Simple, Powerful and Effective Price Action Trading Strategies

Sorry mate, - I didn't know you posted here. For some reason I am not getting emails about new posts.

You are trading against some heavy downward momentum there.. it doesn't look like a very convincing buy opportunity for the 4 hour chart. I would have prefere to see a nice strong buy signal on the daily chart - but your trade idea could have worked out and produced high return - it was just risky.

I am monitoring the NZDUSD closely...




The NZDUSD this year was a very bearish market, and we just recently seen in sell off aggressively - almost reaching the 60c level. Since then the market triple bottomed and has now exploded upwards, recovering from recent losses very quickly.

Price is moving too aggressively to work with on the daily chart, so I am scaling down to the 8 hour charts, where we can see a real nice trending structure.

What I am waiting for is a retracement into a previous swing high, and looking for that level to hold as new support to create a swing level. This will be the 'hot spot' for a nice swing trade buy signal to form, and be a good opportunity to get in with the trend momentum.

One problem I've noticed with a lot of trend trading, is that although traders get in with momentum - they get in out of position. This is a good example of that sort of scenario - we need to wait for prices to correct and buy in at the key turning points. Then we're in at a good position, and a good price.

If you're wondering how I got 8 hour charts on MT4 - check out my new custom chart generator for MT4

Looking at the GBPUSD which offers a potential bearish trading opportunity to start the trading week off.

If we highlight the overall structure of the market, we can see price is bouncing between a declining trend line, and a major support level. Last week price rallied into the trend line and stalled - creating an indecision doji candle, and then an inside day to follow.

This communicates price stalling and churning, and we're starting to see weakness develop as the candle bodies are showing lower closing prices for the day.

We're at a main focus point for this chart at the moment - if prices pushes down lower this session, and breaks lower out of the consolidation combo setup, we could see another move down to the major support level, which would be a logical place for targets.

- The Forex Guy

Hello Guys, I've just entered long on USD/CAD on an H4 GoMarkets demo account. My entry price is 1.29727, TP is @ 1.30357 and the stop loss is @ 1.29337. I think that the strong rejection candle off the mean value indicates that the price is likely to go up. Let's see how it works out.

Looks like that trade paid off well mate. Good work.

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One of the charts I will be watching closely within the next few weeks is the EURCAD. This market has emerged out of consolidation by breaking below the bottom support containment line.

Now price has broken free, we can expect this market to get moving. Once of the best positions to trade from is when old consolidation containment lines are re-tested as new support or resistance. In this case we want to see the old support act as new resistance. When this sort of price action swing scenario occurs – you can catch some really powerful moves.

Watching the intra day charts would be a good idea here also, to capture any strong h4, h8, or h12 sell signals that do form off this level.

- The Forex Guy

Today I would like to talk about a potential mean reversion situation on the EURGBP daily chart.

Price has accelerated away from it's mean creating the classic price-to-mean gap. The fast moving bearish price action was contained by a support level - where price has stalled and churned to create a bullish body inside day.

If price breaks out higher in the London session - we could see a fast return back to the mean, and possibly even back to the major resistance above. But, to make that call, we will need to wait and see how price reacts if it does indeed sling shots back to the 10/20 EMA mean value area.

- The Forex Guy

Is it good Area for sell??? am i right about this inside day setup????

EUR/JPY daily chart might offer some good risk reward ratio for us if it works out. I'm demo trading it, and entered long at 133.16 stop loss is @ 132.68 and the TP is 135.50

Best of luck for all.

At that stage I wouldn't exactly call that a 'breakout'. It has only breached the previous candle high by a few pips really - it could be be put down to normal market fluctuations.

To call it a breakout trap, you would really want to see a decent upper tail on the candle.

This chart was heavily discussed in the War Room - well spotted Jone. This was an excellent hot spot for bearish activity. Unfortunately, we didn't actually get a sell signal to complete the setup, and of course there was a large sell off from the area.

Yes there is a very large bullish rejection candle show rejection of lower prices on the New York close daily charts. It's still playing out, but could see higher prices develop.

After the Fed baited the market on with more of their ‘we might raise interest rate’ B.S. – we seen volatility pick up on EURUSD and a breakout of the ranging market structure it was stuck it.

Breakouts like this are a breath of fresh air for swing traders – as they can be the beginnings of large broader moves.

There are two ways this could play out in our favor. The first scenario is price will move up and re-test the old consolidation support level, and confirm it is holding as new resistance by printing a large bearish price action reversal signal – such as a bearish rejection candle. This would be the golden scenario, as it would provide a very good entry price into the emerging down move.

Secondly – we actually have an inside day that is very close to the turning point on the chart here. We could see the lows breached and fuel a bearish breaking, kicking off a move that way.

I always advise to take breakouts only when they occur in the London session, when the money is behind the move. This strategy helps avoid getting caught in breakout traps.

- Dale Woods

What are your views about this INSIDE BAR setup???

Its ok

But the market conditions ruin it, and make it a riskier trade.

Have a look at the surrounding price action - very turbulent and no existing trend.

It's also not a major turning point - which is the more safer place to trade from in consolidation.

@jone3

Whenever I see a chart like that, with a question like that, it reminds me of when I used to follow the horse racing; ever do that?

The experts write the guide and you read the form on each horse and try to pick a winner

As you get down the list, you will find one where they couldn't find anything to recommend it, so they write -

OTHERS BETTER

There are 28 main crosses, I'm sure you can find a better pair with a better setup

I am not sure if you're disappointed with my answer - I hope I didn't offend.

It might seems like the generic response, but I try to keep Forex trading simple and straight forward. If the market is noisy then, then the 'odds' are not in your favor.

It's best not to obsess on one market as some traders do - as you mentioned there are a lot of markets out there - look for those trends.

There have been a couple of traders who have tried to trade AUDCAD recently and got destroyed by it. The movement is just too unpredictable at the moment.

DnBPriceAct your views about this DOJI BAR setup???

AUD/NZD Daily chart seems to offer good Risk Reward ratio (1 : 2.7). I've entered short on a Go Trader demo account. The trade is in line with the main trend. Let's wait and see if it works out as planned. Good trading everyone!

IMHO, you need more than 1 bar to trade the market, but you're on the right track, do you see what I see on this chart?

Hi everybody. Im new to this thread. Really enjoying the posts and love price action trading. Special thanks to DnBPriceAct for the guidance!

Re: AUDNZD - that wasn't a strong enough sell signal for me. The bearish price action is fairly weak, especially after such a strong bullish move recently. I would have much preferred to see the rejection candle form off the old support level, but it was just shy of that.

Your short trade could work out, but I've got a feeling it's going to start stepping upwards. Watch for those higher lows to develop. It's really hard to tell at this point.

Looking at a potential mean reversion on USDJPY...



USDJPY launched upwards last week, especially after the NFP data was released towards the end of week. This caused some nice moves in many markets, including this one - which was influenced heavy by the USD strength.

In the War Room we do a lot of mean value analysis, which is the study of price in reference to the mean. One of the things this type of analysis can provide is visual over extension cues for the market. We can see here price has accelerated away from its mean value, creating that classic over extension gap.

We also have an indecision Doji candle, that has a bearish close in it's body - communicating a potential reversal.

If price does break the Doji structure lows, it could kick off the mean reversion move. Generally when these setups play out as expected - the moves are quite violent.

- Dale Woods