james16 Chart Thread | Page 2031 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Where can I learn more about Price Action like those in James16 charts? 9 replies

Attachments: james16 Chart Thread
Exit Attachments

james16 Chart Thread

  • #40,601
  • Aug 11, 2009 2:21pm Aug 11, 2009 2:21pm
Quoting tradertt
Guys need your help here.

I plot my Weekly, Daily and H4 PPZ daily erasing everything and doing it from scratch so as to practice....

Personally I zoom out and place the one or two most significant zones next to the price. Then it's just a question of when price gets to it so I can look for PA off it.

There are tons of minor PPZ...don't get so caught on them (in fact, every bar makes a PPZ...put lines on the low and high of a weekly bar, and check what it gives you on the 4H).

Take the major few obvious ones where price flips around them. When time goes, you will develop an instinct of noticing the minor ones automatically without lines. Keep your charts simple.

IMO, you should look for trades mostly at swing low or high. The PPZs are good for helping you manage the trade (trail stops behind them). If your trade is in the middle of a swing, it has low potential to keep running longer.

If you trade the 4H, so place the major PPZs on daily. It will be much easier and clear where price flips) see the big picture).

I like my charts simple as possible...I see the PPZs automatically without lines...they are just the first thing that jumps out at me when I see a chart.

Hope that helps.

Ben
  • #40,602
  • Aug 11, 2009 2:27pm Aug 11, 2009 2:27pm
Quoting ghous
Hey Guys,

How's life?

Just walked in with my monitor and set it up. (I still have my old friend with me )

on to the catching up part now...

EDIT: Nice trade on the Gu those who went for it.

g
Hey Ghous-

Put that old boy out of it misery gently...
I'm pretty much done with all this ...
  • #40,603
  • Aug 11, 2009 2:27pm Aug 11, 2009 2:27pm
Quoting benji533
Personally I zoom out and place the one or two most significant zones next to the price. Then it's just a question of when price gets to it so I can look for PA off it.

There are tons of minor PPZ...don't get so caught on them (in fact, every bar makes a PPZ...put lines on the low and high of a weekly bar, and check what it gives you on the 4H).

Take the major few obvious ones where price flips around them. When time goes, you will develop an instinct of noticing the minor ones automatically without lines. Keep your charts simple.

IMO, you should...
Yeah I agree, its good to practice drawing these zones to train your eyes, however I just open each chart bare look for PA at swing high or low and if its there then start to look for s/r and map out where price might be headed. I have a round number indicator that draws a line every 500 pips, on daily this usually coincides with a ppz.
I hear and I forget. I see and I remember. I do and I understand.
  • #40,604
  • Aug 11, 2009 2:42pm Aug 11, 2009 2:42pm
Quoting tradertt
By the way, just want to confirm a few things:

Types of PA to trade (not talking about multi bars like what some does - Anyway Multi bars are 2 bars or 3 bars combined to form the basic PAs we trade right? )

1) Pin Bar
2) DBHLC, DBLHC
3) BEOB, BUOB
4) Inside bars (but I don't trade it often now)
Anything else I am missing out?

Types of confluence to look:
1) PPZs (if a line only have a swing high - Resistance - Is it considered as a PPZ?)
2) MACD Divergence
3) Fibs
4) 365 EMA
5) 150 EMA
6) Trend line

Things to look out for:
1) Traffic (Meaning...

Very good.

I'll add swing lows and swing highs.
All the idea is to catch a trend. If you get in the middle, your potential is an half (theoretically). In addition, most on the pin bars (which are the most reliable PA setup) will form at swings. Swings automatically are PPZs. So you have PA on a good location. That's just my opinion of course.

Another thing that scott and Mike commented on one of my posts this week...look for really significant price action bars. There are many poodle pin bars that have the shape but are really tiny (look more like natural bars). They just don't tell you anything.
It is something that also I forgot this week (thanks Scott and mike), the idea of price action is to understand what price is basically telling us. It is talking to you, listen to it (lol). If you see a pin bar with a real long nose, that means price reached a certain level, and something rejected it really hard (traders took profit, new trades entered on the other direction, whatever the reason), so most likely price will turn to the other direction (it has only two ways to go). Now if you have confluence to support the barrier which rejected the price, it becomes even a better chance for a winning trade.
On the other hand, if you get a mini pin bar which is very small....ok so price was rejected a bit...but it doesn't really tells you anything.

