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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

  • #43,621
  • Edited 4:23pm Sep 12, 2009 3:53pm | Edited 4:23pm
Quoting benji533
Here it is.
Hey guys,

I was going through rac's posts recently. When Nasir asked me to look at the 30 min GBPJPY, I have noticed a nice pattern (as far as I know) of rac's style...so I gave it a shot.

He trades blind entries based on PPZs and other factors as far as I know.
I entered on a blind buy order on the lower line. Moved my stop to BE on the second line. Exited around the last line. I get it interesting that the entry and exit were almost on the pip (although it may push up even more).
I think the chart is talking by itself...the PPZs are clear.

My question to the people here which are familiar with rac's style is - where would he be setting his initial stop loss in this case?

By the way, I won't be here all the next week, so have a great trading week folks

Ben

PS - By the way, in this case it was too late for a limit order, so I entered using a market order...but just for the example...it suppose to be a limit order.
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  • #43,622
  • Sep 12, 2009 4:22pm Sep 12, 2009 4:22pm
Quoting benji533
Hey guys,

I was going through rac's posts recently. When Nasir asked me to look at the 30 min GBPJPY, I have noticed a nice pattern (as far as I know) of rac's style...so I gave it a shot.

He trades blind entries based on PPZs and other factors as far as I know.
I entered on a blind buy limit order on the lower line. Moved my stop to BE on the second line. Exited around the last line. I get it interesting that the entry and exit were almost on the pip (although it may push up even more).
I think the chart is talking by itself...the PPZs are...
With a 61.8 Fib level confluencing with that PPZ it would be a potential Rac style trade. He uses pretty tight stop losses on his setups, 30-20pips.
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Indicators show the past. Price Action "Indicates" the future.
  • #43,623
  • Sep 12, 2009 4:27pm Sep 12, 2009 4:27pm
Quoting jarroo
With a 61.8 Fib level confluencing with that PPZ it would be a potential Rac style trade. He uses pretty tight stop losses on his setups, 30-20pips.
Yep. Seems that also the 50 ret lines up with my BE point. Thanks Jarroo.

So basically the stop has nothing to do with S/R, or something in these cases? only 20-30 pips automatically?

Ben
  • #43,624
  • Edited 5:01pm Sep 12, 2009 4:38pm | Edited 5:01pm
Quoting benji533
Yep. Seems that also the 50 ret lines up with my BE point. Thanks Jarroo.

So basically the stop has nothing to do with S/R, or something in these cases? only 20-30 pips automatically?

Ben
I not sure totally on his stop loss placement inrelation to S/R, but just to keep his losses small if they occurr.

With all confluencing tools, like Fib levels, they really mean nothing by themselves in the sense of how we use them here. They really need to have another level or tool to have synergic strength. There is a S/R level lining up with the 50 ret that made your B/E point look real good, Ben.
Indicators show the past. Price Action "Indicates" the future.
  • #43,625
  • Sep 12, 2009 5:18pm Sep 12, 2009 5:18pm
Quoting jarroo
I not sure totally on his stop loss placement inrelation to S/R, but just to keep his losses small if they occurr.

With all confluencing tools, like Fib levels, they really mean nothing by themselves in the sense of how we use them here. They really need to have another level or tool to have synergic strength. There is a S/R level lining up with the 50 ret that made your B/E look real good, Ben.
I think that if being picky with these....trading blinds only based on SR can make good money on any TF. This will be my next project

I know that many times fibs and moving averages will line up, but I get it hard using them.
Fibs - you can pull them from million different locations on one chart.
Moving averages - I see how Jim's EMAs act great as SR, but still can't feel comfortable with it. I am always thinking logically - "what the hell past average of price has to do with rejecting price?!?!". I just can't see any logic in the world using them. Maybe it would make sense if there is only one kind of period moving average which all traders would be looking at...but there are tons of them. I have tried plotting many different periods, and there are many that reject price.
It's like saying that if price moved lower faster in past average than currently - than it will bounce.

I am by no means trying to pick on most of the traders here which use moving averages. Really, I don't. I respect all of them.
I just can't get it into my head and feel comfortable. I feel dumb when doing it.

I will really thank everyone which can try and explain me the logic of using them.

