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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

  • #12,761
  • Aug 18, 2008 3:12am Aug 18, 2008 3:12am
Quoting y.caesar
Hey Jaroo,
Thank you for your explanation on how to define a PPZ. I notice on your recent charts (about the pb on GU), there are lines which I take are your PPZs. Can you elaborate on that? I mean I know that you've given an example earlier on UJ. I would appreciate if you can show more examples on how to draw a PPZ. Or perhaps you can point me to your posts that talks about PPZ and how to identify them in details. Thanks.

Regards,
Sure y.c

I like to start on the Weekly chart and fine tune the PPZs on the Daily chart.

What we look for are the tight PPZs, where S/R levels are on top of each.

Since Price has fallen so far south we can't find any good PPZs in 2008 and 2007. So we look at 2006 and there are many good ones.
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Indicators show the past. Price Action "Indicates" the future.
  • #12,762
  • Aug 18, 2008 3:35am Aug 18, 2008 3:35am
Quoting jarroo
PivotPointZones are made up of Support and Resistence levels. S/R levels can come together and be on top of each other and be very tight as Jim has shown a few posts back. Or they can be wide in range.
The area between the Sup and Res levels is the PPZ.

Jim
Hi Jim,

I am confused with the term PivotPointZones - as one will think it is a standard Pivot Point (PP, S1, S2, S3, R1, R2 and R3). The way you define PPZ is purely based on S/R levels, and the way you define S/R is based on major swing high/low which could be very subjective and requires some good expriences. Pls advise!

Regards,
Kim
  • #12,763
  • Aug 18, 2008 3:37am Aug 18, 2008 3:37am
Quoting nkhnip
Hi Jim,

I am confused with the term PivotPointZones - as one will think it is a standard Pivot Point (PP, S1, S2, S3, R1, R2 and R3). The way you define PPZ is purely based on S/R levels, and the way you define S/R is based on major swing high/low which could be very subjective and requires some good expriences. Pls advise!

Regards,
Kim

Ok.

Or its called the PivotPriceZones.
Indicators show the past. Price Action "Indicates" the future.
  • #12,764
  • Aug 18, 2008 3:40am Aug 18, 2008 3:40am
Quoting y.caesar
Hey Jaroo,
Thank you for your explanation on how to define a PPZ. I notice on your recent charts (about the pb on GU), there are lines which I take are your PPZs. Can you elaborate on that? I mean I know that you've given an example earlier on UJ. I would appreciate if you can show more examples on how to draw a PPZ. Or perhaps you can point me to your posts that talks about PPZ and how to identify them in details. Thanks.

Regards,
Gbu/Usd seems to be deciding where to go on this PPZ in 2006. My thinking is the current PB will help it decide.
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  • #12,765
  • Edited 3:59am Aug 18, 2008 3:44am | Edited 3:59am
Nice Res level (or upper PPZ) at 1.8667 blue line. Price may decide that this is too much and start falling again.
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  • #12,766
  • Aug 18, 2008 3:51am Aug 18, 2008 3:51am
Quoting jarroo
Sure y.c

I like to start on the Weekly chart and fine tune the PPZs on the Daily chart.

What we look for are the tight PPZs, where S/R levels are on top of each.

Since Price has fallen so far south we can't find any good PPZs in 2008 and 2007. So we look at 2006 and there are many good ones.

Thanks for getting back to me so quick Jarroo. Your charts are a real eye opener for me. The first thing I notice is that your PPZ appears to be tighter than if I would've taken the charts and draw them myself. You didn't exactly pick the highest or lowest shadows of the S/R. You seem to know the exact price where it reacts the most and draw a horizontal line through it. Do you go to lower TFs to find that out?

Also I attached your chart with a question that I hope you can clear it out for me. And please comment on my recent trade. Was that a valid PPZ by this forum's definition?

