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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

  • #10,621
  • May 7, 2008 3:19pm May 7, 2008 3:19pm
Is this a good bearish outside setup coming soon?
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"Support and Resistance either holds or it doesn't." -Anonymous hillbilly
  • #10,622
  • May 7, 2008 3:21pm May 7, 2008 3:21pm
Quoting jarroo
But this one has me confused. Isn't divergence a dangerous indication, especailly in a strong trending market? What make this divergence different?
To me it looks like it's overall sideways. I think the oscillators become unreliable more if you get a series of higher swing highs or lower swing lows in a trending fashion for the duration that the oscillator is being watched. In this case it looks sideways.
"Support and Resistance either holds or it doesn't." -Anonymous hillbilly
  • #10,623
  • May 7, 2008 3:25pm May 7, 2008 3:25pm
great question and it shows that j is ahead of most people. divergence will kill you in a trending market and many many traders in the futures markets have learned that the hard way by using it blindly. divergence is a great tool however when combined with price action analysis.

it simply gives confluence or gives wieght to a good bar set up.

jim

Quoting jarroo
Hi Jim.

It's always great when a James16 chart is posted.

But this one has me confused. Isn't divergence a dangerous indication, especailly in a strong trending market? What make this divergence different?

I hope you got to see some of my eariler posts. I hope I'm explaining Price Action with the respect that it deserves.

Thanks,

Jim
  • #10,624
  • May 7, 2008 3:25pm May 7, 2008 3:25pm
Quoting jarroo
Hi Jim.
But this one has me confused. Isn't divergence a dangerous indication, especailly in a strong trending market? What make this divergence different?
hey jaroo,

trading divergence BLINDLY is dangerous indeed - especially in a trending market. but in this case price action gave us confidence in the trade by forming a beob.

RM

edit: sorry, James was 2 seconds faster. ;o)
  • #10,625
  • May 7, 2008 3:26pm May 7, 2008 3:26pm
I used to live off of 1187 so I understand those lightening storms you refer to Jim


Quoting james16
candles are something you light when the lights go off to me.

jim
  • #10,626
  • May 7, 2008 3:38pm May 7, 2008 3:38pm
Quoting james16
great question and it shows that j is ahead of most people. divergence will kill you in a trending market and many many traders in the futures markets have learned that the hard way by using it blindly. divergence is a great tool however when combined with price action analysis.

it simply gives confluence or gives wieght to a good bar set up.

jim
Thanks Jim.

For those of you who want to get ahead of most people, read and study this entire thread a few times. That's all it takes.
Indicators show the past. Price Action "Indicates" the future.
  • #10,627
  • May 7, 2008 3:59pm May 7, 2008 3:59pm
Jim, just wanted to say thanks for the pinbar stuff, last month I made a little over 800 per contract playing the 4hr stuff. Pretty easy stuff really, but like anything people need to put in the time. I have traded about 9 years full-time and I spent a little over 100 hours just reading over charts but I think if you put in the time, use 1 or at most 2 indicators that you know well you should be 85%. Also I talked with Martin Pring about the "PinBar" stuff, he's a pretty nice guy
Keep taking CT trades, I need more money
  • #10,628
  • May 7, 2008 4:04pm May 7, 2008 4:04pm
Quoting Thexder
Is this a good bearish outside setup coming soon?
It's a set up I have been waiting for.

We have 2 Weekly Pin Bars, Daily DBHLC (when completed) formed from new Highs, and at a PPZ (S/R level). I would look for bullish Price Action on 4 hour to see if any retracement may take place. But all in all, this is what we look for in my book.
Indicators show the past. Price Action "Indicates" the future.
  • #10,629
  • May 7, 2008 4:09pm May 7, 2008 4:09pm
Quoting jarroo
It's a set up I have been waiting for.

We have 2 Weekly Pin Bars, Daily DBHLC (when completed) formed from new Highs, and at a PPZ (S/R level). I would look for bullish Price Action on 4 hour to see if any retracement may take place. But all in all, this is what we look for in my book.
In support of more bearish action the 4 hour had a pin for a possible up move and it was just violated and nulled bearishly...
"Support and Resistance either holds or it doesn't." -Anonymous hillbilly
  • #10,630
  • May 7, 2008 4:12pm May 7, 2008 4:12pm
thanks ryan,

yeah its easy but most new traders cant get out of there own way even if they are given a high odds entry. folks like you that have been trading for a while understand the value of finding something that works and then adding to it if they wish to refine and make it better. as you know its a process of self discovery and hard work.

