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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

  • #10,081
  • Apr 16, 2008 7:40am Apr 16, 2008 7:40am
4 hour time frame is harder... you might lose more often there... why not trade daily if you are new...? You will have a better chance...

And MACD has its place.... but... with PA....

Draw your PPZ on daily or even weeklies.... then swtich down to the lower Time Frame and then look where the PPZs are that you drew ...

Quoting krue
I tried to draw PPZ line on USDJPY H4, since I don't have experience to identify PPZ, so, simply drawed 4 lines blindly, I am referring to the 4 golden dotted horizontal lines in the attached chart.

My gut feeling tells me, couldn't be 4 lines serving one momentum. adding 4 lines there,no clarity,only added complexity.seems not actionable.

Then, I think there must be one line is the real thing. I got no other choice but adding Fib line to determine,it seems 50 fib corresponds to the 3rd PPZ line from top down.

but the junction of the trend line with the 4th PPZ line(the bottom one), seems also important.

after that, I thought twice, feel the top PPZ line should very important too, coz this is the top one.so, only the 2nd PPZ line is left there,it seems I can remove the 2nd line,though don't have a clear mind whether this one should be removed, psychologically, the 2nd line seems having its place there.

geeeeee, why so difficult, I am sure the pros probably only get one or 2 lines maximum there. can I get some clue from your guys what is the executable drawings in your opinions? I am really having no confidence looking after so many lines in such a narrow space, too crawded, isn't it?
  • #10,082
  • Apr 16, 2008 8:44am Apr 16, 2008 8:44am
Good day.
I have been using J16 method trading futures. The great problem for me is to find the place to take profit. Can you pleace share the method of finding the right place to exit the trade. Do you move your stop to BE, and if yes, when is the righ time to do that? Thank you in advance.
ChartSurfer
  • #10,083
  • Apr 16, 2008 9:08am Apr 16, 2008 9:08am
  •  krue
  • | Joined Mar 2008 | Status: finger scares cat, power of illusio | 410 Posts
Hi, Tiki

Is this better now? simply get your view whether you would feel comfortable with this simplified drawing? or, probably you have better vision to share with? how would you draw this deck, if you don't mind?

I buy your suggestion of trading on daily for now. however, since I'm still customed to H4, so, kept H4 for comparison. will shift to daily next trade.

Currently, I am in the money of eurgbp +71pips, eurusd +65pip with light position, since eurusd broke up today,so, I may expect these two position could be hold for a week or two?? this is after having tried many trial and errors and stopped out a lot of other pairs, so challenge this business is ! if I could filter out 50% of the failed signals, I think I might get a reasonable win ratio to hope a favorable monthly result.

your demonstration of drawing will give me valuable insight to build up something. I thank you for your help, or, other people please,if possible, give me something to think over?

happy trading







Quoting Tiki Trader
4 hour time frame is harder... you might lose more often there... why not trade daily if you are new...? You will have a better chance...

And MACD has its place.... but... with PA....

Draw your PPZ on daily or even weeklies.... then swtich down to the lower Time Frame and then look where the PPZs are that you drew ...
Attached Image (click to enlarge)
Click to Enlarge Name: ppz 2nd try.gif Size: 19 KB
  • #10,084
  • Apr 16, 2008 9:38am Apr 16, 2008 9:38am
Quoting krue
your demonstration of drawing will give me valuable insight to build up something. I thank you for your help, or, other people please,if possible, give me something to think over?
Hi Krue,

For you to understand better...

I suggest you start with the most obvious PPZs

The most obvious are nearly always the best anyway.

