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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

Quoting johnnyonspot
This last weekly bar on USDCAD has a higher high and lower low than the last bar, but does it qualify as a BUOB? I would like to see the close much closer to the high in order to play it as such. Thoughts/advice?
Hey Johnny

Yes technically speaking on my chart it is a buob(higher high, and lower low, with a close near the upper portion). I also always like a very high close.

But look how much the market is consolidating and sideways. These bars are real tough to play. This indicates a lot of choppiness in the market making bars like this better to pass on. Remember location is everything.

Mike
Anyone else noticed a similarity between James' voice and that of Dr. Phil? Just watched the 8-20-08 webinar in guest area, wondering if Dr. Phil moonlights as a trader... or vice versa.
Quoting mbqb11

Yes technically speaking on my chart it is a buob(higher high, and lower low, with a close near the upper portion). I also always like a very high close.

Mike
hey mike, what's the lowest time frame you would trade a buob/beob? or do you just like to see space/confluence? i think this is the bar formation i am least comfortable trading. i like the ib's & pin's the most. thx.
Quoting dkmb92
hey mike, what's the lowest time frame you would trade a buob/beob? or do you just like to see space/confluence? i think this is the bar formation i am least comfortable trading. i like the ib's & pin's the most. thx.
I have traded this pattern down to the 5min timeframe. It is all about learning how price(all the components) works, combining the knowledge of support/resistance and price action analysis. The bar is simply the trigger point and the bunching of information in a reoccurring pattern that we can easily recognize. The concept of space is to help those learn one such way to trade price action.

Space basically means that in the immediate area there is less resistance/support. This will help your trade move easier through the upcoming areas. By locating say a pin at a swing high with a lot of space, we are using that space to help make our trade move easier lower. Now by itself that doesn't mean every bar in space will work. Once you can combine a good area(say with confluence), and space, you are now upping those odds for the trade to work.

I also take trades that are not in any space. This then comes back to the location of the bar and why a pattern such as a BUOB might be the tip off for the upcoming move.

The most important things to focus on in the beginning are identifying clear price action bars, and only trading them at areas that make the best possible trades. The number one thing I see people doing wrong is simply trading the patterns without thought to why the pattern is occuring. So a lot of people will open their chart see a price bar in the shape of the pin, and assume it is complete to trade. When in reality we need to look at everything around that price bar to understand if that price bar is being validated by what is around it.

Don't get me wrong. Part of the learning curve is always going to be the same. First you learn to read the price bars. So you open your chart and see a BUOB and assume price will go higher. Then you begin to learn about location. Then you add in support/resistance, other confluence, and then the pieces will begin to fall into place.

Sorry if I went off on a tangent

Mike
I posted this a while ago, might help you dkmb.

What I did forget to add was the importance of PPZ. Like mike says above, it is imperative that the bars form around PPZ or it's in the middle of nowhere (lost in space) and has much less probability of playing out.
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Quoting mbqb11

Sorry if I went off on a tangent

Mike
that was great, thanku for taking the time to compose that. i think another thing that jim mentioned in the new guest video on the pf is knowing when to take profit & know where your trade is going. if you decide to enter a trade that doesnt have much space to go until it gets to the next ppz or s/r, then prepare to exit quickly. or when you get a certain # of pips initially (30-50?) close half for a profit, move stop to be, & let the rest ride...
Quoting NuckingFuts
I posted this a while ago, might help you dkmb.

What I did forget to add was the importance of PPZ. Like mike says above, it is imperative that the bars form around PPZ or it's in the middle of nowhere (lost in space) and has much less probability of playing out.
cool dude, thx.
Hi

I am only at pg 145 of this thread, still has alot to catch up. I saw this pinbar in the daily on the GU, I am not sure is this a good pinbar and is this considered an A class trade or it is a bad trade.
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Quoting Ray_1
Hi

I am only at pg 145 of this thread, still has alot to catch up. I saw this pinbar in the daily on the GU, I am not sure is this a good pinbar and is this considered an A class trade or it is a bad trade.
Hey Ray

That is a pinbar, but it is at a swing low. Bearish pins we are looking for at swing high points

Mike
Quoting Ray_1
Hi

I am only at pg 145 of this thread, still has alot to catch up. I saw this pinbar in the daily on the GU, I am not sure is this a good pinbar and is this considered an A class trade or it is a bad trade.
hi Ray...

for bearish example, we are looking for :

