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Simple, Powerful and Effective Price Action Trading Strategies

  • #1
  • First Post: Edited Jul 5, 2014 12:08am Jul 13, 2013 11:33am | Edited Jul 5, 2014 12:08am
To all the serious traders out there,

My name is Anastasius. I've been a trader for the past 3 years.

I imagine that my experience as a newbie trader was similar to many of yours -- that is, I was frustrated and perplexed.

I've tried all different types of systems, and their fancy indicators. I've many times earlier in my "career" fallen to the "get rich quick trading" schemes, and I've paid dearly for it.

Now, enough doom and gloom.

The only type of trading methodology that's ever worked for me ironically didn't involve the "help" of a gazillion indicators. It was pure, clean, raw charts that I used to harness the benefits of price action trading.

Before I begin, I'd like to be fully transparent. No secrets here.

I am a member of the The Forex Guy Price Action War Room, and it's where I've refined my price action trading skills.

I volunteered to help with the thread, and I'm looking forward to it as I'm quite passionate about price action trading and I believe this thread will not only help struggling traders out there but also help me with my skills as a trader by helping others.

In this thread, I'm going to show some of the price action techniques and strategies used by the community at The Forex Guy, as well as some before/after chart demonstrations that are applied in the market.

Some of the techniques and strategies may be common for some of you experienced price action traders, but there's other techniques that The Forex Guy deploys that I find to be very original, and they have worked well for me.

I don't want to leave a huge wall of text, so I'll wean the information into the thread post-by-post as trading setups develop.

http://i.imgur.com/gfwfV7A.png

In the chart above, we're taking a look at AUD/USD on the daily time frame.

It's clear at a first glance that this market is in a strong down trend, which actually spans all the way from April. We've recently seen the market retrace and test a key resistance level in a correctional move.

An old support level, now being retested as resistance, creates a "hot spot" on our chart where good signals are strongly valued.

The market rallied and tested this "hot spot" on the chart, which was thereafter rejected by the bears which left us with what we call a bearish rejection signal.

The market clearly communicated to us that higher prices were not as desirable, and we can use rejection signals like these to anticipate lower prices and get in on the move.

Since the market is in a clear down trend, the bearish rejection signal matches up nicely with the existing trend momentum. We advocate the saying that "the trend is your friend", especially a trend that's as strong as what we have here on AUD/USD at the moment.

Watch this space for continued explanation of various price action signals. I'll be keeping the thread updated with trading setups as they develop.

I will be happy to answer any questions some of you will do doubt have for me.

Cheers.

- Anastasius
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #2
  • Jul 13, 2013 3:07pm Jul 13, 2013 3:07pm
My charts are different from yours, your broker must be one of those whose trading day closes at New York close, what's the advantage?
Attached Image (click to enlarge)
Click to Enlarge Name: [AUDUSD,Daily]_2013-07-13_20-31-32-SPOT THE DIFFERENCE.png Size: 84 KB
Let it turn and find your entry.
  • #3
  • Jul 13, 2013 3:21pm Jul 13, 2013 3:21pm
Quoting DnBPriceAct
To all the serious traders out there, My name is Anastasius. I've been a trader for the past 3 years. I imagine that my experience as a newbie trader was similar to many of yours -- that is, I was frustrated and perplexed. I've tried all different types of systems, and their fancy indicators. I've many times earlier in my "career" fallen to the "get rich quick trading" schemes, and I've paid dearly for it. Now, enough doom and gloom. The only type of trading methodology that's ever worked for me ironically didn't involve the "help" of a gazillion...
more knowledge the better
  • #4
  • Jul 13, 2013 3:39pm Jul 13, 2013 3:39pm
Quoting Intrepidpips
My charts are different from yours, your broker must be one of those whose trading day closes at New York close, what's the advantage? {image}
Yeah, that's correct. The chart above is from Alpari UK, which uses the New York close candles.

We prefer using New York close candles because logically speaking, the market closes when New York closes, as it's the last session in a trading day/week, which gives as an accurate representation of the market.

If we had candles, for example, that closed during the end of London, the trading price is subject to change as there's still quite a bit of trading going on during the New York session, so you'll be left with an inaccurate closing price.

