Momentum on 4 hour chart is up, bullish correction.
Price Action Strategies
- Thread starter krtrader09
- Start date
What is your success rate trading these?
here is a chart of some pins that worked.
here is a chart of some pins that worked.
My win rate trading pin bar setups alone is probably around 60%, they don't all work out, and trading them does involve some degree of discretion. But, generally speaking, if you take well formed pin bars at confluent levels of support and resistance or swing levels they work out most of the time. Obviously, as we all know, the hard part comes after entering a trade, and that is managing the trade itself. I feel price action gives me the method to enter and after that the rest is up to having a defined exit strategy and maintaining discipline.
Does anyone have suggestions on how and when to enter a position when these candles appear. I have missed out opportunities when trying to enter in this situation. Please help.
Quote from krtrader09:
Nothing was a bait. I forgot we can't post links on here. I just wanted to share where I have been learning price action from. Anyways, here is another interesting price action setup:
DAILY AUD/USD
Entry: Market at close; .9118
Stop Loss: High of pin; .9175
Target: Support; .9005
Risk = 57
Reward = 113
(approx. 1:2)
Are you setting a "Sell Stop" when trying to enter this position or you taking this entry at a market price with instant execution?
In my opinion, I would think you'd be able to be a bit more aggressive with your target in this case, given that:
1) The upper trend line is sloping downwards.
2) The lower trendline was basically ignored in the previous break, so I think a good target would be the 8800 area.
A possible entry following the most recent red pin bar would be to use a sell stop order below the low of the pin bar and then set your stop above the high of the bar which breaks below the pin bar low. I would still position size based upon using the high of the pin bar as my stop, but this would set you up for a very nice R:R and if your stop is hit, you could always re-enter once if the pin-bar low is violated again.
My $0.02.
1) The upper trend line is sloping downwards.
2) The lower trendline was basically ignored in the previous break, so I think a good target would be the 8800 area.
A possible entry following the most recent red pin bar would be to use a sell stop order below the low of the pin bar and then set your stop above the high of the bar which breaks below the pin bar low. I would still position size based upon using the high of the pin bar as my stop, but this would set you up for a very nice R:R and if your stop is hit, you could always re-enter once if the pin-bar low is violated again.
My $0.02.
forgive me Goonier,
so I would set my sell stop order right after the pin bar candle is closed? If the your answer is yes, I guess my problem is that whenever a pin bar is closed and the next candle opened and start heading down or down right away and I find myself not able to enter a position and be left out of the potential gain. Your suggestions will be greatly appreciated. Thank you
Price action entries can generally be set with 3 different methods.
1) Enter at market.
A market entry can be used if you are trading a volatile or fast moving market and the price action setup you are basing your entry on is very well defined and "with" the current trend.
2) Enter on stop.
If you want the market to confirm your directional bias with price movement before entering than you can use a stop entry generally placed just above the high or just below the low, depending of course on which direction you are trading and the price action setup in question.
3) Enter on limit.
You can use a limit sell entry or a limit buy entry if you want to enter on a 50% retrace for example. Many times pin bars with very long tails will get retraced about 50% of the bar with on the subsequent bar or the next few. This method allows for a tighter stop loss but there is also a chance that price may just keep going towards your stop loss and never move in your favor.
1) Enter at market.
A market entry can be used if you are trading a volatile or fast moving market and the price action setup you are basing your entry on is very well defined and "with" the current trend.
2) Enter on stop.
If you want the market to confirm your directional bias with price movement before entering than you can use a stop entry generally placed just above the high or just below the low, depending of course on which direction you are trading and the price action setup in question.
3) Enter on limit.
You can use a limit sell entry or a limit buy entry if you want to enter on a 50% retrace for example. Many times pin bars with very long tails will get retraced about 50% of the bar with on the subsequent bar or the next few. This method allows for a tighter stop loss but there is also a chance that price may just keep going towards your stop loss and never move in your favor.
Thanks krtrader....... I notice when entering a position at market price I'm usually down several more pips right away than setting a sell or a buy level. Can you give an insight on how a pro-trader like you plan an entry when you see a setup developing and nearing the closing of the confirmation candle?