#164

james16 2,599 Posts

Originally Posted by scpeter

James, could you comment on my take on this chart and your notes.
You expect a possible bounce off of the pivot line. You wait for the 2 or
possibly more inside bars. The inside bars tell you a good break is about to
happen. Because you were already looking for a bounce off of the pivot line,
you take the trade long now because the inside bars add a little more
confirmation to the trade. Is this your thinking on this trade?
first of all inside bars are very commonly known and used by many traders.
what blew my mind when i first joined this forum was i had forgotten what it
was like to be new and not have a clue as to what an inside bar or any other bar
meant. pivot levels are where a ton of orders are placed. i wont explain pivot
levels just do a quick google search and you will have a complete education in
about 15 minutes. inside bars show a tug of war developing between buyers and
sellers. the more in a row you get the tighter it gets and when it breaks out it
tends to move hard and fast. what everyone shoild do is go look for these on
any time frame you want. particularly look for the sideways pyramid shape
when you get two or more, they are easy to spot. when price moves down to a
pivot level a ton of buy orders are triggered which tends to send it up. BUT NOT
ALWAYS. i dont like to hope when i trade i like to know as sure as i can that
what i want to happen is going to happen. thats why i try to stack things in my
favor. for example the confluence i keep talking about. it could be 2 fib ret close
together. it could be a pivot and fib close together. it could be any one of these
combined with divergence. then you take it one step further and look for price
action to confirm at these levels. its really not that hard. go to your charts plot
your fibs and pivots on tomorrows blank page. then sit back and wait for price
action to interact with these levels and make a smart trade not a guess. it will
work on any time frame you choose. jim

#190
#191

#193
#194

#198
Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts
 Originally Posted by Trinity
James,

1) Am I right in assuming that a “Pin Bar”, mentioned a while back, is a bar

with a close at the high?

BTW, I like your idea of videos or DVD’s for the course with ebook or manual,
and a set course price.

I am puzzled over:

2) Chart in post 193: is the “daily pivot” the blue line just above your lowest
explanation?

3) Chart in post 190: is the “blue line” daily pivot between your explanation
and the top Fib confluence? Not easy to see, for me.

4) What is the PPO indicator at the bottom now, with MACD settings?
sorry so late trinity, the pin bar is a fake out, it is described in detail in the early
portion of the thread. 2. the lowest is the weekly the other two are daily pivots.
3. yes... 4. i hope to get back to making daily posts again soon with new stuff.
with people like fij, the buddha, merlin and others this is really a great forum. i
hope everyone, especially the new traders among us are starting to understand
that succesful trading is learned. there are a lot of great people giving thier time
and expertice here and i would have given anything to have had access to a
place like this 20 years ago. jim.

#207

Member Since Aug 2005

768 Posts

#208
james16 2,599 Posts

Originally Posted by habeeb

Here is one of my 2 trades today on S&P. Both were closed in profit. Thanx for

your encouragement. I still feel that I’m missing something . I don’t have any
MA’s, indicators, fibo’s, etc. I use pivot levels though.
Please comment on the chart.
this is frickin great habeeb, you made my weekend. the first one was the best and
yes the second was marginal. start using fib ret to see where you can get
confluence with your pivot levels. and whatever you do be patient and wait for the
best set ups. by the middle of next month i will be back full steam on my chart
thread. stick around habeeb you will be glad you did. i am so happy to see this. jim
__________________

#209
james16
Member Since Feb 2005

2,599 Posts

Alert,alert,alert

habeeb has just shown something very very valuable. YOU DO NOT NEED
ANYTHING BUT A KNOWLEDGE OF PRICE ACTION TO BE A SUCCESFUL TRADER.
this is something i am going to present in the course (someday), intelligently
add in extra ingredients, like your own proven trading system and you have a
real shot at success. stay tuned. jim
__________________

#211
Member Since Feb 2005

james16
2,599 Posts

Originally Posted by fx-trader777

Please provide me with some advice. I think there is clear divergence at 4-hour
chart.
yes and isnt it interesting if you continue your line it intersects with the previous
high (which also had divergence) for a nice trend line. be careful, you do not want
to enter on divergence only. use price action , fib confluence and pivots to confirm.
whatever you do set your stop a little above the trend line. divergence by itself
means nothing. although it will sometimes work. i prefer trades that work most of
the time. jim
__________________

#213
habeeb
Member Since Aug 2005

Novice

768 Posts

Hi Jim, and everyone else.

