Making Money Trading

[Paresh]

It certainly is. There are many different types of price action setups. These include:

- Pin bars
- Bearish bars
- Bullish bars
- Bearish outside bars
- Bullish outside bars
- Double bar high, lower close
- Double bar low, higher close
- Inside bars
- Inside bars with consistently smaller ranges
- Two (or more) bar highs
- Two (or more) bar lows

So far I have not covered most of these setups. You will find all of them explained in detail on the J16 thread over at FF.

Hello TD,

Do you trade all of these price action setups?

 

[forexbee]

Yes that is a good looking pin but it has already been INVALIDATED.

Also remember that WHERE IT OCCURS is more important than the pin itself.

Hi TD,

Thanks TD,

Just checked with Pivots , S/R there is a peek in 1.4822, No Fib confluence, Pin is not invalidated, but not worth taking this trade. Sorry TD,my fault on circling the pinbar, circle has been drawn the next bar partially making it to look like invalidated. On zooming in with OHLC information i can see, it missed by 1 pip to invalidate it. Though as we know faster timeframes sometime gives big pips, this pin as at this time of writing has moved down for 6pips approx. Again not worth entry.

Fxbee

 

[jitasb]

The mechanics and Timing of an entry.

Hello TraderD

Haven't posted recently due to work commitments. But wonder if you could answer a quick question regarding the process of opening a position.

1) Say, you are trading hourly and looking for pin bar price action set up. The plan is to enter a trade once the pin bar high/low has been broken. So do you actually go thru all the charts just before the hour to see which have a pin bar forming ? Then enter an order once the pin is complete ?

I suppose I'm asking whether if you wait until the hour is complete, then go thru all the charts, you might miss an entry because the next bar has already moved beyond the pin level. Or does this not happen in your experience ?

Thanks

 

[bansir]

price gap support for pin

Hi folks,
Just thought this looked interesting in terms of whether a price gap could be used as a reaction region for a pin candle. I was already long by the time the pin formed having got in just on the break of 1.4834 and trailing my stop below the SMA.
As the move developed I noticed this pin-like formation reject the price region formerly jumped by the gap on my entry.
It really is surprising to me; it's as if there really is a strong 'band gap' or forbidden region where the price refuses to be. Anyway, if TD can concur then maybe gaps can provide added confluence.

Best Regards,
Neil

 

[trader_dante]

Hello TD,

Do you trade all of these price action setups?

I don't trade all of them but I am aware of all of them when I look at the market.

I mainly trade pin bars but I will sometimes take:

- Inside bars
- Inside bars with consistently smaller ranges
- Two (or more) bar highs
- Two (or more) bar lows

My Eur/Gbp trade was off an INSIDE BAR and it has been my most profitable trade since starting this thread in terms of pips won.

 

[lurkerlurker]

Hello TraderD

Haven't posted recently due to work commitments. But wonder if you could answer a quick question regarding the process of opening a position.

1) Say, you are trading hourly and looking for pin bar price action set up. The plan is to enter a trade once the pin bar high/low has been broken. So do you actually go thru all the charts just before the hour to see which have a pin bar forming ? Then enter an order once the pin is complete ?

I suppose I'm asking whether if you wait until the hour is complete, then go thru all the charts, you might miss an entry because the next bar has already moved beyond the pin level. Or does this not happen in your experience ?

Thanks

Coming soon - no need to go through the charts. Simply check one webpage at 1 minute past the hour and see what FX crosses (and some futures) made pin bars. Currently in beta testing, flagged all pins for the last 12 hours okay, with around 50% false positives and no false negatives (50% fp are pins where the nose doesnt stick out, or small pins).

Might put it live soon.

 

[trader_dante]

Hello TraderD

Haven't posted recently due to work commitments. But wonder if you could answer a quick question regarding the process of opening a position.

1) Say, you are trading hourly and looking for pin bar price action set up. The plan is to enter a trade once the pin bar high/low has been broken. So do you actually go thru all the charts just before the hour to see which have a pin bar forming ? Then enter an order once the pin is complete ?

I suppose I'm asking whether if you wait until the hour is complete, then go thru all the charts, you might miss an entry because the next bar has already moved beyond the pin level. Or does this not happen in your experience ?

Thanks

Hi Jitasb,

Yes I usually start looking around ten minutes BEFORE the end of each hour as I often have many markets to go through.

Remember a setup can happen at the end of ANY hour so if you are busy at work, you could check every other hour or even at irregular hours.

I am starting to trade daily bars more and that is far easier as there are no time constraints.

 

[forexbee]

pin gbpjpy

Hi TD, Expert pin-ners

After seeing lurker & firewalker post, amazed to see gbpjpy chart. I could say only Wow on looking at the chart. Thought this could be useful for everyone in longrun to see & learn.

Asusual, my boss (TD) if you feel to add something pls feel free to add it. Iam getting bit more confident than before on learning pin and fear for entering a trade is also getting lesser when i can get odds favourable for me.

Edited: Is that last one circled pin? Nose seems to b e little bigger than normal perfect pinbar, again, there is no favourable entry scenario in this.

Fxbee

 

[lurkerlurker]

I am starting to trade daily bars more and that is far easier as there are no time constraints.

