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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

  • #30,881
  • May 24, 2009 3:00pm May 24, 2009 3:00pm
Quoting lddd
Hello guys again,

just looking at the daily chart on USD/CAD and wanted to ask if this bar (marked on the screen) is a "Pin Bar" and even might be a good entry?

http://chloe.qenx.com/pinbar.gif

thanks for help
Both the close and the open of the bar need to be within the previous bar to qualify as a pin bar. The other part of a pinbar is a nice long nose that juts out past the previous bar. The posts and charts from James at the beginning of the thread make it very clear.

On your chart the bar around the 1st April is a good example of a pinbar and it signalled a nice move too. But a pin bar on its own is not usually enough to trade. We need to see confluence from other factors that show that it is in a good location. Primarily we look for Price Pivot Zones (PPZs) and also sometimes other factors like divergence, MAs, fibs and things like double tops. There's more of an explanation in the first hundred or so pages of the thread and gems scattered throughout the thread.

The bar you highlighted is a bearish bar and is not typically used as a signal to enter a trade.
  • #30,882
  • May 24, 2009 3:17pm May 24, 2009 3:17pm
Quoting james16
usually i only take these set ups at swing highs or lows with fib ret and hopefully fib ret confluence.
can somebody tell me where in this thread these "fib ret / fib ret confluence" thing get more explained in detail? whats a fib ret and whats a fib ret confluence and so on..
  • #30,883
  • May 24, 2009 3:19pm May 24, 2009 3:19pm
Quoting Interceptor
Hi all,
Is anybody looking at the 2 day Pin on UJ?
Seems to be bouncing off a good bit of support, with the 50 fib close by too.
i am now bullish divergence on rsi too
cheers
jon
PATIENCE... DISCIPLINE
  • #30,884
  • May 24, 2009 3:22pm May 24, 2009 3:22pm
Quoting row
Trying to apply my understanding of the different bars........looking at the H4 GBP/USD chart i see a double inside bar at monthly pivot which would indicate an opportunity to sell at the break of the first inside bar.
I wouldreally apreciate the input from anyone.
I can make a few suggestions based on James' first post on this thread.

Firstly, put away the four hour chart and focus on the dailies and the weeklies. It's what James suggests. The signals are more reliable and it's a much better place to learn the method.

James doesn't use floor trader pivots in this type of trading. Although there are many different variants of this method, I would suggest sticking to the basics of how James trades and keeping them off your charts for now. Having said that, many people use what James teaches to enhance their existing systems. After all what he teaches is a method not a system and can be adapted to fit in with anything you currently trade. But if you do not have a profitable system already, then I would suggest learning this from scratch the way James suggests.

Finally, inside bars are amongst the trickiest formations to trade and I would suggest leaving them aside for now. Perhaps focus on pinbars (the easiest to recognise because they are so visual), outside bars and double bar high lower closes (DBHLC) or double bar low higher closes (DBLHC).

Hope that helps,

Aaron
  • #30,885
  • May 24, 2009 3:26pm May 24, 2009 3:26pm
Quoting lddd
can somebody tell me where in this thread these "fib ret / fib ret confluence" thing get more explained in detail? whats a fib ret and whats a fib ret confluence and so on..
Fibionacci retracements are a tool used often by traders and available on your MT4 platform. Explaining them is probably beyond the scope of this thread but given your questions, I think you would find www.babypips.com a great resource to answer some of the basics of trading.

The material here assumes a very basic knowledge of trading and how the platform works. You don't need to know much but it helps to have a grounding, and babypips will give you that.

Confluence means supporting factors that give your trade a higher probability of success. Bouncing off an MA, or a fib retracement, or crucially being at a price pivot zone.

I would suggest a look through the educational resources of babypips and then the first hundred pages and more of this thread will begin to make more sense to you.
  • #30,886
  • May 24, 2009 3:30pm May 24, 2009 3:30pm
Quoting TiaForex

The bar you highlighted is a bearish bar and is not typically used as a signal to enter a trade.
ok did understand that with my bar and why it´s not a pin bar now. I would have seen that on the color if i had used candlesticks Sure it´s a bear and open is higher than the close, so a no trade. thanks.
  • #30,887
  • May 24, 2009 3:40pm May 24, 2009 3:40pm
Quoting TiaForex
Fibionacci retracements are a tool used often by traders and available on your MT4 platform. Explaining them is probably beyond the scope of this thread but given your questions, I think you would find www.babypips.com a great resource to answer some of the basics of trading.

The material here assumes a very basic knowledge of trading and how the platform works. You don't need to know much but it helps to have a grounding, and babypips will give you that.