Like this one....
Attached Image (click to enlarge)
Click to Enlarge Name: ppz krue.gif Size: 22 KB
Bundy's status today: "Waiting..."
  • #10,085
  • Apr 16, 2008 9:44am Apr 16, 2008 9:44am
Krue,

And another. Same chart....
Attached Image (click to enlarge)
Click to Enlarge Name: ppz krue too.gif Size: 19 KB
Bundy's status today: "Waiting..."
  • #10,086
  • Edited 9:50am Apr 16, 2008 9:44am | Edited 9:50am
Quoting krue
Hi, Tiki

Is this better now? simply get your view whether you would feel comfortable with this simplified drawing? or, probably you have better vision to share with? how would you draw this deck, if you don't mind?

I buy your suggestion of trading on daily for now. however, since I'm still customed to H4, so, kept H4 for comparison. will shift to daily next trade.

Currently, I am in the money of eurgbp +71pips, eurusd +65pip with light position, since eurusd broke up today,so, I may expect these two position could be hold for a week or two?? this is after having tried many trial and errors and stopped out a lot of other pairs, so challenge this business is ! if I could filter out 50% of the failed signals, I think I might get a reasonable win ratio to hope a favorable monthly result.

your demonstration of drawing will give me valuable insight to build up something. I thank you for your help, or, other people please,if possible, give me something to think over?

happy trading
Hi Krue,
I hope you don'y mind me butting in and adding my 2c worth.
Your new chart looks better, however you dont have the nearby daily PPZ on it which on my chart (IBFX - so may be slightly different on yours) is around 101.45 - 50.
I have the 4hr nearby PPZ a little lower than you around 101.85 say 101.80 - 90 (due to broker time differences) 4Hr is particularly tricky for that, which is why I avoid that timeframe.
It is most important that you recognise that these are zones where price has reacted in the past - not lines. I follow SeekingLight's way of showing them i.e find them and draw a line first. Then go back and place a long blue rectangle over the whole of the zone (you can then remove the line). Other people have other methods, Racz is super confident (and super good) at drawing Trend Lines and PPZs , so tends to leave them as lines.


The longer Timeframe PPZs tend to be stonger than the shorter Tf ones and ones which have acted as both support and resistance several times are the strongest.

I hope this helps,
Ian
  • #10,087
  • Apr 16, 2008 9:52am Apr 16, 2008 9:52am
Krue,

And finally....
Attached Image (click to enlarge)
Click to Enlarge Name: ppz krue tree.gif Size: 19 KB
Bundy's status today: "Waiting..."
  • #10,088
  • Apr 16, 2008 11:30am Apr 16, 2008 11:30am
Pivot Point Zones - I am fascinated. What a great addition to my trading tool belt.

I have a few questions regarding them.

Do you normally just look to draw them on the Weekly charts, or do you start at the Monthly, work down to Weekly, and then work down to Daily?

I am trading PA on the Daily and Weekly bars only at this point, so I was not certain if adding a PPZ here or there based on the Daily chart would be beneficial or not.

Also, how many PPZ on average do you have per chart? I am finding around 2 to 4 per chart. Should there be more than this?

Thanks for all your help!

T.J.
  • #10,089
  • Apr 16, 2008 11:31am Apr 16, 2008 11:31am
  •  krue
  • | Joined Mar 2008 | Status: finger scares cat, power of illusio | 410 Posts
Thank you very much, Ian

Quoting ianf0ster
Hi Krue,
I hope you don'y mind me butting in and adding my 2c worth.
Your new chart looks better, however you dont have the nearby daily PPZ on it which on my chart (IBFX - so may be slightly different on yours) is around 101.45 - 50.
I have the 4hr nearby PPZ a little lower than you around 101.85 say 101.80 - 90 (due to broker time differences) 4Hr is particularly tricky for that, which is why I avoid that timeframe.
It is most important that you recognise that these are zones where price has reacted in the past - not lines. I follow SeekingLight's way of showing them i.e find them and draw a line first. Then go back and place a long blue rectangle over the whole of the zone (you can then remove the line). Other people have other methods, Racz is super confident (and super good) at drawing Trend Lines and PPZs , so tends to leave them as lines.


The longer Timeframe PPZs tend to be stonger than the shorter Tf ones and ones which have acted as both support and resistance several times are the strongest.

