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Where can I learn more about Price Action like those in James16 charts? 9 replies

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james16 Chart Thread

  • #70,061
  • Jul 29, 2010 12:27am Jul 29, 2010 12:27am
Quoting Pinbar
SC, I was rather asking that question from a more general point of view.
At this stage, I am hardly the one to decide these things.
....
yes, that was a general but at the same time a specific reply.

yes, it may not be the right time for u to decide & try this methodology...
but eventually u will have to decide if it's for u or not.


Quoting True777
we had 3 pbs in a row, although that shows that level/trendline is holding, isn't a negative sign that price didn't bounce off that level with the first pb and continue with momentum up, but came back down 2 more times?
try & reverse that thought.
it is actually an extra bullish confirmation.

3 consecutive PBs = 3x the demand & 3x the rejection
(of course, what happens next is entirely up to the market.)

Quote
...isn't a negative sign that price didn't bounce off that level with the first pb and continue with momentum up.
remember, the market does only 3 things:
move up
move down
range
the market does not go straight up or straight down
a PB (or any PA setup) that breaks hard doesnt happen all the time. but of course that's how we want it all the time, right? LOL
  • #70,062
  • Jul 29, 2010 12:42am Jul 29, 2010 12:42am
Quoting fx_heaven
Hey True777,

Confirmation yes, but I also got a much tighter entry (trigger to stop/loss).

Blending time frames will always present you with a much clearer view of what is going on, giving you extra confirmation signals as you say and offering you opportunities to reduce your risk, but timing and patience plays a big part.

The DBLHC allowed me to take the PB break but reduce my stop / loss significantly....
Hey Heaven,

One other question about that chart you posted if you don't mind. Once that daily pb closed, in your mind were you already committed to take the long at the break of the high and have your stop at the low of the candle or was it not till you got the dblhc on the 1hr that you decided it was worth it. Not sure if I'm wording this question right...guess I'm just wondering if when that daily candle closed, boom, you placed a buy stop order, and then as price rose to it, you saw the 1hr setup and was able to limit your risk OR when that daily candle closed, did you say to yourself, nice looking pin at a good level BUT I need confirmation on a smaller. Thanks!
  • #70,063
  • Jul 29, 2010 12:45am Jul 29, 2010 12:45am
Quoting supremeChaos
yes, that was a general but at the same time a specific reply.

yes, it may not be the right time for u to decide & try this methodology...
but eventually u will have to decide if it's for u or not.



try & reverse that thought.
it is actually an extra bullish confirmation.

3 consecutive PBs = 3x the demand & 3x the rejection
(of course, what happens next is entirely up to the market.)

remember, the market does only 3 things:
move up
move down
range
the market does not go straight up or straight down
a PB (or any PA setup) that breaks...
Chaos, I think I've always read/heard that if price bounces off a level, but comes back not long after to retest it is showing that that level isn't as strong as if price were to bounce off of it and really move away from it, not true?
  • #70,064
  • Jul 29, 2010 12:51am Jul 29, 2010 12:51am
Quoting mbqb11
Hey True

This is a BEOB not a pinbar(be sure to go back through post one to read up on outside bars) so it is engulfing a range of bars so by the nature of it it might not look like it has space(and the protrusion is very high over the range of the prior bars - think of it as price tried to break higher and was rejected strongly down closing below that entire range of 4 bars) ....
Ah! Thanks Mike! 3 bars prior to this OB there was a bearish candle that created a dbhlc, would you have seen this as a good setup as well since it was at the same area with all the confluence?
  • #70,065
  • Jul 29, 2010 12:56am Jul 29, 2010 12:56am
Morning guys!

Has anyone of you been using the hedging strategy that Jacko describes in his thread? I've been just thinking about using it in my trading plan. However I can't see that could be really beneficial on time frames lower that 4 hour. I might be wrong though...
  • #70,066
  • Jul 29, 2010 1:05am Jul 29, 2010 1:05am
Quoting True777
Ah! Thanks Mike! 3 bars prior to this OB there was a bearish candle that created a dbhlc, would you have seen this as a good setup as well since it was at the same area with all the confluence?
Hey True

No b/c the close was not below the round number, and the overall setup would have been much smaller. Notice how that beob just sticks out like a sore thumb with a real strong close and big size bar