Confluence means supporting factors that give your...
thanks. i will do so. it´s actually becomming more and more clearify to me while reading and writing with you guys here. it´s a great place to be

regarding to "supporting factors", well i understand it needs some more factors to confirm entering in a trade. So if it comes to creating a detailed trading plan, are there rules WHICH of these "supporting factors" i should use to ascertain situations or should i just learn some and decide for the one i feel most comfortable with?
  • #30,888
  • May 24, 2009 3:51pm May 24, 2009 3:51pm
Quoting lddd
thanks. i will do so. it´s actually becomming more and more clearify to me while reading and writing with you guys here. it´s a great place to be

regarding to "supporting factors", well i understand it needs some more factors to confirm entering in a trade. So if it comes to creating a detailed trading plan, are there rules WHICH of these "supporting factors" i should use to ascertain situations or should i just learn some and decide for the one i feel most comfortable with?
It really is about practice and comfort level and there are no hard and fast rules. Which is why a long demo period is so important. There are hundreds of trade examples in this thread and you can see over the course of the thread unfolding how they played out so I would recommend it. And I can say that almost every question you've asked is answered there in the first few pages of the thread so I'd spend some time there and things will become clearer. There are some really brilliant trading minds on this thread and in my experience they jump up to help those who they see have put in some hours studying the thread first. I would start with reading every post that James links to in his opening post. Good luck.

PS If you want to see good example of someone who came to this thread and approached the learning process with diligence and reaped rewards, then look over the posting history of Jduester.
  • #30,889
  • Edited 4:21pm May 24, 2009 4:16pm | Edited 4:21pm
Quoting Interceptor
Hi all,
Is anybody looking at the 2 day Pin on UJ?
Seems to be bouncing off a good bit of support, with the 50 fib close by too.
Hi Interceptor,

It would be a go if price moves above 95.25, but then there seems to be a little bit of congestion at around 95.60's. Further, the hourly and 4H seem to suggest that even if price moves that high, it could first stall at around .45. Do you think that's enough space for a high probability trade?
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  • #30,890
  • May 24, 2009 4:32pm May 24, 2009 4:32pm
Quoting dunningduke
Hi Interceptor,

It would be a go if price moves above 95.25, but then there seems to be a little bit of congestion at around 95.60's. Further, the hourly and 4H seem to suggest that even if price moves that high, it could first stall at around .45. Do you think that's enough space for a high probability trade?
Hi
I'm setting an order @ 95.30.
There are a couple of possible minor bar low area's on the way up, but I'm hoping for a run up towards the 150 ema.
Will probably look to move stops to b/e around the 96 area.
Nothing ventured etc.
  • #30,891
  • May 24, 2009 5:26pm May 24, 2009 5:26pm
Quoting Interceptor
Hi
I'm setting an order @ 95.30.
There are a couple of possible minor bar low area's on the way up, but I'm hoping for a run up towards the 150 ema.
Will probably look to move stops to b/e around the 96 area.
Nothing ventured etc.
I would be wary of playing straight into such a round number and counter trend as well as the H&S pattern. I would like to see this is as a breakout pull back to the 95 and then get a pin bar or outside bar to go short off of 95.
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Economists have forecast 9 out of the last 5 recessions
  • #30,892
  • May 24, 2009 6:18pm May 24, 2009 6:18pm
Quoting james16
The key to success by many in this thread over the years and also mine years ago was/is.

1. a large account.

2. day trading OFF OF A DAILY CHART (if necessary based on a possible retrace of an initial move) and if not working the move for a swing or position trade if we bust some early s/r.

3. learn to use side to side support and resistance ( j16 pivot zones if you wish) to manage your trades and allow them to be the basis for whether its a day/swing or position trade.

[b]4. simple good common sense money...
well but most of us do not have a 100k and more :-) So you say with a small account like lets say 2k there is no chance to make a mothly living from while only taking this 2-3 A++ setups a month? .. ^^

This sounds quite frustrating

So either i have deep pockets and trade only the best 2-3 setups a month or i should do something else than trading cause this will not making money instead of headache cause i have to overtrade it and break the the rules and end up in loss...
  • #30,893
  • May 24, 2009 7:00pm May 24, 2009 7:00pm
Quoting lddd
well but most of us do not have a 100k and more :-) So you say with a small account like lets say 2k there is no chance to make a mothly living from while only taking this 2-3 A++ setups a month? .. ^^

This sounds quite frustrating

So either i have deep pockets and trade only the best 2-3 setups a month or i should do something else than trading cause this will not making money instead of headache cause i have to overtrade it and break the the rules and end up in loss...
I hear ya. It is frustrating if you aren't capitalised. But it's better you hear the truth early. If you're looking to turn 2k-3k into a a few hundred grand and do that quickly then the chances are it won't happen.

I think there is a temptation to say that 'hey james has hundreds of thousands, so he can afford to be picky. I only have a little, so I'll just have to take more setups' But remember each setup can lose as well as win, and the chances are that the more setups you take, especially early on, the more likely you will lose all of the 2k-3k.

There are plenty of people who can promise you systems that turn you into a millionaire overnight. If you believe such a thing is possible then you will no doubt go looking for them. And they will be happy to take your money from you.

Personally I think extreme returns in this business are possible, but only after years of studying the basics and being aware that it increases your risk profile. Most people when they get to that level feel it isn't worth the hassle.

