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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

  • #7,141
  • Oct 22, 2007 2:35am Oct 22, 2007 2:35am
This goes back to what I have said before: it is my opinion that if you are going to trade counter-trend, you have to be prepared to lose more than you win but to keep going back in at every high probability setup you see.

Many traders will get burnt a few times and then leave the market alone.

First pin I have circled failed.

Second showed nice divergence with a small pin offering incredible r:r
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  • #7,142
  • Oct 22, 2007 5:41am Oct 22, 2007 5:41am
If you work with the 1hr. This was a nice pin for a trend continuation, entrance, or add position.
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  • #7,143
  • Oct 22, 2007 5:55am Oct 22, 2007 5:55am
This is going to be a big day.
  • #7,144
  • Oct 22, 2007 7:40am Oct 22, 2007 7:40am
Quoting the_wizard
This is going to be a big day.
are you getting married.....?
  • #7,145
  • Edited 8:02am Oct 22, 2007 7:49am | Edited 8:02am
weekly beovb,
price gapped on sunday open.
What a nice short entry on gap closure at .8912 and 163.70
.
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  • #7,146
  • Oct 22, 2007 8:06am Oct 22, 2007 8:06am
For those of you that trade the gap, any tips?

To be honest I can rarely trade the gap because my broker opens a long time after the markets but I am interested at any rate.

If you just go long at the open then where would you put your stop? In the case of last night it looked like it gapped down and then fell a considerable distance further before turning.

If you wait for a sign of a turn what TF do you use?

Or do you just literally trade the gap. As in, go long once price moves into the gap area and close when it is filled?
  • #7,147
  • Oct 22, 2007 8:15am Oct 22, 2007 8:15am
http://i43.photobucket.com/albums/e3...pydiamond2.gif

Rare diamond.
  • #7,148
  • Oct 22, 2007 8:24am Oct 22, 2007 8:24am
HI,
Judging from Rac´s jpgs it looks like he waits for the gap to be filled and then takes it in direction of the original ¨trend¨...nice one Rac! Take care, Raz
Never say never.
  • #7,149
  • Oct 22, 2007 8:31am Oct 22, 2007 8:31am
Quoting razldazl
HI,
Judging from Rac´s jpgs it looks like he waits for the gap to be filled and then takes it in direction of the original ¨trend¨...nice one Rac! Take care, Raz
I'm really glad to see post again... You survived the storm..
Hopefully, It didn't make any damage to your property....
  • #7,150
  • Oct 22, 2007 8:46am Oct 22, 2007 8:46am
Ive had a lot on lately...nice to be missed by someone though! take care Raz
Never say never.
  • #7,151
  • Oct 22, 2007 9:46am Oct 22, 2007 9:46am
Quoting raczekfx
are you getting married.....?
LOL can I pretend I am? It might make me look less stupid.

Dow down just 49 points. Pathetic.
  • #7,152
  • Oct 22, 2007 11:19am Oct 22, 2007 11:19am
Are you saying that once the gap fills, that is time to trade in the other direction ?????

What are your thoughts on the gap that has not yet filled on GBP/JPY ???


Quoting raczekfx
weekly beovb,
price gapped on sunday open.
What a nice short entry on gap closure at .8912 and 163.70
.
  • #7,153
  • Oct 22, 2007 11:44am Oct 22, 2007 11:44am
Well that's a VERY bullish confirmation of the double bottom.

