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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

  • #15,041
  • Nov 5, 2008 5:59pm Nov 5, 2008 5:59pm
It's a BEOB. Is that what you see?


Quoting james16
well i started to say a lot and then noticed something about your set up. before i say does anyone else see what i see?

jim
  • #15,042
  • Edited 6:15pm Nov 5, 2008 6:01pm | Edited 6:15pm
Quoting fxprocessor
It's a BEOB. Is that what you see?
double bar low higher close on my feed. Interesting since I thought all feeds would be the same on the hourly.
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  • #15,043
  • Nov 5, 2008 7:10pm Nov 5, 2008 7:10pm
Quoting james16
its not a pin bar wiz. see why?

jim
I was thinking of it in context with the preceding bar , but would have called it a pin still if someone asked. lol

Not sure if I'd have entered it or not.( Hind sight.) Pretty sure I wouldn't. I'm too picky. The close is getting towards the centre and I don't like how it's sitting on the preceding bar's close. (which comprises an inside bar formation on the 30 min)

I do know that I would have made money on it still if I did.
Bundy's status today: "Waiting..."
  • #15,044
  • Nov 5, 2008 7:13pm Nov 5, 2008 7:13pm
Quoting fxprocessor
It's a BEOB. Is that what you see?
You looking at the same chart?

Close would have to be below the real body of the candle.
Bundy's status today: "Waiting..."
  • #15,045
  • Nov 5, 2008 8:41pm Nov 5, 2008 8:41pm
i just want to make sure everyone understands that since the low of this bar exceeded the prior bars low it cannot be a pin bar. a lot of people make this mistake even when they absolutly know what a pin bar is because visually this just jumps out at you as a pin bar. it has a long nose, it has its open and close within the prior bar but as in this case the low of the bar is not contained. i also have made this mistake and to this day i still can if i dont look closely at EVERY bar im thinking is a pin at first glance.

jim

Quoting james16
its not a pin bar wiz. see why?

jim
  • #15,046
  • Nov 5, 2008 8:50pm Nov 5, 2008 8:50pm
Quoting james16
its not a pin bar wiz. see why?

jim
LOL I can't believe it. Of course it's not. The low is below the low of the previous candle. I have no idea why I didn't see that before. You've just opened my eyes

Been trading these for what seems like an age now and fell for the oldest trick in the book. Not looking properly.

I must be getting old. lol

Having said that, I was particularly concerned not with the candle itself but WHERE it appears, which is after all, one of the most important parts of the strategy I believe. The level is what turns the market and the pin is just the market tipping its hand as to what way it's going to go. With that in mind I wondered whether my level was good enough to warrant selling off or whether it looked like it was in the middle of things too much.

What Bundy said about not taking a loss on it, also made me think. I should have seen the support forming around 50 and heeded the warning signs to prevent it become a loss. All I can say in my defence is that it's been my personal finding that if you move your stop to breakeven too quick you will fail most times to capture the real move. One of the most valuable things I learnt from this forum after the strategy itself was from Seeking when he wrote of the "retracement bus". It will come back and get you everytime. At least with BE you are safe but surely the aim is to maximise your gains where you can...

Anyway, seen a few things tonight for which I am very glad of.

Thanks guys and any comments on the level much appreciated.
  • #15,047
  • Nov 5, 2008 9:07pm Nov 5, 2008 9:07pm
its always nice when your dealing with someone like wiz that sees a simple mistake and takes it as a learning lesson. i still learn them all the time.

what i would add to this is the following.

1. this IS one hour and must be treated as such.
2. you were given two chances to take profit or get your stop to breakeven.
3. when you saw that second attempt fail at the 11650 area this is a clear sign that its time to get your stop to BE or take some profit.

this is just another one of those examples where several scenarios could have played out for different traders. there were two chances at a profit. there were two chances at breakeven and there was the loss scenario.

these are usually always the options though arent they? time, practice, account size and experience determines which path is followed most often.





Quoting the_wizard
LOL I can't believe it. Of course it's not. The low is below the low of the previous candle. I have no idea why I didn't see that before. You've just opened my eyes

Been trading these for what seems like an age now and fell for the oldest trick in the book. Not looking properly.

I must be getting old. lol

Having said that, I was particularly concerned not with the candle itself but WHERE it appears, which is after all, one of the most important parts of the strategy I believe. The level is what turns the market and the pin is just the market tipping its hand as to what way it's going to go. With that in mind I wondered whether my level was good enough to warrant selling off...
  • #15,048
  • Nov 5, 2008 9:17pm Nov 5, 2008 9:17pm
Quoting the_wizard
Having said that, I was particularly concerned not with the candle itself but WHERE it appears, which is after all, one of the most important parts of the strategy I believe.
Definitely

Couldn't remember whether the previous low being taken out was bad or not.
I always look at the underlying time frames to judge my bar set-ups anyway. Helps my decision on how to trade them for that instance.
Bundy's status today: "Waiting..."
  • #15,049
  • Edited 2:07am Nov 6, 2008 1:46am | Edited 2:07am
Quoting bundyraider
You looking at the same chart?

Close would have to be below the real body of the candle.


I've seen this discussion many times in the PF about what is a BEOB and what isn't.

