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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

  • #34,121
  • Jun 22, 2009 1:45am Jun 22, 2009 1:45am
Quoting james16




if your not a gunslinger it wont work and your accounts will be buried deeper than johnny ringo after val got finished with him.



Classic.
"The more I practice, the luckier I get." (Gary Player)
  • #34,122
  • Jun 22, 2009 1:46am Jun 22, 2009 1:46am
Nice charts as usual Jarroo. Expected.
Gone to a better place
  • #34,123
  • Jun 22, 2009 1:51am Jun 22, 2009 1:51am
Quoting ghous
Oh well,

Better luck next time Ghous.

lol!
Ghous it looks like price missed your entry by a gnat's knacker.
Apart from the obvious support level what was your buy price based on?
Anything other than candle highs around 1.1345?

Steve.
"The more I practice, the luckier I get." (Gary Player)
  • #34,124
  • Jun 22, 2009 2:24am Jun 22, 2009 2:24am
Hi all
I have been having problems with PB entry, and I had asked this question before in this thread.
I remember James mentioned that entry with retracement reduces the size of the SL, and I have tried several times with that, even though the PB is not broken.
But so far the success rate is dismal.
The most recent example being the GBP/CHF H4.
I entered on a pullback, but was stopped out quicker than a heartbeat even though it is on H4.
I thought that the PB was in a good location as it bounced off recent high of 1.7885, and there was a divergence.
Any comment, especially with regards to PB entry?
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  • #34,125
  • Jun 22, 2009 2:29am Jun 22, 2009 2:29am
price is ranging, meaning there was no real selling pressure.

pb - big selling at swing high - you go for short. means that on that top of the wave there's enough selling to change direction.

since this in heavy traffic you shouldn't look at it as a pb. it's just a bar.


EDIT: ho through thread and look for good setups, you can see that candle formations appear on key levels aka S/R.
  • #34,126
  • Jun 22, 2009 2:36am Jun 22, 2009 2:36am
Quoting arsa
price is ranging, meaning there was no real selling pressure.

pb - big selling at swing high - you go for short. means that on that top of the wave there's enough selling to change direction.

since this in heavy traffic you shouldn't look at it as a pb. it's just a bar.


EDIT: ho through thread and look for good setups, you can see that candle formations appear on key levels aka S/R.
Thanks.
But even in a range, couldn't that be taken as a PB as prices swing within range?
  • #34,127
  • Jun 22, 2009 2:41am Jun 22, 2009 2:41am
Quoting the novice
Thanks.
But even in a range, couldn't that be taken as a PB as prices swing within range?
well you can - but you'll be losing money in long term.

when there's a range you can't trust pb because odds are against you. Since you don't know who has better chances of winning, sellers vs buyers.

it has to be clear setup. And as everyone says: in swing high or low. Then you can see change in momentum and ride it all the way down. because you trade following the flow.
  • #34,128
  • Jun 22, 2009 2:42am Jun 22, 2009 2:42am
Quoting the novice
Hi all
I have been having problems with PB entry, and I had asked this question before in this thread.
I remember James mentioned that entry with retracement reduces the size of the SL, and I have tried several times with that, even though the PB is not broken.
But so far the success rate is dismal.
The most recent example being the GBP/CHF H4.
I entered on a pullback, but was stopped out quicker than a heartbeat even though it is on H4.
I thought that the PB was in a good location as it bounced off recent high of 1.7885, and there was a divergence.
Any...
Hi Novice,

I can see what's troubling you. The first thing that you must do is to keep your eyes off anything less than the daily irrespective of your personal inclinations.

The Pb was off a good location but the small size was a significant factor. But even if you wanted to take the trade and would have gone abt it exactly how you should be doing it no way was that PB taking any money out of your pocket, why?

Did it break? I.e did the low get breached? No.

retrace entries cannot be played untill the bar breaks,...for the simple reason that a pin bar is not one till it breaks


It's important at this stage that you keep your head calm so that you can think well and take the right steps. The higher time frames are good in that they can teach you well how to look only for the very good setups. Till the time you don't master this technique on the daily (of filtering out most setups to arrive at only the very best) the lower time frames are not recommended for you.

All the best.

Ghous.
I believe . . .
  • #34,129
  • Jun 22, 2009 2:43am Jun 22, 2009 2:43am
Quoting the novice
Thanks.
But even in a range, couldn't that be taken as a PB as prices swing within range?

Look at the size of the buying pressure prior to the reversal candle. What I see in that candle is not orders trying to reverse that bullish reaction but simply a pause in momentum or some small profit taking. Dont try and stop a train with a toy car...stand in front of it with another train if you desire to enter those type of trades.
  • #34,130
  • Jun 22, 2009 2:48am Jun 22, 2009 2:48am
Quoting mrsingha
Ghous it looks like price missed your entry by a gnat's knacker.
Apart from the obvious support level what was your buy price based on?
Anything other than candle highs around 1.1345?