I hope this helps,
Ian
  • #10,090
  • Apr 16, 2008 11:37am Apr 16, 2008 11:37am
Quoting bundyraider
Krue,

And finally....
Nice Charts, bundy. Keep them coming.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #10,091
  • Apr 16, 2008 11:48am Apr 16, 2008 11:48am
  •  krue
  • | Joined Mar 2008 | Status: finger scares cat, power of illusio | 410 Posts
Bundy, thank you so much. I guess probably due to psych reason, I always read the S/R as a precise line, if the price close above the line,then,thought the resistance disappears immediately, but, as always, unexpectedly the next bar nose dive again,fall back below the line. this part frustrates me quite a lot.just now, when reading your final drawing and also remembering what Ian mentioned about S/R as a rectangula area, gradually,the concept seems floating out of the water, I should have read the resistance still be there by referring to what happened in history, even if it temporily close above the line,the selling pressure would most likely gather its forces to push the price back down eventually, this seems a little bit lag and tricky when watching price closes temporarily above the line. since trading is a probability game,therefore, I still have to take more cents when weighing the chance of going back where the price came from. if my understanding be correct, then, I will take it as one of my key TA principle in formulating my trading plan.
your further confirmation, please, good man, bundy

Quoting bundyraider
Krue,

And finally....
  • #10,092
  • Apr 16, 2008 1:19pm Apr 16, 2008 1:19pm
Quoting OGW
Hi, anyone thinking of playing this weekly pin? I would love to hear your comments. Sebastien
Anyone else take this and getting beat up as badly as i am? I have a sl at 96.00 and i think it will be hit. I don't know why but i do very poor at weekly tf's. Seems like days work out alot better for me.

edit. don't know why charts don't show up when quoted but this is referring to the Aud/Jpy weekly pin bar.
  • #10,093
  • Apr 16, 2008 1:30pm Apr 16, 2008 1:30pm
Yep... took both of them and it's not been pleasant


Quoting saskgui
Anyone else take this and getting beat up as badly as i am? I have a sl at 96.00 and i think it will be hit. I don't know why but i do very poor at weekly tf's. Seems like days work out alot better for me.

edit. don't know why charts don't show up when quoted but this is referring to the Aud/Jpy weekly pin bar.
Attached Image (click to enlarge)
Click to Enlarge Name: Weekly pins failing AUDJPY CHFJPY.JPG Size: 103 KB
  • #10,094
  • Apr 16, 2008 1:42pm Apr 16, 2008 1:42pm
Quoting saskgui
Anyone else take this and getting beat up as badly as i am? I have a sl at 96.00 and i think it will be hit. I don't know why but i do very poor at weekly tf's. Seems like days work out alot better for me.

edit. don't know why charts don't show up when quoted but this is referring to the Aud/Jpy weekly pin bar.
Although everyone has their own interpretation of PA, here is something I try to stress

When picking out pinbars, look for the ones that are not in traffic and create space away from surrounding price.

If we look at this pin, we can see it was on a sharp pullback but there was a lot of price(traffic) in the area.

Instead if we wait for price to find an area in space away, it usually makes for a better pinbar.

This is what I wait for at least.

Have a good one
Mike
Attached Image
  • #10,095
  • Apr 16, 2008 1:49pm Apr 16, 2008 1:49pm
Quote
Anyone else take this and getting beat up as badly as i am? I have a sl at 96.00 and i think it will be hit. I don't know why but i do very poor at weekly tf's. Seems like days work out alot better for me.
it looks like you might be saved, or atleast you'll be able to jump back in the downtrend after this retrace in the upcoming days...


