james16 Chart Thread | Page 87 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

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

Attachments: james16 Chart Thread
Exit Attachments

james16 Chart Thread

  • #1,721
  • Dec 22, 2006 1:52pm Dec 22, 2006 1:52pm
Quoting mbqb11
Habeeb did you hold onto this one? If you did u got in nice and early. I waited to get in after the news bout 15-20 mins later, but held to the weekly pivot.

have a Happy and a healthy everyone,
Mike
Nope, I got out after +50. There were other trades too, to stick to the daily average pips, and I'm currently long from 1.9568. I don't think my second target is going to be reached. 1.9540-55 seems to be good support. First target would be around the 1.9820 area. If we're going to see new highs, then 2.0000 might even be on the cards.

Take Care
Habeeb
Keeping it Simple
  • #1,722
  • Dec 22, 2006 2:06pm Dec 22, 2006 2:06pm
Another Pin Bar, within 1 pip of the previous one's low, and also closing above the 50fibo. I took some profit already. If we get a retrace of the pin, I might just enter another long trade.
Attached Image
Keeping it Simple
  • #1,723
  • Dec 22, 2006 3:21pm Dec 22, 2006 3:21pm
Quoting habeeb
Another Pin Bar, within 1 pip of the previous one's low, and also closing above the 50fibo. I took some profit already. If we get a retrace of the pin, I might just enter another long trade.
Nice one Habeeb!
I tried a few dozen pips to early, just to exit the trade prematurely manually...now I find myself looking at the entry price again....still in beginner shoes sometimes...And to think, I was looking to short 1.9670ish today and didn't..mind got messed up in all this lethargic start today..

Then later I was thinking the 61.8% retrace the other day was the right shoulder already and we wouldn't go back down to revisit it....oh well, we'll see what comes of it.

How did you manage to get in before even the 1h made a DBLHC? You never cease to amaze me

Merry Christmas everyone, take care and have a good one! (can't say it often enough hehe)
Trust price. Know yourself.
  • #1,724
  • Dec 22, 2006 3:59pm Dec 22, 2006 3:59pm
What level would it have to retrace to to enter a long
Quoting habeeb
Another Pin Bar, within 1 pip of the previous one's low, and also closing above the 50fibo. I took some profit already. If we get a retrace of the pin, I might just enter another long trade.
  • #1,725
  • Dec 22, 2006 4:05pm Dec 22, 2006 4:05pm
No divergence on daily
Attached Image
  • #1,726
  • Dec 22, 2006 4:06pm Dec 22, 2006 4:06pm
Divergence are no divergence on 4hr. Anybody have insight on divergence? The previous chart shows the daily for the same time frame with no divergence.
Attached Image
  • #1,727
  • Dec 22, 2006 4:55pm Dec 22, 2006 4:55pm
Got them
Thank`s mbqb11 for the link and tank`s to habeeb for the great job with the indicator .
  • #1,728
  • Dec 22, 2006 4:58pm Dec 22, 2006 4:58pm
divergence is a great tool. one of the best in my opinion. the problem is you dont know when price will comply. use support and resistance and/or price action to help you determine when and where price may finally go along with what the divergence is telling you. this like anything else can really help you WHEN you have practiced it enough to feel comfortable pulling the trigger. many wealthy commodity traders dollar cost average when they see strong divergence on long term charts knowing that sooner or later price will follow. i dont suggest that but using s/r and price action can really help determine when to get in.
Quoting goodthings
Divergence are no divergence on 4hr. Anybody have insight on divergence? The previous chart shows the daily for the same time frame with no divergence.
  • #1,729
  • Dec 22, 2006 4:59pm Dec 22, 2006 4:59pm
GoodThangs,

The reason you're not finding the same divergence on the 1-hour is because you are trying to find it in the eaxact same period. (date/time to date/time)

Divergences show a slowing in momentum.

Check the chart out below.

If we are using the standard MACD settings (12,26,9) we are finding the Moving Average Convergance Divergance between a 12 period EMA (light blue line on price chart) and a 26 period EMA (orange line). MACD is just making it easier to see the difference between those EMAs (the 9 setting is a moving average of the that difference).

What am I getting at?

(example using uptrend divergence)

MACD Divergance tells us that the shorter period price action (12 EMA) isn't moving away from the longer period price action (26 EMA) as quickly as it did during the LAST peak. Which is significant isn't it?

So whats that got to do with the price of eggs in china?

