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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

  • #30,821
  • May 23, 2009 1:09am May 23, 2009 1:09am
Quoting Jlr
This is a little beyond my comprehension abilities right now, but really great stuff. Definitely saving this, ty bundy
Oh man, it's beyond my comprehension abilities too. Just read my own post. What a mess!

You might be able to decipher it in time.

It would be soooo much easier doing a video for things like this. (mike? )

You know what? I totally didn't cover the original intention either! ...What a crack up!

When the next good example comes up (this time with GOOD factors that I intend to trade) I'll do a proper example post. And on a higher time frame too. That one just unfolded too quickly for me to post along with while cooking etc! lol
Bundy's status today: "Waiting..."
  • #30,822
  • May 23, 2009 1:53am May 23, 2009 1:53am
Quoting layton
Thanks. So are you saying for example, if you are trading daily TF....

Zoom out to the weekly or monthly charts and draw your major PPZs only. Then wait for PA to hit those areas and look for rejection or breakout and retest? Then possibly drawing minor PPZs to manage the trade?
Along those lines. Yes. Not exactly what I was getting at in that particular post though. But you're right about narrowing it down further. And looking at those higher time frames is a key ingredient.

What I was talking about can be done for all time frames.

Look, it just comes down to confluence. Find the REALLY strong PPZs and wait for everything to line up with them rather than taking every pretty pin or inside bar just because it's hit a minor PPZ that just happens to line up with a fib. (I also use Trend line breakouts / pullbacks, so I get real excited when these line up with a major PPZ too)

You can make money off of the minor PPZs (with ok confluence) , but it's making things harder for yourself, since they tend to be the ones where you have to cover yourself real quick. If you always wait for the super strong PPZs, making money can be like aiming a shotgun into a barrel of fish.
And you'll know when your choosing the right levels....
....They will be the trades where you seem to shooting off into profit almost immediately after entry (bar count wise).
When that's happening on most of your trades, then you are doing a good job of waiting for the best opportunities.
.
Bundy's status today: "Waiting..."
  • #30,823
  • May 23, 2009 2:55am May 23, 2009 2:55am
Nice charts Jim. I'm very curious what will Mike say about them.
  • #30,824
  • May 23, 2009 3:00am May 23, 2009 3:00am
  •  krue
  • | Joined Mar 2008 | Status: finger scares cat, power of illusio | 410 Posts
Hi, Jim, the setups are really magic when you point them out, whenever I see your charts, things get crystal clear, but, I know, this is accumulation of experience and wisdom that makes the eye open to the precise point of success. simply one quick question, if I may, Jim. regarding to the small pinbar as you mentioned in the second chart, is it an A+ setup, or B setup but requires experience to trade? thanks again for the enlight. have a nice weekend!

Krue

Quoting james16
CHARTS
  • #30,825
  • May 23, 2009 6:32am May 23, 2009 6:32am
Hi Jim,

Your requested translation: 'Sycho needs to demo a little longer' and possibly post a few more charts, so that other traders can assist.

MM

Quoting james16
will someone please translate this for me.

jim
The greatest achievements are those that benefit others....
  • #30,826
  • May 23, 2009 7:57am May 23, 2009 7:57am
Quoting james16
welcome lddd,

have you read the first post in this thread?

it will answer all of your questions and concerns.

jim
thanks jim iīved read it for sure. but i am missing some important information specially for beginners who do not have much experience with trading at all like where to set stops and where to book profit for e.g.

Letīs say i would like to start looking at the daily timeframe chart for GPD/USD or EUR/USD. First i would like to know in your experience how much time a day you have to spend looking at a chart actually when trading on a daily chart and how much trades you can expect to find for a good entry based on your patterns. And should i concentrate on ONE PATTERN for the beginning or more than ONE? What else do i need, are there indicators like fibonacci for e.g i should use before triggering.

thanks for your help. i know most of my questions may allready answered within this thread but its hard to follow for me (2 much information at once)

would be nice if you could give me some advice on these questions, specially IF i find a pattern howto declare it for a good entry or not and where to place stops and where to take profits.

thanks in advance,

lddd
  • #30,827
  • May 23, 2009 8:43am May 23, 2009 8:43am
Quoting lddd
thanks jim iīved read it for sure. but i am missing some important information specially for beginners who do not have much experience with trading at all like where to set stops and where to book profit for e.g.