Question regarding the mini oil trade I mentioned before.
#220
Member Since Feb 2005

james16
2,599 Posts

Originally Posted by habeeb

Double Bar Low Higher Close
Does the close have to be higher than the first bar’s “open” or “close”?

Do you trade Equities too. Can your techniques be used for Equities too, or is
that market more fundamentally driven.

Thanx

Oh yes... do you listen to news events (NFP, Trade Balance, FOMC, etc)? or
do you trade strictly by the charts?
the best double bar with a higher or lower close will have the close on the
second bar close outside/past the ENTIRE second bar. examples on the chart
thread.

#222
#223

#227

Member Since Jul 2005

73 Posts

Keeping the momentum of this thread up by posting a chart! Everyone likes

charts. The chart has a pin bar, double low higher close, double high trend
continuation, and an outside bar all pointing upwards.
#231 james16
#243
Member Since Feb 2005

james16
2,599 Posts

Originally Posted by Anpar

Prices are heading towards a weekly fib (50), Price action shows a dblhc with
support from a 55sma. Do I make this trade and look to exit at or around the
weekly 50 fib level or should I not?
nice observation. i think you could play it on a breakout. you could wait for a ret
of the second dblhc bar and the go long to lower your risk. or you could play a
break down of the two lows on the two bars that make up the dblhc. ( a
technique i have not discussed on the forum) i dont give specific trading advice
on the forum because to many people do to many different things with the same
trade. the dblhc may work to the upside for 10 pips, a loss, or a hundred pips.
some will take half profit at ten pips and then move thier stop to breakeven for
a win. some will set a 30 pip stop and say i am not moving it until i bag 20 and
end up losing 30 for a loss. you get my point. i dont know your personal
situation but if you ever get 10 pips trading 50 or 60 lots trust me you will take
the 10 and move it to even. you obviously know what you are doing. keep up
the good work. Jim

#246 james16
#248
Member Since Feb 2005

james16
2,599 Posts

Originally Posted by Anpar

Thanks James for your comments.

Slowly but surely I’m adding new things to my charts. I was looking to go
long on that trade, but prices could never close above the 4hr trendline, thus
I stayed away.

i am so glad you did not take that trade long. it was suicide long unless it broke
out. i was hoping you saw that. you did, great job. the short trade after the
break of the two bars low on the dblhc was the trade to look for and it was a
 good one. it was actualy a great set up, you knew if it broke one way or another
it would be worth a decent move. and it was.

#252
Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by Isotonic

Hi Jim,

I’ve been thinking over about what you’ve said about looking for these levels
and have a few questions if you don’t mind!

1. Do you prioritise them so that monthly/weekly is before weekly/daily,

weekly/daily before daily/4h or perhaps weekly/4h and so on?

2. Which combinations come up most often in your experience?

3. Fibs or pivots or fibs & pivots? Is one combination better than others?

4. For pivot points do you use 1 period or ‘n’ period rolling pivots. I tend to
use 3 period rolling pivots. Again which do you prefer?

Thanks in advance for all your replies!

i guess the easiest way to answer you questions is to say i do what everybody
does when it comes to figuring fibs and pivots. when i put them on my chart i
label them with text. i then look for areas where these levels join or are close
together which forms very strong support or res levels. i call these confluence
levels. it is not unusual to see a monthly or weekly and daily pivot along with a
fib ret all close together. these are far better than a single fib or pivot level.
when price reaches these confluence levels there is a better than 50/50 shot
that it will retreat, but what i do is wait most of the time for confirming price
action before entering. it is an acquired talent. it also requires patience. i have
no idea what rolling pivots are. or if i do i call it something else. i use a standard
pivot calculator, downloadable from many places on the web. its the same
calculation mentioned by merlin in another thread. jim
__________________

#256
Member Since Feb 2005

james16
2,599 Posts

Originally Posted by diallist

To be honest, it is only by coincidence that I happened to read an article
about pivot ranges only yesterday. So obviously, I haven’t any experience
with them yet.

