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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

  • #321
  • Sep 24, 2005 7:57pm Sep 24, 2005 7:57pm
Quoting RotcaX
Just wanted to briefly say thank you.
I am one, of what I assume are many, that read every post in this thread and are amazed by the valuable knowledge that is being shared.

From one of the, again many, that remain relatively silent:

Thank you!

RotcaX
thank you, i often wonder how many silent ones are out there. i look at the views on this thread and think it cant be all coming from 30 or 40 people.
  • #322
  • Edited 8:32pm Sep 24, 2005 8:24pm | Edited 8:32pm
Quote
Hi Anpar,

May I ask, what are those colored rectangles you have under your bars? If I can program them in MetaTrader, then I have an idea I'd like to try.

Also, but less importantly, what are the colored dots at the bottom of the bars?

Thanks Anpar!

Sorry diallist, that I didn't get back to you sooner, just got back in town. The bars that you are seeing are called "Heikin Ashi" which are modified candles or Averaged Candles"

There are only 5 simple rules for modified candle:

1. Positive candles mean buy; negative candles mean sell.
2. positive candle with upper shadow means strong buy; while negative candles with lower shadow means strong sell.
3. positive candle with lower shadow means "weak buy"; while negative candles with upper shadow means "weak sell"
4. candle shorter than previous day means "an indication of a change".
5. very short candles means "a change in trend"

At this time I only use these candles for exits points, as soon as I see a change in the colour of the candle, I typically exit the trade. The dots that you are seeing, is just the shadow of the candle extended beyond the length of the price bar.


Calulations:

The High and Low is the same as in a normal candle. The difference is in the Open and Close. The Modified Close is just a simple average of the day’s Open, High, Low and Close. The Modified Open is a little complicated. It is an average of previous Modified Open and previous Modified Close

drew




  • #323
  • Sep 24, 2005 9:27pm Sep 24, 2005 9:27pm
Hi Jim,

I also wanted to add my voice to the chorus of "thank you's". This thread has been very valuable and I've been going over it a number of times to make sure it's all sinking in.

I'd like to ask you what is likely a newbie question: do you rank any of these patterns by importance and/or by the way they are developing on a chart? what I mean is this week on Sep.20th I played the USDJPY using a 4hr chart after it showed a real nice beovb (to use your terminology). It was followed right afterwards by a relatively shorter pin going the other way. Now, does that negate this nice beovb right away? Seeing that the pin wasn't that long, I decided to stick it out... and got caught.

Any comments are greatly appreciated & I'm very much looking forward to the pf! Thanks again!

BlueMeasure
  • #324
  • Sep 24, 2005 10:30pm Sep 24, 2005 10:30pm
Quoting bluemeasure
Hi Jim,

I also wanted to add my voice to the chorus of "thank you's". This thread has been very valuable and I've been going over it a number of times to make sure it's all sinking in.

I'd like to ask you what is likely a newbie question: do you rank any of these patterns by importance and/or by the way they are developing on a chart? what I mean is this week on Sep.20th I played the USDJPY using a 4hr chart after it showed a real nice beovb (to use your terminology). It was followed right afterwards by a relatively shorter pin going the other way. Now, does that negate this nice beovb right away? Seeing that the pin wasn't that long, I decided to stick it out... and got caught.

Any comments are greatly appreciated & I'm very much looking forward to the pf! Thanks again!

BlueMeasure
hello blue, great questions and yes there is a wieght to these bars. thats been one of my worries from the start of this thread. a new trader will not know where they are in relation to not only the chart they are on but other time frames and the particular bar showing there. even the pin bar in the wrong place as accurate as it is can be costly. the bars should be used in conjunction with support and resistance areas and at swing highs and lows. i have said that its possible to trade better than 60/40 with just the bars and nothing else and i am serious. but it takes practice, a lot of practice. the practice is worth it because when you reach a point where you can do it with price only you then have a much better chance of being succesful with your system/s. i have found nothing as accurate as the pin bar when it shows up IN THE RIGHT PLACE. welcome to the forum. jim
  • #325
  • Edited 2:34am Sep 25, 2005 2:33am | Edited 2:34am
Quoting james16
the bars should be used in conjunction with support and resistance areas and at swing highs and lows.

