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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

  • #37,441
  • Jul 15, 2009 3:43am Jul 15, 2009 3:43am
Quoting kk007
Dear all,

Can anyone tell me why do these things (pinbar, BUOB, DLHC, etc.) work? The explanation may be posted before, but this is such a big big big thread. Please help!

Cheers!
All the patterns work because the bars represent the participating traders psychology.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #37,442
  • Jul 15, 2009 3:49am Jul 15, 2009 3:49am
Quoting LasVahGoose
Well, the pin bar is similar to a shooting star or a hammer.
Thanks LasVahGoose,

In those books called something like "encyclopdia of candlestick patterns", there are mixture of effective and ineffective patterns, and each has a name, and there are thousands. When a person don't know which are effective, these books are not going to be helpful. Less is More!

Cheers!
  • #37,443
  • Jul 15, 2009 3:50am Jul 15, 2009 3:50am
Quoting supremeChaos
egkid,
yes, it's a great feeling.
when u post, do state the reasons why u are talking certain trades.
saying "sell $cad, based on bearish Bat, BEOB, PPZ, etc" is better than just "sell $cad".
This way, everyone can learn from u.
I know u get my point.
Thank you for your reply.I got your view
Always respect you and like your post
  • #37,444
  • Jul 15, 2009 3:53am Jul 15, 2009 3:53am
Quoting kk007
Dear all,

Can anyone tell me why do these things (pinbar, BUOB, DLHC, etc.) work? The explanation may be posted before, but this is such a big big big thread. Please help!

Cheers!
They don't work as stand alone bars, they work as an addition or confirmation that price is reacting to support and resistance, whether it be Horizontal S/R, Fibs, Trendlines.
I hear and I forget. I see and I remember. I do and I understand.
  • #37,445
  • Jul 15, 2009 3:57am Jul 15, 2009 3:57am
Quoting tac
They don't work as stand alone bars, they work as an addition or confirmation that price is reacting to support and resistance, whether it be Horizontal S/R, Fibs, Trendlines.
I tend to think they work less effective as stand alone patterns, and they work best at key positions.
  • #37,446
  • Jul 15, 2009 4:05am Jul 15, 2009 4:05am
hey guys im seeing a nice pb on the usdcad
swing low
lots of space
ill be watching, i know im not supposed to be on h4 but i can't help look

http://i26.tinypic.com/bg1ca9.gif
  • #37,447
  • Jul 15, 2009 4:05am Jul 15, 2009 4:05am
Quoting kk007
I tend to think they work less effective as stand alone patterns, and they work best at key positions.
Yes a better way to express it.
I hear and I forget. I see and I remember. I do and I understand.
  • #37,448
  • Jul 15, 2009 4:13am Jul 15, 2009 4:13am
Quoting mbqb11
Hey Initex

This is simply b/c the start time of the different brokers bar. So if they start at different times they will have different looks. For example Oanda new candle starts at midnight which is 7 hours later then my broker fxpro. Over the time of 7 hours much can happen to change the look. Again this is why location is the most important thing we do

Best
Mike
So I guess its a good idea to trade in the most popular time frame then, so that more people are seeing the same setup?

Can this be achieved by changing the time zone of the charting software, or would you just have to use different charts?

Thanks.
  • #37,449
  • Jul 15, 2009 4:26am Jul 15, 2009 4:26am
Quoting Thexder
Slightly more completely put,
I think all of those are considered reversal patterns so just on that definition, the formation can be observed to show an attempt to keep going in the direction things were moving most recently but price couldn't make it any further in that direction (who cares why),....
Thexder,
"Slightly more completely put" ----
who cares why ---- simply put, sellers overcome buyers (volume analysis )
Nice to see u are slowly posting more.
  • #37,450
  • Jul 15, 2009 4:35am Jul 15, 2009 4:35am
Quoting johnnykanoo
hey guys im seeing a nice pb on the usdcad
swing low
lots of space
ill be watching, i know im not supposed to be on h4 but i can't help look

http://i26.tinypic.com/bg1ca9.gif
Hi Johnny,

About the only concern I have with this setup is the size of the pinbar. It may not be enough to reverse the massive drop before - kind of trying to catch a falling knife.

I personally would not consider this trade.......but of course, I could be wrong in my assessment.
  • #37,451
  • Jul 15, 2009 4:35am Jul 15, 2009 4:35am
Quote
So I guess its a good idea to trade in the most popular time frame then, so that more people are seeing the same setup?
Can this be achieved by changing the time zone of the charting software, or would you just have to use different charts?

bfd,
good idea is to trade the most active session -- europe/London & US session.

same setups are confined within similar MT4 brokers &/or software.
as mentioned, a bearish PB on IBFX (GMT) could be (hypothetical) a BEOB on FXPro (GMT +3) or Alpari (GMT + 2).

if u want to change timezone & can do it within a particular charting software, u can do it too (if it helps u in anyway).

Overall, the best thing to do & focus on is getting good at trading the james16 way (finding & plotting PPZs, then looking for PA setups in good locations &/or with good confluences).
  • #37,452
  • Jul 15, 2009 4:39am Jul 15, 2009 4:39am
Quoting johnnykanoo
hey guys im seeing a nice pb on the usdcad
swing low
lots of space
ill be watching, i know im not supposed to be on h4 but i can't help look
Johny, I am watching this one too, but I think that there is quite strong resistance area at 1360, 1370... and the nose of the bar seems pretty small comparing to the hard move down... But it might still work out...