Here’s the article. The part about pivot ranges is near the end.

http://www.investopedia.com/articles.../04/040704.asp

Dial
 thanks dial, see even after all these years i never stop trying to learn. and i
learned something here. thanks

#264
Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by dangerman

Hello everyone. First let me say this is one great thread. I am a novice to
forex and to trading. but I sure am learning a lot here. I have read
MuddBuddha’s Simple Forex System, and I bought two books from amazon
( Steve Nison’ s Candlestick Course and John Person’s Guide to Technical
Trading Tactics). I am still reading them both, and will probably read them
two or three more times. I’ll probably have to read this thread two or three
more times also, as a lot of it seems to be going over my head. I feel like a

sponge thrown into a lake and trying to absorb it all.

Having said that my questions will probably seem simplistic at best, but here
goes.

I laid out MuddBuddha’s Simple Forex System on the USDCHF 1 hour chart. I
had already missed when the ma’s crossed back on the 31st, but I wasn’t
ready to trade yet anyway. (I downloaded MetaTrader 4 and am running a
demo, so I’m just in it for the learning process at this point.) Does anyone
use MetaTrader to trade live, by the way?

Any way if I am reading the chart correctly If you went short when the ma’s
crossed at approx. 1.2667, you would have a 367 pip gain with yesterdays
close of 1.2300 (WOW). If I were trading a mini lot, would that anly be 36.7
pips because I am actually trading .1 lots?

I also set up pivot points for the Month, Week , and Day (Friday). I got the
numbers by going to the monthly, weekly, and daily charts in metatrader and
taking the high, low, and close of the time periiods. I don’t know how
accurate these numbers are. Is there anywhere on the net that you can
download accurate numbers for these time periods for the major currencies?

I was looking at the chart and it seems like the range is bouncing around
inside the trendline. My original thought was to wait until the price went down
to one of the support levels produced by the pivot points and then go long,
but then I thought wait dummy, you would be going against the major trend,
which is down right now. So my thought now is to wait until Tuesday
morning, look for a downward price action, and maybe a bearish candle signal
then go in short, set my stops close, say 15 pips because the trend is
approching support levels, then move my stops to break even and look for
bullish candle signals at the support levels. The only problem with going short
here is that the Parabolic Sar in on the bottom, so that would go against
MuddBuddha’s system. Any critique, Ideas, or suggestions to this plan would
be greatly appreciated.

Also, what would be the best time Tuesday to start looking at the market? I
am in the Eastern US time zone. This stinks in a way because when I get
home from work I am into the (Asian Chop?) is that right? I am off the next
 couple of weeks though, so I hope to be able to get a feel for the markets and
the charts I am using.

Attached is my chart. Sorry to be so long winded (it’s the sponge thing). Any
feedback is welcome and appreciated, I look forward to learning a lot more in
these threads.

Jimmy

hey dangerman, great post looks like you are past the initial newbie stage to
me. if it were any other day than saturday you would have probably had several
responses by now including me. welcome to the forum. i and others will give
you a more detailed reply when we get back monday.jim
__________________

#289
Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by Anpar

How about this one. Nice big PIN bar, but it has many closes about the trend
line. I went long on this trade prior to the pin bar, but I’m wondering if I
should close take my profits and go short?

great post i have been itching to go short on this also. but like you the trend
line worries me. the weekly trend is down. the daily trend is down. will it go
down. who knows. the other thing anpar is the nose is really long so to give it
justice you will have a large stop. position size accordingly if you do. jim

#292
Member Since Feb 2005

james16
2,599 Posts

well anpar i took it at 1851, set my stop at 1880. its looking good. did you take
it? the damn things just have a way of working more often than not.

#299
Anpar Member Since May 2005
59 Posts

Well anpar i took it at 1851, set my stop at 1880. its looking good. did you take
it? the damn things just have a way of working more often than not.
To say the least, I missed it. I’ve been entertaining the last few days, sister is
getting married, thus I lost track of time. I did move my stop to breakeven on the
long trade, so I didn’t get burned by the move atleast.

Very nice trade thou!

Member Since May 2005

59 Posts
 Hi Anpar,

May I ask, what are those colored rectangles you have under your bars? If I
can program them in MetaTrader, then I have an idea I’d like to try.

Also, but less importantly, what are the colored dots at the bottom of the
bars?

