Many traders often use support and resistance and this is my view on how to take advantage of it! I hope you guys enjoy the read. Do give me some feedback on what do you think :)submitted by ForexGOAT to Daytrading [link] [comments]
Support and Resistance LinesSupport and resistance lines are lines that the market respects, the higher the time frame the more reliable it is. Resistance is like a ceiling when the market reached the line, it gets bump down and Supports acts like a trampoline when the market try to test the line it bounces up
In this example, the Blue line acts as a resistance while the green line acts as a support. As you can see, the market tests both the support and resistance 3 times but never once did the market close above the line. However, the support line broke and a downtrend was formed eventually.
Support and Resistance Zone(Shadow)
Support and resistance zones are very subjective some use the shadow of the candlesticks to draw the zones while others use areas of the candlesticks. So what is the difference between Zones and Lines support and resistance – personally I think it’s up to your own preferences, however a lot of experts like to use lines as it is very specific, whereas zones have a lot of discretion to it and the perspective varies from person to person.
How are Support and Resistance useful?Traders like to take these areas/Lines as either entry or exit points. In this example, you can see that the market respected the resistance line. Even though it broke out once, it still got rejected immediately on the second candlestick circled in blue. Soon, a Pin Bar was formed. This is a very good signal to enter a trade as the market is having a bearish momentum.
Where to place take profit and stop loss?You can place your stop loss above the resistance line as the line is very well respected by the market and your take profit at the previous low of the market
In my next content post, I will elaborate more on how you can use the support and resistance lines and the indicators that are commonly used in the forex market. Stay tuned!
Hi Redditors, I am back again with another guide for you :) Hope you enjoy reading thissubmitted by ForexGOAT to Daytrading [link] [comments]
What is Fibonacci?Fibonacci is a number sequence that consist 1, 1, 2, 3, 5 ,8 ,13 ,21 ,34 etc. Each number in this sequences is simply the sum of the previous two numbers. In Forex market the Fibonacci line is a diagram that consists 6 lines, mainly: 0.0, 23.6, 38.2, 50.0, 61.8 and 100.0. These numbers are key Fibonacci ratios if you are wondering how the numbers are formed.
How do you come about using Fibonacci lines?
Drawing of Fibonacci lineshttps://preview.redd.it/npjjh08gog021.png?width=1710&format=png&auto=webp&s=360cebd95c716907a2bf9f3e93291a17ceb396c4
The Fibonacci line can be drawn from a swing low to a swing high of an uptrend or swing high to a swing low of a downtrend
In this example, the white circles are the Swing high and swing low of this downtrend.
Trading with Fibonacci linesTraders usually take note of 23.6, 38.2, 50.0, 61.8 line, these lines work exactly the same as Support and resistance line the more times the line is tested the more reliable it is. You can also draw a Fibonacci line at a higher timeframe and use it on a lower time frame, this can also increase the reliability of the Fibonacci line - You will need to know that trading Fibonacci line alone is not enough, and is best if there are other indicators that support the lines.
Combination of Candlesticks with Fibonacci lineshttps://preview.redd.it/a42ix0ygog021.png?width=1711&format=png&auto=webp&s=8cd6550901ee0c5317aa46055921ffea660491c4
In this example, you can see that a Bearish Pin Bar was formed, and it closes below the 50.0 Fibonacci line – this is a very strong indicator that the market will go down, as shown in the image (Green circle).
Combination of Support and Resistance with Fibonacci lineshttps://preview.redd.it/uoggosbhog021.png?width=1710&format=png&auto=webp&s=556d2c04f020873e152cbb0793f10fabe63a031e
Here you see that there are two support and resistance line (Green Lines) these lines are also aligned with the Fibonacci 23.6 and 50.0 which makes the Fibo line even stronger. This image you can see how the market respects the line.
Fibonacci lines are very useful in the Forex market if it is used with other indicators, here I have only demonstrated to you 2 examples (Candlesticks and support and resistance line) you can also use it with moving averages, MacD or RSI.
If you find this helpful, do visit my blog too! There are also many beginners guide to help you in your trading journey.
The Pin Bar Setup I bet you have seen many pin bars on your Forex charts. Maybe you haven’t been aware that you are looking at a pin bar formation, but you most likely have come across this candle on the chartsubmitted by GroundStoneHoldings to u/GroundStoneHoldings [link] [comments]
Bullish Pin Bar A valid, tradeable bullish pin bar is located at the end of a bearish trend and its lower candle wick goes below the overall price action. If you spot a bullish pin bar setup on the chart, this will setup a nice opportunity for a long position.
