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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

  • #14,721
  • Oct 25, 2008 6:51pm Oct 25, 2008 6:51pm
Quoting 4rexLady_de
Hello Everyone, Hello Jim

I got a hint from NaVin in the GBP/USD Forum to go here, if I really want to learn how to become successful in trading.
...
Welcome to the thread!

You've made a good decision by strolling over here for a look.

Many say learning to trade correctly and profitably takes the same dedication and patience as any other profession. So if you are willing to take this approach you'll have a good chance at success.

Whenever you have questions, go ahead and ask. There are many here willing to help out.

,Bundy
Bundy's status today: "Waiting..."
  • #14,722
  • Oct 25, 2008 9:19pm Oct 25, 2008 9:19pm
Quoting sonicdeejay
agree with u on that...but depend on what TF u r looking at,,,
me based on 15MTF...and I guess u knw what I mean...

The overall trend for EUR and GBP pairs are still down...On D1TF based trade, I have my EJ pair short since 154.xxx .. 119.xxx now..


Sonic
That's an excellent short you got on EJ, congrads

I daytrade as well, looking at several tf's from 1min to 1hr. I personally found it hard to go against the trends even on scalps, had a couple of negative trades all against the trend, and with the trend it was easy to make nice profits.

What I was referring to is daily charts and above. To me, it has to actually start moving up until I can confirm a trend reversal. Then get in on the retracement. Usually I don't care about confirmations, but we got quite a different situation these days.
Trax Tibidax Tibidox...
  • #14,723
  • Oct 26, 2008 9:52am Oct 26, 2008 9:52am
Quoting bundyraider
Welcome to the thread!

Whenever you have questions, go ahead and ask. There are many here willing to help out.

,Bundy

Hi Bundy

thx for welcoming me and yes, I can imagine that it will dedication...just looking at all the strategies and learning WHEN it is a great setupn for a trade or not...it sure takes time and exercise.
And I will start with a probably pretty stupid question: what exactly does price action mean? Is it the lentgh of a pin/candle? Is it the number that shows up when you hold the mouse over it? And what do get from this?
I mean, what does it tell me regarding a possible trade?

Thx and Good trades to you all

4rexlady
  • #14,724
  • Oct 26, 2008 11:59am Oct 26, 2008 11:59am
I don't know what's your thinking on this one. For the past 4 weeks, EUR/GBP closed below the trend line. And then, there is this huge PIN against it. I guess it's time to go short.

Ken
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  • #14,725
  • Edited 2:11pm Oct 26, 2008 12:51pm | Edited 2:11pm
Quoting 4rexLady_de
what exactly does price action mean? Is it the lentgh of a pin/candle? .....I mean, what does it tell me regarding a possible trade?

4rexlady
At its most basic it is looking for a particular type of bar/candle and its relationship to the bars that preceeded it. The overall size of the bar and its close then becomes a specific type of price action (PA).

So, for example, an Inside Bar (IB) is a bar that is smaller that the previous bar. An I4B is the fourth bar in a series of bars but has the smallest overall range compared to the other three bars.

An Outside Bar (Bullish/Bearish OB) is a bar that has an overall range that is greater than the previous bar.

And so on....

But the art of this is to recognise the best areas to consider trading any of these formations. That can take some time and this is where demo comes into its own.

Keep studying the thread and get to know the patterns but, more importantly, get to know them and where Jim and the others recommend as the best places to pay attention to their appearance.
  • #14,726
  • Oct 26, 2008 12:53pm Oct 26, 2008 12:53pm
Quoting 4rexLady_de
Hi Bundy

thx for welcoming me and yes, I can imagine that it will dedication...just looking at all the strategies and learning WHEN it is a great setupn for a trade or not...it sure takes time and exercise.
And I will start with a probably pretty stupid question: what exactly does price action mean? Is it the lentgh of a pin/candle? Is it the number that shows up when you hold the mouse over it? And what do get from this?
I mean, what does it tell me regarding a possible trade?