the practice is worth it because when you reach a point where you can do it with price only you then have a much better chance of being succesful with your system/s. i have found nothing as accurate as the pin bar when it shows up IN THE RIGHT PLACE. welcome to the forum. jim
how very true.....as is the case with virtually all types of price action set ups!

narrow em down.....patiently wait for the signal, focus on the preferred timeframe/p.a trigger & execute.......repetition breeds confidence......

great thread, sensible & succinct information!

unfortunately, there are too few of these (quality) threads available.......folks are very lucky to have found one which preaches not only common sense but sound advice!

continued good hunting Jim
  • #326
  • Sep 25, 2005 2:39pm Sep 25, 2005 2:39pm
Quoting Buk
how very true.....as is the case with virtually all types of price action set ups!

narrow em down.....patiently wait for the signal, focus on the preferred timeframe/p.a trigger & execute.......repetition breeds confidence......

great thread, sensible & succinct information!

unfortunately, there are too few of these (quality) threads available.......folks are very lucky to have found one which preaches not only common sense but sound advice!

continued good hunting Jim
thank you buk and welcome to the forum. helping others has had the effect of helping me. wow, what a novel concept. jim
  • #327
  • Sep 25, 2005 5:23pm Sep 25, 2005 5:23pm
Quoting james16
well there are many money monagement strategies and if there is one area of my trading i still feel inadequate at its this. lets take an example. you are playing a pin bar and its on a 60 min chart. the move has run 20 pips in your favor. here are just a couple of possibilities. move your stop to breakeven and keep the whole position hoping for more. move the stop to be and sell half of your lots. move the stop to be and sell a third or 25 percent of your lots. you can do it anyway you want i just personally think its important to get your stop to BE asap. others do it differently. jim
Jim, could you please comment on trading the e-mini S&P 500. For example if you were trading off of a pin bar setup with a 3 point stop, how many ticks would you want before moving to break even?
Steven
  • #328
  • Sep 25, 2005 6:22pm Sep 25, 2005 6:22pm
Just would like to say this is an excellent thread..took me a while to read it all though but nevertheless. good job
  • #329
  • Sep 25, 2005 11:08pm Sep 25, 2005 11:08pm
Quoting scpeter
Jim, could you please comment on trading the e-mini S&P 500. For example if you were trading off of a pin bar setup with a 3 point stop, how many ticks would you want before moving to break even?
hello steven,i dont trade the mini sp very much anymore, its so much easier to trade the mini dow. for every point move in the sp you have 4 places to take profit as apposed to the mini dow where you have ten. when i trade the mini dow on a 5 min chart i usually take partial profit at ten ticks and move to be but there are many variables involved so thats certainly not set in stone. as the years have gone by i have moved more and more towards the 30 min charts. i must say it might not be much longer until i switch all my trading to forex, i am slowly getting a feel for it and i like it. jim
  • #330
  • Sep 26, 2005 10:54am Sep 26, 2005 10:54am
Quoting james16
hello steven,i dont trade the mini sp very much anymore, its so much easier to trade the mini dow. for every point move in the sp you have 4 places to take profit as apposed to the mini dow where you have ten. when i trade the mini dow on a 5 min chart i usually take partial profit at ten ticks and move to be but there are many variables involved so thats certainly not set in stone. as the years have gone by i have moved more and more towards the 30 min charts. i must say it might not be much longer until i switch all my trading to forex, i am slowly getting a feel for it and i like it. jim
Jim, thank you as usual for your advice. Myself, I have actually been day trading the e-mini's (S&P 500, Dow, Russell, Nasdaq). And I have changed more towards a position trader or longer term trader with forex. However if I see an "A" trade on a shorter time frame in forex, I am all over it. This new style has increased my profits and it has led me to be even more disciplined with forex. I hope you go back to trading the all the e-mini's again. Why, so I can pick your brain from time to time. Again, thanks for everything Jim. You are the best.
Steven
  • #331
  • Sep 26, 2005 2:48pm Sep 26, 2005 2:48pm
Hey Steven, what broker do you use to trade eminis, and would you recommend them? Thanks.