Thanks Anpar!
Sorry diallist, that I didn’t get back to you sooner, just got back in town. The
bars that you are seeing are called “Heikin Ashi” which are modified candles or Averaged
Candles”

There are only 5 simple rules for modified candle:

1. Positive candles mean buy; negative candles mean sell.

2. positive candle with upper shadow means strong buy; while negative candles with lower shadow
means strong sell.
3. positive candle with lower shadow means “weak buy”; while negative candles with upper shadow
means “weak sell”
4. candle shorter than previous day means “an indication of a change”.
5. very short candles means “a change in trend”

At this time I only use these candles for exits points, as soon as I see a change in the colour of the
candle, I typically exit the trade. The dots that you are seeing, is just the shadow of the candle
extended beyond the length of the price bar.

Calulations:

The High and Low is the same as in a normal candle. The difference is in the Open and Close. The
Modified Close is just a simple average of the day’s Open, High, Low and Close. The Modified Open
is a little complicated. It is an average of previous Modified Open and previous Modified Close

drew

Member Since Feb 2005

james16
2,599 Posts

Originally Posted by phaeton

hello jim,

many thanks for the time u spend and the great insights you are sharing on
this forum.

On your last gbp/usd chart,on the pin bar, I noticed a DLHC bar.don’t think
this has been mentioned.
a double low and higher close bar at arround the 38% retracement on daily
charts. does it qualifies for an entry ? the problem would be with finding a
good level for the SL (since it was a very long bar...)
good day
this kind of stuff just makes my day you are correct about the lenghth/danger of
the position. but it was right off of a fib which does make a difference. on the
long bars just figure the stop amount and position size accordingly. i did not see
this one. thats what i am always trying to point out there are always trades,
why not wait for the A trades like this one.

#305
Member Since Feb 2005

james16
2,599 Posts

Originally Posted by pipmonster

Hey Jim, I was just wondering if you kept a track record of pin bars going
with confluence levels. Do any of them work better than others? Fibo levels,
s/r etc. Just thought it might be interesting if you had better percentage
winners with some than others.

I Hope everyone had a good weekend and got some sleep!

Pipmon
if you find a pin bar where the nose petrudes through a fib, large ma or a pivot
and the open and close stays on the other side its go time. this will be one the
things we will learn in the pf. i wiil post a chart and show you what i mean. jim

#307
 #314

Member Since Sep 2005

141 Posts

I only just found this forum & thread & all I can say is....wow!! I trade FX & use
mostly TL breaks, fibs & divergence with some basic bars setups.
Jim has opened up a new vista of charting to me. Posting a trade I’m still in,
which I would have taken on my setups alone, but add in Jim’s excellent slant on

PA and it was like shooting fish in a barrel

Sorry that chart is a bit “busy”, but I wanted to show what I saw.
#316
glad they are helping you and welcome to the forum. Jim
#324
Member Since Feb 2005

james16
2,599 Posts

Originally Posted by bluemeasure

I’d like to ask you what is likely a newbie question: do you rank any of these
patterns by importance and/or by the way they are developing on a chart?
what I mean is this week on Sep.20th I played the USDJPY using a 4hr chart
after it showed a real nice beovb (to use your terminology). It was followed
right afterwards by a relatively shorter pin going the other way. Now, does
that negate this nice beovb right away? Seeing that the pin wasn’t that long, I

decided to stick it out... and got caught.

Any comments are greatly appreciated & I’m very much looking forward to
the pf! Thanks again!

BlueMeasure
hello blue, great questions and yes there is a weight to these bars. that’s been
one of my worries from the start of this thread. a new trader will not know
where they are in relation to not only the chart they are on but other time
frames and the particular bar showing there. even the pin bar in the wrong
place as accurate as it is can be costly. the bars should be used in conjunction
with support and resistance areas and at swing highs and lows. i have said that
its possible to trade better than 60/40 with just the bars and nothing else and i
am serious. but it takes practice, a lot of practice. the practice is worth it
because when you reach a point where you can do it with price only you then
have a much better chance of being succesful with your system/s. i have found
nothing as accurate as the pin bar when it shows up IN THE RIGHT PLACE.
 welcome to the forum. jim
__________________

#334
Kermut
Member Since Sep 2005
313 Posts

Below I am posting the chart as it stood this morning (my time). Would
appreciate it if you could provide your opinion on it. As we can see, the price went
in the opposite direction very hard. I would have thought that it was an ‘A’ set
up.