Letīs say i would like to start looking at the daily timeframe chart for GPD/USD or EUR/USD. First i would like to know in your experience how much time a day you have to spend looking at a chart actually when trading on a daily chart and how much trades you can expect to find for a good entry based on your patterns....
We usually set stop a little past the opposite end of the bar we are trading, that's the way I do it anyway, I'm a newb so I just do it the textbook way. Like if you have a pin bar I would set the stop above the nose slightly. Some people use left eye or fibs for smaller stops to increase their lots.

If you are just looking for one formation, say pin bars, it shouldn't take you very long each day, maybe a few seconds looking at the chart if that unless you find one.

James16 usually says we only need 2 or 3 trades a month. Google James16 group and check out the guest area, it should have some good information for you.
  • #30,828
  • May 23, 2009 9:24am May 23, 2009 9:24am
thanks Denarii for your help.

so if i trade price action on a daily chart "one candle" needs "one day" to finish, right? so with looking for a pin bar pattern the only thing i would have to do is looking at the nearly end of each day if a "pin bar pattern" established and either trade it ot not or what?
  • #30,829
  • May 23, 2009 9:57am May 23, 2009 9:57am
Quoting lddd
thanks Denarii for your help.

so if i trade price action on a daily chart "one candle" needs "one day" to finish, right? so with looking for a pin bar pattern the only thing i would have to do is looking at the nearly end of each day if a "pin bar pattern" established and either trade it ot not or what?
Yeah that it in a nutshell, the decision to trade it or not and what you do once you are in the trade and how much to risk per trade are the things you need to work out before trading it though.
Economists have forecast 9 out of the last 5 recessions
  • #30,830
  • May 23, 2009 11:04am May 23, 2009 11:04am
Hey LD
Denarii and Mark answered your questions great. As complicated as things seem to you right now. As you work through this thread slowly(which is where your time is best spent for now, not trading, reading). It will all slowly become more clear. I think a lot of people coming from wherever they were before on these forums can be a bit taken back by the information and get scared off.

If you starting trading the daily timeframe you will not need anything more then a 15-20 mins a day to scan your charts. It really takes me maybe 3-5 minutes to scan my daily charts. Reading price action slowly becomes like reading another language. At first you can read a few words, then you can form a few sentences, but it takes awhile to be able to write your own story. Jarroo better like that metaphor or I quit

There are no hard and fast rules, and that is what throws a lot of people. Examples

-One persons B+ pinbar, can be someone elses A+ pinbar
- You can set your stop above/below the price bar(which is what most people do ), but others might set their stops based on the left eye of a bar(you will know what that is eventually. Others might use a fib to set their stop.
-some people enter on the break of a bar(ie if you are shorting a pinbar they wait till the low is taken out), this is the way the majority of us do it. Also a bar is not valid till it breaks(vice versa it is not invalid until that high is taken out). But other people enter on a retrace in order to increase their position size.

So as you can see their are different styles and many nuances. What you should make your job right now is to work through this thread slowly. Take notes, whatever you have to do. You need to focus on a few key concepts that is price bar formations. Recognizing the good from the bad. And support and resistance. Then forms of confluence(round numbers, fibs, divergence) Now these concepts have many layers to them, but that is basically all we do.

Like understanding to read a chart there is no easy way to answer trade mgmt. As you get through reading this thread a little at a time you will realize this. THis is why it isn't do , this , this , this and make money. There are many little nuances.

I know you and many others have jobs/lives/etc and your time is precious and you want to be able to trade as fast as possible, but my best advice is to shift your mindset from wanting to trade , to just absorbing and reading right now.

