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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

  • #28,001
  • Edited 8:28am Apr 24, 2009 7:40am | Edited 8:28am
Quoting jarroo
Big difference with the Cad and Eur/Cad my friend when it come to location (swing High) and other confluences (fib retracment.) I'll let the charts speak for themselves.
Great Post Jarroo! This is going into my notes. Just a quick question for anyone out there. When you say the USD/CAD was at a swing high, are you refering to the swing high to the left of the PB or are you saying that the PB was the swing High? This is something I have been trying to clarify for myself the past few weeks.
Thanks for the help!

jim
"Luck favors the prepared mind"
  • #28,002
  • Apr 24, 2009 7:50am Apr 24, 2009 7:50am
Quoting raczekfx
It might fall like a rock....




It's all in your mind, it's all in your mind....lol
(there is a good reason for having Haliaeetus albicilla in my avatar)

Why do you think 97% of people lose all their money, because they don't know what they doing?
NO, it's because they have weak brains (psyche)....

Meditate, meditate, meditate.... I know for the guy your age is the last thing you want to hear....

I also know that majority of folks reading this won't believe me either. Fortunately,...
These words are gold. Trust me.
Patience + Humility + Study = Success
  • #28,003
  • Apr 24, 2009 7:54am Apr 24, 2009 7:54am
Quoting raczekfx
Read the second book from my profile page at least once a month for the next 3 months (just like your demo acc). That'd be the first step...
I've just ordered a copy from Amazon - £1.15! I've not heard of Guy Finlay before, but it sounds really interesting... Thanks Rac
When in doubt, sit on your hands...
  • #28,004
  • Apr 24, 2009 8:06am Apr 24, 2009 8:06am
I believe you are correct, forexngo. BE is when you move your stop loss to break even, which results in a risk-free trade. BE+1 is when your stop loss is moved 1 pip above/below break even, which results in a risk-free trade with at least one pip of profit. Some people use this method because they trade large position sizes where 1 pip is worth a lot of money. Other people use it so that their trade can be recorded as a winner instead of a break even.

Quoting forexngo
I am sorry to ask questions like this or might be i have missed the important thing...but acatually i don't understand what is BE+1 means..as what i thought it should be i should always move stoploss to BE + 1pip above/below?

Thank you for your instruction
forexngo
  • #28,005
  • Apr 24, 2009 8:09am Apr 24, 2009 8:09am
While we're talking about consciousness, this here is the definitive book on the subject, you could even say the entire Buddhist canon is based on this text, Buddha thought out the Abhidhamma after gaining enlightenment, but only taught it to the gods...

The Matrix of Illusion (10 minute video on the nature of consciousness)
Money & Pain Respect the market, protect your capital, be patient
  • #28,006
  • Apr 24, 2009 8:10am Apr 24, 2009 8:10am
Quoting gododdin
I've just ordered a copy from Amazon - £1.15! I've not heard of Guy Finlay before, but it sounds really interesting... Thanks Rac
I'll second that. just bought a copy too. Thanks Rac
"Luck favors the prepared mind"
  • #28,007
  • Apr 24, 2009 8:24am Apr 24, 2009 8:24am
Quoting toyboy tramp
While we're talking about consciousness, this here is the definitive book on the subject, you could even say the entire Buddhist canon is based on this text, Buddha thought out the Abhidhamma after gaining enlightenment, but only taught it to the gods...

The Matrix of Illusion (10 minute video on the nature of consciousness)...
Toy,

that video is pretty interesting
"Luck favors the prepared mind"
  • #28,008
  • Apr 24, 2009 8:30am Apr 24, 2009 8:30am
For the most part I manage my trades the J16 style of taking half off at 30ish pips and let the other half run or BE. It saves on the stress of the trade and keeps good mental health

Quoting hipcio
Yes, keep going Krue!
I have to explain why I do feel unhappy about 99pps.

The problem is that I had very well established TP line, and if I did not get scared I would get my 130pps - what I planned, because the price went exactly where it shuld. I am too greed or too ...You know,
thats why I do not feel good with that trade.

I am really thankful for the ammount of pips and profit it's self.

Peter
  • #28,009
  • Apr 24, 2009 8:32am Apr 24, 2009 8:32am
Guy Finley is great. He was first recommended to me by James16 over on the PF.

I can also second the value of meditating. A few months of doing this showed me that if left unchecked my emotions would just go haywire. Why did the trade take off without me, why did I lose, should I have closed there, should i have taken it, should I have taken partial profit, endless watching of the charts.....this can destroy your mind.

And I have seen at first hand how traders with year long profitable records explode when given serious money to trade. I believe that most systems work and the reason most people fail is because trading is 80% psychological.

Have a great weekend everyone.
  • #28,010
  • Apr 24, 2009 9:03am Apr 24, 2009 9:03am
Thought I'd explain how I played the USD/CAD trade.

