If not up, then down, otherwise sideways :-)
james16 Chart Thread
- #132,062
- Sep 2, 2014 12:11am Sep 2, 2014 12:11am
Some may remember I posted a possible short on the GBP/DKK a few weeks ago. It's now playing out out as predicted. I've scaled out and moved my S/L to safety.
I'm in Rome, Italy at the moment and it is nuts! I love it here so much. St Peter's Basilica was mind blowingly beautiful!
I'm in Rome, Italy at the moment and it is nuts! I love it here so much. St Peter's Basilica was mind blowingly beautiful!
Follow me on twitter @FxLester
- #132,072
- Sep 2, 2014 12:42pm Sep 2, 2014 12:42pm
- Joined Dec 2012 | Status: On Life's Path | 2,076 Posts
Looking also for gbp/jpy bearish pin bar at a key resistance level {image} uploadimage
- #132,073
- Sep 3, 2014 2:34am Sep 3, 2014 2:34am
{quote} No trouble at all buddy. Entry is classic. Pinbar in uptrend. Also look at the location where the pin occurred. So logic is pullback in uptrend at round no and pin confirming the up move.
In addition to the reasons that you gave, did you place your entry based on some fundamental event ?Thanks,
N
{quote} But the pinbar is so tiny.
The pin formed near to 103.50 which is a strong resistance areas on the weekly. It took a lot of orders to break it. see the breakout from 103.50 on weekly , it is strong.So what do you expect 103.50 to do now. obviously hold as support and a pin no matter how it looked was enough to confirm the support.
About the 104 RN, no a very good location, because it was not respected well enough on daily as you can see. It was chopping around 104 and we are in uptrend. When we are in uptrend the resistance areas (swings highs, BRNs) have to be broken otherwise you have no trend. Once a major swing high/BRN is broken in uptrend that tend to act as support and this was exactly the case for 103.50 area.
To make analysis simple , first look at market if it is trending or moving sideways, this is known as context and should be the first thing to look at and then secondly look for the location to enter and third, depending on your experience and skill enter on a pattern or touch trade at the chosen location and finally manage the risk as price moves in your favor. This is as simple as trading will get. If you make it more complicated than this , you will miss good entries.
I have been saying this for sometime now , most people look at patterns as though they are the holy grail and then everything else. Yes size and shape of patterns matter , but not so much compared to context and location. If you get context and location right , you don't have to worry about patterns. The reason for this is institutions look for context and location first and then enter , so if you do the same you should go with them , not against them. Patterns form as a result of their actions. But their action is based on context and location. Hope that makes sense.
- #132,075
- Sep 3, 2014 4:19am Sep 3, 2014 4:19am
- Joined Dec 2012 | Status: On Life's Path | 2,076 Posts
{quote} you see this is the problem, you focus too much on the pattern. No amount of information will help gauge if the pattern is strong or not. instead focus on the Context and location. The pin formed near to 103.50 which is a strong resistance areas on the weekly. It took a lot of orders to break it. see the breakout from 103.50 on weekly , it is strong.So what do you expect 103.50 to do now. obviously hold as support and a pin no matter how it looked was enough to confirm the support. About the 104 RN, no a very good location, because it was...
- #132,076
- Sep 3, 2014 4:27am Sep 3, 2014 4:27am
{quote} you see this is the problem, you focus too much on the pattern. No amount of information will help gauge if the pattern is strong or not. instead focus on the Context and location. The pin formed near to 103.50 which is a strong resistance areas on the weekly. It took a lot of orders to break it. see the breakout from 103.50 on weekly , it is strong.So what do you expect 103.50 to do now. obviously hold as support and a pin no matter how it looked was enough to confirm the support. About the 104 RN, no a very good location, because it was...
As Zamfir stated, location and story is the key. In my opinion, more important than the pinbar signal. To me, it is just my entry signal. If you are looking for a holy grail, that is as close as you'll get: location and story.
My thought process is to zoom way out or go up one TF to determine the market context. Lets go up one TF to the weekly:
Now I have a key level marked. I wait for price to tell me when to enter. Now onto the trade and how I played it.
As for profit. I took it under $105. Will we make a new high? who know's. We look pretty over extended at this point. It's too much profit to give up at this point.
Hope this helps. Don't be disillusioned if it is tough to grasp. These are advanced concepts. Stick to basic pinbars with space at swing points. Then move onto the more complex PA in consolidation.
Follow me on twitter @FxLester
- #132,077
- Sep 3, 2014 4:39am Sep 3, 2014 4:39am
- | Joined May 2010 | Status: Trader | 1,100 Posts
{quote} update:Again chart zoomed in, dont look at it this way. Just showing the 'details' {image} Take care Dan
Love this stress free style trading. I've also noticed the less I keep checking my open trades the better decisions I make.
A close below previous lows/closes could easily see us to the target area. ... anyone else in on this ?
Take care
Dan
- #132,078
- Sep 3, 2014 5:27am Sep 3, 2014 5:27am
{quote} Update
- #132,079
- Sep 3, 2014 6:51am Sep 3, 2014 6:51am
- | Joined May 2010 | Status: Trader | 1,100 Posts
{quote} I love your charts, they always work! I am also short since yesterday like you can see in my previous post. Keep posting your charts
No problem, will keep posting. I usually dont post up my trades anymore since most of my posts go unnoticed but if there are even a few people who benefit from them I will happily continue. Keep in mind that its taken me 5-6 years to get to this stage, even though the charts look so simple .. which they are
Take care
Dan
- #132,080
- Sep 3, 2014 7:10am Sep 3, 2014 7:10am
{quote} you see this is the problem, you focus too much on the pattern. No amount of information will help gauge if the pattern is strong or not. instead focus on the Context and location. The pin formed near to 103.50 which is a strong resistance areas on the weekly. It took a lot of orders to break it. see the breakout from 103.50 on weekly , it is strong.So what do you expect 103.50 to do now. obviously hold as support and a pin no matter how it looked was enough to confirm the support. About the 104 RN, no a very good location, because it was...