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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

  • #39,921
  • Aug 4, 2009 8:23pm Aug 4, 2009 8:23pm
Quoting tyler812
Some interesting PA on eur/cad....H4 IB sitting nicely on 1.5400, and a doji-type bar on H1. Also, still respecting the bullish trendline


Attachment Attachment
Yep - my feed shows a PB. Barely a PB, but a PB non-the-less. This one has some room too if it gets past 1.5500.
I'm pretty much done with all this ...
  • #39,922
  • Aug 4, 2009 8:30pm Aug 4, 2009 8:30pm
Quoting StoragePro
Ah - poop. Now you've done it. It will run now.
LOL. You KNOW it will.

I honestly get a kick out of just watching ones like this play out as we expect. (reacting to the levels we read. )

...So I'll be stoked if it does run. Even when on the sidelines.
It just solidifies the techniques, eh?

Over time I'll notice another little hole in the system that can make money if managed one way or another. So it's not wasted energy.
Bundy's status today: "Waiting..."
  • #39,923
  • Aug 4, 2009 8:46pm Aug 4, 2009 8:46pm
Quoting Grover
Anyone else feeling the bullish engulfing bar on AUDCAD?

Has a lot of space to run, 23.6 fib, and right on a resistance line

Buy limit above resistance, stop below bar
Yep, I'm in, only I took the signal off of the weekly IB break (or 2 week PB)

GregB
  • #39,924
  • Aug 4, 2009 9:16pm Aug 4, 2009 9:16pm
Quoting batesmotel
Yep, I'm in, only I took the signal off of the weekly IB break (or 2 week PB)

GregB
haha.... see, now why didn't we check the W chart? oh well.

(Switch to candles and that IB's a Bullish Engulfing pattern too, btw)
Bundy's status today: "Waiting..."
  • #39,925
  • Aug 4, 2009 9:57pm Aug 4, 2009 9:57pm
Five up days in a row...Can the EU go for more? A daily IB break could confirm a resounding yes...

GregB
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  • #39,926
  • Aug 5, 2009 1:55am Aug 5, 2009 1:55am
Hey guys,

A newbie question:

How do I play inside bars?
At the breakout of the inside bar itself, or at the breakout of the previous bar?

Thanks,

Ben
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  • #39,927
  • Aug 5, 2009 1:58am Aug 5, 2009 1:58am
Guys/girls,

basic question here...

I find myself in 2 trades currently a short EURGBP (few days old daily BEOB) and a long EURCAD (triggered late on yesterday weekly pin ...)

Not wanting to discuss whether these are good trades or not (I think I know the answer ) but I find myself on one hand wanting a show of strength from the Euro (EURCAD trade) and on the other hand a weakness (EURGBP) now I know in any trade there are two pairs and indeed the EUR could stay the same through out these trades and I could win based on the behaviour of the other pairs involved (GBP and CAD in this example) but is this situation advisable? - can I really take a trade based on a single charts analysis and not worry about what other charts are doing? my gut feeling is yes and I can trade like this but I'd really like to know what the adults (J16,mike,jaroo.. etc) think about this sort of senario?

cheers all...

and randomly I have just spilt poached egg over my keyboard... not relevant... but true nonetheless...

Tom
  • #39,928
  • Aug 5, 2009 2:28am Aug 5, 2009 2:28am
Quoting benji533
Hey guys,

A newbie question:

How do I play inside bars?
At the breakout of the inside bar itself, or at the breakout of the previous bar?

Thanks,

Ben
Hey Benji533

Well I play inside bars few pips below/above the bar itself. Previus bar can many times be much more bigger and that won't work.
Someone correct me if I'm wrong, but I think this is right way.
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  • #39,929
  • Aug 5, 2009 2:30am Aug 5, 2009 2:30am
you can play it either way, the break of the Inside bar is more aggressive, its safer to play the break of the "mother candle"


Quoting benji533
Hey guys,

A newbie question:

How do I play inside bars?
At the breakout of the inside bar itself, or at the breakout of the previous bar?

Thanks,

Ben
  • #39,930
  • Aug 5, 2009 2:45am Aug 5, 2009 2:45am
Quoting advfntrader
you can play it either way, the break of the Inside bar is more aggressive, its safer to play the break of the "mother candle"
Thanks gasgas and advfntrader for the answers, I appreciate that.

Does anyone know what is the J16 style of plying them?
Both ways?

Ben
  • #39,931
  • Aug 5, 2009 3:14am Aug 5, 2009 3:14am
Quoting fat_tom
Guys/girls,

basic question here...

I find myself in 2 trades currently a short EURGBP (few days old daily BEOB) and a long EURCAD (triggered late on yesterday weekly pin ...)

