In Price Action Trading Strategy

To put it bluntly, I am really, really sick this week, and I never get sick. So I've been up late coughing and turning back on my MacBook Air in bed to see what's going on in the markets. This popped out at me late last night. I couldn't find a clean entry on EUR/USD (which I believe offered the better return) but this was lining up perfectly, so I got up, went to my PC, and dug in.

I had been all over these pairs earlier in the day, so I was fully aware of the background context, in case you think I was “shooting from the hip” here. I'm going to be covering a lot of this in greater detail soon and in an organized manner (one thing I definitely need to work on for this site), so stay tuned.

Also, I'm not a fan of showing all of this stuff in the past anymore than the next guy. “Trading” is flawless and like a slice of mama's apple pie when it's all done in hindsight. I've got a plan for that too, though not necessarily the same as what was done in the past on this site (I used to post trades blatantly on this site, until I found out that A LOT of people were taking them and very badly mismanaging them in the process once open).  If you know me professionally, you know that I have zero patience for stuff like this and don't tolerate it.  So we'll do what we can in the interim. For now, I hope this can at least help in a small way and thanks for stopping by.

EURJPY 5 Min Chart Forex Inner Trendline

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Showing 13 comments
  • Chris
    Reply

    Great to have you back, Steve. Especially seeing you that motivated to work on this site. I am excited what’s to come. Thanks for it.

    I can see Quasi Modo greeting out of the screenshot, too. 😉
    As for pulling the trigger, it is sufficient for you when price bounces off some pips of the inner trendline, right? So no need for other reversal structure on a smaller timeframe or something like that when it comes to the trendline retest?
    What is this upclose/downclose ratio about? Searched the site but haven’t found anything.

    Again, thanks and get well!

    • Steve W.
      Reply

      Hi Chris and good to hear from you. You’re right, there’s some Quasi action going on here from the second to last push higher. It’s a combo: 1. The “runaway” is a big one, explained here: https://paracurve.com/2011/05/liquidity-gaps-and-spike-removals.html . 2. Three attempts to break higher met with failure 3. EUR/USD showing greater signs of weakness (much greater) going into the session (just count the downcloses), and already broke its relevant trendline support (and registered backward bounces). EUR/JPY likes to respect these a lot. You see this happening quite often on this pair.

  • Gavin
    Reply

    Indeed, short and sweet. Very useful post, thanks.
    Get well soon, Steve.

    • Steve W.
      Reply

      Thanks Gavin…. working on it! Good to hear from you and hope all is well.

  • Toby
    Reply

    Thanks for posting Steve. Very informative, as ever. Quick question if I may: when you talk about downcloses, what timeframes is it best to monitor these on? Hourly and daily? Hope you’re feeling better.

    • Steve W.
      Reply

      Hi Toby, I just like to get as much info as I can without going crazy, so a 15 minute chart was the primary; and hourly didn’t give me enough information, and all I was looking at was that upper trading range. You can use a 5 as well, but it’s going to tell a similar story and you might be there for a little while longer.

      • Toby
        Reply

        Thanks Steve.

  • Massimo
    Reply

    Hi Steve, nice. Thanks.
    For your health google Vit. D (real …from fish oil) + Immune system
    Best regards
    Max

    • Steve W.
      Reply

      Thanks Massimo will do – yeah it’s one of those “haven’t slept right in over a week” thanks for checking in and good to see you.

  • La
    Reply

    Steve….so happy that you have posted something again…I don’t care about daily or minute by minute trades. I am just glade that your are Alive LOL. On the real, I hope your continue your teaching. You have helped me see things a lot clearer. I still have so much to learn and, up to date, your writings have help me the most. The PA and S/R info you have shared is just tremendous. I look forward to whatever else you graciously shared. forever in your debt.

    Sean “La”

  • Antony
    Reply

    Just found this post and (at least from my perspective) thats exactly what we need, ie to see what you consider to be a confluence, how to read chart, etc.

    Appreciate and if possible, more of these :).

    Thanks,
    A.

  • Chris
    Reply

    Hey Steve,

    After reading your article on measured moves and re-reading this post I’d like to ask why you prefered to draw the extension from swing high to swing low this time (instead from trendline to peak). Thanks and all the best!

    • Steve W.
      Reply

      Hi Chris, this is just another approach, one which I have never written about in long form. As you can see it is all range-based, and it’s primary use for me comes into play when taking profits. There are 3 primary means of doing this so far as my own working knowledge is concerned: spikes, diagonal trendlines and ranges. I emphasize flexibility in taking profits a lot because, well, it’s an agonizing task for most people.

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