Ben
  • #40,605
  • Aug 11, 2009 2:46pm Aug 11, 2009 2:46pm
Quoting benji533
Very good.

I'll add swing lows and swing highs.
All the idea is to catch a trend. If you get in the middle, your potential is an half (theoretically). In addition, most on the pin bars (which are the most reliable PA setup) will form at swings. Swings automatically are PPZs. So you have PA on a good location. That's just my opinion of course.

Another thing that scott and Mike commented on one of my posts this week...look for really significant price action bars. There are many poodle pin bars that have...
When you say swing high and low, how long a chart do you look at?

If you see a PA at a swing high and low, what other confluence do you look for in this case since that area tends to be quite clear
  • #40,606
  • Aug 11, 2009 2:47pm Aug 11, 2009 2:47pm
  •  2mas
  • | Joined Apr 2007 | Status: Thanks to James 16 family | 89 Posts
Quoting tradertt
By the way, just want to confirm a few things:



Types of confluence to look:
1) PPZs (if a line only have a swing high - Resistance - Is it considered as a PPZ?)
2) MACD Divergence
3) Fibs
4) 365 EMA
5) 150 EMA
6) Trend line

.
Great tt....I'll just add to confluence what a lot love, especially Mike ...
BIG Round Numbers
  • #40,607
  • Aug 11, 2009 2:49pm Aug 11, 2009 2:49pm
Hate it when this happens - but it is cleansing to share it...

I live for this setup. First time back to the 365 EMA. On a Round number. On a PPZ (minor). Nice size PB. First trade of the day and I am licking my lips...

See the Bar lows? I *knew* they'd come into play. They did. Twice. Second bar closed south of the round number - and momma did not raise a complete fool - I closed the trade. You gotta be sh*tting me!

Humpf.

My golden setup. Turned to tin. Does not happen often. These usually bag some nice pips.

Here is the shameful chart. It happens...


...
Attached Image (click to enlarge)
Click to Enlarge Name: gj 8-11.gif Size: 25 KB
I'm pretty much done with all this ...
  • #40,608
  • Aug 11, 2009 2:52pm Aug 11, 2009 2:52pm
Quoting StoragePro
Hate it when this happens - but it is cleansing to share it...

I live for this setup. First time back to the 365 EMA. On a Round number. On a PPZ (minor). Nice size PB. First trade of the day and I am licking my lips...

See the Bar lows? I *knew* they'd come into play. They did. Twice. Second bar closed south of the round number - and momma did not raise a complete fool - I closed the trade. You gotta be sh*tting me!

Humpf.

My golden setup. Turned to tin. Does not happen often. These usually bag some nice pips.

Here...
(pat on back)...shit happens....
Never say never.
  • #40,609
  • Aug 11, 2009 2:58pm Aug 11, 2009 2:58pm
Just had a look on a carry trade member (CAD/JPY). They had a bit of a meltdown day today.

Pros :
-bar is off the 150 MA
-a round number of 87
-local S/R line
-a nice space to run up

Cons :
-MACD is going negative (just started)
-stocks and risk trades are strugling with their significant resistance zones (S&P500 with its 1000 mark)
-pin's shape is imperfect (close is not exactly within previous bar low)

Overall althought it looks juicy in terms of a potential space I will pass it. I'm still a strugling newbie, if seniors would be so kind to comment on this I would be very grateful.
Thanks Guys in advance.

Attached Image (click to enlarge)
Click to Enlarge Name: cad.gif Size: 14 KB
  • #40,610
  • Aug 11, 2009 3:05pm Aug 11, 2009 3:05pm
By the way, just want to confirm a few things:

Types of PA to trade (not talking about multi bars like what some does - Anyway Multi bars are 2 bars or 3 bars combined to form the basic PAs we trade right? )

1) Pin Bar
2) DBHLC, DBLHC
3) BEOB, BUOB
4) Inside bars (but I don't trade it often now)
Anything else I am missing out?