#342
Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by Matsu

If I get it correctly, for a short, the second bar need to close lower than the
low of the first bar.
 I am not trading these setups yet. I am waiting for Jim’s pf.

yes matsu you are correct. when i first started sharing these price action bars
my concern was that people would just start trading them anywhere, anytime
without any consideration of other factors. this concern has been born out even
though i have stated many times that they should be combined with areas of
support/resistance and/or your moving average systems. you dont just trade a
pin bar or a dblhc just because its there. you use them to refine and enter
better trades. this is a learning process and understanding price action is a
TOOL to add to whatever you are doing or however you are trading. to this day i
am honored that so many people have found this subject worth learning. we
shall press on to bigger and better trades. jim

#345
dangerman
Member Since Sep 2005
115 Posts

Member

Originally Posted by james16

yes the aud was dissapointing. the main thing to notice is that the tail was not
real long. it was not a perfect one. more of a neutral bar which we will get into
in the pf. seems like your starting to get a handle on these pin bars pip. just
pick them carefully. jim
I think you are talking about the daily pin bar. Why is it dissapointing? I see what
you mean about the tail not being long enough, but the bar after the pin bar
(today’s bar) only retraced about halfway down the tail. If a stop was set just
under the pin the bar, you would still be in the trade, with it moving your way.
Also, I have my chart set up for MB’s ma cross over system which he recomends
using on the one hour charts. On the daily chart you see an ma cross over just
about at the pin bar, which might lead you to believe it would retrace to the ma.
Would you want to use ma’s of a different time frame on daily charts as apposed
to the 1 hour charts? Just from what I “think” I have learned here so far, I would
have thought this would be at least a B or maybe even a B+ trade. Please let me
know if my reasoning is wrong, and why.
#346

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Originally Posted by dangerman

I think you are talking about the daily pin bar. Why is it disappointing…….
you are exactly correct jimmy, i was talking about the bar the day before. on
your platform it did not even become a pin, on mine it did so thats the one i am
referring to. i wondered if anyone would catch this and you did. the bar you are
referring to is a great pin. jim

#350

Member Since Feb 2005

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Quote:
Originally Posted by bluemonkey
Hello Jim,

I probably missed this in an earlier post of yours. I was wondering how much
do the market fundamentals influence your trading decisions. Thanks.
None, I don’t even pay attention unless its very important. Like the rest of you I
am so focused on not losing money if i add another factor i will get frozen. its
happened before when i tried to let fundamentals influence my trading. jim

#378

hab Member Since Aug 2005

eeb 768 Posts

Novice

Quote:
is it just me or has the last 2 or 3 days been tough to trade. when i trade pin
bars at the right time i rarely lose on three in a row. in fact if i trade smart two
in a row does not happen often. if i didnt have the habit of moving my stops to
BE quickly it would have been real tough. anyone else had it tough the last
couple of days. jim
Been really boring too. Finally started using MB’s MA system with your price
action setups. Just collecting the small pips at the moment.
#386

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Quote:
Originally Posted by habeeb
 Jim,

Do the price action formations (pin bar, DBHLC,etc) only apply to that specific
week on daily charts or does the weekend break the formation. eg. if a pin
bar confirmation forms on the Friday (daily chart), does it still hold strong for
the Monday?

Thanx
Habeeb
great question let me think on this i have always looked at it as the chart is the
chart is the chart and i will stand on that for now. jim

#403

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Quote:
Originally Posted by habeeb
Hi Jim,
You’ve recently openned a live trading account with InterbankFx. I would like
to know which charting package you use. I’ve noticed that on the higher time
frames (4Hr, daily), that InterbankFx and MetaTrader are different. At this
very moment, InterbankFx is showing the bar for the next day already,
whereas on MT4 there’s still some time to go. Which charts do you use to
determine your trades and to work out pivots.