Thx and Good trades to you all

4rexlady
price action i guess can be viewed as the changing of shifts between supply and demend (buyers and sellers) at certain key areas (support and resistance flips)....

what u have to learn is how to do is recognise these key areas and the watch for changes in supply or demand to give u an idea of direction..

i hope what i have written is understandable ...good weekend all
  • #14,727
  • Oct 26, 2008 1:02pm Oct 26, 2008 1:02pm
PA: is how price acts when aproaching key areas

PAionist look for certain candles formations at key areas that foretells the new direction
  • #14,728
  • Oct 26, 2008 1:02pm Oct 26, 2008 1:02pm
Quoting ezz
PA: is how price acts when aproaching key areas

PAionist look for certain candles formations at key areas that foretells the new direction
any body see anything
  • #14,729
  • Oct 26, 2008 1:26pm Oct 26, 2008 1:26pm
Quoting PeterFM
At its most basic it is looking for a particular type of bar/candle and its relationship to the bars that preceeded it. The overall size of the bar and its close then becomes a specific type of price action (PA).

So, for example, an Inside Bar (IB) is a bar that is smaller that the previous bar. An I4B is the fourth bar in a series of bars but has the smallest overall range compared to the other three bars.

An Outside Bar (Bullish/Bearish OB) is a bar that has an overall range that is greater than the previous bar.

And so on....

But the art of this is to recognise the best areas to consider trading any of these formations. That can take some time and this is where demo comes into it's own.

Keep studying the thread and get to know the patterns but, more importantly, get to know them and where Jim and the others recommend as the best places to pay attention to their appearance.
Well, quite a long time I dont see your post in here Peter. Kinda miss your insight... lol.
Go figure.. Simplicity work
  • #14,730
  • Edited 2:09pm Oct 26, 2008 1:58pm | Edited 2:09pm
Quoting goodtiding5
I don't know what's your thinking on this one. For the past 4 weeks, EUR/GBP closed below the trend line. And then, there is this huge PIN against it. I guess it's time to go short.

Ken

I'm thinking it's a choppy mess and I wouldn't trade it. I would rather trade either GBP or EUR short against another (stronger) currency.


cheers

FXP
  • #14,731
  • Oct 26, 2008 2:01pm Oct 26, 2008 2:01pm
Quoting PeterFM
At its most basic it is looking for a particular type of bar/candle and its relationship to the bars that preceeded it. The overall size of the bar and its close then becomes a specific type of price action (PA).

So, for example, an Inside Bar (IB) is a bar that is smaller that the previous bar. An I4B is the fourth bar in a series of bars but has the smallest overall range compared to the other three bars.

An Outside Bar (Bullish/Bearish OB) is a bar that has an overall range that is greater than the previous bar.

And so on....

But the art of this is to recognise the best areas to consider trading any of these formations. That can take some time and this is where demo comes into it's own.

Keep studying the thread and get to know the patterns but, more importantly, get to know them and where Jim and the others recommend as the best places to pay attention to their appearance.
  • #14,732
  • Oct 26, 2008 2:05pm Oct 26, 2008 2:05pm
Guys what do u think of this scenario?
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  • #14,733
  • Oct 26, 2008 3:17pm Oct 26, 2008 3:17pm
Quoting PeterFM
At its most basic it is looking for a particular type of bar/candle and its relationship to the bars that preceeded it. The overall size of the bar and its close then becomes a specific type of price action (PA).

So, for example, an Inside Bar (IB) is a bar that is smaller that the previous bar. An I4B is the fourth bar in a series of bars but has the smallest overall range compared to the other three bars.

An Outside Bar (Bullish/Bearish OB) is a bar that has an overall range that is greater than the previous bar.

And so on....

But the art of this is to recognise the best areas to consider trading any of these formations. That can take some time and this is where demo comes into its own.