Types of confluence to look:
1) PPZs (if a line only have a swing high - Resistance - Is it considered as a PPZ?)
2) MACD Divergence
3) Fibs
4) 365 EMA
5) 150 EMA
6) Trend line
7) Swing High and Low (Contributed by benji533)
8) BIG Round Numbers (Contributed by 2mas)


Things to look out for:
1) Traffic (Meaning are we trading into a messy area with lots of highs and lows as taught by Jarroo ie SPACE)
2) Timing - Meaning that if the PA occurs during the mid day of the USA Session, I will not take it cause there isn't much volatility.
3) PA Bar must be a PIT BULL BAR not a poodle bar (Contributed by benji533)

Anything I am missing or am wrong? If so, please add on to this post.
  • #40,611
  • Aug 11, 2009 3:09pm Aug 11, 2009 3:09pm
Quoting razldazl
(pat on back)...shit happens....
Not in Mallorca!
I'm pretty much done with all this ...
  • #40,612
  • Aug 11, 2009 3:29pm Aug 11, 2009 3:29pm
Never can tell what is going to happen - Just gotta play the odds, and it may help to see the BIG picture.


Look a the chart attached. Notice the BEOB that kicked off the move we are in. No interruption, and in fact we are accelerating. With MACD Divergence occurring during the run up. (Big clue something is in the wind)

That PB might be a tad small to put the breaks on the move all of a sudden. Then again it might. You've have your doubts - you won't lose a thing if you listen to them.


...

Quoting pakiestra
Just had a look on a carry trade member (CAD/JPY). They had a bit of a meltdown day today.

Pros :
-bar is off the 150 MA
-a round number of 87
-local S/R line
-a nice space to run up

Cons :
-MACD is going negative (just started)
-stocks and risk trades are strugling with their significant resistance zones (S&P500 with its 1000 mark)
-pin's shape is imperfect (close is not exactly within previous bar low)

Overall althought it looks juicy in terms of a potential space I will pass it. I'm still a strugling newbie, if seniors would...
Attached Image (click to enlarge)
Click to Enlarge Name: cj 8-11.gif Size: 17 KB
I'm pretty much done with all this ...
  • #40,613
  • Aug 11, 2009 3:37pm Aug 11, 2009 3:37pm
i agree with storage pro's last sentence.

i think if you trade it you may be catching a falling knife.

the prior bars are quite small in comparison to the pin. just my 2 pence. (im from uk)
  • #40,614
  • Aug 11, 2009 3:43pm Aug 11, 2009 3:43pm
Quoting batesmotel
Your PB did have me biting my fingernails....But I learned from my AUDCAD: If I traded on a weekly chart, I should stick to my guns according to the weekly chart (I got out of AUDCAD with +30 pips....it was taking sooooo long to break...and it broke...my fault for getting out early and for not sticking to my trade plan).

So anyways, I'm glad I stood firm with the USDCAD...I used the confluence of finance minister Flaherty's warning about intervention plus a mediocre Bullish PB on the weekly chart....if CAD can penetrate 1.0978, it has a chance...
Pop goes the weasel. lol

I knew that Cad poodle PB had some strength. The Power of a great location. I've taken some of the table at the 1.0920 area and letting it ride. Now let's get some supportive strength at the 1.1000.
Sorry I can't post charts now

Nice one Mr. Bates.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #40,615
  • Edited 4:47pm Aug 11, 2009 3:54pm | Edited 4:47pm
Quoting benji533
Hey bro, whats up?

I wanted to ask...do you play inside bars?

Here is an example of an inside bar at a swing high, off heavy resistance....looks good IMO. But I did not take it because of the heavy support the bar lows below created. Waiting for another A setup

GBPJPY Daily.

Take care

Ben

Hey Ben. Just been reading some of your recent post . . . good stuff brother.

Lately I have been playing the Double Inside Bars as decribed by Dale on this thread and also some I4Bs or I10+Bs. I like more definable PA at these areas instead of IBs. But they are very tradable at the right location and confluence.
Indicators show the past. Price Action "Indicates" the future.
  • #40,616
  • Aug 11, 2009 3:58pm Aug 11, 2009 3:58pm
Quoting tradertt
When you say swing high and low, how long a chart do you look at?

If you see a PA at a swing high and low, what other confluence do you look for in this case since that area tends to be quite clear
Hi tradertt,

The market moves in waves (Google Eliot waves theory). They will always be major waves, and minor waves which are creating the majors.

