thatskewl2, You are always generally going to be down the amount of the spread in forex, no matter what entry you use. This is how forex brokers make their money instead of charging you a commission. There really is nothing you can do to overcome this. You just have to make sure you are trading only well defined price action setups like pin bars from confluent levels, inside bars, and the fakey setup. Ultimately the spread will not affect your long term profitability if you maintain discipline and concentrate on taking only the best setups and manage your risk accordingly.
Here is a quality fakey setup that occurred recently on GBPUSD. This setup really works nice in trending markets. It takes advantage of the contrarian nature of the forex market. Most people try and pick tops and bottoms are trade breakouts only, the fakey takes advantage of this.
3 nice pins on a/u 1hr..the first one would have made be believe the market was going to go higher givin the fact that price put in a steep lower wick (buying pressure), but instead price crashed...hmmm. Either way, these bars led to nice price action. Question, if your stopped out, whats your re-entry rule? thanks kon
From the link you posted nial's example was an inside pin bar...some of the charts you've posted were pins that were..i guess what you'd call an engulfing pin bar, and not an inside bar, like on pages 4 and 5. kon
You might also want to include hanging man candles as part of your system. Here is e/u 4hr chart showing hanging man candle, then a 200 pip drop before any sign of buyers. The wick alone can be decieving.
When trading price action you don't use charts. Using charts is technical analysis, not trading price action.
Konviction, I don't really have "re-entry" rule, if I get stopped than I just accept the fact that the trade didn't work out and patiently wait for the next well defined price action signal to form. I don't really use the "hanging man", although it may work, I generally stick to Nial's price action trading method's. The chart you are referring to (I think) was of Nial's "fakey" setup, it does involve an inside bar, but the entire setup is actually a 3+ bar patter. It can be 3 bars but also can be more if there is a series of "coiling" inside bars. The pattern is completed with a "false break" of the last inside bar, this sucks traders in that generally trade break outs and try to pick tops and bottoms. Then the market moves in its desired direction as the big boys squeeze out the amateurs.
Can you please elaborate on what you consider price action ? You lost me, I thought PA was a form of TA but without indicators.
good explanation. Thats why I normally try and wait for the candle to close before I take trades, so I dont get suckered into a false move.