Not wanting to discuss whether these are good trades or not (I think I know the answer ) but I find myself on one hand wanting a show of strength from the Euro (EURCAD trade) and on the other hand a weakness (EURGBP) now I know in any trade there are two pairs and indeed the EUR could stay the same through out these trades and I could win based on the...
hi Tom, I'm not a grown-up but, instead, did want to ask you how you would manage the EG short from here? to me it looks like there was a pin on monday although not broken so 'not officially a pin'. It also is finding some support on the 365 and the daily ppz. I would normally chicken out at this point and take profit but wondered what you were doing with your stop? thanks
  • #39,932
  • Aug 5, 2009 3:42am Aug 5, 2009 3:42am
Quoting salisa
hi Tom, I'm not a grown-up but, instead, did want to ask you how you would manage the EG short from here? to me it looks like there was a pin on monday although not broken so 'not officially a pin'. It also is finding some support on the 365 and the daily ppz. I would normally chicken out at this point and take profit but wondered what you were doing with your stop? thanks
Salisa,

I was in this trade from last Wednesdays BEOB (weekly DHLC for confirmation - I posted about this a few days ago as well) - the good news is its just dropped a fair bit in the last hour or so!!!

my SL is now at BE (did that on Monday I think!)

This is the sort of trade that I have recently been killing for small 40-60 pips profit but I am trying to let them run now.. of course it may not get there but my current TP is 0.82!!!!! If it gets to the resistance @0.84 I may well move my stop to around there however as I would expect a retrace at this point and not sure I could stomach a 130-140 pip profit going back to BE!!!

Tom
  • #39,933
  • Aug 5, 2009 4:13am Aug 5, 2009 4:13am
Hey folks

Think we got a nice Breakout Trade on the E/U (and also on G/U).
On D1 we have a nice BUOB from Monday, we break a 50 ret, the 1.4300 level and also a TL.

Now iīll wait for a ret on the 50 of the BUOB to go long, think will be a strong move up.

Also on W1 we had a nice PB last Week.

The only reason not to take this trade is the divergence on the MACD on D1.

Any thoughts????
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Trade well and many pips to all. Martin
  • #39,934
  • Aug 5, 2009 4:21am Aug 5, 2009 4:21am
Quoting benji533
Thanks gasgas and advfntrader for the answers, I appreciate that.

Does anyone know what is the J16 style of plying them?
Both ways?

Ben
Develop a case individually for each direction. Does case 1 (long) have enough room before hitting potential trouble? Does case 2 (short) have enough room before hitting potential trouble?

Most of the time one way is a way better trade potential than the other and you just ignore the other case.

There are times when James will have orders on both sides depending the feasibility of each option. ...Well, that's how he used to see it the way I remember. lol

Break of big bar before the IB or IB itself? ...Well, is the Big bar's perimeter right up against a PPZ?? Well you wait for the break of the big bars perimeter, since it corresponds with an important level for our trade to succeed. If the IB has enough room for management purposes (getting to safety) then use that bar instead.

Location Location Location. As always!
Base your decision on location in relation to all your S/R studies. ...Same as all your trades.
Bundy's status today: "Waiting..."
  • #39,935
  • Aug 5, 2009 4:31am Aug 5, 2009 4:31am
Quoting benji533
Thanks gasgas and advfntrader for the answers, I appreciate that.

Does anyone know what is the J16 style of plying them?
Both ways?

Ben
Hi Ben,
In my opinion there are two kinds of Price Action signals, Reversal patterns and Breakout patterns. Pinbars, BUOB, BEOB, etc fall into reversal patterns. Inside bars, TBH/TBL, and general consolidation set us up for a breakout.

The idea of inside bars is that the previous day high and low are serving as resistance and support to the extent that orderflow stays between them. As time goes on, price becomes even more contracted... if we zoom in to a lower timeframe, this would form a triangle pattern, which is a common precurser to a breakout. It's a fight between bulls and bears and once one decides it wants and gains control, price ideally explodes through the inside bar range.

From most of what I've read, they are best played using the break of the inside bar itself as the entry, with stop being at opposite end of inside bar itself. It is strongly advised to test this yourself through back and forward testing. I've found that the best inside bar plays are also found at PPZ, as the name suggests - 'pivot zones'...

I've found that inside bars in general have a much lower win probability with many false breakouts. But because of the smaller bar stop, they also tend to allow for higher R gains. Personally, I don't play inside bars by themselves. There are two types of inside bars I will consider playing:
1. Inside bars that form after strong reversal PA (a huge BUOB followed by an IB toward the top of the range of the BUOB, for example). Then I will typically enter at the break of the BUOB, with my [reduced] stop at the far end of the IB.
2. When we have successive inside bars. As I mentioned above, a few inside bars strung together increases the chances we'll see a violent reaction once we have a break. As always, location is key. Space is always important, even in IB plays.

I've attached a chart showing a few 2IB (inside bar followed by inside bar). In closing, I would strongly recommend NOT worrying about playing IBs or 2IBs until you have a firm grasp of the reversal PA. Although a price action signal, they are quite different in terms of the trading psychology of the setup.

Sorry if this is confusing. Let me know if you have other questions. In addition, you may look through some of my other posts in this thread as I've talked about this before. Also, Dale has some great posts on inside bars.

http://www.forexfactory.com/showpost...ostcount=33346
http://www.forexfactory.com/showpost...ostcount=35457

Josh

EDIT: Chart is daily AUD/USD
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  • #39,936
  • Aug 5, 2009 4:34am Aug 5, 2009 4:34am
Breakout on a strong confluence of fib levels.

