james16 Chart Thread

Hi all,
I already posted this setup in Silent Service Method thread, and the opinions were quite positive. I think there is room to move downwards: we have a 2-day pin bar at a triple top, at a very important PPZ (1.2900) and a divergence on MACD (or not?). Probably not an A+ setup, but almost B. Do you agree?

We are approaching a very serious and important week: did you notice the Forex Factory Calendar on the 7th of May (Thursday)??? And, in addition, Friday is Non Farm Payroll day.. Wow, an explosive week!

29 Trading Rules and 6 Guidelines

Trading Rules

1. Never over-trade.
2. Never risk more than 10% of your trading capital in a single trade.
3. Never trade without protective stops.
4. Never cancel a stop-loss after placing a trade.
5. Never average a loss.
6. Never let a profit run into a loss.
7. Never buy or sell just because the price is low or high.
8. Never try to guess tops or bottoms.
9. Never limit a profiting trade, instead move your stops to guarantee a profit.
10. Never get out of the market because you have lost patience or get in because you are anxious from waiting.
11. Never hedge a losing position.
12. Never change your position or close a trade without a good reason.
13. Never follow a blind man’s advice.
14. Never enter a trade if you are unsure of the trend. Never buck a trend.
15. Avoid scalping for small profits and taking large losses.
16. Avoid trading after long periods of success or failure.
17. Avoiding going in and out of the market too often.
18. Avoid getting in wrong or getting in right and out wrong, making a double mistake.
19. Always identify strong support/resistance levels.
20. Always lock in a profit at predetermined increments on profiting trades.
21. Always use protective stops on open trades.
22. Always distribute your risk equally among different markets.
23. Always be willing to make money from both sides of the market.
24. Always reduce trading after the first loss; never increase.
25. Always cut your losses short and let your profits run.
26. When in doubt, get out. Do not get in when in doubt.
27. Only trade active markets.
28. Only pyramid trades that have a strong trend and should be accomplished once the price has crossed support/resistance.
29. Profits from a successful trade should be kept for future trade margins.

Guidelines

1. Understand for yourself the type of trader that you are, whether aggressive or conservative, long-term or short.
2. Have a trading strategy before entering the market. Know before the trade is executed where you will take profits/loss.
3. Understand why a win/loss occurred and how you could of made the trade better.
4. Consistency is the key to trading success, without it you have nothing.
5. Your judgment is the only concern, do not let outside factors affect the way you trade.
6. Not everyone can be a trader, deem yourself worthy if given this opportunity.

possible divergence on 4H TF....

The only thing is that it would be moving into that heavy traffic between 1.2600 and 1.2750, so I won't be taking this trade.

Guys, am I right in thinking that in order to trade this we'd have to see a close below the first of the two bars that make up the pin (the green one)? Thanks.

By the way, I'm currently dropping all the A+, B+ stuff because it's just too subjective and really impossible to quantify. For me it's either a 'yes' or a 'no', which is probably equally subjective but at least has the merit of simplicity! This was not my idea (sorry I don't have time to look back and see whose it was, but credit is due! ). It suits me though.

Cheers, G

i apologise to those if they feel im flooding the thread, but im just trying to give back all the help thats been given to me, and reinforce that which i have learnt!

regards
richard

On the main news here in Oz too.

Right there with you on the A+ B+ etc. It's gotten quite smudgey since the idea first came along. You are totally right . Too much subjectivity. ( A+++ is pretty self explanatory though. )

And correct on the two day pin. Break of the lowest low as if it were one bar. When you think about it, that first bar's low defines a minor support level ( kind of a swing low, really ). So breaking it's low has some importance.

Thanks Bund - I think I'm getting the hang of the basics... I'm thinking of joining the PF around the middle of this month - is it still as active/useful as ever?

I live in the Outer Hebrides, and we get one or two force 11 severe gales every year and occasionally a 12 (which pretty much always results in structural damage to houses, and a couple of years ago 5 fatalities), but this sounds like a whole different magnitude.

Keep safe you guys.

You're asking the wrong guy! I haven't been a member for a long long time.

But, besides that, I know it's still going strong. You'll find some really great stuff there.
.

BUOB on the gb/jpy weekly chart. price looks set to test 150 again.it would be nice to be in a free trade if it does...

I'm still learning to how to play these, but what do you guys think of these:

1) EURGBP: The low of the DBLHC is off by 9 pips.

2) GBPCHF: The high of DBHLC is off by 30 pips (too much?), and isn't at a swing high and PPZ.

gododdin,
not a member too.
but i'm pretty sure it's active.
Reading this thread, will tell u too, if it's useful or not.



joldas,
Great post.
Many will appreciate that list.

james16


Tell me about it Sir.
on my side (Philippines), it's raining in the middle of SUMMER. our rainy season is supposed to set in 1-2 months from now, June/July.
climate change.

Take care Texans/nearby residents.

Macedonia,
let's see if audnzd will be like usdcad's 1.30 tough nut to crack.
audnzd may continue to ride with Dow/stocks volatility.

1) This might be obvious, but can I accurately say that DBLHC and the DBHLC can also be referred to as PB's because essential that's what they form on the next higher time frame?

2) We can recognize a PB at a swing high (nose pointing upward) and swing low (nose pointing downward), but do we also consider the reverse true?

For example, a PB with it's nose pointing downward on a swing high (a "hanging man" in candlestick terminology)? And if so, are they played the same way, by placing a pending short at the break of the low/high?

See chart below

Thanks in advance

frankm7,
my simple thoughts:
(Just looking at your charts only)

eurgbp i think is not a strict DBLHC (check how many pips difference on the 1st vs the 2nd bar lows?) This is a weekly chart so i suspect it would be 5-10+ pip difference. it is in a 0.87/0.88-0.91 range. u might want to wait for a breakout(of the range) instead.

gbpchf is not in a swing high. it is in a range: 1.59/1.60-1.73 range.
again, probably not a strict DBHLC & u might want to wait for a breakout instead.

both are inside bars.


many more traders might posts their insights by Monday/Tuesday..
Good luck

[quote=frankm7;2709801]1) This might be obvious, but can I accurately say that DBLHC and the DBHLC can also be referred to as PB's because essential that's what they form on the next higher time frame?
2) We can recognize a PB at a swing high (nose pointing upward) and swing low (nose pointing downward), but do we also consider the reverse true?
For example, a PB with it's nose pointing downward on a swing high (a "hanging man" in candlestick terminology)? And if so, are they played the same way, by placing a pending short at the break of the low/high?
/quote]


1) I have not checked if your observation is correct/accurate, but PAs whether PB, DBHLC etc are identified/detected/traded separately per timeframe. U might elect to use these informations to trade a currency pair by using both timeframes (eg. PB on H4, DBLHC on Daily) or by trading based on 1 timeframe only instead of 2 (trading only the daily DBLHC).

2) james16 method teaches a certain set of techniques, insights, or whatever u want to call them. For several years, it has not deviated from that. traders are the ones who have deviated from it -- traders either "tweak, stretch, refine, adde to, reduce, expande, mold" as mentioned by james16 a little earlier
I think what u are referring to is similar what ghous is checking out: IPB (inverse PB). search for his previous post regarding this.

Stevie - what a player! Him and Jeff Healey both gone... RIP