Watch as I execute a live price action trade on the NZDUSD up +100 pips.
In this NZDUSD Forex Trade Video, I go through the price action context, explain my trade location, stop loss placement, my final target, and why I did not use a confirmation price action signal.
Here’s the transcription for the video (along with the screenshot on how it ended up for profit…just not as much as I wanted)
“Hello traders here. Chris Capre. 2ndSkiesForex.com
I have a couple of live price action trades that I’m in right now and I wanted to share with you some of my analysis on this, what price action context I was seeing in the market, what was my trade location and why. Why did I choose my stop loss placement and my take profit. So these are methods that I actually teach inside the price action course and so by sharing this with you I’m kinda giving you an insight into how I trade and the kind of trades that you could be making if you were to learn these methods.
Now, just to verify, these are live trades. You can see right now these all match right over here. As you can see, it says real over here. That would say demo, if it was a demo account, it would say demo. So it’s real, it’s saying I trade with my own money. I only trade with my own money. That’s also why you don’t see long disclaimers before my videos, because I’m actually using live trades. If I was using demo trades or fake trades or something like that, I’d have to have a long disclaimer explaining all kinds of things why that is.
So, with that being said, let’s start off with the price action context. So stepping out to the 4hr chart, we can see that this right here was a clean role reversal level here. It’s resistance here, support and support and strong rejection or bounce here but then a weaker one here. Lower high and then aggressive selling afterwards. Now, with the selling and the strong breakout below this, I was expecting a pullback to that role reveral level and was looking to get short.
That kind of explains the context and my trade location. I chose this level, I could’ve chosen a little bit higher which would’ve been a little bit more conservative. The advantage of that is it would’ve given me more me more profit potential but the downside is that it reduces my potential to actually get in the trade or reduces the probability that the trade will activate.
So I chose this one here. In terms of my stop loss placement, I had a couple of options. I could’ve put just above this level but I felt with volatility that it might’ve been a little tight and I could’ve put just above this here which would’ve been the most conservative so maybe just above here. I actually chose to put it above the move that started the breakout. So the breakout started above the level in a strong impulsive selling led to the breakout and it started over here.
I said ok, let’s put my stop a few pips above that. If it were to return above the level and get back above the move that started the breakout in this case, I wouldn’t wanna be in it at this point. So initially this held, we had a kind of volatility spike and exhaustion move intraday yesterday that went past it but then it just didn’t get any follow-through, no traction, sold off below it and never was able to get back above it.
I would like to note that if you were trading a 1hr pin bar signal, and you looked for your 50% retrace tweak entry, you would’ve gotten in about here and you would’ve gotten stopped out with your stop just above the pin bar highs. On top of it, you would’ve got a worse entry again. This is why we don’t wait for confirmation signals. They give us worse entries and they reduce profitability and accuracy.
In terms of take profit, let’s zoom out a little bit to the daily chart and I’ll show you why I chose my target. My target is down here. I may choose a little bit towards the base a little bit lower around .6250. That is a potential for me. I am expecting a return at least towards this resistance here at .6425. And it may get stuck there for a little bit but if we get back below this and into this kind of consolidation zone or corrective structure which you can see here, then my feeling is it should be able to make it through towards the bottom of that.
So I may lift the limit and target a little bit lower. Right now it’s at about .6303 which you can see here. But I may lower it if we get through it pretty cleanly and target .6250. Either way, I’m in at .6625 so I have a 320-something pip target right now with a total 30 pip stop. So we’re talking about a +10R.
Again, you don’t need huge stops to make trades like this. You shouldn’t need huge stops if you get really good trade location and really good timing. And again, these are methods that I teach in my price action course. Which you can make these trades yourself.
Wwith that being said, hopefully this explains how I trade, my entry method, my trade location, how I determine that. How I use my stop loss placement and my take profit.
Again, I don’t recommend waiting for confirmation price action signals. That’s a beginner’s mindset, it’s a retail trader’s mindset. I’ve talked about this before. Professional traders aren’t waiting for confirmation. They find their trade locations ahead of time and they make that. And if you make your entries based on one candle, then you’re missing price action context and you’re missing structure which is always gonna be far more important than one individual candle.
I don’t wait for those and I teach you how to find good trade locations, where you don’t need large stops to make trades like this. And you shouldn’t have to be waiting for days or weeks to make trades like this as well. Again, you can see that I was in this trade from the 5th and here we are a day later and we are already up +3R. So if you’re having to wait 2-3 weeks for a trade to activate, you aren’t trading price action and if you have wait weeks for a trade to hit +2R or +3R, again you aren’t trading price action ’cause these trades happen all the time.
You can learn how to find these trades. You can learn how to make these trades and that’s what I teach you in my price action course.
So with that being said, I hope you enoyed this video. I hope you got a lot of information about this and how I trade price action. Make sure to check out my website, 2ndskiesforex.com, where I have other videos and resources like these.
Until then, I bid you all adieu, good luck trading, I hope you’re healthy and happy. Take care everyone!”