The price action chart thread
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    The price action chart thread

    Hello Every one,

    I am starting this thread to share my thoughts and ideas on trading learned over the years through my experience and experiments!. My trades are totally manual and I use price action in my trading. My trading tools are S/R zones, confluence, trend lines, Fib retracement and extensions, round numbers, weekly and monthly floor pivots.

    Most of the times I use bar charts and my favorite patterns are engulfing bars, pin bars and inside bars at key support or resistance areas. My style of trading is swing trading and of course when the trend is huge , I carry my positions for weeks/months. Most of my day trading happens on Tuesday, Thursday and Friday due to high volatility and movement.

    I have more than 5 years experience in trading and I believe that irrespective of our experience, level and expertise, we need to keep on learning everyday as the market is different every minute.

    I blend demo and real trading to improve my skills. Whenever I open a position in real , I simultaneously open a position in demo. This helps me to experiment/study with our psyche/emotions/attachments/decisions/panic/greed. As I go on I will let you know more on this part.

    I love all constructive/positive discussions and please let us keep this thread clean and of high quality.

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    But beside these candlesticks techniques how advanced trading techniques you have adopted I means to say Do you trade breakouts pullbacks breakout failure or failed failures and Do you know what is bard wire pattern or any other price action patterns that usually trap traders Final flags and wedges flags and If you do use these techniques then I am really be looking forward for your help because I am price action trader and I often see reaction after climatic action at daily high or lows and Often use patterns for reversal which has high probability like h2 and l2 enteries after tests

    regards

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    Quote Originally Posted by fxaddictor View Post
    But beside these candlesticks techniques how advanced trading techniques you have adopted I means to say Do you trade breakouts pullbacks breakout failure or failed failures and Do you know what is bard wire pattern or any other price action patterns that usually trap traders Final flags and wedges flags and If you do use these techniques then I am really be looking forward for your help because I am price action trader and I often see reaction after climatic action at daily high or lows and Often use patterns for reversal which has high probability like h2 and l2 enteries after tests

    regards
    Hello fxaddictor,

    Nice to hear you. I will go on unfolding my method along with the charts. Then lets see how it can help you in your trading .

    - - - Updated - - -

    Here is a EUR/JPY chart. I always analyses pairs on multiple time frames. As a thumb rule I follow the direction of the higher time frames which is naturally depicted on lower time frames.

    This trade was not so easy to understand if some one is new to price action trading. However support and resistance are same everywhere. They just come in different versions and we can learn all the versions with proper practice.

    eurjpyweekly.jpg

    - - - Updated - - -

    Can some one please help me with to how to edit a published post? I am not sure whether we have that privilege here?

    - - - Updated - - -

    Ok. Before I get an answer to my query, I will complete what I wanted to say with the charts ( please look in to the corresponding charts in my previous post ). Of course I have made comments on the charts.

    1. Weekly chart : We are aware that, in February last year Yen pairs have rallied substantially. Then after almost 8 months of consolidation and flag, There is an indication that we are ready for the next wave.

    2. Daily chart : The Inside bar, outside bearish bar and then a strong bar closing above the bearish engulf bar - All these activity takes in 3 days time. As soon as the bar number 4 closes above the high of the bearish engulf bar, the door for the bears are closed and we are ready for substantial upmove.

    3. 4 hour chart : It also speaks the language of the buyers!

    4. Though I make use of 4 hour charts for my entries, considering the strength of the trend , I use 1 hour pin and a round number 136 for my long entry.

    2/3 of my positions were taken out with a trailing S/L at 138.60 and the rest continues to run. I add at every retracement only if it meets all my criteria s ( high odds. I missed an opportunity to add at 139.

    - - - Updated - - -

    Of course I am totally out of this trade a week back as it has hit my trailing stop at 168. I captured this chart when I have taken 2/3 rd of the profit off the table.

    It had a slightly different price action for the long entry. However all time frames spoke only one thing i.e: long.