Thanx
Habeeb
i am on met4 with thier standard account. i struggled a long time with the forex
time thing and it still gives me problems. i figure pivots at 5 eastern like merlin
does. jim

Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by RotcaX

I am able to understand a couple of the key concepts of this thread.
So much so, that the chart attached (Daily GBPUSD), behaved off the
 DBLHC (3pip differential) as expected. With retraction to the .50 of the
swing and the .23 of the bar and the R2 of the day before.
I would have entered long if the retraction had been to the .50 of the
second DBLHC bar.
Other than not having the courage to take a live trade, did I miss anything?
Did I miss everything? How far from reality am I?

see now this guy gets it. its not just about the price set up. its the price set up
combined with where it is in relation to support and res levels. great post. Jim

Quote:
Originally Posted by habeeb
Very well spotted RotcaX. Your stop would’ve been HUGE if you entered the
trade using the daily chart. If you went down to the 4hr chart, you would’ve
seen the (mini) pin bar formed at the time of that daily low. If you entered
long on the open of the next bar (right eye), you would’ve had a 17 pip stop
(better than 170 pips).

sometimes habeeb sees things more clearly than i do. a lot of you post and then
i run off to look at my charts. good job habeeb. jim

#444

Member Since Feb 2005

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Quote:
Originally Posted by RBing
Jim, I have a question for you about a pin nose. Does it matter if the eyes are
sitting on the fib line and the nose penetrates it or are you looking for the
nose to touch the fib line and then go back? I hope that makes sense. I’m
looking forward to your new section. It’s been a long wait and many times I
thought about getting Todd Mitchell’s course because of how good you said it
is. I’m not sure how you feel about live training but if you ever decide to let
me know. I live in Dallas as well and also own my business so I have a little
more free time than the average person(I should say I have the ability to
have free time).
sorry it took me so long to answer i have had the flu. have never really thought
about it like you stated. not a bad question i will just need to look a little closer.
the wait wont be much longer and i have some new news i will post soon. its a
new addition to the pf. thanks for your post nieghbor. jim

#449

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as i have said many times i dont trade pin bars on one hour charts very often.
every once in a while i see one on a big ma such as the 150. here is one i am in
right now. Jim
#469

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the 102550150 trailing entry system

a current trade based on a system i will be teaching. it has several variations

based on the time chart you are watching.
#470

#471
 #473

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comparative analysis

just seeing what my system would of done...i will try and keep these postings to a
minimum...jim, do you mind me doing this?
 #475
Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by Isotonic

just seeing what my system would of done...i will try and keep these postings
to a minimum...jim, do you mind me doing this?
i dont mind at all. man, youve been paying attention.

#476

r
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e
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f
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I noticed this setup earlier today on 4hr GBP\USB and made few pips.
#487

#488
#504

#537
Kosta Berj
Member Since Jun 2005
Member
23 Posts

Are all the ducks lined up?

 This chart should speak for itself.

Sliv Member Since Sep 2005

erB 117 Posts

Risk
Merchant

Another duck.

Quote:
Originally Posted by Kosta Berj
This chart should speak for itself.
It’s also on the 50 fib line for the big swing starting on the far left of the chart
(running from early June to late July).

Also the price area shows resistance in late October early November.

If you look at the intra day chart this fib group has been stalling price upwards
for 3 days.

Quack Quack.

#544

Member Since Feb 2005

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Quote:
Originally Posted by habeeb
Would this be regarded as a Pin Bar. Would it be feasible to use it to open a trade
/ get direction? Looking at the last three complete bars, we’ve got higher highs
and lower lows. Any thoughts?