As far as the missing daily candles go from your chart picture, those look to me to be weekend candles, which are basically irrelevant and useless as there's not much trading at all going on within that period.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #5
  • Jul 13, 2013 5:37pm Jul 13, 2013 5:37pm
Quoting DnBPriceAct
{quote} Yeah, that's correct. The chart above is from Alpari UK, which uses the New York close candles. We prefer using New York close candles because logically speaking, the market closes when New York closes, as it's the last session in a trading day/week, which gives as an accurate representation of the market. If we had candles, for example, that closed during the end of London, the trading price is subject to change as there's still quite a bit of trading going on during the New York session, so you'll be left with an inaccurate closing price....

Yet another one,the altruism is incredible but not unexpected.When will you start charging for your remarkable insight into forex trading?If your thread over at "baby pips" is anything to go by the invitation to your web site should follow soon....$99 or perhaps $129 a month.The commercial forum is over crowded with scammers peddling the same stuff.I agree that PA is the way to go but you don't have to pay these BS artists to learn about it.
  • #6
  • Jul 14, 2013 12:28am Jul 14, 2013 12:28am
Quoting edge540
{quote} Yet another one,the altruism is incredible but not unexpected.When will you start charging for your remarkable insight into forex trading?If your thread over at "baby pips" is anything to go by the invitation to your web site should follow soon....$99 or perhaps $129 a month.The commercial forum is over crowded with scammers peddling the same stuff.I agree that PA is the way to go but you don't have to pay these BS artists to learn about it.
I hoped to avoid negative comments like this, to begin with I clearly statement in my first post that I was a member of the DnB War Room community trying to be fully transparent so there are no 'hidden surprises'. Yes you have to pay for War Room membership and they teach really good stuff in there which I have benefited from. I am not going to use this thread to bait people into buying the membership though, I am simply going to show some of the basic concepts that I've learned from the DnB War Room and how I apply them to the market.

Edge, if you don't like the idea of people selling things, why are you reading through the commercial forum? It's like you're offended by swearing in on a TV show, but instead of changing the channel you sit there and listen to more of the swearing and then whinge about it to someone later. You come into the commercial section, which is a place made for people to advertise their trading systems (which you are obviously against), but instead of closing the page or moving to another forum you sit here and try and degrade me about doing it.

First of all I am aware of the amount of scams in the Forex market, but that doesn't mean I am some sort of scammer by default. I resent you using the phrase 'I agree that PA is the way to go but you don't have to pay these BS artists to learn about it.' Please tell me what I am BSing about? I've been 100% honest.

Secondly, nobody wants to hear your whining. If you don't like what's going on here or in the commercial forum then don't open it, especially don't open someones new thread and start dropping your negative bombs. You've already made the assumption that the commercial forum is not for you but you came in here and starting winging anyway.

You remind me of that episode of the simpsons where Bart discovers an electrified cup cake. Bart knows every time he grabs the cup cake he is going to get electrocuted but just keeps grabbing it. In other words if the commercial forum hurts your feelings so much don't come in here.

Inserted Video
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #7
  • Jul 14, 2013 12:15pm Jul 14, 2013 12:15pm
http://i.imgur.com/ZiZyo7L.png

Taking a look at XAU/USD (Gold) on the Daily time frame, we can see a very interesting potential set up for next week.

Last week price has punched through a key resistance level, and is now holding as new support.

A succession of Higher Highs and Higher Lows is an indication that the market is trending upwards at the moment. Looking at Friday's candle, we can see that price re-tested the support level, and closed as an inside day, but also as a small bullish rejection candle.

Inside days are basically a consolidation flag. Based on recent momentum, we can anticipate higher prices. If the market fails to move higher and drops off a bearish signal, then we could be looking at more downward movement to come. We are right on the line in the sand at the moment.

One thing we have to be careful of are the weekend gaps, which can destroy our entry chance and wreck the dynamics of the price action set up. We may see a large gap this weekend due to some issues with France's credit rating.

We also don't want to take any breakouts during early Asia session as they usually wind up failing, especially on a Monday when most of the market is offline.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #8
  • Jul 14, 2013 12:46pm Jul 14, 2013 12:46pm
Quoting DnBPriceAct
{quote} Yeah, that's correct. The chart above is from Alpari UK, which uses the New York close candles. We prefer using New York close candles because logically speaking, the market closes when New York closes, as it's the last session in a trading day/week, which gives as an accurate representation of the market. If we had candles, for example, that closed during the end of London, the trading price is subject to change as there's still quite a bit of trading going on during the New York session, so you'll be left with an inaccurate closing price....