1- PPZ (Price Pivot Zone)@Location of flipping Support/Resistance
2- Space
3- Swing High
4- [email protected] together of (fibonacci retracement, MA's, PPZ etc)
5- Price Action (PinBar, BEOB, DBHLC, IB etc)

this are some checklist to watch before taking a trade...hope this help u.
Quoting CandlePower
hi Ray...

for bearish example, we are looking for :

1- PPZ (Price Pivot Zone)@Location of flipping Support/Resistance
2- Space
3- Swing High
4- [email protected] together of (fibonacci retracement, MA's, PPZ etc)
5- Price Action (PinBar, BEOB, DBHLC, IB etc)

this are some checklist to watch before taking a trade...hope this help u.
For a pin bar you can add length of the nose and the size of the bar in relation to the preceeding bars(i.e. how much weight is it carrying?)
Bought the break on the 4 hr and now looks like stop will be hit were did i go wrong?
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sorry wrong chart before
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Quoting mbqb11
I have traded this pattern down to the 5min timeframe. It is all about learning how price(all the components) works, combining the knowledge of support/resistance and price action analysis. The bar is simply the trigger point and the bunching of information in a reoccurring pattern that we can easily recognize. The concept of space is to help those learn one such way to trade price action.

Space basically means that in the immediate area there is less resistance/support. This will help your trade move easier through the upcoming areas....
Just when I thought I've read all the best Mike posts on this thread, this one comes along.

Great stuff as always Mike.

Jim
Indicators show the past. Price Action "Indicates" the future.
Quoting NoBread
sorry wrong chart before
hi,

Im not yet as good as other guys, but I would like to express my 2 cents on ur trade.

1. I think it's a good pb at support and swing low. but on my chart, it's not broken yet (forex.com)

2. there are 2 minor ppz right above, so I think it's quite hard to play the break.

3. we cant expect all trade just go in our favor right after we pulling the trigger retrace is normal to most trades (specially to me)

Jarroo? Mike? and all other guys please correct me thx.
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Quoting Piproo
hi,

Im not yet as good as other guys, but I would like to express my 2 cents on ur trade.

1. I think it's a good pb at support and swing low. but on my chart, it's not broken yet (forex.com)

2. there are 2 minor ppz right above, so I think it's quite hard to play the break.

3. we cant expect all trade just go in our favor right after we pulling the trigger retrace is normal to most trades (specially to me)

Jarroo? Mike? and all other guys please correct me thx.
Still in a lot of traffic, the size is too small and the swing low can be a lot lower.

I do like the confluences of 50% retrace, RN, and towards the gap.

Possible trade with a very small position.
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Indicators show the past. Price Action "Indicates" the future.
  •  krue
  • | Joined Mar 2008 | Status: finger scares cat, power of illusio | 410 Posts
Can not agree more, Mike's comment is as always concisive and get to the point very precisely.

Mike, simply a quick question, did you ever make a rough estimation approximately how much improvement of winning rate could be achieved comparing trading, say, a Pin Bar straight, vs by judging the quality of the setup in light of the surrounding sentiment? I ask this for the reason I didn't see too much difference between a PA setup vs whatever price action the market gave to me around PPZ. I have no offence here, simply what I obversed so far. talking about judgement, it seems very subjective, and not very reliable, if I am not wrong, therefore, I doublt if there really is good potential to pursue trading by differentiating PA quality through one's judgement. thank you



Quoting jarroo
Just when I thought I've read all the best Mike posts on this thread, this one comes along.

Great stuff as always Mike.

Jim
i'm ready to be "semi-active" in posting in FF, as i have been reading FF almost daily now. I believe I have been on "watch mode" for 2-3 years or so, albeit very inactively.

as i'm testing if my membership has been approved, i decided to place my 1st post here, in, I believe, my most esteemed thread.

my Congratulations, God Bless, & More power 1st goes to Jim J16, & next to "his gang" (to be fair, i'll mention the names when i'm assured to have the complete list).

Thanks...
Sir Jim,

2nd post.

in relation to the gap you've metioned, i have a Q. does it mean you are not in a trade now/during the time u posted this?

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......Possible trade with a very small position
Quoting supremeChaos
Sir Jim,

2nd post.

in relation to the gap you've metioned, i have a Q. does it mean you are not in a trade now/during the time u posted this?
The potenial Pin Bar that Piproo was talking about had not closed as a Pin Bar yet on my charts. It may have closed as a Pin Bar on other feeds.

I am not in this trade. If I was to enter this trade it would be on break on the Pin Bar if it closes as a Pin Bar.
Indicators show the past. Price Action "Indicates" the future.
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