Steve.
I missed it by a pip. ...or rather... (lol!)

Quote
Apart from the obvious support level what was your buy price based on?
Anything other than candle highs around 1.1345?

Quite frankly No. I am trying to make it as simple as I possibly can, and the more I try to do this the better it gets...
I believe . . .
  • #34,131
  • Jun 22, 2009 2:49am Jun 22, 2009 2:49am
Well the 4hr did leave a clue I just climbed out of bed so I missed, tough being out west I didnt leave a order wanted to see pa while awake. Dblhc, Buob pick your medicine see what it does at 1.1447
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  • #34,132
  • Jun 22, 2009 2:50am Jun 22, 2009 2:50am
Quoting Shermenator
Look at the size of the buying pressure prior to the reversal candle. What I see in that candle is not orders trying to reverse that bullish reaction but simply a pause in momentum or some small profit taking. Dont try and stop a train with a toy car...stand in front of it with another train if you desire to enter those type of trades.
Extremely well said.
I believe . . .
  • #34,133
  • Jun 22, 2009 2:57am Jun 22, 2009 2:57am
Quoting ghous



Quite frankly No. I am trying to make it as simple as I possibly can, and the more I try to do this the better it gets...
Thanks Ghous,
just making sure i haven't missed something.

Steve.
"The more I practice, the luckier I get." (Gary Player)
  • #34,134
  • Jun 22, 2009 3:04am Jun 22, 2009 3:04am
Thanks.
All valid observations.
So ghous,
for a PB, you would wait for the PB to break, retrace, then enter?
  • #34,135
  • Jun 22, 2009 3:08am Jun 22, 2009 3:08am
Quoting the novice
Thanks.
All valid observations.
So ghous,
for a PB, you would wait for the PB to break, retrace, then enter?
You can enter on a pure break (i.e a few pips below the high/low of the pin bar) which is by far the most conservative and hence the safest way of playing these bars.

If you're on the aggressive side you could consider a retrace entry ONLY WHEN THE PIN BAR HAS BROKEN.

I personally don't play retrace entries at all. was doing it earlier but did not find it pleasing to my taste so reverted to the conventional "pure break" trades. I won't call them futile in any sense though...

Jarroo I guess plays retraces quite a bit. Strangely he is offline () and will soon get to you first up with some lovely vivid charts for a better explanation.

Regards,
Ghous.
I believe . . .
  • #34,136
  • Jun 22, 2009 3:10am Jun 22, 2009 3:10am
then your SL must be huge on a daily.
am I right?
  • #34,137
  • Jun 22, 2009 3:11am Jun 22, 2009 3:11am
Quoting the novice
then your SL must be huge on a daily.
am I right?
does it matter? if u use percentage risk pr trade?
  • #34,138
  • Jun 22, 2009 3:15am Jun 22, 2009 3:15am
Quoting the novice
then your SL must be huge on a daily.
am I right?

I'm just a novice like yourself, but the way I see it is technically, your SL should be at the top of the pin. However, we are also looking for a hard, fast break so it is possible to have a much shorter SL (I believe James16 uses 30 pips). You'll get stopped out more often this way but you won't have the huge drawdowns and you may still get the chance to re-enter on a retrace.

EDIT: I believe the most recent video on the website the covers this kind of thing.
  • #34,139
  • Jun 22, 2009 3:18am Jun 22, 2009 3:18am
Quoting TotalNewbie
I'm just a novice like yourself, but the way I see it is technically, your SL should be at the top of the pin. However, we are also looking for a hard, fast break so it is possible to have a much shorter SL (I believe James16 uses 30 pips). You'll get stopped out more often this way but you won't have the huge drawdowns and you may still get the chance to re-enter on a retrace.
hmm.. seems you're trying to make a rocket from a bike.. lol
  • #34,140
  • Jun 22, 2009 3:20am Jun 22, 2009 3:20am
Quoting the novice
then your SL must be huge on a daily.
am I right?
It's somewhere between 100 to 300 pips on most pairs based on an SL above the other end of the pin). Whether that's "Big" or not depends on how you look at it.

For me it isn't too big if it's on one of the 5 trades that I will go for in a month. When I know I've passed on 25 trades to arrive at the trade setup I really want to take I don't feel like hesitating to give the trade a good bit of room to do what it wants.

the second important aspect to it is of coarse the money management part. if the 300 pips is 2% of your account you'll be less worried going for the conservative approach on a daily pin than in the case where the 300 pips is like 7% or more...
I believe . . .
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