Tyler

Attached Image (click to enlarge)
Click to Enlarge Name: audjpy04-16-2008.gif Size: 24 KB
skype: ststroud. let's talk trading.
  • #10,096
  • Apr 16, 2008 2:11pm Apr 16, 2008 2:11pm
Quoting saskgui
Anyone else take this and getting beat up as badly as i am? I have a sl at 96.00 and i think it will be hit. I don't know why but i do very poor at weekly tf's. Seems like days work out alot better for me.

edit. don't know why charts don't show up when quoted but this is referring to the Aud/Jpy weekly pin bar.
I agree with the points Mike said.
I looked at this pin but passed. The other factor in my decision is that I had a PPZ around the 92.70 area. So I figured it would break the weekly pin and probably stall around there. If it clearly broke that area I would look for a re-test and then get in. But as I thought it reversed after hitting that PPZ. And it actually formed a Daily Buy pin bar as well.
What would be ideal (to get back in short), is if it continues going up and next week it forms a Sell Pin with the high around 97.00.

Tom
  • #10,097
  • Apr 16, 2008 2:32pm Apr 16, 2008 2:32pm
Quoting temo
Good day.
I have been using J16 method trading futures. The great problem for me is to find the place to take profit. Can you pleace share the method of finding the right place to exit the trade. Do you move your stop to BE, and if yes, when is the righ time to do that? Thank you in advance.

You have two novice traders entering a trade at the same time, same pair.
One enters long and the other enters short. Which one is profitable?

Answer: Neither is profitable.

You have two professional traders in the same scenario. One enters long and the other enters short. Which one is profitable?

Answer: Both are profitable.

How can this be so? The answers is simple: The Exits.

Many traders concentrate on where to enter and when to enter a trade, as well they should do and practise. But more time should be spent on where and when to exit a trade. Because that's where we make the money or lose it.

I like to set a given pip amount to reach on a given pair. (Ex., GBPJPY 50-70 pips.) This would be on half the position and the other half would be set to break even. This allows me to minimize losses and let my profits run.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #10,098
  • Edited 2:52pm Apr 16, 2008 2:37pm | Edited 2:52pm
Quoting ianf0ster
I have the 4hr nearby PPZ a little lower than you around 101.85 say 101.80 - 90 (due to broker time differences) 4Hr is particularly tricky for that, which is why I avoid that timeframe.
For bar/candlestick formations it makes a difference regarding time zones because it's important when the bar/candlestick opens or closes. But I don't think it would make a difference for PPZ's or support/resistance because it's based on where price has gone to, not when it opens or closes.

Kevin
  • #10,099
  • Apr 16, 2008 4:45pm Apr 16, 2008 4:45pm
Quoting jarroo

Many traders concentrate on where to enter and when to enter a trade, as well they should do and practise. But more time should be spent on where and when to exit a trade. Because that's where we make the money or lose it.

I like to set a given pip amount to reach on a given pair. (Ex., GBPJPY 50-70 pips.) This would be on half the position and the other half would be set to break even. This allows me to minimize losses and let my profits run.

Jim

Thank you for your answer.
I'm fully agree with you about the great importance of the right exit. I have tested several exit methods. two that have shown the best results were: simply multiplying stop*2.5 (this allows to catch the small moves but misses the big ones) , combination of fib. projections MA's and SR lines( this allows to catch the big move but misses the small). Now I'm trying to combine this two methods, and see what happens
ChartSurfer
  • #10,100
  • Apr 16, 2008 4:56pm Apr 16, 2008 4:56pm
Quoting temo
Thank you for your answer.
I'm fully agree with you about the great importance of the right exit. I have tested several exit methods. two that have shown the best results were: simply multiplying stop*2.5 (this allows to catch the small moves but misses the big ones) , combination of fib. projections MA's and SR lines( this allows to catch the big move but misses the small). Now I'm trying to combine this two methods, and see what happens

Novice traders continually monitor, analyze and alter their trades to maximize their profits.

Professional traders continually monitor, analyze and alter their trades to reduce/minimize their risk and reduce losses.

It's all about avoiding loses, temo. Work on that and the profits will take care of themselves.

Jim
Indicators show the past. Price Action "Indicates" the future.
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