    - - - Updated - - -

    I am not sure whats happening to my posts as all of them are getting updated in a single post. Moderators - Can you please tell me is there anything missing from my end? do we have editing option? Before things get messed up in a single post, I will stop here as of now.
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    Well from all the indicators and trading tools you stated i just wonder, how is this a price action strategy? So how do you combine all these trading tools into an effective trading system that can consistenly give good trading signals to any forex trader?

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    This is a great discussion on this thread, i only wish one thing, i wish that the issue of the price action is not as complex as this, and this is the only reason that makes me to pretend as if i did not know it or see it because i have other trading systems that can fit in better for me. I even has a trader that says that it will have to say the same thing on 1day, 1 week and 1 month trading charts before he will enter the trade.

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    Quote Originally Posted by jonking View Post
    Well from all the indicators and trading tools you stated i just wonder, how is this a price action strategy? So how do you combine all these trading tools into an effective trading system that can consistenly give good trading signals to any forex trader?
    Hello Jonking,

    It is not necessary that we use all of the indicators/tools for every single trade one takes. But for me they are the best tools and when when I use them as a signal for confluence they work wonders. For example a trend line, monthly floor pivot, round number and 61.8% fib retrace. Just imagine what would be the reaction of the price to this level.Going forward I will take some charts and give you the clue about the same.

    - - - Updated - - -

    Price action trading has some thumb rules and if follow those basic rules, we are in the right track. One of the basic rules of price action trading is

    1. Price travels between support and resistance and vice versa irrespective of the trend.
    2. A broken support becomes resistance and a broken resistance becomes support.

    Though it is a simple rule, most of the new traders do not know the beauty of this simple rule. I will show the same with some latest charts in my coming posts.

    - - - Updated - - -

    Here is a AUD/USD monthly chart as we can see the 9550 to 9700 was a major support area. The June monthly candle breaks that support closes below the support area. Now how long will it move downside. We do not know. That is entirely a different point of discussion. Here as a price action trader, what all we know is the same broken support now will become resistance. Thats when we draw the S/R zone marked in blue rectangle.After few months of down move, the price starts retracing and as we can see the retracement comes back and hits our zone and turns back. Do you think I am doing all these after the fact ( in hindsight ) and it is not practical?. Just wait for my coming posts.
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    Flip in support and resistance

    I was talking on support and resistance. I have taken Aussie/Dollar case. Here I am attaching 3 charts.

    1. A monthly chart . There was a huge support area on monthly and that gets broken. Once that happens , the same broken zone becomes the resistance when the price comes back to that area for a retest.

    2. We scale down to daily chart and we wait for the price action to unfold when the price reaches the support turned resistance zone we are talking about

    3. Same chart, same zones but zoomed in. We have a false pin bar at 9500 levels which would have resulted in a little draw down. However when we stick to discipline it gives back everything. A bearish engulf bar seals the deal within the S/R zone and then after few days we have a DBHLC which indicated further move down up to the target area of 8900 levels.

    This is the beauty of trading long term charts and trading price action with support and resistance. For entry one can use 4 hour or one hour chart which enables a small stop loss.

    One cannot say I am doing it in hindsight as I am talking of daily and I am talking on a "closure of bar" basis and hence one can take all their time to enter and exit.

    - - - Updated - - -

    Here is a Pound /Aussie pair. Comments on the chart. This phenomena keeps on happening again and again and again and again and again and again and again.

    As price action trader, we should be very good at basics of support and resistance. Do we fail? yes sometimes when there are exceptional events but not all the time or not most of the times.
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    Price can change due to many things, including news because of strong and I see that the price could change because of supply and demand by the seller and the buyer is very important to follow the news because they greatly affect the price

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    This is a great discussion on this thread, i only wish one thing, i wish that the issue of the price action is not as complex as this, and this is the only reason that makes me to pretend as if i did not know it or see it because i have other trading systems that can fit in better for me. I even has a trader that says that it will have to say the same thing on 1day, 1 week and 1 month trading charts before he will enter the trade .

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    According to me if you want to check with price action strategy then your own experience and hard work will give you much better idea rather than any indicator help in this market I will suggest you focus on technical analysis good support and resistance zones are also very helpful to find out a very good price action chart in the market.

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