Naked Price Action Trading

This method of trading developed after I analyzed the EURUSD for 12 months from October 2011 to
September 2012. The results so impressed me that I decided to start trading it live.
My trading background is probably like most. I have tried the indicator route and jumped from one
method to another with varying results. It wasnt until I studied price action that I began having success
and became profitable. Much of my price action education comes from reading the James 16 thread. I
am also a member of their private forum.
My method is evolving but the core centers around what I call Price Action Candles or PACs. Im sure
most have heard of these:
Pinbars (PB) - These are candles where the open and close are below the high of the previous candle.
The tail of the pinbar should be long and protrude away from the surrounding price action. I take these
only at swing highs and lows as trend reversals. I dont take them as trend continuation.

Bearish and Bullish Engulfing Outside Bars (BUOEB and BEOEB) The price action of these candles
completely engulf the price action of the previous candle. I know there are other definitions but this is
the one I will use. I take them as trend continuation and at swing highs and lows as trend reversals.

Multibar highs or lows These include Double, Triple and more highs/lows with lower/higher closes.
The highs and lows must be within 3 to 4 pips of each other. These are taken with trend and at swing
lows and highs as trend reversals.

Inside bars (IB) These candles have their highs and lows inside the highs and lows of the master
candle. I take the break of the master candle with trend.

Entries Once a tradeable PAC is identified I put a fibo on the entirety of the PAC. I put a line at the
38.2% retracement. This is where my entry will be. This reduces my risk. I may miss out on some trades
if there is no retracement but this is better than taking a loss on a 100 pip PAC.
Stop Losses 5 to 10 pips above or below the entry PAC.
Targets I enter two separate trades so that after taking profit on the first entry I have the option to
leave the second entry open.
TG1 This will vary but will be based on market structure. I will look for the nearest swing lows
or highs as a potential target. Supply/Demand zones or historically support/resistance lines will also be
considered. I may also use round numbers as targets.
TG2 After closing the first trade I will consider leaving the second one open if there is a
reasonable chance the trade could continue. If so I will manage this by placing the stop loss at the
low/high of the candle upon which the first trade was closed. Final exit will be at my discretion.