Regards,
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  • #12,767
  • Aug 18, 2008 4:03am Aug 18, 2008 4:03am
What do you think of this one Jarroo?
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  • #12,768
  • Edited 4:31am Aug 18, 2008 4:05am | Edited 4:31am
Quoting y.caesar
Thanks for getting back to me so quick Jarroo. Your charts are a real eye opener for me. The first thing I notice is that your PPZ appears to be tighter than if I would've taken the charts and draw them myself. You didn't exactly pick the highest or lowest shadows of the S/R. You seem to know the exact price where it reacts the most and draw a horizontal line through it. Do you go to lower TFs to find that out?

Also I attached your chart with a question that I hope you can clear it out for me. And please comment on my recent trade. Was that a valid PPZ by this forum's definition?

Regards,
The tighter the PPZ the better. I will fine tune them even more on the 4 hour chart but mainly just on the Daily.

Recent trade: Yes, the area or level where Res turned into Sup.

Yes, that is considered support. I just didn't draw a PPZ in that that area. Yet.
Indicators show the past. Price Action "Indicates" the future.
  • #12,769
  • Aug 18, 2008 4:05am Aug 18, 2008 4:05am
Quoting y.caesar
What do you think of this one Jarroo?
What time frame is that?
Indicators show the past. Price Action "Indicates" the future.
  • #12,770
  • Aug 18, 2008 4:10am Aug 18, 2008 4:10am
Quoting jarroo

Yes, that is considered support. I just didn't draw a PZZ in that that area. Yet.
Just one quick question on your recent comment...PPZ must be first tested to be considered valid, is that a correct statement? Or just because price bounced at that level once, one can already assume that's a PPZ?

and on the usd/cad, that's on the 4hr chart.
  • #12,771
  • Aug 18, 2008 4:18am Aug 18, 2008 4:18am
Quoting y.caesar
Just one quick question on your recent comment...PPZ must be first tested to be considered valid, is that a correct statement? Or just because price bounced at that level once, one can already assume that's a PPZ?

and on the usd/cad, that's on the 4hr chart.
PPZs are already established and Price will react to them.


Start with the Weekly on the Cad.
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  • #12,772
  • Aug 18, 2008 4:25am Aug 18, 2008 4:25am
Cad
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  • #12,773
  • Aug 18, 2008 4:47am Aug 18, 2008 4:47am
Quoting jarroo
Cad
Aah...thank you. So much clearer now. Thanks for all the charts. They'll make an excellent reference for me now.

If you don't mind me asking you about your trade method...would you take a PB on the PPZ alone, or would you require some other confluence such as fibs retracement on the big picture? Because I notice another senior here, Ghous. If I'm not mistaken, he took a short on gbp/jpy based on PA and MACD divergence, but he didn't enter then. He waited until the price broke a diagonal trend, then he entered.
  • #12,774
  • Aug 18, 2008 5:02am Aug 18, 2008 5:02am
Quoting y.caesar
Aah...thank you. So much clearer now. Thanks for all the charts. They'll make an excellence reference for me now.

If you don't mind me asking you about your trade method...would you take a PB on the PPZ alone, or would you require some other confluence such as fibs retracement on the big picture? Because I notice another senior here, Ghous. If I'm not mistaken, he took a short on gbp/jpy based on PA and MACD divergence, but he didn't enter then. He waited until the price broke a diagonal trend, then he entered.
The more confluences the merrier. Location, PPZ, Trendlines, Fibs, PA on higher time frames, etc., it all makes up the "A" trade set-up we are looking for.

PPZ and Price Action alone can be a powerful thing through practise. But if there happens to be a divergence indication that agrees with the direction then that just gives the entry more confidence and more wieght to the decision.
Indicators show the past. Price Action "Indicates" the future.
  • #12,775
  • Aug 18, 2008 5:17am Aug 18, 2008 5:17am
Quoting jarroo
The more confluences the merrier. Location, PPZ, Trendlines, Fibs, PA on higher time frames, etc., it all makes up the "A" trade set-up we are looking for.