Jarroo, not directly to you brother I just found that rac is using fibs and moving averages...

Ben
  • #43,626
  • Sep 12, 2009 5:37pm Sep 12, 2009 5:37pm
Quoting benji533
I think that if being picky with these....trading blinds only based on SR can make good money on any TF. This will be my next project

I know that many times fibs and moving averages will line up, but I get it hard using them.
Fibs - you can pull them from million different locations on one chart.
Moving averages - I see how Jim's EMAs act great as SR, but still can't feel comfortable with it. I am always thinking logically - "what the hell past average of price has to do with rejecting price?!?!". I just can't see any logic in the world using...
Not sure why they work either. I do like the longer term MAs like Jim.

But the main point is that when they come together at a PPZ level they can add alot of strength to a PA setup.

The 1.5800 PPZ level on the Daily Eur/Cad is a good example. The 1.5800 is covered with Fib levels and long term MAs; 365ema,150ema,(I guess you could add the 200ema, 250 ems, and 324 ema , but that would look a lttle messy. lol) The point is that its a heavily confluenced area for a Rac type trade or PA. Inside Bar in blue. PB in green.
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Indicators show the past. Price Action "Indicates" the future.
  • #43,627
  • Sep 12, 2009 5:38pm Sep 12, 2009 5:38pm
Quoting benji533
I think that if being picky with these....trading blinds only based on SR can make good money on any TF. This will be my next project

I know that many times fibs and moving averages will line up, but I get it hard using them.
Fibs - you can pull them from million different locations on one chart.
Moving averages - I see how Jim's EMAs act great as SR, but still can't feel comfortable with it. I am always thinking logically - "what the hell past average of price has to do with rejecting price?!?!". I just can't see any logic in the world using...
I feel quite the same on this Benji.

PPZs and price action make so much sense, but the fibs and moving averages don't.

I don't use them either, well, every now and then I'll throw on a fib to see, but I can't quite get to like them.

Maybe I will learn to use them. The skilled people here find them useful, so of course they are. We all have to find our own style that we feel comfortable with. Maybe fibs and MAs aren't part of our style... yet...
  • #43,628
  • Sep 12, 2009 6:31pm Sep 12, 2009 6:31pm
Quoting jarroo
Not sure why they work either. I do like the longer term MAs like Jim.

But the main point is that when they come together at a PPZ level they can add alot of strength to a PA setup.

The 1.5800 PPZ level on the Daily Eur/Cad is a good example. The 1.5800 is covered with Fib levels and long term MAs; 365ema,150ema,(I guess you could add the 200ema, 250 ems, and 324 ema , but that would look a lttle messy. lol) The point is that its a heavily confluenced area for a Rac type trade or PA. Inside Bar in blue. PB in green.
Yep, I understand that when you have several factors which reject price - they are more powerful when you get them all together at the same place.

But I do not understand why the certain factor (moving average) is rejecting price.

- Price action shows what price is recently doing (being rejected).
- Round numbers are order flow and interest areas. You may find new traders that will enter at this level against the current move - reject price.
- PPZS (support and resistance) areas are where traders look to enter by masses.
- divergence presents momentum (this isn't a rejecting factor - but a useful tool with sense behind it).

These factors are making the rejection of price. People look at these factors by masses and act the same. You can benefit by knowing what other humans are doing.

Why does average of old data rejects price? anyone looking at the same moving average and make their decisions based on the same moving average? No.
What causes the rejection of price? Maybe it's the nature of these to line up with PPZs, but aren't the factor of the rejection by themselves?

These are questions I MUST ask myself before risking real money based on these tools.

Fibs are making more sense because many traders are looking at them. But I still don't like the fact you can see tons of different ways to look at them. In addition, every additional thing on my chart makes me unfocused and messes my mined.

Ben
  • #43,629
  • Sep 12, 2009 6:53pm Sep 12, 2009 6:53pm
Hi Benji

Take a look at this... from your own earlier post.

Fibs are making more sense because many traders are looking at them. But I still don't like the fact you can see tons of different ways to look at them.

And Now....