James only says this with regards to the close of the bar

"Preferably close will be in bottom
third to quarter of bar. lower the better."

Doesn't say close has to be below real body of candle, that would be a bearish engulfing candle a la Nison :-)

Obviously I don't go looking for BEOB looking like that but it isn't a pin and fits the criteria James listed above.

cheers
  • #15,050
  • Nov 6, 2008 9:44am Nov 6, 2008 9:44am
Attached Image


Can this be accepted DBHLC ? It was just bouncing down from the trendline
"""" --- -- - << ..:: ALM ::.. >> - -- --- """"
  • #15,051
  • Nov 6, 2008 9:54am Nov 6, 2008 9:54am
Quoting Almfx
Attachment

Can this be accepted DBHLC ? It was just bouncing down from the trendline
Hey Alm,

The close must close Lower then the previous bars LOW

Best,
Mike
  • #15,052
  • Nov 6, 2008 10:25am Nov 6, 2008 10:25am
After the initial push past previous lows. took the retrace pin.
stop now @ be.
price has now broken the next low. like to see it now used as resistance.
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  • #15,053
  • Nov 6, 2008 11:31am Nov 6, 2008 11:31am
Hi Guys

Was just wondering if anyone avoids trading on interest rate announcement days? I've noticed in the past that you get a lot of spikes on these days and they have caught me out in the past! Anyone got any specific strategies for these days? I'm based in UK and avoided trading pound today.
PA is where its at!!
  • #15,054
  • Nov 6, 2008 1:55pm Nov 6, 2008 1:55pm
Hi all,

with regard to BUOB's does it matter if it hasn't come off support, but rather breaks resistance? ie there is no support/fib on the low of the bar but there is on the high of the bar. If the next bar then opens above the support is this a signal to go long?

thanks Simon
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  • #15,055
  • Nov 6, 2008 2:01pm Nov 6, 2008 2:01pm
Quoting simoncs
Hi all,

with regard to BUOB's does it matter if it hasn't come off support, but rather breaks resistance? ie there is no support/fib on the low of the bar but there is on the high of the bar. If the next bar then opens above the support is this a signal to go long?

thanks Simon
Hey Simon,

I really gotta jump in and stop you here. I see you are trading on the 15min timeframe, and while I know it is tempting, it will serve you far far greater to start out on the daily/weekly to learn what James teaches. The temptation is hard to resist but as james says if you can't prove to yourself to be profitable on the weekly/daily then you shouldn't be going any lower.

As for BUOBS, generally we want them at swing low points and then you can trade a break of the high of the BUOB. In this case your BUOB was in a sideways traffic market, not a complete swing low, there are bar lows above it keeping price down. This is what makes the lower timeframes so tricky. The noise.

Hope that helps

Mike
  • #15,056
  • Nov 6, 2008 2:06pm Nov 6, 2008 2:06pm
price is in consolidation mode. The trend is down, but we should be waiting for the reaction here(most likely price is in wait mode for NFP).
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  • #15,057
  • Nov 6, 2008 2:07pm Nov 6, 2008 2:07pm
Quoting simoncs
Hi all,

with regard to BUOB's does it matter if it hasn't come off support, but rather breaks resistance? ie there is no support/fib on the low of the bar but there is on the high of the bar. If the next bar then opens above the support is this a signal to go long?

thanks Simon
If we accept that all these patterns can be seen as showing the possibility of trend reversals/continuations you need to understand that the lower the Time Frame (TF) the less reliable they are.

In your example I have my own way of viewing OBs. If it is a Bullish one I prefer to see it straddling a Support area after price has retraced down during an Uptrend. If it's a Bearish one I prefer to see it straddling a Resistance area after price has retraced up during a Downtrend.

While they can be viable at other swing highs/lows I would tend to sit it out until the next bar has closed to improve the directional bias that the OB is indicating. Certainly I would be very cautious on trading any of these patterns on a 15-minute chart without a strong supporting case from a higher TF. If a 4-hr chart is showing Price Action patterns at a Support area then it may be valid to drop down to a 15-minute chart to refine entries, but you can sometimes end up with stops which are too tight for a pair's range.

Hope this helps.
  • #15,058
  • Nov 6, 2008 2:08pm Nov 6, 2008 2:08pm
I'm gonna have to learn to type faster
  • #15,059
  • Edited 2:21pm Nov 6, 2008 2:12pm | Edited 2:21pm
Quoting simoncs
Hi all,

with regard to BUOB's does it matter if it hasn't come off support, but rather breaks resistance? ie there is no support/fib on the low of the bar but there is on the high of the bar. If the next bar then opens above the support is this a signal to go long?

thanks Simon

To bounce off support is allways better. The more confluence the better.
If you look to the left on your chart to the previous low you will see that the top of the buob is hitting the low. support may now be turning into resistance. ie look for shorts.
daily trend is short.
Be very carefull on the lower tf's especially against the trend.


Listen to Mike!!!!!!!!!!!!!
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  • #15,060
  • Nov 6, 2008 2:19pm Nov 6, 2008 2:19pm
Quoting mbqb11
price is in consolidation mode. The trend is down, but we should be waiting for the reaction here(most likely price is in wait mode for NFP).

Im gonna have to type faster as well.
Waiting for this one too Mike
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