if the eyes are always secondary to me. if its a good pin and its in a good place i will
trade them. as i have mentioned i have gravitated toward playing these bars with
buy and sell stops just beyond the pin. in this case the buy stop would have been
triggered and you would be slightly down on the position. i would have set my initial
stop below the pin or just below the left eye. i want to take this chance to speak on
a particular subject. i have noticed more and more people posting that have come
out of the futures markets, many from the mini sp and dow. the quickest way for a
futures trader to get killed in the forex market is to be ignorant of or not aware of
the difference between an 8 hour market and a 24 hour market. the biggest
obstacle i have faced in trading forex is continuing to think like a futures trader. a
one day move in forex will take 2 or 3 days for a similar move in say the mini dow.
for years i have played the sp with great success. the day lasts 8 hours and i know
to take my profit because, 1. the day does not last long and 2. with the way the
world is i am not staying in overnight. with forex you dont have to worry about
overnight moves and if you monitor your positions you can stay in any length of
time you want. my problem has been that where i naturally would take a profit i
now hang on looking for more. the result has been the 24 hour problem. i get
stopped out at BE or at a loss. this is an ongoing learning process for me. any
trader just coming out of the futures markets would be well served to take what i
am saying here seriously. for those of you who have never traded anything but
forex i think you have an advantage over futures traders. you are not programmed
to think like they do. you already know that these markets can move fast and hard
at anytime. you know that a 30 or 40 pip profit can dissapear in 2 or 3 minutes
overnight. anyway i just wanted to bring it up, perhaps more for my own
contemplation than anything else. if you look at any daily chart for pin bars you will
notice that they do work a majority of the time. what i mean by work is you will get
30 to 50 pips, sometimes more but they will turn on you quick. compare the daily
bars for the mini sp to the daily bars of any currency pair. you will see the
difference in two seconds. the difference is directly tied to the time difference, 8
hours versus 24. a daily bar in forex will stagger the previous bar where in a futures
market you will see sustained moves or a stacking effect by the daily bars. it will be
a serious problem for many futures traders who dont recognize it and the reason for
it. i know several succesful futures traders who just cant get a feel for forex
because of trading an 8 hour market for so long. i know it has been tough for me
also. the profits stare me in the face and i cant pull the trigger. when i am staring at
a 4 or 5 hundred dollar profit at 2 in the afternoon in the mini dow i know its time to
take my money and wait for the open tomorrow. with forex it never ends or at least
not until friday. its a mind game folks, always has been and always will be. food for
thought. happy thanksgiving to everyone whether you observe it or not. jim

#547

Trumpc Member Since Oct 2005

ard 680 Posts

Member

Ive been fooling around with fib lines which is something new to me. Id really
like some feedback on the following chart. Does it correctly show fib ret
confluence? The confluence appears at the 23 and 50 fibs, but im aware that its
better if confluence is at 38 and 50. Im confused as to whether its a failed
retrace or not. A DBHLC occurred at the confluence (not exactly double high, diff
was 7 pips). Does any trade possibility exist here? What would have been the
best way to trade this price action? Go long on the pin bar at the 0 fib, exit at
the confluence and then short as price retraced below the open of the 2 nd bar
(which went on to form the lower close of the DBHLC? Or have I completely lost
the plot from burning my eyeballs reading too many threads?!!!
hab Member Since Aug 2005

eeb 768 Posts

Novice

7 pips is too much for it to be a DBHLC. 1 pip ... maybe. If the DBHLC is spot on
then at least you’ll have more confidence when entering a trade.

Quote:
Originally Posted by Trumpcard
gReat! thanks WTB and Habeeb for your replies, in my chart would you have
traded the pin bar and then shorted on the retrace?
Dan
Your Pin Bar is a Sunday. I don’t use Sunday’s for any analysis because it’s not
a full day. If it was a normal day, then I’d say your pin bar is too short.

#554
hab Member Since Aug 2005

eeb 768 Posts

Novice

Nice Pin Bar setup on Gold daily chart. Gold has made a new high again. With
price being at it’s top, would it still be a good idea to enter a long trade on the
retrace?

Member Since Aug 2005

habeeb
Novice
768 Posts

Originally Posted by WTB

Hello Habeeb,
I am personally VERY cautious when prices are at long time’s high, and thus I
only consider pin bars that ocur after a significant retrace (between 38 to 61
fib of the swing). Having said that, I know nothing of the gold market so it
might behave differently.
I too don’t know anything about the gold market. Looking at the charts it
would’ve been viable to have entered a long. Price retraced to the 38% Fibo
(bottom of pin to high) and has moved up. I didn’t trade this pin bar, just
watching this market until I get a feel for it.
 #557

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over time you will find markets such as gold and oil are much easier to trade
with price action than forex. it has to do with a 6 to 8 hour market as opposed
to 24. in forex you get a staggering effect and in timed markets you get cleaner
and a more stacked effect. in the pf i will be following all of these markets. i will
show you how to trade cheap options to catch good price action set ups. its a lot
of fun. spreads, strangles, leaps, you name it we will be doing it. jim

#562
fx-trader777
Member Since Aug 2005

steady and consistent

750 Posts
Hello Jim,
What do you think if we have daily pin bar on USDCAD?

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Quote:
Originally Posted by fx-trader777
OK, I entered at 1516, moved stop at 1490. Looking for big correction
towards 1.19 if we have weekly pin bar tomorrow.
 thank you Jim for supporting my long position idea
fx, i see your trade went almost 100 pips into profit. where are you at? have
you taken partial profit? this was a true pin bar and as usual they tend to work.
the long nose and where it closed gave a great trade. jim