Also check out some of the guest videos after you spend some time here, they will help bring to life a lot of these concepts

Best of luck!
Mike


Quoting lddd
thanks jim iīved read it for sure. but i am missing some important information specially for beginners who do not have much experience with trading at all like where to set stops and where to book profit for e.g.

Letīs say i would like to start looking at the daily timeframe chart for GPD/USD or EUR/USD. First i would like to know in your experience how much time a day you have to spend looking at a chart actually when trading on a daily chart and how much trades you can expect to find for a good entry based on your patterns....
  • #30,831
  • May 23, 2009 11:19am May 23, 2009 11:19am
Quoting lddd
thanks jim iīved read it for sure. but i am missing some important information specially for beginners who do not have much experience with trading at all like where to set stops and where to book profit for e.g.
Have you been through babypips school? Depending how 'new' you are I suggest you go through the classes at least twice. Also under Rookie discussion here at FF you should read all the sticky articles as well. And on TOP of all that read this thread.

Depending how fast you read you have a few months of reading ahead of you at least.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #30,832
  • Edited 11:34am May 23, 2009 11:23am | Edited 11:34am
Quoting mbqb11
If you starting trading the daily timeframe you will not need anything more then a 15-20 mins a day to scan your charts. It really takes me maybe 3-5 minutes to scan my daily charts.
Just would like to add my 2 cents to your excelent summary: spend 15-20 min to scan your daily charts but, but once you've found some few which may look promising, spend as much time as you need to check why you should or not get into the trades.
I indeed spend 20 min every day scanning about 15 pairs, but then spend about an hour to deeply analise (and usually post into this threat) those I consider more suitable to get into (PPZ, FIB, MM, etc).
And most times I decide not.
Take your time to learn, to scan, to analize, to decide and to set your trades.
And once you have done, close your screen till next day!
Trading: the skill of avoiding trades
  • #30,833
  • May 23, 2009 11:26am May 23, 2009 11:26am
Quoting bundyraider
Along those lines. Yes. Not exactly what I was getting at in that particular post though. But you're right about narrowing it down further. And looking at those higher time frames is a key ingredient.

What I was talking about can be done for all time frames.

Look, it just comes down to confluence. Find the REALLY strong PPZs and wait for everything to line up with them rather than taking every pretty pin or inside bar just because it's hit a minor PPZ that just happens to line up with a fib. (I also use Trend line breakouts / pullbacks,...
Sitting here reading your post just nodding my head, wondering why I sometimes wander off course a bit. I think us newer folks should read this post on a regular basis b/c its so true. I find when I play those major wkly ppzs with confluence, in direction of trend, my stops r tight and Iam into profit and at b/e so quickly and its all so simple. Ive been doing this lately with great success, yet I opened a second position in u/j the other day that strayed from this simple approach and is not to far from being stopped out at a 2% loss this may sound odd but now and then a loss is a healthy thing brings me back to earth after some wins and makes me get on that simple trail again makes me wonder why I even bother to stray in the first place??? Guess its human nature and lack of enough discipline.http://www.forexfactory.com/images/icons/icon11.gif
  • #30,834
  • May 23, 2009 11:31am May 23, 2009 11:31am
- oh..ok... now i get it... thats what i thought but i wasnt sure...thanks.



Quoting mmbmusa
Hi Jim,

Your requested translation: 'Sycho needs to demo a little longer' and possibly post a few more charts, so that other traders can assist.

MM
  • #30,835
  • May 23, 2009 1:56pm May 23, 2009 1:56pm
thanks for the great advices so far. yup i am actually allready reading this forum quite long. yeah i did the babypips school once but itīs allready 1 year ago or so and i think i should give it a refresh :-).

where can i find these "guest videos" ?.
how much pairs i should concentrate looking at and are there any pairs doing it better for beginners to follow or doesnīt it matter? (so on a daily chart)
iīve heard that traders often look at different timeframes at least looking at the higher one as they work with before triggering a trade, whats up with that?
I donīt want to risk to much when it comes to trading (after reading for sure but what Iīve read is that higher timeframes needs more deep pockets and more risk like bigger profit and higher stop losses, could you give some examples to me what should be the minimum or maximum for profit and losses on a daily time frame?

