Simple, Powerful and Effective Price Action Trading Strategies

I am new in forex and demo trading, i need help from you guys. I am trading only on daily chart but i want also to start trading from 4 hours chart. Please you people should teach me, i will be very grateful, thanks you all

Hi nmesoma,
We are on page 33 over here on this thread. The forexguy.com website also offers plenty of useful information on Price Action. Go ahead and start studying in your spare time. Try to understand the concept of price action described in these pages. Do your homework conscientiously. PA signals are generally more reliable on higher timeframes. I advise you to stick with the daily chart for the time being. - All the best.

GBPNZD : the week in review

The week of Nov. 16 to 20 was a Bearish Bar, low of 2.30888

November was an Inside Bar, low of 2.27353

This week price dropped from Monday until Thursday when Draghi was off the leash yet again

Friday is the only Bearish Reversal Bar with the trend but at New York session; interesting where that bar topped at, have to have these level on the chart at all times!

However, the profit taking and trend resumption would yield a 1:1 trade, depending on your trade plan and risk profile

seatac
Please can i apply 10 and 20 ema on 4hr, weekly and monthly chart. if it is possible, does it give good signal (result) like on daily chart?

did i get the line correct and is it an inside bar or pinbar? can i enter short here?

you should have two moving averages on your chart. A 10ema and a 20ema. This then shows you where the 'mean value area' is.
The candle is not really a pinbar ( too much lower wick). It is an inside day, but look at the size of the previous candle.
In fact a better example of an inside day (and a pinbar), are the two candles before the first large red candle on your chart. It is better to evaluate inside day candles in areas of consolidation or smaller range candles.
Personally I would not enter a short here. I would at least be looking for a retracement to he mean value area or the upper resistance line. It looks as if there has been two days of strong reaction due perhaps to a news event, where previously there was a strong uptrend. Not a high probability trade in my view.
Have you looked at this website www.theforexguy.com
You will find so much valuable information there.

If I can add to the inside candle discussion here:

You will find inside candles form a lot, and naturally they are going to form when you've just seen a massive power candle printed on the chart - so it's highly likely the next day will trade within the previous candle range, and technically create an Inside candle pattern.

A lot of traders go crazy with inside day breakouts - my advise it to only trade inside candle with tight ranges as they are a consolidation pattern, and you're really trading consolidation breakouts. If the inside candle range is large, then it is not really a reflection of tight consolidation.

Good inside candles look like price squeeze patterns, like triangles and wedges on lower time frames.

In the chart posted by @nmesoma - the inside candle does not have a 'tight' range, and doesn't really much value as a trade opportunity in my opinion.

Recently the Battle Station Algorithm picked up a nice sell signal on the AUDCHF that we discussed in the War Room.



Read the action report to see how this trade turned out.

Please every body teach me, is the [mean value area'] in between 10 and 20 Ema? or is it from 10 ema

Just an update on the audchf trade above...



This one worked out very nicely, congrats to all those who caught this move. If anyone is interested in the recognition tool that pumps out the alerts, you can check out my candlestick algorithm for MT4.


The USDJPY chart looks like one we should watch for the next week. Waiting for a bearish signal to print at this level...



The USDJPY has been a fairly ‘grindy’ market this year with only a few impulsive moves drawing our attention.

For the last month, we’ve seen this market going into a tight consolidation structure here on the daily chart, not offering any high quality trades or any high quality environment to trade them in.

Last session however, price finally broke the consolidation structure lows and close below the whole consolidation range. This is a fairly aggressive bearish event, especially given the size of the candle.

Now us swing traders are waiting for the market to test the old structure, and confirm it is going to hold as new resistance by printing a bearish reversal candle at this hot spot.

If this scenario does play out, and we do get a bearish signal – it will be a classic ‘text book’ perfect swing trade, allowing us to enter into a developing bearish move at a good price.

nmesoma
To answer your question. The mean value area is that gap between the 20ema and the 10ema

dodger thanks, i am happy now, i taught that it was from 10 Ema upwards or downwards.

As I was relaxing in the lounge room I got a notification from the Battle Station to check the NZDUSD 4 hour chart - as a bearish pin bar was detected which is what you seen on the chart above.

The reversal candle formed as a move up into a resistance level terminated as the level held, and pushed the market back down, closing the 4 hour candle as a nice looking rejection candle.

The candle does have a slightly lower close below the open price in the candle, but the level price is bouncing off is pretty solid. It's the current market structure highs, and the resistance level is very visible from the weekly chart.

We're moving into the US session, so we could see prices fall lower from this setup before the week closes. For those who missed this one, watch the daily candle close for an end of day bearish trade signal.


- Check out More Swing Trading Price Action Strategies

can i join this trade now???

Well no the NZDUSD trade didn't work out.

This is always an issue with signals that form on the Friday session, the weekend seems to interrupt the flow of price action and 'disturb' the signal. You tend to see Friday signals fail on Mondays a lot


The MT4 Price Action Battle Station just send out an alert about this rejection candle...



A nice bearish rejection candle formed at a nice turning point on the Australian Stock Index (AUS 200).The reversal signal demonstrates clear rejection of higher prices and the market respecting resistance.

If we look to the left we can see the market has been moving in a 'straight line' fashion as it rallied without retracing.

It's nice to see a big fat bearish candle, the strong anatomy communicates the market is ready to turn around, which is very important for the 4 hour swing trading. We don't want to take small, weak looking reversal signals on intra day charts.

Look a bit further to the left and we can see a similar bearish reversal candle formed off this level in the recent past, and produced a very nice down move.

The Battle Station has really proven to be a powerful chart monitoring tools, as I probably would have missed this setup completely if it wasn't' for the alert I received on my iPhone.

The AUS200 Index signal didn't play out as expected, only a brief move down before popping back higher to break through that resistance.

Anyone who watches this market, wait for that resistance level to be re-tested and see if it holds as new support. There we can wait for buying opportunities.



Merry Christmas everyone here at Forex Factory.

All the best on the charts for 2016.

Please friends, i will be very grateful teach me, What is Asia fail breakout, is it breahout during Asian session? please you people should teach me.

Got an alert from the Battle Station this morning about a rejection candle on the AUDJPY daily chart. Didn't expect much activity this week coming out of the holiday period, but the AUD is firing up to start the year off.

The rejection candle doesn't look too strong in its anatomy, but at least the close was below the open price which does help give the setup a bit more bearish authority. If this candle closed above the open price, I wouldn't consider it as a good sell signal.

The level being rejected here is an important one. If you jump over to the weekly chart you will see it is a major structure level in the market which is now holding as new resistance.

A sell off is anticipated after the bearish rejection off this level. Plus it passed the Battle Station quality controls


Find out more about the Price Action Battle Station

When the market test major structure levels it definitely gets my attention, and should get yours - considering these are where the big reversals develop.

The USDSGD is testing it's market structure highs right now. Check out the weekly chart and you will see the significance of this level.

We can see some bearish rejection off this level - so if we drop down to the 4 hour chart we can see there are some bearish rejection candles being printed.

4 hour swing traders are probably already short - if you've missed out on the move, don't worry, wait and see how the daily candles closes. If a reversal does start to develop off this major level, there is a good chance we will get a signal at the end of day close on the daily chart.

- The Forex Guy Swing Trading Strategies

Hey,

I was also watching the price action at this level. Seems it broke up. Fortunately I didn`t took this trade.

How could we filter this kind of bad signals?
It was a really nice pinbar at major resistance, but still, price went up.