Mike
  • #70,067
  • Jul 29, 2010 1:11am Jul 29, 2010 1:11am
Quoting True777
Chaos, I think I've always read/heard that if price bounces off a level, but comes back not long after to retest it is showing that that level isn't as strong as if price were to bounce off of it and really move away from it, not true?
if i understood correctly what u just said, yes it is true.
but that is not always the case. price doesnt always bounce hard after hitting a strong level. sometimes, it just means price is not yet ready to move in 1 direction (reread my earlier post)

the answer lies in the supply & demand balance (or imbalance).
in audusd's case, the 3 PB's showed up.
price did not move up after the first PB (contrary to what u expected to happen), but 2 bars (PB's) later, price did not go down. there was demand in that area (the 3 PB's show this; PB lower wicks = demand).
if u look at the chart now, price is now a bit higher (0.8977ish vs 0.8957 earlier) & to me, that means it has validated that there was demand earlier (demand was greater than supply = price went up).

Hope this clarifies it a bit for u
  • #70,068
  • Jul 29, 2010 1:24am Jul 29, 2010 1:24am
Quoting supremeChaos
if i understood correctly what u just said, yes it is true.
but that is not always the case. price doesnt always bounce hard after hitting a strong level. sometimes, it just means price is not yet ready to move in 1 direction (reread my earlier post)

the answer lies in the supply & demand balance (or imbalance).
in audusd's case, the 3 PB's showed up.
price did not move up after the first PB (contrary to what u expected to happen), but 2 bars (PB's) later, price did not go down. there was demand in that area (the 3 PB's show this; PB lower...
does for sure, thanks!
  • #70,069
  • Jul 29, 2010 1:26am Jul 29, 2010 1:26am
Quoting mbqb11
Hey True

No b/c the close was not below the round number, and the overall setup would have been much smaller. Notice how that beob just sticks out like a sore thumb with a real strong close and big size bar

Mike
ok gotcha, thanks!
  • #70,070
  • Jul 29, 2010 1:46am Jul 29, 2010 1:46am
Quoting mihazupan1
Morning guys!

Has anyone of you been using the hedging strategy that Jacko describes in his thread? I've been just thinking about using it in my trading plan. However I can't see that could be really beneficial on time frames lower that 4 hour. I might be wrong though...
I have used it once, when a trade went against me after I forgot to set the SL. Got me out of the trade in profit but the timing is crucial. By which I mean if the trade goes past your EP by only 50 0r 60 pips, it is not practical to then set another trade in the same direction. A couple of hundred pips and it may be worth it but then again, why would you let a trade go in the other direction by that amount in the first place.

And also if you have a 30-50 SL in the first place, how can you let the trade go against your further without canceling your SL.

Probably better to not be in that kind of trade in the first place.

I think this can get us into bad habits of revenge trading instead of accepting the loss.
  • #70,071
  • Jul 29, 2010 2:32am Jul 29, 2010 2:32am
Quoting ghous
I always thought an I4B was a bar that was Inside - 4 - bars. It made more sense to me that way, but I see you're including the inside bar itself in the bar count. hmmm...

g.
me too
In retrospect we learn. In perspective we earn.
  • #70,072
  • Edited 3:52am Jul 29, 2010 2:47am | Edited 3:52am
Quoting True777
Hey Heaven,

One other question about that chart you posted if you don't mind. Once...
Ahh, depends.....I had the PB break on my chart and watched price move to it and becuase I had also a PPZ @ 15608 I thought it may slow down the price action (see the small wick the opposite end of the PB) and force a little pullback which it did.... its more of a trust your instincts type situation.

If it was clear and the PB was nice and tight then I may just play the immediate break of the PB and watch for any pullback after to adjust stops.

I'm afraid every situation is slightly different, some you get, some you don't - but by having a series of plans you can make various decision at different stages if and when it does arrive.

My mistakes on this trade were exiting too early on the first 50% as I had a EUR trade which eventually went to BE but I took some profits early in case it went against me and then not adding to my position on the second swing.

Its still good and profitable but could have been even better!!

Cut your losses, let your profits run :-).

Even 1 trade can entail quite a complex sequence of events which you have to get right.

