Forex Day Trading Systems: Why should you not take this price action pin bar?
Forex Day Trading Systems: We are doing a day trading in the forex pair above: Usd Chf 1hr.We spotted a price action pin bar (marked by the yellow circle).The overall trend was down and the pin bar was in the correction direction of the trend.However we skipped the trade as we deduce it to be a low winning probability trade.
Forex Day Trading Systems: Why should you not take this price action pin bar?
Forex Day Trading Systems
Reason No. 1: The pin bar is at a all time low as seen on the left.
We prefer to take pin bars that has a little retracement.Pls see the chart below for example:
As you can see in the chart above. This a preferred scenario for us to take a trade.The price action pin bar has a little retracement which looks really great.And there is room for us to take at least a TP1 (take profit 1), since there is room to move down.Therefore we would have at least taken TP1 right at the bottom of the chart.
Do you see what i mean?
We want to take trades that are safe. And has a High winning probability.The first chart has a lower probability because it is at a all time low. And we do not know if price is going to break the all the time low to make a new low.However in chart 2, we are at least sure that there is a good chance it will head to the bottom of the chart (low). And there is room for us to take profit off the table there.
Forex Day Trading Systems: Why should you not take this price action pin bar?
Forex Day Trading Systems
Reason No. 2: If you look at the first chart, and you see our Asia Forex Mentor News Indicator (you can get it free in our bonus page) at the top left hand corner.
You can see that there is news coming up on the next hour. (next bar)
And it is also a high impact news.
Therefore with news coming that close. Prices will have big fluctuations. And spikes is very common in such scenario.Should we enter the trade, we may get stop out before we know it when spikes happen.Therefore, it is wise not to take trades with news that are coming really soon.
Forex Day Trading Systems: Why should you not take this price action pin bar?
Forex Day Trading Systems
I hope you have gain some knowledge as per what trade is a good trade to enter.The above forex day trading system once mastered alone will take you very far!
Check out our online forex trading AFM winning Price ActionForex Course where i teach you the exact FULL Forex Day Trading Systems & Strategies that i personally use to be consistently profitable.
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com