Keep studying the thread and get to know the patterns but, more importantly, get to know them and where Jim and the others recommend as the best places to pay attention to their appearance.
Peter, and nAvin,

Thank you guys for the explanation. Yes, for sure it takes tons of practice to get "enlightened" ....but first I need to understand the meaning of PA in general. So as far as I understodd it basically comes down to the size of a candle compared to the others. The bigger the candle/pinbar the more action and vice versa..is that, how it is?

The red highlighted is found, for example, in a wedge sometimes, right?

And reading through the thread ( I still have a gazillion pages to go ) I think, I understood, that one is looking for big price-action near R or S and/or certain Fib-and Pivotlevels?

BTW: is there an indi you know of, which draws the Fib-levels automatically ( for example daily and 4hrs? )
And if I have to draw them myself: how do I do this correctly? I have seen so many variations of it - I am pretty confused...where is zero? I think, it is, in daily, for example, from the lowest to the next high? Or the highest over all? I canīt figure it out...

Thx so much in advance,

4rexlady
  • #14,734
  • Edited 5:28pm Oct 26, 2008 3:36pm | Edited 5:28pm
Some answers below

Quoting 4rexLady_de
Peter, and nAvin,

Thank you guys for the explanation. Yes, for sure it takes tons of practice to get \"enlightened\" ....but first I need to understand the meaning of PA in general. So as far as I understodd it basically comes down to the size of a candle compared to the others. The bigger the candle/pinbar the more action and vice versa..is that, how it is?

Well not necessarily. Just think of price action, as reading price. All of its components. So think of your chart as a puzzle with a lot of pieces. These pieces include the actual bar itself, the size of the bar(both big and small are all important), support, resistance, round numbers etc. These are all pieces, we then combine these pieces(price action analysis), with other areas such as confluence of factors to formulate a trade idea. As you go from post 1 to post gazillion in this thread this will become more clear. There is not a do this, then this the that, and trade. It isn't that simple and that is why a lot of people steer away from learning to read price. But after your learn it all it does become simple. Kinda weird.

The red highlighted is found, for example, in a wedge sometimes, right?

And reading through the thread ( I still have a gazillion pages to go ) I think, I understood, that one is looking for big price-action near R or S and/or certain Fib-and Pivotlevels?

Yes this can be it. It comes in many forms. For example sometimes you just get a pinbar at swing high, or a BEOB(bearish outside bar), at a swing high. THere might be no fibs there, no resistance, but it can still be tradable. This comes with experience to learn what is good from bad(and that is the journey and what is trying to be taught here). A lot come to this thread because they hear about this pinbar(just an exhuastion reversal bar), and think everytime they see one it is a good trade. Far from the truth, one must learn the little nuances to get this down.

BTW: is there an indi you know of, which draws the Fib-levels automatically ( for example daily and 4hrs? )
And if I have to draw them myself: how do I do this correctly? I have seen so many variations of it - I am pretty confused...where is zero? I think, it is, in daily, for example, from the lowest to the next high? Or the highest over all? I canīt figure it out...

This is a waste of time. I know it sucks, but forget about any indicator that will do the so called work for you. The fact is that you will benefit much more greatly by learning to do it yourself(and no indicator will do it near what you will be able to do). I created a video on how to draw fibs inside the PF, but through charts let me do my best to show you how simple it is. THe first important point is learning to identify swing high and swing low points. You have both major swing points and minor. You then can use these swing points to draw your fibs from. Below is an example chart.

Now at first this will look like a big mess but I assure you it isn't. What I did was label 5 swing points. These points are A, B, C, D, E. I then drew Fibs from these swing points.

Point A , C, and D are swing lows.

Points B, and E are swing highs.

Now I draw fribs from swing to swing. A swing low to a swing high. Never a low to a low or a high to a high. So for example I have one Drawn from A- B, A-E. And I have one from C- E(I used a purple trendlines to show where they are going since it is easier to see).

Notice you can draw one from A to B, and also A to E. THis is because point A is still a swing low, and then we made a new swing high at point E.