To find that exact same divergence on the Daily chart that you did in the 4 hour chart you would have to devide those MACD EMAs by 6 (6 x 4 =24 , of course)

On that Daily chart try MACD (2,4,3) ...the 3 is just a faster setting to suit the smaller EMAs , it's irrelevant to what I'm showing. :

When looking for divergence on your different time frames you aren't supposed to be looking for the same information. You should be trying to find what's happening in the larger picture for instance.

I'll post another chart in the next post.

,Bundy
Attached Image
Bundy's status today: "Waiting..."
  • #1,730
  • Dec 22, 2006 5:00pm Dec 22, 2006 5:00pm
Merry Xmas And Bundy When Your Walking Home From The Pub Stay Out Of The Street Would You. Lol.
  • #1,731
  • Dec 22, 2006 5:02pm Dec 22, 2006 5:02pm
Weekly GBPCHF

WELL WELL, look at this ...We have divergence forming on the weekly chart!

Couldn't have found a better example there GT. You've made it easy choosing this pair.

I've left the original yellow lines from your chart to show the 4 hr divergence

Obviously the pink ones are the new ones.
Attached Image
Bundy's status today: "Waiting..."
  • #1,732
  • Dec 22, 2006 5:06pm Dec 22, 2006 5:06pm
don't see the chart
  • #1,733
  • Dec 22, 2006 5:09pm Dec 22, 2006 5:09pm
appreciate the insight from both of you
  • #1,734
  • Dec 22, 2006 5:22pm Dec 22, 2006 5:22pm
So now what we keep watching it keeping in mind (as james said) price action and s/r
Quoting bundyraider
Weekly GBPCHF

WELL WELL, look at this ...We have divergence forming on the weekly chart!

Couldn't have found a better example there GT. You've made it easy choosing this pair.

I've left the original yellow lines from your chart to show the 4 hr divergence

Obviously the pink ones are the new ones.
  • #1,735
  • Dec 22, 2006 5:23pm Dec 22, 2006 5:23pm
Actually, it's probably a little premature calling it divergence on that weekly chart. It needs to play out a bit more.

And sorry if I re-hashed any old info there. I found it easier to do the whole MACD post from a beginner perspective. Made it easier to think and write about.
Bundy's status today: "Waiting..."
  • #1,736
  • Dec 22, 2006 5:24pm Dec 22, 2006 5:24pm
speaking of weekly charts. I am still salivating at this one. and have been for a couple weeks now. Made some pts here and there, but this thing is gonna break away soon. I will definitley keep a close eye on this pair holiday or not lol.
Attached Image
  • #1,737
  • Edited 5:56pm Dec 22, 2006 5:45pm | Edited 5:56pm
Quoting goodthings
So now what we keep watching it keeping in mind (as james said) price action and s/r
Yes, for sure...

We have possible warning that things are loosing upside momentum. The price action is beginning to agree too. Notice this weeks bar has a way smaller range than the past four and in candle speak is also a "Spinning Top".
It's position is the beginning of the bearish Evening Star pattern. If the next week closes a good distance into the bar prior to the spinning top we are looking pretty good for a solid short.

In "Bar" speak I don't know what you'd say. Came close to being a pin I s'pose.

You HAVE to use PA etc like James16 said . Sometimes the divergence will carry on longer than you expect through multiple peaks. Entering on divergence alone could get you in before that last massive accelleration in price you often get at tops/bottoms.

I love divergence. But I'm always forgetting to watch for it. Maybe as the years go by. :

,Bundy
Bundy's status today: "Waiting..."
  • #1,738
  • Dec 22, 2006 5:49pm Dec 22, 2006 5:49pm
Quoting james16
Merry Xmas And Bundy When Your Walking Home From The Pub Stay Out Of The Street Would You. Lol.
...my short cut's through one of the darkest laneways in town too. LOL
Bundy's status today: "Waiting..."
  • #1,739
  • Dec 22, 2006 6:08pm Dec 22, 2006 6:08pm
No problem I am a beginner Actually I will have to reread it a few times
Quoting bundyraider
Actually, it's probably a little premature calling it divergence on that weekly chart. It needs to play out a bit more.

And sorry if I re-hashed any old info there. I found it easier to do the whole MACD post from a beginner perspective. Made it easier to think and write about.
  • #1,740
  • Dec 23, 2006 9:48am Dec 23, 2006 9:48am
It's my 1st post here in this forum. Will be quiet busy the next few days but as I'm a newbie, I keep reading this thread.

Merry Christmas to all and Happy New Year!
48 traders viewing now