Remember what I said to you about a statistically significant sample of valid daily pins also containing a valid hourly pin during that session? 1/2 on on the hourly, add 1/2 on the daily, and you have halved the pip and £ risk and doubled the R:R. It is still important to check each hour.

 

[trader_dante]

Hi folks,
Just thought this looked interesting in terms of whether a price gap could be used as a reaction region for a pin candle. I was already long by the time the pin formed having got in just on the break of 1.4834 and trailing my stop below the SMA.
As the move developed I noticed this pin-like formation reject the price region formerly jumped by the gap on my entry.
It really is surprising to me; it's as if there really is a strong 'band gap' or forbidden region where the price refuses to be. Anyway, if TD can concur then maybe gaps can provide added confluence.

Best Regards,
Neil

Hi Neil,

I don't personally trade gaps but I know some traders who say they make some of the easiest money trading them - particularly the forex gaps on Sunday night/Monday morning. The majority of the time these gaps seem to be filled in. An event which creates a recurring high probability of success if traded - or to put it more simply: an edge.

Your 5m pin illustrates another idea I have read that once the gap has been filled in, price continues in the original direction of the gap.

This is the concept you are trading. Price gaps up and then returns to fill it in. Once it has been filled, price reverses.

Rather than anticipating the gap, you are playing it once it has been filled. The pin shows you a clear reversal from this area.

What stands out to me though more than the gap (which is particularly small) is the S/R pivot that the pin creates.

 

[trader_dante]

Hi TD, Expert pin-ners

After seeing lurker & firewalker post, amazed to see gbpjpy chart. I could say only Wow on looking at the chart. Thought this could be useful for everyone in longrun to see & learn.

Asusual, my boss (TD) if you feel to add something pls feel free to add it. Iam getting bit more confident than before on learning pin and fear for entering a trade is also getting lesser when i can get odds favourable for me.

Fxbee

Fxbee, I thought the same. I have one thing to add. Check the chart

 

[Reas]

GBP/JPY trade closed, +100 pips, couldn't resist it.
Thanks for teaching TD

 

[lurkerlurker]

GBP/JPY trade closed, +100 pips, couldn't resist it.
Thanks for teaching TD

How did you react to the spike up which tested your entry around 9:30AM?

 

[Reas]

Lurker, that's the pin i entered on this morning, see posting #677

 

[firewalker99]

Firewalker,

Those MA's on your first chart are mine, you stole my chart :cheesy: just kidding.
What would be a reason to exit for you?

My exits depend parly on volume, but as forex doesn't have any I feel left out in the dark.
But a decent upswing for sure would stop me out, as is what happened in this case. So that would be when price climbed back up above 222.00. This means I would've left some pips on the table (as far as I can see the low is around 221.25). With the entry close to 225.00 that's still close to 300 pips for nothing but a bit of patience

 

[lurkerlurker]

Lurker, that's the pin i entered on this morning, see posting #677

Good man. I tried to get back into that one, but I missed it - was too busy at the time to execute the order, so I just had to watch it go....well done...testament to the greatness of the system and the teacher!

 

[lurkerlurker]

Time to Learn

My exits depend parly on volume, but as forex doesn't have any I feel left out in the dark.
But a decent upswing for sure would stop me out, as is what happened in this case. So that would be when price climbed back up above 222.00. This means I would've left some pips on the table (as far as I can see the low is around 221.25). With the entry close to 225.00 that's still close to 300 pips for nothing but a bit of patience

(apologies to TD for taking the thread offtopic, but firewalker reminds me of this Zen parable)

A young but earnest Zen student approached his teacher, and asked the Zen Master:

"If I work very hard and diligent how long will it take for me to find Zen."

The Master thought about this, then replied, "Ten years."

The student then said, "But what if I work very, very hard and really apply myself to learn fast -- How long then ?"

Replied the Master, "Well, twenty years."

"But, if I really, really work at it. How long then ?" asked the student.

"Thirty years," replied the Master.

"But, I do not understand," said the disappointed student. "At each time that I say I will work harder, you say it will take me longer. Why do you say that ?"

Replied the Master," When you have one eye on the goal, you only have one eye on the path."

(naturally I am the over eager student in this - thanks for the advice FW - I'll get there in the end)

 

[lurkerlurker]

Xauusd

Short Gold on hourly pin (confluence with S/R zone).

Entered short 822 with a stop of 825.6. 36 pips risk. Target down at 818 or lower - see how it goes - will be out MOC though.

 

[Achilles]

TD, have just been through the whole thread this week and just wanted to add my thanks for sharing your methods. I'm now scanning some daily and weekly charts for potential setups for next week. So far have noticed
Daily EUR/USD short on break of 1.4783
Weekly FTSE long 6331

Please can someone have a look and confirm these qualify as good setups.
My concerns are that on EURUSD there is no confluence of either resistance or fib levels and with the FTSE it would need a large 300 point stop.

 

[Reas]

Achilles, you're right EUR/USD has formed an excellent pin, but it sticks out in uncharted territory.
I'm not expirienced enough to be sure what to do with it, i think that's why i would let it go.
There are plenty off other opportunities witch you can enter with much more confidence.