I do have an Alpari UK (MT5 Demo) and it rhymes with your chart so fire on let's see what we can learn from you.
Attached Image (click to enlarge)
Click to Enlarge Name: [AUDUSD,Daily]_2013-07-14_18-41-36-AGREED.png Size: 74 KB
Let it turn and find your entry.
  • #9
  • Jul 15, 2013 3:46am Jul 15, 2013 3:46am
http://i.imgur.com/JTwi0dd.png

A quick update on the XAU/USD trade.

An early Asia session false break of the set up candle high (which we warned of above) and current bearish pressure after London open hints to us that the market did not favour break outs into higher prices. Longs are not favoured any more. We should keep an eye out on XAU/USD for possible shorting opportunities that may develop in the near future. We can consider shorts if the low of Friday's candle is breached this session.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #10
  • Jul 15, 2013 4:18am Jul 15, 2013 4:18am
http://i.imgur.com/a5ywJpY.png

GBP/USD has just retraced right into a key resistance level as well as dynamic resistance, struggling to maintain and create further highs, and dropped off a strong bearish inside candle set up last Friday.

The 20 EMA usually acts as a strong turning point in trending markets, and after price approached it, it dropped off a bearish inside candle set up with a nice strong bearish close to it. This is reason for us to anticipate a reversal here.

The inside day candle tells us that the market stalled at this key turning point, and that traders could consider shorting as price breaks down below the inside day.

As I am writing this post, I can already see that price is starting to push lower.

I'll keep updates as the trade progresses.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #11
  • Jul 15, 2013 10:31am Jul 15, 2013 10:31am
Welcome DNB. Glad to see you posting here.
  • #12
  • Jul 15, 2013 5:20pm Jul 15, 2013 5:20pm
Quoting DnBPriceAct
{image} GBP/USD has just retraced right into a key resistance level as well as dynamic resistance, struggling to maintain and create further highs, and dropped off a strong bearish inside candle set up last Friday. The 20 EMA usually acts as a strong turning point in trending markets, and after price approached it, it dropped off a bearish inside candle set up with a nice strong bearish close to it. This is reason for us to anticipate a reversal here. The inside day candle tells us that the market stalled at this key turning point, and that traders...

Excuse my ignorance but what is the difference between "resistance" and "dynamic resistance"?I thought you guys were all about pushing indicator free trading (over on "baby pips" I recall one of your mentors telling a poster to remove the MA's displayed on the chart they had posted),so what's with the 20 EMA?What you could do is throw in a 50 EMA or even a 63 EMA and create a DnB Shadow....now that's an original idea.Holy Grail I think we are on to something here keep up the good work.
  • #13
  • Jul 15, 2013 6:10pm Jul 15, 2013 6:10pm
Quoting edge540
{quote} Excuse my ignorance but what is the difference between "resistance" and "dynamic resistance"?I thought you guys were all about pushing indicator free trading (over on "baby pips" I recall one of your mentors telling a poster to remove the MA's displayed on the chart they had posted),so what's with the 20 EMA?What you could do is throw in a 50 EMA or even a 63 EMA and create a DnB Shadow....now that's an original idea.Holy Grail I think we are on to something here keep up the good work.
It is my understanding that anything "dynamic" is a moving object, so to me resistance would be a horizontal, fixed line while dynamic would be a moving average line.

You mention in your your first post that we need not need to pay for this price action information as if you know it all and here you are asking basic question.

My feeling is that you have paid more for a course and received less than what you have found for free, hence you have a cross to bear.

Don't worry about that, most of us have been there also!
It takes a lot for me to IGNORE you, but you can try.
  • #14
  • Jul 15, 2013 6:38pm Jul 15, 2013 6:38pm
Quoting edge540
{quote} Excuse my ignorance but what is the difference between "resistance" and "dynamic resistance"?I thought you guys were all about pushing indicator free trading (over on "baby pips" I recall one of your mentors telling a poster to remove the MA's displayed on the chart they had posted),so what's with the 20 EMA?What you could do is throw in a 50 EMA or even a 63 EMA and create a DnB Shadow....now that's an original idea.Holy Grail I think we are on to something here keep up the good work.
Get a life dude!
  • #15
  • Jul 15, 2013 7:05pm Jul 15, 2013 7:05pm
Quoting Erebus
{quote} It is my understanding that anything "dynamic" is a moving object, so to me resistance would be a horizontal, fixed line while dynamic would be a moving average line. You mention in your your first post that we need not need to pay for this price action information as if you know it all and here you are asking basic question. My feeling is that you have paid more for a course and received less than what you have found for free, hence you have a cross to bear. Don't worry about that, most of us have been there also!