Bearish Pin Bar The same is true for bearish pin bars but in the opposite direction. The bearish pin bar is located at the end of a bullish trend and its longer candle wick is the upper area. In this manner, the longer wick is sticking out above the price action. The bearish pin bar is usually a good sign of an upcoming price reversal in the bearish direction.
More on: https://www.groundstoneholdings.com/2018/09/29/education-post-1-100-how-to-trade-pin-bars/
Bearish Pin Bar — Check out the trading ideas, strategies, opinions, analytics at absolutely no cost! If you need more help on these “jargon” words checkout my free beginners forex course for more. On a bullish pin bar formation, we will typically buy on a break of the high of the pin bar and set our stop loss 1 pip below the low of the tail of the pin bar. On a bearish pin bar formation, we will typically sell on a break of the low of the pin bar and place a stop loss 1 pip above the tail ... The Pin Bar Forex Trading Strategy with is a great trading strategy for trend trading and here’s why:. If you just go over you charts and just look at pin bars and just do a quick back test, you will see how profitable this forex chart candlestick pattern can be. Sell below a bearish pin bar that is rejected from a resistance level; Find more pin bar examples here. 5. Two-Bar Reversal. What does it look like? The two-bar reversal pattern is made up of two strong bars closing in opposite directions. The bullish variant consists of a strong bearish bar followed by a bullish bar. Reverse the order to get its bearish counterpart. What does it mean? Every ... How to trade forex pin bar strategies The best way to trade a pin bar candle pattern is placing an entry stop order at the top of a bullish pin bar candle, or at the bottom of a bearish pin bar candle. That way you get triggered only if there is confirmation of a new directional movement. Your stop loss should be placed above or below the tail. Figure 4: Bearish Pin bar at resistance. In the next chart above, we get to see an example of a bearish pin bar. Again, it is more valid because the body of the pin bar is also in the same bearish bias as well. A second test of the resistance level after the first pin bar was formed held and a third attempt was made which formed in a weaker form of the pin bar and prices subsequently dropped ... Pin Bar Forex Candlestick Patterns. Understanding The Pin Bar Candlestick Pattern: In today’s article, we’re going to be taking a look one of the most common candlestick patterns you’ll see form in the forex market. Yes, of course I’m talking about pin bars (or hammer candlesticks as they’re often called). The pin bar candlestick reversal pattern can be found forming all over your ... A pin bar pattern consists of one price bar, typically a candlestick price bar, which represents a sharp reversal and rejection of price. The pin bar reversal as it is sometimes called, is defined by a long tail, the tail is also referred to as a "shadow" or "wick". The area between the open and close of the pin bar is called its "real body", and pin bars generally have small real bodies in ... Forex is the same as in any business in life. To make money you must buy cheap and sell expensive or buy low and sell high and it is the same on the charts with Forex pairs. Below is another example of what not to do, but this time with a bullish Pin Bar. The other problem that traders will encounter when they trade pin bars as continuations rather than as reversals is that they will nearly ... Bearish Pin Bar – When you spot a valid bearish pin bar setup, you could sell the Forex pair at the first candlestick which closes below the small wick of the pin bar. Stop Loss on Pin Bars. As with every other trade setup, you should never be unprotected during your trade. Make sure you always use a stop loss order. Let’s discuss where we ...
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Trade setup on the GBP/USD daily chart. Trade: GBP/USD Bearish Pin Bar Trade Setup - Tradingwithpriceaction.com The candlestick pin bar pattern is one of the candlestick strategies in forex trading. There are 2 types of Pin bar candlestick patterns namely Bulish pin bar candlestick and bearish Pin bar ... Crude Oil Forming Bearish Pin Bar Targeting 1560 Level - Duration: 6:15. ... 95% Winning Forex Trading Formula - Beat The Market Maker📈 - Duration: 37:53. TRADE ATS 984,534 views. 37:53 ... Hammer(Bullish pin bar) and shooting Star (bearish pin bar) candlesticks patterns, and how to trade them. For more Forex trading education materials WhatsApp... A quick video going over the trade setup that formed on the GBP/USD daily chart http://tradingwithpriceaction.com/trade-gbpusd-daily-bearish-pin-bar-10113/ h...