Billy
  • #332
  • Sep 26, 2005 3:56pm Sep 26, 2005 3:56pm
Quoting BillyC
Hey Steven, what broker do you use to trade eminis, and would you recommend them? Thanks.

Billy
Hi Billy, I trade using the Tradestation platform. R.J. O'Brien is the actual broker. If you search this forum, you will find a lot of information concerning brokers. Most of the information is not exactly very complimentary towards any of these brokers. I have decided that whether a broker is 100% honest or not, I am in this business for good. So I will trade no matter what. Having said that, I am happy with R.J. O'Brien at this point in time.

Billy, the volume and the activity in these e-minis seem to make it more difficult for brokers to cheat you. I could be completely naive by making that statement. But that is what I belive right now. Take care and all the best to you and your trading business.
Steven
  • #333
  • Sep 26, 2005 4:08pm Sep 26, 2005 4:08pm
Thanks Steven, I'll check it out.
Billy
  • #334
  • Sep 27, 2005 8:50am Sep 27, 2005 8:50am
Hi Jim,

I have just managed to get thorugh all the posts on this thread. Thank you for such a informative and insightful posts. Below I am posting the chart as it stood this morning (my time). Would appreciate it if you could provide your opinion on it. As we can see, the price went in the opposite direction very hard. I would have thought that it was an 'A' set up.

Another question I have is regarding the different time feeds. The data feed on my platform is GMT +2 at the moment. So its daily bar might occur at a different timeframe to someone who has a feed at say GMT-1. How does this affect price pattern?

looking forward to your comments.
Regards,
GC
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  • #335
  • Sep 27, 2005 10:48am Sep 27, 2005 10:48am
Quote
I would have thought that it was an 'A' set up.

Kermut,

that was not a perfect DBLHC. There was a 5 pip difference in the lows, which I would think, is too much.

My data feed is also GMT +2. Price action/pattern is not affected.
Keeping it Simple
  • #336
  • Sep 27, 2005 11:27am Sep 27, 2005 11:27am
Quoting habeeb
Kermut,

that was not a perfect DBLHC. There was a 5 pip difference in the lows, which I would think, is too much.

My data feed is also GMT +2. Price action/pattern is not affected.
habeeb is correct, its not even close. also i hope anyone new to this is demoing until they learn it.
  • #337
  • Sep 27, 2005 4:04pm Sep 27, 2005 4:04pm
I'd have pegged that as "Two matching Highs - Trend Break Out" - with trend BO 4 bars later. Is that how you'd possibly view it Jim?
  • #338
  • Sep 27, 2005 5:25pm Sep 27, 2005 5:25pm
Quoting habeeb
Kermut,

that was not a perfect DBLHC. There was a 5 pip difference in the lows, which I would think, is too much.

My data feed is also GMT +2. Price action/pattern is not affected.
Thanks for your feedback Habeeb and James. I was talking about DBHLC, so a double high, and from memory, there was a 1 pip difference between the highs.

Certainly demo trading atm.

Regards,
GC
  • #339
  • Sep 27, 2005 5:31pm Sep 27, 2005 5:31pm
Quoting Beachie41
I'd have pegged that as "Two matching Highs - Trend Break Out" - with trend BO 4 bars later. Is that how you'd possibly view it Jim?
yes thats a way of looking at it.
  • #340
  • Sep 27, 2005 5:33pm Sep 27, 2005 5:33pm
Quoting kermut
Thanks for your feedback Habeeb and James. I was talking about DBHLC, so a double high, and from memory, there was a 1 pip difference between the highs.

Certainly demo trading atm.

Regards,
GC
thank you kermut, as frustrating as it may seem at first its worth it. its not the holy grail or anything just a way to improve your trading over the long haul. jim
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