Thanks for that,I should have been able to work that one out myself...I certainly don't "know it all".You are correct in assuming I've paid for the odd course over the years but in general I've been happy with what I've received.I must admit I enjoy baiting these scammers,perverse I know but fun watching the underlings run to their defense.Good luck.
  • #16
  • Jul 16, 2013 6:52am Jul 16, 2013 6:52am
The 10/20 EMAs that are on our charts are used to map the mean value of price. They act as dynamic support and resistance, in trending conditions the mean value often acts as a strong turning point.

We don't use them for 'crossover signals', or any of the other typical moving average trading methods.

These markets just don't have any momentum in them at the moment, possibly due to the whole Summer trading thing.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #17
  • Jul 16, 2013 7:07am Jul 16, 2013 7:07am
Quoting edge540
{quote} Thanks for that,I should have been able to work that one out myself...I certainly don't "know it all".You are correct in assuming I've paid for the odd course over the years but in general I've been happy with what I've received.I must admit I enjoy baiting these scammers, perverse I know but fun watching the underlings run to their defense. Good luck.
Glad we were able to amuse you and for DnB great response I shall honor him with a vouch

And edge540, I don't know if you have looked at the website but there is only a 1 time payment for lifetime membership

Unlike some you refer to where they want continuous monthly payments, it is probably less than what most new traders will blow in a few bad trades

I already mentioned, I know where you are coming from, but think about it not from your experience but from from perspective someone that knows absolutely nothing about trading

So at the very least, they are getting some education for their money, trading is a risk and so is joining their website, may gain something, may lose something

And if they are persuaded to give up scalping, shown just 1 good daily, pinbar trade setup, they could possibly recoup that expense quickly

As they say, if you think education is expensive, try ignorance

It takes a lot for me to IGNORE you, but you can try.
  • #18
  • Jul 16, 2013 8:22am Jul 16, 2013 8:22am
Thanks for your support Erebus,

I am not trying to 'scam' anyone. Like I said I am aware the Forex market is saturated with 'scams' and we've tried really hard to set ourselves aside from all that negativity.

I think edge has a lot of personal issues that he must be dealing with, maybe he has lost a lot of money to the markets and his bitterness towards other people is the result of that.

If you've be 'scammed' before Edge and been burnt in the markets, I am sorry to hear that but please stop trolling this thread. I have barely even got it off the ground and you're all over me. I took a look at your post history and I see you've been going into other peoples threads and getting all bitter with them too.

Seriously Edge, direct your anger somewhere else, you're never going to get a grip with trading by reacting so negatively all the time.
Obsessed with Price Action Trading, Swing Trading & Breakout Strategies
  • #19
  • Jul 16, 2013 1:39pm Jul 16, 2013 1:39pm
Quoting DnBPriceAct
{quote} I hoped to avoid negative comments like this, to begin with I clearly statement in my first post that I was a member of the DnB War Room community trying to be fully transparent so there are no 'hidden surprises'. Yes you have to pay for War Room membership and they teach really good stuff in there which I have benefited from. I am not going to use this thread to bait people into buying the membership though, I am simply going to show some of the basic concepts that I've learned from the DnB War Room and how I apply them to the market. Edge,...
Don't waste your time on him! He did the same with me on my thread but what else would you expect of someone who has spent the last 6 YEARS hopping from thread to thread in search of not only the Holy Grail, but the FREE Holy Grail! He is just typical of those who will NEVER make it in trading and are so bent out of shape, they want to make it hell for those who can. Just keep on doing what you're doing, IGNORE the Negative Nellies and ban them from your thread by putting them on your IGNORE list - that way, you will be able to help those who are APPRECIATIVE of what you're doing.
15 YEARS OF PASR ON FOREX FACTORY!
  • #20
  • Jul 16, 2013 6:22pm Jul 16, 2013 6:22pm
Quoting strat
{quote} Don't waste your time on him! He did the same with me on my thread but what else would you expect of someone who has spent the last 6 YEARS hopping from thread to thread in search of not only the Holy Grail, but the FREE Holy Grail! He is just typical of those who will NEVER make it in trading and are so bent out of shape, they want to make it hell for those who can. Just keep on doing what you're doing, IGNORE the Negative Nellies and ban them from your thread by putting them on your IGNORE list - that way, you will be able to help those...

One scammer to another....what a joke.You guys respond with the same old cliche's assuming you know all about me when in fact you know nothing.I haven't actually been scammed,unless of course you would call a month on old "Strats" thread a scam.It's interesting to note that "Strat" is a mate of "Jacko",FF's biggest scammer of all time.
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