james16 Chart Thread | Page 743 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Where can I learn more about Price Action like those in James16 charts? 9 replies

Attachments: james16 Chart Thread
Exit Attachments

james16 Chart Thread

  • #14,841
  • Oct 30, 2008 5:57pm Oct 30, 2008 5:57pm
So its just like another PPZ to watch out for? When I looked at my USDCAD charts I didn't note much action around the 2400 area so didn't have any PPZ lines pencilled in, but I've just gone back and looked at the monthly chart and I can see there was some nice reaction at that area back in 1992-93, 1988 and the early 80's! That's quite a few years back! If it wasn't a round number, would you say PPZ levels going that far back would still be significant today?

Thanks for your time

Quoting mbqb11
ahh it is far from just another number. Round numbers are psychological areas, which means they attract orderflow. Prices move with orderflow. Without this orderflow we have nothing. It is a longer topic then that but understand price tends to react heavily around these areas(for many reasons). Plot round numbers on any chart, scroll back and observe all the reaction around these areas, you will learn A LOT.

Best of luck

Mike
  • #14,842
  • Oct 30, 2008 5:57pm Oct 30, 2008 5:57pm
As a long time follower of this thread I would like to introduce myself for the first time. Hi, My name is BWR. (hi BWR) and I'm a P.A o'holic.
Although I don't trade P.A exclusively it has helped my trading as far as entry signals that happen around the time that my system tells me to make a trade, and when I get good PA at the same time, it makes it even sweeter. However, I am convinced that exits, not entries, is what makes you successful, and PA can help you with exits as much as it can help you with entries. So if you happen to read this James, hats off to you and a BIG thank you for all that you have done to help educate traders in their path to be successful.
Just Trade It
  • #14,843
  • Oct 30, 2008 5:57pm Oct 30, 2008 5:57pm
Quoting bundyraider
A few cherries out there to chose from Mike. Harvest time.
Actually for me these are all far from cherries, and most are in too much traffic for my liking. Location is just not prime on any of these for me. So no trading here

Trade safe all

Mike
  • #14,844
  • Oct 30, 2008 6:03pm Oct 30, 2008 6:03pm
Quoting mbqb11
Actually for me these are all far from cherries, and most are in too much traffic for my liking. Location is just not prime on any of these for me. So no trading here

Trade safe all

Mike
I regretted posting that soon after. The closer you look the more you see the previous support/resistance areas.
Bundy's status today: "Waiting..."
  • #14,845
  • Oct 30, 2008 6:05pm Oct 30, 2008 6:05pm
Quoting Big Wave Rider
As a long time follower of this thread I would like to introduce myself for the first time. Hi, My name is BWR. (hi BWR) and I'm a P.A o'holic.
Although I don't trade P.A exclusively it has helped my trading as far as entry signals that happen around the time that my system tells me to make a trade, and when I get good PA at the same time, it makes it even sweeter. However, I am convinced that exits, not entries, is what makes you successful, and PA can help you with exits as much as it can help you with entries. So if you happen to read this James, hats off to you and a BIG thank you for all that you have done to help educate traders in their path to be successful.
Hello BWR and welcome. The two individuals who have changed my way of trading forever is Yourself and James. No more clutter on my charts just basic Fib's and EMA's.

May everyone be rewarded for their good deeds in taking the time out to teach others. Amen!
Humble Lifetime Member
  • #14,846
  • Oct 30, 2008 6:08pm Oct 30, 2008 6:08pm
Quoting eltrot1979
So its just like another PPZ to watch out for? When I looked at my USDCAD charts I didn't note much action around the 2400 area so didn't have any PPZ lines pencilled in, but I've just gone back and looked at the monthly chart and I can see there was some nice reaction at that area back in 1992-93, 1988 and the early 80's! That's quite a few years back! If it wasn't a round number, would you say PPZ levels going that far back would still be significant today?

Thanks for your time

When PPZ and round numbers line up it is even better places to watch. What i mean on a smaller level is intraday these round numbers are also important. Basically you have orders piling up on both sides of this number. So for example lets put out a hypothetical situation for this USD/CAD to illustrate what I mean.

