Personally, I find price action the only saving grace a trader has in this entire cosmos of random ticks and pips. Trading uses "game theory", it's a simple game where we play against apponents, with the only logical way to win being that we find an edge to beat our apponent. . . . . . . . . . . . . . . . . . I find the minimum trade entry should be taken on hourly charts, trading in a common sense fashion in the direction of the intraday and daily trend. I use inside bars and reversal bars or key reversals on 1 hour and 4 hour charts, and i can get some massive trades going. I urge most new fx traders to learn price action.QUOTE]
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price action is indeed a very good method of trading, and the method on this site taught by trader_dante, using "long legged hammers" (called pin bars in his teachings) is a nicely solid method of trading that appears to be similar to, but offers much earlier entries than your system.
but the two things i shall pop in here is first, "theres more than one way to skin a cat" and while you may be sitting there, in front of your computer with the latest graphics cards, multicore brains and the fastest ram in the world, it is NOT a game and in reality, you are really NOT trading against anyone else --- its NOT warfare or gamesmanship, but rather a simple method of moving from one place to another, and finding profit at your new home !
if you had been using support and resistance and associated channels, you could have entered your short WAY before you got confirmation from the price action of those candles, as each candle (on a one hour chart) takes (duhhhhhh) one hour to complete, and from what i see, youve taken at least two hours waiting to make the decision, while others using s+r would have already been in the trade, making money, hours before you !
as far as "winning against opponents by finding an edge", the edge you seek is simple experience and knowledge of HOW to trade, not a pearl handled revolver, more ammunition or a suitcase nuke and as far as opponents, WHO the heck are they ? if trading against a broker, youre simply trading your price against his/her pool of stock, options or forex lots, and there is only one way to ACTUALLY win against them --- be in every single trade thats made for 24 hours each day, be it long or short and especially on the one and 5 minute charts, where they are moving up and down --- its a lot of work, and you should hire a few assistants to handle the shifts, but then you have the satisfaction of knowing you matched em, step by step. Of course, the best you can hope for in that case is a draw, as he/she can always come up with one more pip than you thought, and therefore "WIN !"
If youre playing the one hour chart, the firm is playing that, plus EVERY other timeframe, so when they retrace a move on the 15 min, it just looks like a bit of a drawdown to you, and the trend continues over the course of the day, but during that same course, they have gone long and short 100's of times, buying and selling and making profit, while your train just chugs slowly forward, ignoring the moves around you ----- they win, thru sheer dint of volume of trades, and they dont play against you --- they trade against everything !
Its NOT a game or a contest --- its simply educated and experienced abilities faced with how to get from point A (entry) to point B (exit) and is no harder or more competitive than walking across the street !
your method is sound, but forget about jousting with the broker --- its silly, stupid and pointless because its of no value --- just concentrate on walking across the street !
enjoy and trade well
mp
