Price Action @ Confluence Zones

[pipsaholic 10]

Hey Guys,

 

I wanted to get the feedback of fellow traders new and experienced on the way they take reversals and continuation in confluence zones in trending markets between 5m-4 hour charts. In the spot fx market.

 

I understand that continuations make up 65-70% of developed market patterns and reversals make up 30-35%.

 

To my understanding for price action to make a continuation it usually stabs through the Support/Resistance zone or a momentum candle then pullbacks, which may been seen in lower timeframes for it to hold to make a continuation. Reversals usually make a pin bar reversal signal at a major structure level or between 38.2 - 78.6% fib level at times a double pin bar. I also seen at times price hugging the S&R lines especially in the Asian session coming into Europe for price to pullback and breakout only for it to fake out and then breakdown or a true breakout after a false breakout. Also, price tends to have a control point at 00 numbers with it either poking through and reversing or blasting through and continuing.

 

What's your experience been like? Please stick to the topic.

[wrbtrader 10]

Hey Guys,

 

I wanted to get the feedback of fellow traders new and experienced on the way they take reversals and continuation in confluence zones in trending markets between 5m-4 hour charts. In the spot fx market.

 

I understand that continuations make up 65-70% of developed market patterns and reversals make up 30-35%.

 

To my understanding for price action to make a continuation it usually stabs through the Support/Resistance zone or a momentum candle then pullbacks, which may been seen in lower timeframes for it to hold to make a continuation. Reversals usually make a pin bar reversal signal at a major structure level or between 38.2 - 78.6% fib level at times a double pin bar. I also seen at times price hugging the S&R lines especially in the Asian session coming into Europe for price to pullback and breakout only for it to fake out and then breakdown or a true breakout after a false breakout. Also, price tends to have a control point at 00 numbers with it either poking through and reversing or blasting through and continuing.

 

What's your experience been like? Please stick to the topic.

 

Yeah...I see this also in forex currencies, EuroFX 6E futures and U.S. Dollar but not often. I remember a few years back there was a discussion thread about this by someone over at ForexFactory.com that actually used this as his/her primary method. I don't have a link but the thread may have developed and has been continuing since it was started.

 

By the way, I notice you're posting the exact same thing over at T2W.com and BabyPips.com...you should investigate ForexFactory.com discussions involving forex currencies for more in-depth discussions about Forex in comparison to T2W.com and BabyPips.com...the latter two forums don't get too deep into the advance price action discussions like ForexFactory.com

 

You should also research this via those traders using some of Nial Fuller methods because I believe he gets into this type of price action analysis. Yet, I'm sure you already know such because its commonly known amongst forex traders that have heard something about Nial Fuller trade methods.

 

Anyways, lots of price action confluence discussions on the internet the past 3 - 5 years in comparison to when I first saw such heavily discussed back around year 2000 and then it dried up for many years to only reappear again around 2007.

Edited January 10, 2012 by wrbtrader

[pipsaholic 10]

Yeah, thanks for that really looking for this missing piece FF is huge and you get lost. I post on a couple of forums as sometimes you get different types of replies than other most of the replies you get are not even about your question, but your spelling! or go to the chart

 

Nial is great I watch his videos and read his articles and have him on facebook.

 

Thanks.