We were in a very strong up trend, and then price temporarily exhausted giving what we call here a pinbar. At the low of the pin(the daily low), was just above the round number 1.24. So now the next trading day starts. You have a bunch of people look at their charts saying. Ok right below yesterdays low, people have their stops. They say ok if yesterdays low breaks I am out. Now you also have people who placed limit buys just ahead of the round number. So price breaks the low, sellers come in, but buyers come in to absorb this liquidity to get in long. All the while 1.24 is NEVER even hit. The orders ahead of this number prevent price from going lower, pushing price up higher and invalidating our pinbar. Now does this always happen, NO. There are a ton of various scenarios. But from my experience the fact that orderflow clusters around round numbers gives us incentive to help us a little bit more. In the case of buying and selling, my order always goes above(when I am buying), and below(when I am selling), a round number.

There are many other scenarios why round numbers don't get breached. Sometimes it is option barrier protection, etc.

On the longer term you might see round numbers line up with PPZ, but they also play a role intraday.

Hope that helps a bit

Mike
  • #14,847
  • Oct 30, 2008 6:08pm Oct 30, 2008 6:08pm
Quoting eltrot1979
Thanks Mike and Jim. Round numbers are not something I've paid attention to before, but I will now - another thing to look for when finding reasons not to enter a trade, or where not to position yourself! So what is it about round numbers that makes them significant - its just another number after all!

eltrot, I have been reading an survey a few month ago (searched 45 min on my harddisk, didn´t find it, sorry) about round numbers. a few hundred professionel traders have been asked, where they put TP and SL. And the result was statistical signifcant. Different currencys prefer different TP/SL numbers. From my observation, and if I remember right, TP for AUD and CAD likes .3 and .6 (68.3 for example for aud/jpy or 1.206 for usd/cad) , GBP likes 0, 5, and 8 at the end (1.645 for example for GBP/USD). EUR/USD is 0, and 5 (1.40/1.45) Have a nice day...
  • #14,848
  • Oct 30, 2008 6:09pm Oct 30, 2008 6:09pm
Quoting bundyraider
I regretted posting that soon after. The closer you look the more you see the previous support/resistance areas.
hehe, well it isn't to say they won't give pips. Eur/usd is off some previous support, and it is a large pin. But the way I trade, it is still in to much congestion for me. So being that it doesn't rate very high on my scale I will stay out. But for some this may be their ideal setup. Really comes down to style. My way is just my interpretation of what James has so graciously taught me.

Take care bundy

Mike
  • #14,849
  • Oct 30, 2008 6:20pm Oct 30, 2008 6:20pm
to continue a bit with round numbers. Watch USD/JPY if we reach the 100 level. Right before we got there we had HUGE sell orders come in at 99.70ish. Look at the huge bearish bar that was created even with price exploding higher. You know you had big sellers(I am not talkinga bout you and me), to sell in right ahead of that number. There could be barrier option they were protecting or various other reasons. Now because we know 100 is a very psychological number, next time around we can expect. This area again to be protected, or I can nearly guarantee we have heavy orderflow in the way of stops located above this number. If you watch price on a much smaller scale when it goes through this number you can literally see these orders hit a price cascade upwards.

Sorry to continue to ramble(I do that often), if you have more questions you can always PM me.

Mike
  • #14,850
  • Oct 30, 2008 6:25pm Oct 30, 2008 6:25pm
Thanks Mike, I need to do some research. I can identify these levels but I've never given much thought as to where orders are placed and why price reacts the way it does.

Its a long road but its great to meet so many helpful people on the journey!


Quoting mbqb11
When PPZ and round numbers line up it is even better places to watch....
  • #14,851
  • Oct 30, 2008 6:28pm Oct 30, 2008 6:28pm
Seen some of you guys talking about eu and ej, I just placed pending short orders off the pins. EU im willing to let run if it breaks that support, EJ i just set a tp at the prior support as that support looks to be a bit stronger. Ucad trade is working out beautifully (stop now at 1.22ish- dont remember exact number but have some good profit locked in).

