The USDCHF moved into a key daily resistance level in the last session to try and move higher. This resistance level has been a proven key level in the past and has acted as both a proven support and resistance. At this key level price fired off a pin bar on the 4hr chart. This 4hr pin bar was sticking right out and up at the highs and was clearly rejecting the same daily resistance area.
After breaking the low of the pin bar price has moved lower and into the first near term support area. The next major support for price to move into on the 4hr chart now comes in around 0.9075. On the daily chart there is no clear trend. Price is in a range and taking this 4hr pin bar trade, traders would have to keep in mind that range trades would have to be managed more tightly than if they were taking a trend trade, because range trades tend to chop all over the place, where trend trades tend to move more smoothly in the same direction with the trend and can tend to be managed with a little more room to breathe.
USDCHF Daily Chart
USDCHF 4hr Chart
the upward price movement now seems so “energetic” (consecutive white candle) that ready to penetrate the resistance a.k.a. trend changes (daily chart) i think better we just sit and let the price calm down first.
On CADCHF ( which is very highly correlated, I had to double check i wasn’t looking at the same chart!)I saw a nice bearish 2 bar reversal on 4 hr chart last night which would of made a great pin bar on 8hr if I had mt5. Choppy as you say but looks good to me.
thanks jonathon, i’m also having the same setup but i already make a silly mistake that caused me not to take the trade due to wrong marking of support and resistance…. btw this month i use this technique without loss, thanks a lot jonathon.
hey faz, how many trades did you place? I only use the PA method. I currently rocking a 67% win rate. whivh i’m happy with. But 100% is not bad at all.
i only use daily chart tf, not many trades been placed, btw the trade management seem to give you the biggest advantage to you and if you want to learn that, you can refer to one of his article. “this month i use this technique without loss” means no money loss but it does not refer to hitting TP every time. sometimes it also hit the stop loss but without money loss.. i just want to add some more, i just use pinbar PA that’s it but CLEAR, BIG and supported with PA story itself. hope this helps
my english quite bad, sorry for that
please read this article, i think it will give you the idea of trade management “Are You Over Managing & Micro Managing Your Forex Trades Into Losers” at the trading strategies section.
Hello Fazily,
we do not discuss how we manage trades outside the members area. Trade management is the hardest part of the trading process and also what takes the most skill. Anyone can make a winning trade, even a monkey could! In theory I could flip a coin and get the direction right 50% of the time, but only a skilled trader with the right education can manage their trades and profit consistently. Trade management is something we work hard at inside the members area and something we not only teach in the members course and videos thoroughly, but also run training exercises with for members in the forum.
Safe trading,
Johnathon