Moving averages are making more sense because many traders are looking at them. But I still don't like the fact you can see tons of different ways to look at them.
  • #43,630
  • Sep 12, 2009 7:31pm Sep 12, 2009 7:31pm
Hey Benji,

Look for NB thread http://www.forexfactory.com/showthread.php?t=86429
YOu can find good patterns in S/R and blind entries.
Very GOOD.

But if you combine this information + PA, is a powerful material, even in lower TF


Quoting benji533
Hey guys,

I was going through rac's posts recently. When Nasir asked me to look at the 30 min GBPJPY, I have noticed a nice pattern (as far as I know) of rac's style...so I gave it a shot.
...........r.
What does not kill me makes me stronger. Friedrich Nietzsche,
  • #43,631
  • Sep 12, 2009 8:29pm Sep 12, 2009 8:29pm
Quoting mbqb11
Who is Darkstar (sorry those that know me will laugh too)

I'm Darkstar bitches! And don't you forget it!

Sup Mike?
  • #43,632
  • Edited Sep 13, 2009 12:02am Sep 12, 2009 8:38pm | Edited Sep 13, 2009 12:02am
Ohh. the great Darkstar

Please take some cookies and coffee, and post more in our good thread.....

Quoting Darkstar
I'm Darkstar bitches! And don't you forget it!

Sup Mike?
What does not kill me makes me stronger. Friedrich Nietzsche,
  • #43,633
  • Edited 9:19pm Sep 12, 2009 8:53pm | Edited 9:19pm
Quoting Darkstar
I'm Darkstar bitches! And don't you forget it!

Sup Mike?


omfg it's him !



EDIT -

@Ikki - is that you in your profile pic ? You look a lot like Axle Rose

2ND EDIT -

I think I will just mark out and add some of this for DS considering he unfortunately isn't around much -
  • #43,634
  • Sep 12, 2009 9:43pm Sep 12, 2009 9:43pm
Quoting raczekfx
It's 1-800-racscave
Oh, I see. . . I was dailing 1-800-KaBoom!
Indicators show the past. Price Action "Indicates" the future.
  • #43,635
  • Sep 12, 2009 9:46pm Sep 12, 2009 9:46pm
Quoting Darkstar
I'm Darkstar bitches! And don't you forget it!

Sup Mike?
I knew he was lurking.

Hey Darkstar this is not a signal service. Do your own damn work.



(heheheheh)
Indicators show the past. Price Action "Indicates" the future.
  • #43,636
  • Sep 12, 2009 10:25pm Sep 12, 2009 10:25pm
Quoting jarroo
I knew he was lurking.

Hey Darkstar this is not a signal service. Do your own damn work.



(heheheheh)
LOL

You're on fire tonight J.
Bundy's status today: "Waiting..."
  • #43,637
  • Edited Sep 13, 2009 12:18am Sep 12, 2009 10:27pm | Edited Sep 13, 2009 12:18am
Quoting bundyraider
LOL

You're on fire tonight J.
I'm hoping he'll take it the wrong way and start posting. lol
Indicators show the past. Price Action "Indicates" the future.
  • #43,638
  • Sep 12, 2009 10:47pm Sep 12, 2009 10:47pm
Quoting jarroo
I'm hoping he'll take it wrong way and start posting. lol
"Tower, this is Darkstar requesting a flyby."
Bundy's status today: "Waiting..."
  • #43,639
  • Sep 13, 2009 2:29am Sep 13, 2009 2:29am
Quoting nasir.khan
Hey Trigger:

.......
yes I think that I messed up with this stuff but after 12 hour of studying you know what I mean it's really hard to focus on one think....

you are right about the market ,it's how you react to it, but first of all you must know the market befor know yourself, PA it's only a half of story. It's more than just ooo...look a PB,should i play them all of them.

and about market inefficiency,it was relatead to another post about what darkstar it's doing

PS: hello darkstar I see that after a long pause he finally post again,I hope that he will post more for sure we have a lot to learn from him
  • #43,640
  • Sep 13, 2009 2:44am Sep 13, 2009 2:44am
Quoting Darkstar
I'm Darkstar bitches! And don't you forget it!

Sup Mike?
ah man the good old days. Good to see you Bill

You guys read his posts and still have not a clue how smart this man is(that is literally the biggest compliment I can pay). Huge smile to my face to see you drop around

Nothing more but a
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