trader_dante
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Hi ER2-D2,
This is very hard for me to explain. (There are some excellent videos that explain this in the J16 PF - As it happens I watched one for the second time last night)
Trading a pin bar within a range can be profitable but I want to see the pin bar creating space away from the other bars immediately surrounding it.
Chart 1 is an example of TWO pin bars within a range on the Gbp/Usd daily TF that I would NOT have taken. The bars themselves look perfect and their nose touches the lows of the range but they appear within a sideways movement. They don't swing DOWN into the support.
Chart 2 shows a pin bar in a range on the Usd/Jpy 1hr TF. This pin bar has created a lot of space away from the other bars. It swings UP into the resistance and is firmly rejected. I would certainly have taken this.
When a market goes into uncharted territory I rely on my EMAs and price action as it develops in order to trail my stop.
You said you prefered pins that weren't in a range, do you mean the latest couple of bars have been moving sideways? A range can of course be quite wide and tradeable so just wanted to be sure I understood you correctly.
This is very hard for me to explain. (There are some excellent videos that explain this in the J16 PF - As it happens I watched one for the second time last night)
Trading a pin bar within a range can be profitable but I want to see the pin bar creating space away from the other bars immediately surrounding it.
Chart 1 is an example of TWO pin bars within a range on the Gbp/Usd daily TF that I would NOT have taken. The bars themselves look perfect and their nose touches the lows of the range but they appear within a sideways movement. They don't swing DOWN into the support.
Chart 2 shows a pin bar in a range on the Usd/Jpy 1hr TF. This pin bar has created a lot of space away from the other bars. It swings UP into the resistance and is firmly rejected. I would certainly have taken this.
Not going to go o/t on my second post, but it'd make me think more about a topic which was briefly touched upon many pages ago in this thread; how to manage trades that don't have much above resistance.
How would such a market be traded differently by you, if you don't mind touching upon that again?
When a market goes into uncharted territory I rely on my EMAs and price action as it develops in order to trail my stop.
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