We got a nice pinbar Tuesday, but was not triggered. I actually cancelled my orders late morning because I didn't like how price was acting after a pinbar. But Wednesday's close was back under 1.24 after again testing 1.25. This gave me more confidence that IF we could break the lows of Tues/Wed, we could make a nice run down, in line with what I mentioned last week (I'm looking for another test of 1.18).

So I entered at 1.2310. Stop of 200pip at 1.2510 (above both pinbars and the PPZ). Order was placed in thirds.
1st TP - 0.5R:R - 1.2210 Filled. Stop on 1/3 to B/E and stop on last 1/3 to 1.2410 (this makes the trade overall a B/E now...)
2nd TP - 1R:R - 1.2110 Filled just now. Stop on last 1/3 moved to B/E. This means I've now locked in about 0.5R:R
3rd TP is set for 2R - 1.1910

I will not move these orders, so I'll either exit the last 1/3 at 1.1910 (2R) or at 1.2310 (B/E). When all three TPs are hit, the trade nets 2.33% gain on the account (risk of 2%)

This is the strategy that has worked quite well for me in my exit strategy testing. I've placed all my April trades using this as well, in anticipation of using it for live trades beginning in May. It allows me to get a B/E trade reasonably quickly while also allowing me to catch a nice move. As you see from the chart, it often happens that my TP also falls on/near a PPZ.
I played the EUR/USD similarily and it has also reached the first 2 TPs.

Down the road, I may use a different strategy for 4hr timeframe trades, but this one seems to work fine for me on daily/weekly. Just goes to show you that you can have any strategy as long as you've tested it properly and you are comfortable with it.

Josh
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  • #28,011
  • Apr 24, 2009 9:10am Apr 24, 2009 9:10am
  •  krue
  • | Joined Mar 2008 | Status: finger scares cat, power of illusio | 410 Posts
any comment on this pin(E/G H8)? probably entry at the break of the bearish pin low? had too much unsuccessful trades in the week, seems losing confidence in judging setup quality. will be very grateful if any comments. thank you
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  • #28,012
  • Apr 24, 2009 9:21am Apr 24, 2009 9:21am
Quoting jpa0827
Great Post Jarroo! This is going into my notes. Just a quick question for anyone out there. When you say the USD/CAD was at a swing high, are you refering to the swing high to the left of the PB or are you saying that the PB was the swing High? This is something I have been trying to clarify for myself the past few weeks.
Thanks for the help!

jim
Hey Jim

The pinbar is part of the swing high. As opposed to the eur/cad which was at a swing low. You will have both major and minor swing points. On usd/cad I drew a chart and we can see these swing points. The more space a swing point creates away from price the more major and obvious it becomes(think pinbar at swing high open space). The usd/cad was a much more clean trade. It was on the pullback to a very large trendline, off a major round number PPZ.

Also note eur/cad how low down on a swing low it is. This is the number 1 trouble sign that anyone who has been around for awhile will immediately dismiss this bar. Yes pinbars can be traded as continuation but I say it over and over, nto until you can trade them the standard way. Then also note the next day didn't break the pinbar, but formed a bullish bar. I know alter you are frustrated, and everyone gets frustrated when what they are doing isn't working. But you even said you know this isn't an A+ trade but it looked ok. If I gave you 3 trades to make a month, would this be one of them? What people must realize when trying to learn to trade PA, is that the bar itself is only a very small portion of what is happening. Location is much more important. The actual pin on eur/cad was nicer looking as a pin, but the location was very poor. Part of what automatically creates trouble for this pinbar is the fact of it being at a swing low creates no space, which means support is somehwere lurking VERY close. These concepts really do interwine with themselves. If you are having trouble defining swing points and space, please check my pinbar video out that is up. Most people see a shape bar be it a pin, beob, buob, and then just assume it is worth trading. If you absolutely were going to take then eur/cad the next day I think most would have canceled there order when the low wasn't breached and a bullish bar showed up. As opposed to the usd/cad which gave an inside bar(in the shape of a pin). I was personally short from the 4hr on usd/cad and held through the break).

Have a great weekend
Mike
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  • #28,013
  • Apr 24, 2009 9:33am Apr 24, 2009 9:33am
Quoting Jduester
Thought I'd explain how I played the USD/CAD trade. ...
Hi Josh

I'm glad you re-caught the USDCAD pin to the first PPZ like myself. I think any PA bar is only valid for 1-2 successive bars and then the momentum is gone and the order needs to be cancelled ... need to backtest that though.

Momentum seemed to die over the easter break. I guess any PA setups immediately before a holiday would fizzle as people get too relaxed. Not sure how destructive to momentum the weekend is though.

I'll be checking out vHands next week. Looking forward to following your testing.