If you trade a 4H chart, so zoom out (or go to daily) and place the major waves on your screen. I personally trade the daily (also 4H if I'm bored).
The major high and low swings on 4H will me minors on daily and weekly, so it's all comparative.

Now if you trade the 4H swings, you should look for the same confluence factors you have mentioned in your post. Zoom out to daily and weekly to see what supports your swings on 4H.

Here is an example chart of the eurusd 4H.
I have zoomed out the maximum I can, and placed the major PPZs where price flips. There are much more, but I keep them in my head without lines. Now look for the major swings on the current screen. I have marked them with white big arrows. See how the swings are automatically off PPZS (they create them). Every swing like that can run far and make you a big pip gain.
I have marked the minor waves (swings) with small red arrows. You can take those, but you can see they have much less potential and and much less pip gain. Why take them one by one when you can take all of them in one big wave? there will always be smaller swings.

http://img232.imageshack.us/img232/9944/dugmr.jpg

Now this is after the fact....Easy to be a genius that way. How do you spot these before they happen?...it is quite simple in fact....I already have the major PPZs that previous major swings created....all I need now it to wait and get price action confirmation on those levels.
Here is the thing. This material is easy. You can make money from it. But you must have the patient and disciplines to be able and take only the good ones. You can see they are few. It is hard. Follow 20 pairs and it will be easier....but it will still be hard to see mini trades run good without taking them. It can drive you nuts sometimes...at least it does that to me.

Confluence...I bet you there is some confluence on all of these levels...EMAs, fibs, what ever. There will always automatically be. The confluence is what shapes the waves....if those barriers were not there...the waves wouldn't get such shape.

I did not look at that before making the placing the lines on the 4H chart. Now I have zoomed out to weekly...and what I find? confluence of course. Look how the 61.8 fib ret lines up with the 365ema at my first line (1.29000). Also the 150ema lines up with the second one (1.37500).
In addition, look how those lines act as PPZs also on the big picture.

http://img512.imageshack.us/img512/5044/dugmr2.jpg

Yes...now on the weekly you can say that these are minor swings if at all.
But again, it all depends on the time frame you are trading. It is comparative. Look for the major swings on your current screen. The advantage of low time frames is that price will reach those levels faster...but the size of pip gain is much smaller...so, does it worth it? You will decide depending on your own personal style).


I think that the minor PPZs, EMAs, fibs, etc....are best used for managing your trade. You see those small red arrows on the first pic...they are spots.

I hope that helps you.
Just remember...I can't really say that anything of what I say is working. I hardly had a few trades in my life...I just spend my time reading and trying to understand and develop my own style. Nothing is proven...I just try to help by sharing my thought. Take that in the conclusion.

Ben
  • #40,617
  • Aug 11, 2009 3:59pm Aug 11, 2009 3:59pm
Quoting markf45
LOL. Was so tired this morning so decided to go back to bed.. Woke up 4 hours later and saw my TP was hit just above 1.08!
If only trading was always that simple
It is that simple.

Nice one Mark. It just takes a lot of time, hard work and practise to make it that simple. (does that make sense. lol)
It does get simpler over time.
Indicators show the past. Price Action "Indicates" the future.
  • #40,618
  • Aug 11, 2009 4:04pm Aug 11, 2009 4:04pm
Quoting ghous
Just walked in with my monitor and set it up. (I still have my old friend with me )
Don't know the story, but a new monitor can make a big difference.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #40,619
  • Aug 11, 2009 4:05pm Aug 11, 2009 4:05pm
Quoting ghous
Risky... But your trade management was commendable.
Yeah, looking back I wonder if it was worth all the effort. Not as simple as the GU trade. That one was set it and forget it.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #40,620
  • Aug 11, 2009 4:08pm Aug 11, 2009 4:08pm
Quoting LasVahGoose
Update
Well, the pin did break and went to where you'd expect. Stopped out at BE+1
PinBar is technically still in play, but going to stand aside, for now. Bias is still long.
Very nice LVG. Very smart.

I love when Price does what it suppose to do. When it doesn't, something else must be going on.
Indicators show the past. Price Action "Indicates" the future.
104 traders viewing now