thank so far guys, this thread is juicy. keep up that good work :-) Hope to learn howto to trade the proper way from now on i am here to stay !
  • #30,836
  • May 23, 2009 2:13pm May 23, 2009 2:13pm
Quoting lddd
thanks for the great advices so far. yup i am actually allready reading this forum quite long. yeah i did the babypips school once but itīs allready 1 year ago or so and i think i should give it a refresh :-).

where can i find these "guest videos" ?.
how much pairs i should concentrate looking at and are there any pairs doing it better for beginners to follow or doesnīt it matter? (so on a daily chart)
iīve heard that traders often look at different timeframes at least looking at the higher one as they work with before triggering a trade,...
Guest Material - Is here - http://www.james16group.us/Guests/guestmaterial.html

How many pairs ? Should I focus on one Pair ? Which One ?

If you trade the Daily timeframe on demo starting off, I would suggest trading as many pairs as your broker provides, this way you can pick the best looking setups out of all the pairs.

Different timeframes - Yeah people sometimes do that, like for instance a Daily Bullish outside bar could give the bias for trading the 1HR long etc etc, But no need to worry about that, just worry about getting the Daily timeframe itself locked down first and you will be fine .

Daily timeframe = Bigger stops = More risk ? -

Yes if you trade the Daily you will have a bigger stop, however what you need is a broker which offers granularity (eg Oanda - never personally used them but I know they are good for this) so you never risk more than you need to and so as your risk is always correct in %Risk of account terms.

Minimum or Maximum profit/losses

I can't give examples of this because its going to be different for everyone, there is just no real answer.


As Mike said if you read the thread from the start you will grow organically with the thread, it's all there.


Take care,
Jig
  • #30,837
  • May 23, 2009 4:30pm May 23, 2009 4:30pm
Quoting supremeChaos
TotalNewbie,
excellent observation & very important A-ha moment.
PA goes very well with PPZ just like chocolate with.... chocolate

I definitely urge u to change your name as u have definitely found 1 milestone. Probably Twee would oblige
Thanks for the encouragement and I'm pleased to be able to help the light come on for one or two others too. However, I won't be changing my name until I have built up my account to the level where 1 good trade a month is all I need (quite a while yet, I suspect).
  • #30,838
  • May 23, 2009 4:31pm May 23, 2009 4:31pm
This wont be news to most of you but, Ive noticed that using a the grid indicator for MT4, and setting it to show horiontal lines for the round numbers will save you a lot of work when marking up PPZ. The setting will vary depending on the liquidity of the pair. Most pairs I set it to draw a line at every 500 pips, some less moving pairs 200 pips.

Look at it before and after on a 4 hr chart it gives plenty of room for price to move. You should immedialty see why price reversed or consolidated etc. You could almost just trade PA off these, but add EMA's and fib confluence and it makes a reliable system.
Economists have forecast 9 out of the last 5 recessions
  • #30,839
  • May 23, 2009 4:39pm May 23, 2009 4:39pm
thanks jigsaw for your nice detailed answers on my previous questions.

i got another one before going out... are trades allready triggered during the candle is still building up and forming (daily time frame) or do i just have to check every chart 5 minutes before a trading day is over and a candle finished? So in my understanding on trading a daily timeframe with price action one candle would represent one trading day with its open/close and highs and lows. So i would wait until this candle is formed (at the end of one trading day) and looking for further confirmation like a break or a bounce of support or resistance (or what else makes this "perfect setup") before entering it?
  • #30,840
  • May 23, 2009 4:47pm May 23, 2009 4:47pm
Quoting markmm
I kinda already knew this or had read it a lot but it hadn't clicked properly.
Well said. That's also been my experience. I wonder why it took so long for me to get it even though I read about it repeatedly in this thread, and even watched videos explaining it on the website.
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