LJ Forex Group

The above setup highlights two important considerations when we analyse how 'price approaches' the level/zone.

1. Impulsive moves - is the approach considered impulsive?

2. The close approach - is this a reason to cancel the trade?

As you can see from the annotated chart below, the answer to both is no.

For me personally I'd still reduce my original risk in half, as the way I would look at is that although the setup is still valid, it's clearly not 'as good' a setup as if the close approach didn't occur.

An AUDUSD M30 FTB setup yesterday that was cancelled.

An AUDJY M30 FTB that triggered during the Asian session for +1.97R

EURGBP DRT last night:

GBPJPY FTB that setup overnight.

Another FTB from overnight.

AUDJPY M30 FTB this morning for +1.28R

(M30, M30, M5, M1, M1 TF charts below)

As a follow up post, notice how the area price actually bounced from was the DP within the demand highlighted above.

Knowing exactly what should hold / where price should react from at worse is extremely important, not just for trading FTB's but for price action trading in general.

The problem is that the majority of PA traders don't possess good enough knowledge of SD zones and decision points and thus use things like bar high/lows or even worse averages (through the use of indicators) leading to wide and illogical SL placements.

Recent setups / trades...

1. AUDCHF FTB

2. EURGBP DRT for +1.22R (late entry due to late being in front of my daily charts thus lost over 1R in potential profit).

3. GBPSGD FB +2.02R

Notice how even on a cross pair the M1 proved useful source of information (for SL placement).

A USDJPY FTB trade from Friday (identified by Trading Room members in my absence)

Quiet week, only 1 setup so far this week, an ACHF FTB.

It sure picked up over the last 24 hours...

1. ESEK DRT

2. USDJPY FTB

3. CADCHF FTB

4. EURUSD FTB

5. EURCHF Daily FB

FTB's triggered this week:

1. AUDUSD

2. EURJPY