I have to agree with mike these aren't "A" trades to me either or cherries, however I do like the minor retrace then a pin forming with the trend. These kind of setups (pins/ pa with trend) make more sense to me but I do agree that the traffic to the left makes the trade a B/C.

However this is just my opinion I'm still trading a small $300 a/c on Oanda with .5% risked per trade until I find myself and develop a plan that I trust. Happy Trading and Happy Halloween!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 10-30 ej pin.gif Size: 15 KB
Click to Enlarge Name: 10-30 eu pin.gif Size: 16 KB
  • #14,852
  • Oct 30, 2008 6:53pm Oct 30, 2008 6:53pm
the PB on eurusd looks good. i hope to enter at the break of the pin ie 1.2790. i hope i am in order
  • #14,853
  • Oct 30, 2008 6:54pm Oct 30, 2008 6:54pm
EUR has bearish PA against multiple currencies so looks like a reasonable chance it could hit test the lows against USD.

Confluence of trendline and PPZ.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 16 KB
  • #14,854
  • Oct 30, 2008 7:23pm Oct 30, 2008 7:23pm
I think E/J and many others today are "A" pinbars for sure. They're pins after minor retracements of the HUGE downtrend. I'm sure many people are looking for any excuse to get bearish again and we have a bunch of them today. E/J is off support turned resistance, just one more reason to take it. I don't think there's much traffic either, nothing really until 114.
Attached Image (click to enlarge)
Click to Enlarge Name: ej daily.gif Size: 12 KB
  • #14,855
  • Oct 30, 2008 7:30pm Oct 30, 2008 7:30pm
Quoting mbqb11
hehe, well it isn't to say they won't give pips. Eur/usd is off some previous support, and it is a large pin. But the way I trade, it is still in to much congestion for me. So being that it doesn't rate very high on my scale I will stay out. But for some this may be their ideal setup. Really comes down to style. My way is just my interpretation of what James has so graciously taught me.

Take care bundy

Mike
You've got a lot more patience than I have. lol

The trades you wait for are the ones I manage differently. The ones I manage very similar to you. Makes sense.

For example, I'll take the E/U pin now. BUT cover myself early, because of the way it's positioned on the daily chart.
Bundy's status today: "Waiting..."
  • #14,856
  • Oct 30, 2008 7:30pm Oct 30, 2008 7:30pm
Quoting fxprocessor
EUR has bearish PA against multiple currencies so looks like a reasonable chance it could hit test the lows against USD.

Confluence of trendline and PPZ.
PB break. I like this PB. May have some problems around the 1.2700ish level.

Sorry I can't post chart. Had to steal yours.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #14,857
  • Oct 30, 2008 7:39pm Oct 30, 2008 7:39pm
Quoting jarroo
PB break. I like this PB. May have some problems around the 1.2700ish level.

Sorry I can't post chart. Had to steal yours.
Inside Bars on the 8 hour and 4 hour broke earlier around the 1.2824-28 level.
Indicators show the past. Price Action "Indicates" the future.
  • #14,858
  • Edited 11:28pm Oct 30, 2008 11:15pm | Edited 11:28pm
Quoting fxprocessor
EUR has bearish PA against multiple currencies so looks like a reasonable chance it could hit test the lows against USD.

Confluence of trendline and PPZ.
Hey Nick don't forget the Fib confluence
Attached Image (click to enlarge)
Click to Enlarge Name: eu.gif Size: 12 KB
I believe . . .
  • #14,859
  • Oct 31, 2008 2:21am Oct 31, 2008 2:21am
Quoting jarroo
PB break. I like this PB. May have some problems around the 1.2700ish level.

Sorry I can't post chart. Had to steal yours.
How we looking on the Euro Daily PB?

PA RULES!
Indicators show the past. Price Action "Indicates" the future.
  • #14,860
  • Oct 31, 2008 2:23am Oct 31, 2008 2:23am
Quoting ghous
Hey Nick don't forget the Fib confluence
Hi Ghous missed that one :-)
169 traders viewing now