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its looking pretty good. wait and see how it closes and place a buy stop above
the bar if you decide to play it. the cad is funky as we all know. i recieved an
email last night from someone you all know. he said he has completly quit using
technical indicators and is only using price to enter trades. he has for the first
time started to win consistently. i am thrilled at this because when you get to
where you can make money without your chart being covered with conflicting
indicators its sort of an epiphany. you relax and start to focus. it really is a cool
feeling especially if you have always stared at a ton of stuff all telling you
something different. when it first hapopened to me it was almost a spiritual
experience. trading relaxed and with intense focus because you only have one
thing to focus on. its cool and it works if you spend the time needed to learn it.
way to go ___________

Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by riveria

James,

Do you still use the low of the pin bar for the stop on the CAD trade as it
seems pretty huge or do you use another area for the stop?
another good question. lets look at it. if i had played a buy stop at 1535 and put
my stop under the bar at 1425 i have a 110 pip stop. a large stop yes but
remember we are playing the daily chart. we could have taken a fib retracement
of the pin bar and placed our stop below the 62 ret. our stop would have been
around 1465 and 70 pips. we could have put our stop under the first eye at
around 1480 or a 55 pip stop. if you had played to enter on a buy stop at 1535
and it triggered you could have just played your stop off of how much cash you
were willing to lose if it went against you. for example, you entered at 1535
with 5 mini lots or 5 dollars a pip. when you entered you had 5000 in your
account and you are willing to risk 5 percent on an optimal trade. 5000 x 5%=
250. 250/5=a 50 pip stop. one of the reasons i like to play really good long
 nosed pin bars with a buy or sell stop just beyond the bar is because once it is
broken it tends to make some kind of a decent move. what would i have
personally done in this case? i would have probably played the ret level. its not
an exact science and it takes practice and experience.

#567

h
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Here’s a “gold” chart. Looking for a pin bar on the Daily chart too. I played the
first pin bar setup and only took 14 pips. I’m still watching this commodity to get
a feel for it.

#575

j
Member Since Feb 2005

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Quote:
Originally Posted by Scooter
This will probably be covered in more detail the PF or maybe it already has,
but I’m curious. When do you pull the trigger on a pinbar trade? Do you do it
on the close of the nose? If memory serves me correct isn’t the pinbar a 3 bar
formation or setup?
great question, there are multiple ways of playing them. what i will usually do is
wait for the pin bar to form and then play a buy or sell stop. look at the current
cad pin bar. the eyes are not even but many times they are not. fx entered at
1516 which is fine but i would have probably entered on a buy stop around
1535/40. you could wait for the second eye to form in balance with the first and
then enter when it heads in your direction. the key point to be made about
these bars is the length of the nose. the longer the better. look at the daily cad
pin bar from 12/6 it formed the same way this one did but not as long a nose.
now look at the daily cad pin bar from 12/1 which was not a counter trend move
but was in the direction of the trend. it has a long nose. none of these had even
eyes but were still viable due to the length of thier noses. ignore bars like the
one on 11/28. they are neutral bars and not pins because they opened and
closed in the middle of the bar. its a learning process and with practice and
demoing it can be mastered. jim

#583
Member Since Aug 2005

habeeb
Novice
768 Posts

Originally Posted by fx-trader777

Hi Jim,

I think bollinger bands are great with pin bar, If the nose is at the bollinger
band this is a great trade.

thanks
Yup, I use them too with standard settings, but with Stochastics. Took 15 pips
again on gold today. I know it could’ve been more, but I’ll get the hang of this
market soon.
#586
Member Since Feb 2005

james16
THANK YOU MERLIN
2,599 Posts

Originally Posted by fx-trader777

we have great stuff here. Confluence, weekly pin bar and bullish divergence on
weekly charts, great entry. I entered yesterday and still keeping position, I want

correction towards 1.19 let’s see what happens, USDCAD is most trending
pair, if we have correction here it would be huge one.
fx is playing this in his own way which is fine. if you want to play this a bit more
conservative play a buy stop around 1620 to 1625. remember this is the weekly
chart and a position trade with the bottom of the pin 200 pips away.