Now I sit and wait for the break (if it comes) with PIP's already running with me.
In retrospect we learn. In perspective we earn.
  • #70,073
  • Edited 3:00am Jul 29, 2010 2:47am | Edited 3:00am
Quoting True777
look 3 bars ago, know this isn't a great pb, but when one sets up, do you only have till the close of the next candle to break the high and enter? as in was this one a no go since the candle after didn't break the high?
Quoting jarroo
Usually we would like to see the next bar break the setup . . Think Momentum. You can look at it in different ways . . next bar doesn't break : momentum lost . . next bar doesn't break and the PB is not invalidated (Low is taken out) momentum building.

The 4 hour BUOB looks good.

True77, look at where this is happening on the 4 hour. How? By checking the higher time frame PPZ levels. Is the .9200 Level a strong level? I'll say it is . . Higher time frame PPZ levels Rule.

Looks like that BUOB on the 4 hour is working out. Look at all that traffic (in yellow) it had to fight through and Price reflected that traffic after it broke. Every previous bar Low (in yellow) is a FTA and could (and did a little) reverse Price.

So we had a strong higher time frame (Weekly and Daily) PPZ level (.9200), a 4 Hour BUOB at the level that was not that big and a ton of traffic. An easy pass if you ask Mike or any picky J16 trader. What this shows is the importance of Location and also the trend is currently very strong with this pair. . to say the least. lol

What we would have liked to have seen was a deeper swing low (Space) and a bigger PA formation.
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Indicators show the past. Price Action "Indicates" the future.
  • #70,074
  • Jul 29, 2010 3:13am Jul 29, 2010 3:13am
Quoting ghous
I always thought an I4B was a bar that was Inside - 4 - bars. It made more sense to me that way, but I see you're including the inside bar itself in the bar count. hmmm...

g.
You mean like the Weekly Chf/Jpy . .we still have a couple a days for this week to close inside the previous bar.

No, the I4(+)Bs just has to be inside the range of the previous bars not the bars themselves.
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Indicators show the past. Price Action "Indicates" the future.
  • #70,075
  • Edited 3:42am Jul 29, 2010 3:30am | Edited 3:42am
Quoting jarroo
You mean like the Weekly Chf/Jpy . .we still have a couple a days for this week to close inside the previous bar.

No, the I4(+)Bs just has to be inside the range of the previous bars not the bars themselves.
Aha, so we have;

IB - Inside Bar(s)
OB - Outside Bar(s)

4IB - 4 Bars inside each other (winding coil)
4OB - 4 Bars outside each other (unwinding speaker)

I4B - 4th bar smaller than the range of the previous 3 - significance of the I4B lies in that it usually marks the switch of the sentiments of market participants

I4+B - as above with more bars prior

Probably why I ignored them :-)
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In retrospect we learn. In perspective we earn.
  • #70,076
  • Jul 29, 2010 4:00am Jul 29, 2010 4:00am
Quoting jarroo
You mean like the Weekly Chf/Jpy . .we still have a couple a days for this week to close inside the previous bar.

No, the I4(+)Bs just has to be inside the range of the previous bars not the bars themselves.
good thing you mentioned chfjpy i4b on the weekly, this is how ive been watching it on the 4hr tf
might be another way to get in, breakout + pullback style
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Simplicity is the key to success
  • #70,077
  • Jul 29, 2010 4:09am Jul 29, 2010 4:09am
for anyone interested....
http://www.olsenblog.com/
  • #70,078
  • Jul 29, 2010 4:53am Jul 29, 2010 4:53am
Quoting squeezy
good thing you mentioned chfjpy i4b on the weekly, this is how ive been watching it on the 4hr tf
might be another way to get in, breakout + pullback style
snap, also IB's on the daily too!!
In retrospect we learn. In perspective we earn.
  • #70,079
  • Edited 5:26am Jul 29, 2010 4:57am | Edited 5:26am
Quoting spookie94
Has anyone else noticed the Weekly on GBP/CAD?

I kind of thinks we may be ready for a nice break up. Possibly a change in the trend (maybe for a short period anyway)?
For me it was a trade to the opposite side.
Already@BE.
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  • #70,080
  • Jul 29, 2010 5:11am Jul 29, 2010 5:11am
Quoting eswap0
For me it was a trade to the opposite side.
...
Hahah.. cant wait for the breakout, huh? trading before the breakout happens...
nothing wrong with that.
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