Quoting Ryanmcd
Jim, just wanted to say thanks for the pinbar stuff, last month I made a little over 800 per contract playing the 4hr stuff. Pretty easy stuff really, but like anything people need to put in the time. I have traded about 9 years full-time and I spent a little over 100 hours just reading over charts but I think if you put in the time, use 1 or at most 2 indicators that you know well you should be 85%. Also I talked with Martin Pring about the "PinBar" stuff, he's a pretty nice guy
  • #10,631
  • May 7, 2008 4:17pm May 7, 2008 4:17pm
Quoting Thexder
In support of more bearish action the 4 hour had a pin for a possible up move and it was just violated and nulled bearishly...
That isn't a Bullish (reversal in this case) Pin bar. If anything it's a continuation Pin Bar in traffic, if there is such a thing.
Indicators show the past. Price Action "Indicates" the future.
  • #10,632
  • May 7, 2008 4:20pm May 7, 2008 4:20pm
Quoting jarroo
That isn't a Bullish (reversal in this case) Pin bar. If anything it's a continuation Pin Bar in traffic, if there is such a thing.
Yeah it wasn't tradeable long as a pin due to its location but the fact that it existed shows it exhausted something on the down side and then was able to surpass that, finding new downside strength.

Right now I think it's bouncing off a support from a previous resistance around April 28. If it can get beneath where it is now and then test this level from the under side, a short would feel good.
"Support and Resistance either holds or it doesn't." -Anonymous hillbilly
  • #10,633
  • May 7, 2008 4:24pm May 7, 2008 4:24pm
Quoting Thexder
Yeah it wasn't tradeable long as a pin due to its location but the fact that it existed shows it exhausted something on the down side and then was able to surpass that, finding new downside strength.

Right now I think it's bouncing off a support from a previous resistance around April 28. If it can get beneath where it is now and then test this level from the under side, a short would feel good.
Right. If the nose was pointing down instead of up, a retracement could have been very possible.
Indicators show the past. Price Action "Indicates" the future.
  • #10,634
  • May 7, 2008 4:39pm May 7, 2008 4:39pm
Quoting DutchTrader
Thanks guys

Will continue to read and learn. Special thanks to Jarroo for all his assistance on Price Action
Thanks Dutch.

It helps me learn by trying to help.
Indicators show the past. Price Action "Indicates" the future.
  • #10,635
  • May 7, 2008 5:03pm May 7, 2008 5:03pm
Anyone liking EURCAD for a long position?
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Trax Tibidax Tibidox...
  • #10,636
  • May 7, 2008 5:18pm May 7, 2008 5:18pm
Quoting masterpiecefx
Anyone liking EURCAD for a long position?
Looks good.
That area left of the Pin Bar is what I believe Mike calls beautiful "Space".
Indicators show the past. Price Action "Indicates" the future.
  • #10,637
  • May 7, 2008 5:27pm May 7, 2008 5:27pm
Looks like a possible pin bar forming on the Daily USD/CHF.
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  • #10,638
  • May 7, 2008 5:30pm May 7, 2008 5:30pm
Quoting jarroo
Looks good.
That area left of the Pin Bar is what I believe Mike calls beautiful "Space".
Thank you for the reply.

It looks though as it's going to retrace first, so will time it off the H1 fib levels.
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Trax Tibidax Tibidox...
  • #10,639
  • May 7, 2008 5:39pm May 7, 2008 5:39pm
Quoting masterpiecefx
Anyone liking EURCAD for a long position?

I would take that trade, If you look hard enough you will find 10 ways why you should and 10 why you should not. then you don't take it, then you screw up next trade because you missed "The big one". I don't use fib's MA's any of that crap, look at PRICE that is all that matters and to me this is a good pinbar. If I see someone with over 2-3 indicators on there chart I ask them how it helps? So far I have never had anyone able to not look at it and see it both ways. Remember all indicators lag and can been seen both ways. Remember this quote "It all works, and none of it works" I was told that by a friend who has been banking over 1 mill a month going on 17 years Sorry for the wall of text hehe
Keep taking CT trades, I need more money
  • #10,640
  • May 7, 2008 5:54pm May 7, 2008 5:54pm
Quoting Ryanmcd
I would take that trade, If you look hard enough you will find 10 ways why you should and 10 why you should not. then you don't take it, then you screw up next trade because you missed "The big one". I don't use fib's MA's any of that crap, look at PRICE that is all that matters and to me this is a good pinbar. If I see someone with over 2-3 indicators on there chart I ask them how it helps? So far I have never had anyone able to not look at it and see it both ways. Remember all indicators lag and can been seen both ways. Remember this quote "It all works, and none of it works" I was told that by a friend who has been banking over 1 mill a month going on 17 years Sorry for the wall of text hehe
I don't consider Fib levels or long term MAs (when used as S/R levels) as indicators. They show where Price may go in the future. Indicators show the past and lag, true.
Higher time frame Price Action will retrace before they break, more often then not. There is nothing wrong with looking for a better entry. I like the 50% retrace myself.
Indicators show the past. Price Action "Indicates" the future.
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