32.50 should be next up to bat, while clearing this opens the door for $33.00.

Short term traders can look for possible sells at $32.47 or $33.00 on corrective weakness, while aggressive bulls can buy at $32.00, or corrective pullbacks into $31.50.



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EURUSD
Staying put inside a channel/triangle, the Euro continues to oscillate virtually on a weekly basis since early Sept. Since we are still midway through the triangle, I expect it to continue as we generally do not exit triangles till later on in the pattern. That plus the elections in the US will likely keep things tamed down a bit for the next few weeks.

It should be noted the last 6 weeks of price action have all been inside bars (on a weekly basis) to the large bullish trend bar leading up to this consolidation, so a continual reduction in volatility. Bulls can look for longs off the triangle bottom around 1.2830-50 while bears can look to sell just over 1.3100.



GBPUSD
After forming a needed correction from the Aug-Sept. 700pip bull run, the Cable has formed a piercing pattern rejecting off the weekly 20ema and dynamic support just above 1.5900. If a corrective pullback on the intraday charts form back towards the 1.600.5930 area, this could provide a nice opportunity to get back into the uptrend so watch for intraday price action clues here. Meanwhile, bears can watch the double top resistance at 1.6300 for a chance to sell cable.

Hello Traders,

Just wanted to share some commentary on the Dow Jones which is below:

Skynet was offline today, along with all human traders as hurricane Sandy forced US exchanges to close today. Regardless, a key support level in 13000 is coming under pressure for the Dow Jones. Although a decent sized pin bar formed Friday off this level, pressure remains on the major index, and should the key support fail, 12750 and 12500 will be under attack shortly after.

Bears currently have control so intraday pullback setups towards 13150 and 13300 are good areas to sell on rallies. Bulls will want to see more stability here, or a deeper pullback before entering long.

Hello Traders,

I spotted an ii pattern on the daily charts for Silver. This is unlikely to go on much longer so a likely break soon. Check out the chart below;

EURUSD
As I had discussed in yesterday's market commentary, the pin bar and engulfing bar combo highlighted did produce higher prices for the Euro, and went to the first resistance level I mentioned yesterday (around the 1.2763 area). Some of the course members got in on this trade and profited nicely from it as it was discussed openly.

However, the pair got rejected and formed a large pin bar at resistance and a role reversal level. Now the lines are drawn short term, as the bulls will have to clear 1.2772, while the bears have support at 1.2659, so those are your levels for either side of the market to get long or short, and watch for price action signals there.

GBPUSD
Similar to how the Euro I discussed on Tuesday reversed with an engulfing bar + pin bar combo, the Cable is possibly attempting to bottom after losing ground for six days in a row. After forming a final flag pattern to end yesterday and start today, the pair rallied off of 1.5825 with a strong bullish piercing bar, followed by a pin bar.

Although it's not as strong a price action confirmation as the Euro signal was, it still has some strength to it and may see follow through. First hurdle for the pound will be to close above the 20ema and 1.5878. After this, 1.5900 is on deck, but then 1.5950 could be under attack shortly. 1.5825 is the short term line in the sand for the bulls to hold and the bears to take out for more downside play.



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Hola everyone. An Ichi trade I made this week. Again, a combo of the Ichi course and the PA course.

This is a nice trade and an excellent grasp of the concepts in both courses. Slick use of the Ichimoku on various fronts, and a good read of the price action - definitely put the right tools together so well done amigo.

Kind Regards,
Chris

Another confirmation of what led me to see where price was going.

Another chart from prior moves. I guess I am somewhat catching up!!!

Thanks Chris. Sorry to hear about your buddy.

EURUSD
Attempting to bottom and make some headway to the upside, the EURUSD failed to clear the 1.2800 role reversal level which was the Oct. swing lows. For now, the pair is stuck between 1.2800 weekly highs and 1.2659 lows which was the pin bar rejection on Tuesday. So bears can look to sell any weak rallies up to 1.2800 while bulls can look for intraday price action triggers near 1.2659.



AUDUSD
Although the pair has been holding the 1.0150 are since late July this year, the Aussie is starting to look like it's breaking down as the price action angles are weakening on the daily charts. This was the same pattern that occurred on the EURUSD before the big sell-off in April, with each successive angle getting weaker.

The pair did form a pin bar on Friday which may lend it some short term support, but if the pair breaks the medium term support 1.0150, we could see some strong unwinding down to the big figure at parity. Bears can watch for sell signals at 1.0450 while bulls can watch 1.0290 for intraday support.

Hey Traders,

I'm watching the EURJPY on the daily chart as its sitting under a key 6mos resistance level, and offering plays on both sides.

So feel free to check out this chart as the bulls and bears have plays here depending upon how the price action plays out at this level.

Hello Traders,

In my weekly market commentary, I talked about how the AUDUSD was showing weakening price action angles setting up a shorting opportunity.

Here is a live trade I am in which you can see the chart below;

Hey Traders,

Just want to highlight a chart I'm looking at on the EURJPY and Silve which at the moment which has been screaming upward as of late, now approaching major resistance so check out the chart and the key levels i'm looking at.

EURJPY
Talk about bulls on parade, the EURJPY has gained over 650pips in the last 8 days, gaining on 7 of those 8. The breakout pullback setup we suggested earlier this week played out as the pair twice rejected off the 104.50 area and launched higher to close up each day. Short term you have to favor the bulls, and the next major resistance is at 107.81 which is the April 2012 swing highs and the next likely place the bears will come in. Aggressive intraday bulls can take pullbacks into 105.71 to get long, or wait till 104.50.



Silver
Outperforming Gold over the last few weeks, Silver has gained the last 5 days straight and 11 of 15 days. The precious metal is not far from the yearly highs at $35.36 so we are entering interesting territory. The metal should encounter some sellers around $35.00 so bears can look to possibly sell here. Bulls can take pullbacks towards $32.84 and $33.00 to get long, but if it can clear the yearly highs, this will likely trigger stops and bring in new buyers, gunning for the major swing high at $37.00, so a lot of potential upside for bulls here.

Hey Traders,

I'm checking out the Dow Jones which is parked just under the key 13000 and role reversal level.

Am looking at possibly taking a breakout pullback setup if the pair clears the upside well.

Chart below;