Adam
WARNING: Don't follow me as I'm just learning
  • #28,014
  • Apr 24, 2009 9:34am Apr 24, 2009 9:34am
Quoting alter
Difference is in the result. If both are positive , both would be nice trades to take. As EURCAD was not, I see that we can always find reasons why the setup was not so good to take. After the fact of course.
Thank you for your opinion.
I disagree, a few of us pointed out the problems of the eur-cad daily pin. It was heading into 365 ema and in no mans land with no obvious fib confluence. You need to look at location, its the most important factor imho.
Economists have forecast 9 out of the last 5 recessions
  • #28,015
  • Apr 24, 2009 9:39am Apr 24, 2009 9:39am
Excellent Exit Strategy and explanation Jduester, and of course, very nice trade. I only have one question:

Why did you choose 1.1910 as your final TP (TP3)?

I´m just curious because in your chart you have well defined 1.2000 as a strong PPZ.

Thanks in advance

Quoting Jduester
Thought I'd explain how I played the USD/CAD trade....
  • #28,016
  • Apr 24, 2009 9:56am Apr 24, 2009 9:56am
Quoting malvarezdel
Excellent Exit Strategy and explanation Jduester, and of course, very nice trade. I only have one question:

Why did you choose 1.1910 as your final TP (TP3)?

I´m just curious because in your chart you have well defined 1.2000 as a strong PPZ.

Thanks in advance
Yeah, that's part of this strategy that I"m not fully happy with.... Currently, I take the final 1/3 of the trade off at 2R:R... so if risk is 200 pip, final profit target is 400pips... 1.2310-0.4000=1.1910... I'll be watching it at 1.20 and will see if I need to break my rule... which I haven't done yet... which I will not do this time either..., BUT I will record the action if it doesn't eventually come down to hit my 1.1910...

I did forget to say that I will take a trade long (and so close the remaining short) at 1.20 IF PA and space allows...

I'm sure you've noticed that I'm very disciplined on my trading... maybe even to a fault. I record everything in a spreadsheet for further analysis... I have written rules that I strictly adhere to. In some cases, this leaves profit on the table. But it works for me and I'm comfortable doing it that way.

Josh
  • #28,017
  • Apr 24, 2009 10:08am Apr 24, 2009 10:08am
Quoting MPP
the difference between us and them - freedom and early retirement are on our minds freedom from the day to day workings of life in the employment game and knowlegde that if we get this right we can retire early and play the game called forex forever (at least until our minds reach there pivot point and go flip side on us)

many people i talk to can't be bothered with the study - they want life quick and easy - yet the bilk of there life is taken up by work, strange way to think if you ask me
It's not entirely because of their ignorance MPP. There are more ppl out there who know the potentials of trading and yet don't trade than you believe.

Don't forget that trading no matter how conservative you can be is more riskier than say open a savings/deposit account in a bank.

Attracted by the higher returns each of us put our money through a certain degree of risk which not all of us are ready to except even when it comes with a reward of higher returns...this is exactly like the difference between a conservative and aggressive trader, the conservative does'nt feel like going for trades Mark does simply because they don't get lured by the number of pips he makes. Similarly a super conservative person may decide not to trade at all...

understanding and embracing the risk we put our money through in and each and every trade that we take is paramount to trading successfully.

Cheers,
Ghous.
I believe . . .
  • #28,018
  • Apr 24, 2009 10:08am Apr 24, 2009 10:08am
Thanks Josh.

It´s clear now, it´s all about 2R:R.

I know you´re very disciplined on your trading and I´m trying to learn from that.

Thanks again.


Quoting Jduester
Yeah, that's part of this strategy that I"m not fully happy with.... Currently, I take the final 1/3 of the trade off at 2R:R... so if risk is 200 pip, final profit target is 400pips... 1.2310-0.4000=1.1910... I'll be watching it at 1.20 and will see if I need to break my rule... which I haven't done yet... which I will not do this time either..., BUT I will record the action if it doesn't eventually come down to hit my 1.1910...

I did forget to say that I will take a trade long (and so close the remaining short) at 1.20 IF PA and space allows...

I'm...
  • #28,019
  • Apr 24, 2009 10:12am Apr 24, 2009 10:12am
Mike even if EURCAD PIN was not at the swing high it was at strong PPZ level. It definitely was not blind entry in the middle of nowhere (as I see it).
Meanwhile , USDCAD was heading into minor PPZ at 1.2300, so no go for me.
  • #28,020
  • Apr 24, 2009 10:23am Apr 24, 2009 10:23am
Quoting alter
Mike even if EURCAD PIN was not at the swing high it was at strong PPZ level. It definitely was not blind entry in the middle of nowhere (as I see it).
Meanwhile , USDCAD was heading into minor PPZ at 1.2300, so no go for me.
Hey Alter

I can certainly understand the no trade on usd/cad, I only took it on the 4hr and the daily just happened to do what it did.

As for eur/cad, even though it was a strong PPZ we sould wait for the ones off strong PPZ that create space and at a swing high. This is how James teaches us and it is the most conservative. I want to help you work through this so I have another question if you don't mind me asking(we can talk via PM or skype chat too). Did you enter on the close of the pin? Did you have a pending order below and what was your though with the next day being a big bullish bar.

I hope you know I only want to help and many others will benefit from you being willing to ask questions openly

Thanks

Mike
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