PPZ and Price Action alone can be a powerful thing through practise. But if there happens to be a divergence indication that agrees with the direction then that just gives the entry more confidence and more wieght to the decision.
Exactly Jarroo, you won't make a bad professor out of yourself? ever tried a Phd course teahings in forex?

to Y Caesar...

the trade i took on Gj was mainly because of the strong divergence followed by the trendline break. there was'nt much of PA indication on my charts atleast but the divergence as Jarroo said added a lot of weight to my trade and made me take the descion.
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I believe . . .
  • #12,776
  • Aug 18, 2008 5:18am Aug 18, 2008 5:18am
gh0us can u elaborate m0re on ur m0mentum criteria?
Throw in some charts plz

Coz in the gbp-usd there is this huge rally d0wn (m0mentum) BUT there is this one bullish bar before the pin
M0mentum end?
  • #12,777
  • Aug 18, 2008 5:24am Aug 18, 2008 5:24am
Quoting ezz
gh0us can u elaborate m0re on ur m0mentum criteria?
Throw in some charts plz

Coz in the gbp-usd there is this huge rally d0wn (m0mentum) BUT there is this one bullish bar before the pin
M0mentum end?
sure Ezz, just give me some time, i was just loggin' off, need to head off for the gym, i haven't gone through any workout since 8 days now partly because of illness and mostly because i was glued to my computer screen after a busy schedule in the previous days, now if only the instructor would allow me to lift weight...,

so hang on there i'll elaborate that a few hours from now if i possibly can...

Regards,
Ghous.
I believe . . .
  • #12,778
  • Aug 18, 2008 5:25am Aug 18, 2008 5:25am
Quoting ghous
Exactly Jarroo, you won't make a bad professor out of yourself? ever tried a Phd course teahings in forex?

to Y Caesar...

the trade i took on Gj was mainly because of the strong divergence followed by the trendline break. there was'nt much of PA indication on my charts atleast but the divergence as Jarroo said added a lot of weight to my trade and made me take the descion.

and what a dream trade that was. Personally, I would've taken the break of the IB of the boxed PA. I am envious of your patience to wait for the break of the trendline for conformation and your mental dedication to hold and follow through of the break. I probably would've been out with +50-100 at most ....not that it would've been bad. But no where as close as the 600+ you collected
  • #12,779
  • Aug 18, 2008 5:29am Aug 18, 2008 5:29am
Quoting y.caesar
and what a dream trade that was. Personally, I would've taken the break of the IB of the boxed PA. I am envious of your patience to wait for the break of the trendline for conformation and your mental dedication to hold and follow through of the break. I probably would've been out with +50-100 at most ....not that it would've been bad. But no where as close as the 600+ you collected
it comes from a mentality that you get used to trading on nothing under the daily charts, besides my trading plan does focus on longer term trades, i collected those pips in 3 days and that's what makes the trade very very special, other trades which are normal ones like the Aud/nzd for instance is still open at +400 but it's been open for more then 10 days i concentrate mostly on riding trends as much as possible, which makes such trades possible for me.


ps ask yourself why you would have got out at +100 max when you don't see a retracment atleast 600 pips after the break that i got, that is on the daily chart, learn to consider threatning reversal signs (nice PA indication like the pin bar on Gj, or strong trebndlines/ppzs) as reasons to exits rather than any minor retracment going against you if you wish to bag in such pips on the daily and above, this strategy works nicely.

Regards,
Ghous.
I believe . . .
  • #12,780
  • Edited 5:57am Aug 18, 2008 5:29am | Edited 5:57am
Quoting ghous
Exactly Jarroo, you won't make a bad professor out of yourself? ever tried a Phd course teahings in forex?

to Y Caesar...

the trade i took on Gj was mainly because of the strong divergence followed by the trendline break. there was'nt much of PA indication on my charts atleast but the divergence as Jarroo said added a lot of weight to my trade and made me take the descion.
Thanks gh.

But there was clear Inside Bar off PPZ, my friend. Nice Trade.
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