James pays us all great respect at the beginning of this thread by telling us the truth. And that truth is that there is no chance of making a monthly living from this with a 2-3k account. None. And he may have saved you a lot of heartache by telling it to you straight.

There's nothing to stop you looking for other ways of making a living, and then learning this material (it takes a while) so that when you have finally have more money you can supplement your income with a little glance on the daily charts every day.

It is deeply frustrating, but only because your expectation was different. If I told you it took 7 years and a lot of money to train as a doctor you wouldn't be frustrated because that's what you expect. But for some reason people think of trading as a shortcut to riches. James is respectful enough to tell them otherwise.

Good luck with however you decide to play it.
  • #30,894
  • May 24, 2009 7:26pm May 24, 2009 7:26pm
your worrying me ld. have you read post 1?

make a living off of a 2k account? did i read that correctly? surely you jest.

Quoting lddd
well but most of us do not have a 100k and more :-) So you say with a small account like lets say 2k there is no chance to make a mothly living from while only taking this 2-3 A++ setups a month? .. ^^

This sounds quite frustrating

So either i have deep pockets and trade only the best 2-3 setups a month or i should do something else than trading cause this will not making money instead of headache cause i have to overtrade it and break the the rules and end up in loss...
  • #30,895
  • May 24, 2009 7:30pm May 24, 2009 7:30pm
thanks tia,

tia you have a way with words.

i appreciate your help here.

i worry about people like ld. ive been where ld is at and its a dangerous place imho.

i just want new people to look away from the dollars signs and think with common sense while they are taking a first foothold in this business.



Quoting TiaForex
I hear ya. It is frustrating if you aren't capitalised. But it's better you hear the truth early. If you're looking to turn 2k-3k into a a few hundred grand and do that quickly then the chances are it won't happen.

I think there is a temptation to say that 'hey james has hundreds of thousands, so he can afford to be picky. I only have a little, so I'll just have to take more setups' But remember each setup can lose as well as win, and the chances are that the more setups you take, especially early on, the more likely you will lose all of the 2k-3k....
  • #30,896
  • May 24, 2009 7:32pm May 24, 2009 7:32pm
Quoting lddd
well but most of us do not have a 100k and more :-) So you say with a small account like lets say 2k there is no chance to make a mothly living from while only taking this 2-3 A++ setups a month? .. ^^

This sounds quite frustrating

So either i have deep pockets and trade only the best 2-3 setups a month or i should do something else than trading cause this will not making money instead of headache cause i have to overtrade it and break the the rules and end up in loss...
Frustrating is blowing multiple accounts and after 10 years of doing so, re-reading your post and saying: "If I only had proper a longer term view, I'd be home free right now"

I have some good friends who lament not having a college degree. I've known them for 25 years. And they could all be successful Doctors and Lawyers today if they had a proper view of time. Everyone wants everything now.

A sizable account is not the cause of success. It is the result of success, and you can start small - add to it monthly, look only for the best setups and you will grow into where you want to be. If you will over trade with a small account - trust me - you'll do it with a large one too.

Trading is not like watching the movie "Big".

Time is on your side - use it.
I'm pretty much done with all this ...
  • #30,897
  • May 24, 2009 7:48pm May 24, 2009 7:48pm
This is probably a silly question as I should simply go by what I see on my charts but....

When we're looking for "big round numbers" we always say 1500, 3400, 2800, etc. But I swear when I draw my S/R lines on a lot of pairs it always seems PA happens more around say 1550, 3450, 2850 etc.

Now of course I realize these are zones and not exact points but, is it still considered a "round number" if it's a xx50 instead of xx00?

Just curious as on most pairs I follow, the xx50 seems to be more the center of the zone. Thanks folks.
Ghost Rider - WWTBMD?
  • #30,898
  • May 24, 2009 7:52pm May 24, 2009 7:52pm
Quoting albchr
This is probably a silly question as I should simply go by what I see on my charts but....

When we're looking for "big round numbers" we always say 1500, 3400, 2800, etc. But I swear when I draw my S/R lines on a lot of pairs it always seems PA happens more around say 1550, 3450, 2850 etc.

Now of course I realize these are zones and not exact points but, is it still considered a "round number" if it's a xx50 instead of xx00?

Just curious as on most pairs I follow, the xx50 seems to be more the center of the zone....
You're not seeing things. I watch 50 too.
.
Bundy's status today: "Waiting..."
  • #30,899
  • May 24, 2009 7:55pm May 24, 2009 7:55pm
Quoting markmm
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...
hi mark, can you please inform me of how to adjust the grid settings to display the round# horizontal lines? thanku.
  • #30,900
  • May 24, 2009 8:09pm May 24, 2009 8:09pm
Quoting bundyraider
You're not seeing things. I watch 50 too.
.
Thanks Bundy.... I was starting to think I was perhaps inventing what I wanted to see...
Ghost Rider - WWTBMD?
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