#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 james16 Member Since Feb 2005 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 Member Since Feb 2005 james16 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 Member Since Aug 2005 habeeb 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 Member Since May 2005 Anpar 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 Member Since Sep 2005 Kermut 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Aug 2005 habeeb Novice 768 Posts 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Jul 2005 Isotonic Member 1,183 Posts 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 Member Since Oct 2005 raczekfx Pip crawler 2,192 Posts I noticed this setup earlier today on 4hr GBP\USB and made few pips. #487 #488 #504 #537 Kosta Berj Member Since Jun 2005 23 Posts Member Are all the ducks lined up? This chart should speak for itself. Member Since Sep 2005 SliverB Risk Merchant 117 Posts 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 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Oct 2005 Trumpcard Member 680 Posts 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 2nd 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?!!! Member Since Aug 2005 habeeb Novice 768 Posts 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 Member Since Aug 2005 habeeb Novice 768 Posts 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Aug 2005 fx-trader777 steady and consistent 750 Posts Hello Jim, What do you think if we have daily pin bar on USDCAD? Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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 Member Since Aug 2005 habeeb Novice 768 Posts 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 Member Since Feb 2005 james16 THANK YOU MERLIN 2,599 Posts 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.