Sorry, I see Ijay already commented this one...
Attached Image (click to enlarge)
Click to Enlarge Name: usdcad.gif Size: 16 KB
Live it or leave it!
  • #37,453
  • Jul 15, 2009 4:42am Jul 15, 2009 4:42am
Quoting ijay
Hi Johnny,
About the only concern I have with this setup is the size of the pinbar. It may not be enough to reverse the massive drop before - kind of trying to catch a falling knife.
I personally would not consider this trade.......but of course, I could be wrong in my assessment.
johnnykanoo,
ijay made a good point.
remember, not all PA setups (PB, BEOB, etc) are tradable in & of itself. there are other factors to consider, like trend, PA size (in relation to previous bars/candles), location, S/Rs, to name a few.
Having said that, this PB may/may not work.


EDIT:
see the huge red PB on Jul8 around 00.00 time (your chart). it worked for 30+ pips but eventually reversed.
that was a huge PB but the size was not enough to make a significant up move.
  • #37,454
  • Jul 15, 2009 4:42am Jul 15, 2009 4:42am
Quote
i Johnny,

About the only concern I have with this setup is the size of the pinbar. It may not be enough to reverse the massive drop before - kind of trying to catch a falling knife.

I personally would not consider this trade.......but of course, I could be wrong in my assessment.

so does that mean generally speaking that if a pb forms after a strong move one way or another that i should be careful because the move may still have momentum?

i did notice on my chart there is a ppz to the left which tops out slightly higher than the pb.

if you were to consider this trade would you wait for a break of this ppz? or stick with the 10 above the pb?

im just watching and learning coz ive only been trading j16 stuff for a couple of weeks although i have never used indicators and have been trading for a few years, still this material is new to me.

thanks, john
  • #37,455
  • Jul 15, 2009 4:48am Jul 15, 2009 4:48am
Quoting egkid
Thank you for your reply.I got your view
Always respect you and like your post
Thanks, i respect u & everyone here too.
Keep posting here, as much as u are doing on that "other" forum (F-TSD).
  • #37,456
  • Jul 15, 2009 5:06am Jul 15, 2009 5:06am
Quoting johnnykanoo
so does that mean generally speaking that if a pb forms after a strong move one way or another that i should be careful because the move may still have momentum?

i did notice on my chart there is a ppz to the left which tops out slightly higher than the pb.

if you were to consider this trade would you wait for a break of this ppz? or stick with the 10 above the pb?

im just watching and learning coz ive only been trading j16 stuff for a couple of weeks although i have never used indicators and have been trading for a few years, still this material...
Hey John,

Well, it is consolidating, so there is nothing that would tempt me to take this trade. Probably something like a large BUOB/BEOB appearing after the consolidation might get me interested in this pair again.

Glad that you find the J16 stuff useful. It has for me, as well as most of the others on this thread.
  • #37,457
  • Jul 15, 2009 5:10am Jul 15, 2009 5:10am
Quoting maheshbohir
Autopager makes it easier to read. I am on page 3 right now.
Lol....welcome to the reading club...I figure if I can read an average of 20 pages per day, I'll catch up reading the whole thread in 124.9 days..

Anyways, I've learned a lot in the 1st 55 pages that I have read so far.

GregB
  • #37,458
  • Jul 15, 2009 5:25am Jul 15, 2009 5:25am
Quoting batesmotel
Lol....welcome to the reading club...I figure if I can read an average of 20 pages per day, I'll catch up reading the whole thread in 124.9 days..

Anyways, I've learned a lot in the 1st 55 pages that I have read so far.

GregB
Hehehe... I think you could parallel the reading of the thread with the 3-6 months practice on dailies, a great "course" in this method. Then reread it while doing it for real.
I hear and I forget. I see and I remember. I do and I understand.
  • #37,459
  • Edited 5:46am Jul 15, 2009 5:27am | Edited 5:46am
Quoting kk007
Dear all,

Can anyone tell me why do these things (pinbar, BUOB, DLHC, etc.) work? The explanation may be posted before, but this is such a big big big thread. Please help!

Cheers!
My understanding is that these price patterns or "price actions" simply reflect the sentiment between the buyers and the sellers. For instance, take a nice PinBar occurring in a down trend.

1. The bears all happy and fuzzy about the trend that they are riding down, then...
2. all of a sudden the Bulls get interested and start buying like crazy, so the nice down candle turns around because of the buyers and closes forming a PinBar.
3. The bears definitely NOTICE this and get spooked.....they want to protect their profits and close their positions.
4. Now, many of the bears are sitting on the sidelines while the bulls are still buying....so guess what happens?
5. Right, there are more bulls than bears, so the price reverses....

Think of it as a boxing match between the buyers and the sellers...

Gregory Morris's book "Candlestick Charting Explained" is a good book in order to explore the meaning behind price action. Steve Nison also has a great book on Candlestick patterns....These two authors use the Japanese terms whereas, Jim uses many of the same patterns but uses the English or North American terms for the same patterns...

That's my understanding of it anyways....hope that sheds a little light on the subject.

GregB
  • #37,460
  • Jul 15, 2009 5:36am Jul 15, 2009 5:36am
Quoting tac
Hehehe... I think you could parallel the reading of the thread with the 3-6 months practice on dailies, a great "course" in this method. Then reread it while doing it for real.
we can all think of this (james16 thread reading) as "reading our way to eventual success"
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