So using points A to E(the big fib). and Also drawing one frmo Point C to E. We have an OVERLAP of fibs(the blue box). This is confluence. Notice the 50%(of the C- E fib), and the 38.2% of the A-E fib, overlap. This is an area of confluence, and then notice where price reversed at(point D). After price reversed at D that created a NEW swing low point.

I know that seems a lot for you right now, but the best thing you can do is start from page 1 and read read read, then read it all over again. It will take you weeks and months, but I promise you I did it(more then 10 times), and many others have and you will get through it and be better trader for it. Many questions you have are asked 100s of times in this thread, b/c it is natural we all have the same types of questions. So grab some coffee and go for it

You won't regret it,

take care

Mike
Thx so much in advance,

4rexlady
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  • #14,735
  • Oct 26, 2008 4:04pm Oct 26, 2008 4:04pm
Hi Bundy and all,

I can see a lot of signals on the daily TF but just wondering which to take. I am inclined to short EURGBP and long GBPCAD but the relative weakness of GBP and even EUR from last weekend news is of great concern to me. OTHER signals I see are BEOB for CADJPY and CADCHF and BUOB for USDCHF and USDCAD. Which way do we go
  • #14,736
  • Oct 26, 2008 6:27pm Oct 26, 2008 6:27pm
Hi ya Mbqb11,

I just wanted to say thank you for the great post above..you have enlightened me on price action and how to use fib's as a confluence, much appreciated as I have always had trouble understanding both subjects ..

Also I would like to thank James16 for this great thread and all the excellent information gleaned from this thread..thank you

Adrian
  • #14,737
  • Oct 26, 2008 7:07pm Oct 26, 2008 7:07pm
Quoting mbqb11
Some answers below
Wow great work Mike.

I'm glad your on our side.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #14,738
  • Oct 26, 2008 7:28pm Oct 26, 2008 7:28pm
A practise Pin Bar I'm looking at on the 8 hour chart from Friday. (10-24-08)

This 8H Pin Bar presented itself on Friday off of new Lows. There are no S/R levels or PPZs for miles . . I mean . . for months. So, additional current confluences to support this potienal PB reversal is lacking.

Price did break the top but I did not take it, I don't take any signals late on Fridays. Anyway this is practising Price Action.

Where would you enter if you were so inclined?
Retrace of the PB itself using Fibs is an option. Or just wait until Price breaks the top again maybe a better option in this strong down tending market.

Should be fun to see how it plays out.
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Indicators show the past. Price Action "Indicates" the future.
  • #14,739
  • Oct 27, 2008 12:30am Oct 27, 2008 12:30am
Some past S/R levels of 1.5600 and 1.5500. Took a long at 1.5614.
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Indicators show the past. Price Action "Indicates" the future.
  • #14,740
  • Oct 27, 2008 12:56am Oct 27, 2008 12:56am
Quoting mbqb11
Some answers below

Hi Mike, thank you sooo much for the great work and explanation. It is now clearer to me.
What I am hearing underlying in your explanation is, that it is all about observing and practice ( besides the knowledge about Fibs and that stuff)?!

Yes, I knew before, that it is not only "do this one thing or this" and then that is it....I am only at thread 951 from the back ( and it started at 983 )...so I will work my way through it
I visited the james16group-website already and watch the Guestvideos, etc.....I wonder whether it makes sense to sign up already??!! Or rather FIRST work through the thread and THEN sign up?
It truly is a lot of fun for me to do all this and what better can you do for a living and for your soul as doing something you truly enjoy?
So, yes, I want to take on the work and hopefully become a good/successful trader at some point

Thanks again fgor helping me a step further down the road....going now for the first coffee of 29377 till I am through here the first time

Although I am only at the beginning of my journey I want to say Thank you all !!!
Because you have given me the feeling that this is doable...even for me! It just takes time ( I see it as learning a profession...if youīre done with school and take on learning a job, you also need AT LEAST 2 yrs, mostly 3...so why not taking 2 to 3 yrs for becoming a trader? )

your humble 4rexlady Patty
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