We have a TBLHC on the D1.

But thereīs also a divergence on the MACD.

Trade or no trade, thatīs the Quest.
Attached Image(s) (click to enlarge)
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Trade well and many pips to all. Martin
  • #39,937
  • Aug 5, 2009 4:36am Aug 5, 2009 4:36am
Quoting fat_tom
Guys/girls,

basic question here...

I find myself in 2 trades currently a short EURGBP (few days old daily BEOB) and a long EURCAD (triggered late on yesterday weekly pin ...)

Not wanting to discuss whether these are good trades or not (I think I know the answer ) but I find myself on one hand wanting a show of strength from the Euro (EURCAD trade) and on the other hand a weakness (EURGBP) now I know in any trade there are two pairs and indeed the EUR could stay the same through out these trades and I could win based on the...
Quote
Not wanting to discuss whether these are good trades or not (I think I know the answer )
I loved that!!

Quote
but I find myself on one hand wanting a show of strength from the Euro (EURCAD trade) and on the other hand a weakness (EURGBP) now I know in any trade there are two pairs and indeed the EUR could stay the same through out these trades and I could win based on the behaviour of the other pairs involved (GBP and CAD in this example) but is this situation advisable? - can I really take a trade based on a single charts analysis and not worry about what other charts are doing? my gut feeling is yes and I can trade like this but I'd really like to know...
You should just treat them independently IMHO,

Because look at it like this, you're short Eur/Gbp and long Eur/Cad but that doesn't always mean that you're looking at a weak euro in one pair and stronger euro in the other, the price movement may well be caused by the other pairs...i.e gbp and cad.

So for example if GBP goes up eur/gbp will fall but eur/cad maybe little effected...

If you're not willing to go into the depths of exploring co-relations you should just treat them individually and let PA show you the way...

Just my 2 pips.

Ghous.
I believe . . .
  • #39,938
  • Aug 5, 2009 5:01am Aug 5, 2009 5:01am
Locations like these is where we really want our trades to be at,

Swing high + double top + decent looking IPB = 40 safe pips

Ghous.
Attached Image
I believe . . .
  • #39,939
  • Aug 5, 2009 5:03am Aug 5, 2009 5:03am
Quoting bundyraider
Develop a case individually for each direction. Does case 1 (long) have enough room before hitting potential trouble? Does case 2 (short) have enough room before hitting potential trouble?

Most of the time one way is a way better trade potential than the other and you just ignore the other case.

There are times when James will have orders on both sides depending the feasibility of each option. ...Well, that's how he used to see it the way I remember. lol

Break of big bar before the IB or IB itself?...
Thanks Bundy!

Here is what I have learned so far about sideways market...

First of all I will mark the major PPZs. Usually I will be able to highlight small boxes of micro sideways and PPZs between them. So I know where the price is heading if a break occurs.

Now the box itself. I know from what I have learned so far that many system traders loose there money in these range areas.
The way of trading them in J16 style is usually play breakouts of inside bars (because the most common PA setup in these areas are inside bars...I think...it makes sense because range areas are where there is indecision between bears and bulls....and inside bars show that as well, right? Just a thought). Another good way to play them is to blindly place a buy stop order above the consolidation box, and sell stop below it.

For the inside bars, I will always know when to get out (when price reaches the edge of the consolidation box).

So I will try all they strategies I have mentioned above on demo, and see how I can cope with a sideways market. These material begins to sink. It's good.


Ok sorry for all the talking to my self above lol....just want to give a back round of why I am asking that question and where I am.

The only thing I needed to know is how to play the inside bars correctly, and that's why I have asked the quwstion. Of course it depends on the the location. But Bundy, do you decide to play them at the inside bar break or previous bar break depending on the room it has to move?
Lets say I want to be very picky and play it the safer way. Will it be right to take only trades that have room to move after they break the previous bar?
I have noticed that the price breaks the inside bars themselves most of the time very easily and then retrace hardly. It looks to me not so reliable to play these breakouts.
I am confused cause I think I have seen some where in this thread that Jim played them both ways.

Ohh well....I guess only personal experience and developing my own style will help me decide. Thanks for the answer though.

By the way, a completely other question: is it right to say that buob are most reliable on swing lows and beob are most reliable on swing highs?

Ben
  • #39,940
  • Aug 5, 2009 5:04am Aug 5, 2009 5:04am
Quoting pipmax
Breakout on a strong confluence of fib levels.

We have a TBLHC on the D1.

But thereīs also a divergence on the MACD.

Trade or no trade, thatīs the Quest.
You mentioned a TBLHC, might be my chart but those are not really even close; 1.68884 and 1.69010 ok forget the "pipets" 1.6888/1.6901. Recalling from previous threads, we're looking for 1-2 pip max difference to satisfy the requirement of a TBLHC. That's kinda besides the point though in that the last daily bar hasn't even closed yet, so who knows where it'll end up.
But, if it does close as a TBLHC and you were looking for a long position, some would want to see a retrace back to 1.6745 area with PA to confirm a long entry.
A lawn mower is not an effective tool to pick-up dog poop!
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