I'm still long from the two pins (circled) so lets see what develops here.
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  • #7,154
  • Oct 22, 2007 11:49am Oct 22, 2007 11:49am
Quoting raczekfx
weekly beovb,
price gapped on sunday open.
What a nice short entry on gap closure at .8912 and 163.70
.
Raczekfx, I too am interested in this gap trading idea. I saw this last night on many pairs but I was unsure if it would fill because some pairs gapped a huge amount of pips (I think GBP/JPY gapped something like 100-200 pips or something like that). How well does this strategy work? What have been your experiences with trading gaps? Also it appears simple enough to trade with the current trend after the gap is filled but did you also trade the pairs while the gap is being filled, or is this too aggressive an approach? I traded this idea in my demo account last night with the gbp/jpy but found it kind of hard to determine where the top was going to be again before the move down. However, I did do fairly well overall with riding it up and then back down again now. This idea seems pretty easy or did I just get lucky here. More demoing is needed I guess. Thanks for any comments from anyone with experience trading gaps.
  • #7,155
  • Oct 22, 2007 12:43pm Oct 22, 2007 12:43pm
Many trade in the direction of the gap and take pips as it fills. This is one way. The other way is to allow the gap to fill and then take the trade in the original gap direction with PA. In Racz's charts you can see that the gap was a resistence area. Friday's ending price provided the resistence.
  • #7,156
  • Oct 22, 2007 1:43pm Oct 22, 2007 1:43pm
Quoting Wall_Street
Raczekfx, I too am interested in this gap trading idea. I saw this last night on many pairs but I was unsure if it would fill because some pairs gapped a huge amount of pips (I think GBP/JPY gapped something like 100-200 pips or something like that). How well does this strategy work? What have been your experiences with trading gaps? Also it appears simple enough to trade with the current trend after the gap is filled but did you also trade the pairs while the gap is being filled, or is this too aggressive an approach? I traded this idea in my demo account last night with the gbp/jpy but found it kind of hard to determine where the top was going to be again before the move down. However, I did do fairly well overall with riding it up and then back down again now. This idea seems pretty easy or did I just get lucky here. More demoing is needed I guess. Thanks for any comments from anyone with experience trading gaps.
I did very well trading gaps in the past, if they coincided with ppz, tls, fib ret etc. It’s just another tool in my trading toolbox. Just keep in mind there is absolutely no magic to it. There is only one reason why TLs, fibs and gaps work.. They work because traders put ‘weight’ to it and have certain expectation regarding price behavior when it approaches those areas. Same thing applies to your 10, 50, 100, 200 or any other emas…. They only work because traders use them as an entry/exit points. Again, no magic here either.
As for GJ, I’m not sure; It’s already 300 ps away from the gap. I was in with good size before Friday’s close @ 235.29. I’m sort of aggressive trader and trade both ways with and against the trend, so if I find gj bouncing off good S/R , forming a PB or any other setup, I’ll go long to ‘meet/close’ the gap.

B.T.W. Last week was my best week ever in my entire trading career in terms of pips.
All the credit goes to the founder of this thread and the PF
  • #7,157
  • Oct 22, 2007 1:46pm Oct 22, 2007 1:46pm
Quoting raczekfx
B.T.W. Last week was my best week ever in my entire trading career in terms of pips.
All the credit goes to the founder of this thread and the PF
we expect at least double this week from you mark, anything shy of 10k and no ice cream for you:
  • #7,158
  • Oct 22, 2007 1:55pm Oct 22, 2007 1:55pm
Quoting the_wizard

I'm still long from the two pins (circled) so lets see what develops here.
Wait...you held those two trades -180 pips past their stops? Both?
Trust price. Know yourself.
  • #7,159
  • Oct 22, 2007 2:10pm Oct 22, 2007 2:10pm
Quoting SeekingLight
Wait...you held those two trades -180 pips past their stops? Both?
I was wondering the same thing....
  • #7,160
  • Oct 22, 2007 4:56pm Oct 22, 2007 4:56pm
Quoting SeekingLight
Wait...you held those two trades -180 pips past their stops? Both?
At the point where I would have been stopped (the low of the second pin), I entered an equal size short in the March 2008 future. Once the price reversed as it did today, I was taken out for BE and my original trade is left to run.

I very rarely do this since it ties up your capital (particularly since I cannot trade off unrealised profit) and it is much easier to just take a loss and move onto the next setup.
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