james16 Chart Thread

Hi Cyrus,

I'm not Joel but I presume he means that he is in a free trade because his stops are now at break even.

Cheers

Dave

I'm not Jarroo (but I play him on tv)

I assume he means that the trigger is the low/high of the actual bar that triggered the trade, whereas the break is the entry point of the trade. Meaning that depending on your buffer when price turns around to retest, it is retesting the low/high of the trigger bar. Price doesn't care about where your entry is, but the high/low of the trigger can act as an SR level. Which is why it can be a good idea to nestle your stop a little behind break even.

Hope that helps,

Aaron

Hi guys, good morning, afternoon, or evening to you all.

I read from some articles that for those bank or institutional traders, a return of 20-30% annually on their funds is considered good. I am pretty sure that most of the seniors here could easily beat that.

So I was wondering if any of the bank or institutional traders use this PA stuff the way James teach here? Or will they have issues with liquidity since they move a very large funds? If that is the case, how big can a retail trader grows until he/she can't use the PA effectively?
I am sorry if these questions are bit out of topic, but I am just curious.

Thats where I had mine..91.75..didnt get filled. so played the pin as was..

hey guys just reading through the thread and finding this:

http://www.4shared.com/file/96740657...er_Market.html

I tell you that it will worth to watch it and I think that it will help more guys that are following this thread.

it's an interviw with Mark Douglas the author of "Trading in the zone".

I'll go back in my cave

Your welcome, Triger.

If you haven't already, read Darkstar's posts. I haven't gone through heaps of them yet, but from what everyone says he's covered a lot of these basic market mechanics very well. (Anyone confirm? ...Please. )

I will do this too at some point. I have a pretty good understanding, but I have no problem whatsoever with dropping my pride and reading someone elses thoughts on the subject.

Hi No. ('No' ...heh heh)

More info and a chart below.


Right Guys,

Sorry for the slow reply first. I seen this last night, but I've kind of been a can or two short of a six pack the past few days, if you know what I mean? lol Had to leave this till later... So here it is...

First point thought to ttt, yes , but not so much because they missed the boat. More because they may see it as defining the top of a new range (referencing the example coming up below.)

Check out the chart below:-

From the left -

Check out the first SMALL blue arrow and the second SMALL blue arrow. (By the way, I've chosen a less clear PPZ or S/R flip to illustrate this point. )

When I say "don't look for bar highs as such" I don't want you to take it literally as "don't look for them". You should always be aware of them. lol

Bare with me on this one...

If you look at the first small blue arrow, we got our first rejection when support became resistance. That pink 'dot-dash' line just above them is roughly the level that meant something before (This is off screen. Look at your own charts to see the multiple bottoms at previous support that precedes my screen area.)

When we got the bar at the second small blue arrow, it beat the previous peak but was beat down again. There is obvious indications of traders seeing this area as a bargain. They don't even care if we aren't at the pink line. They just want in and see the pair at good value as a short from this level. (These traders of course can STILL be beat out by a BIG change in sentiment . NEVER forget that. (-: )

The LARGE blue arrow shows the most violent rejection of the level. How obvious is it now that this level has A LOT of interest? eh?

In this case it created a large pin bar (though in a sideways market, but oh well, it's an indication anyway. (-: )
Often these violent rejections take the form of all our beloved bar patterns here. ...BEOBs and BUOBS, Pins , DBHLC and so on. (...Understanding what a GREAT price action bar signal is yet? lol)

When I said Violent rejections I was just trying to get people to see the major price rejections that indicate great trading zones and to stop taking bars that are just shaped right, and instead look for the ones that show REAL STRONG information that you can use to trade with. Bars that keep "throwing a spanner in the works" of everyone trying to go the other direction. Bars that keep happening. When these areas happen, there are nearly always spikey looking areas of bars on one side (either long side or short be what I mean. aARRRR me hartys! ) . This doesn't make it a magic ingredient. You need to recognise the REAL ones. Takes a bit of practice. Some times price stalls and creates these areas, but they still look different most of the time anyways. Over time you'll recognise the difference with that as well. The violent rejections won't be as pronounced. You'll get them on both long and short sides of the bars.


Now... , if you go LONG from the bottom of this chart I have here (Where the bottom most pink 'dash-dot' line is, along with that 'baby blue' trendline that is there of mine as well ) ...if you went long there, there is NO WAY you should be expecting the trade to go past those areas marked with the blue arrows. You wouldn't DARE go long that late especially. You'd want a major bust of that selling zone. MAJOR bust.
(NOTE: I use line charts for targets A LOT if you're wondering why i ignored the Blue arrowed highs as targets. I've learnt not to be greedy ,and this example shows how it has improved my target hit rate over time as I discovered it. FYI, No trades were taken on this chart either.)

I'm going to throw up some more examples the next day or two to show a bit of variety and clear this up a bit further for all y'all.

Can you see how you shouldn't be looking at the charts as just a bunch of exact bar highs and lows etc?? ....We talk of zones and I'm sure you get that bit already. ...What I'm trying to get across is for you to think about how the bars are painting a picture of the the underlying interest in the pair at any given time. ...The REAL important bars are the ones that show the big money coming in and eclipsing the small action. Look at the charts this way you can start to get an idea on how to move your stops as a trend progresses. You can see how all the small highs and lows aren't as scarey to sit through either. The ones to look out for are the ones where there's some real weight getting thrown around. In the case of a trend developing you can be in on a trade and watch the small ups and downs happen ...all relaxed and waiting.... and recognising that all of a sudden the big orders have moved along with the trend, and are now created spikey violent type reactions at a new level. AHAAHH!!! BINGO!!...Now you can move your stop closer and use this new protective area of big traders to hide your stop behind.

(I'm struggling to type this out now. Damn that whole weekend of partying! ...football finals )

Where was I??

Arrrrmmmmm... oh yeah... ...whoah, Nup.... Haven't got it... damn!...

...Anyway , It's a pity there wasn't a violent reaction at the second Yellow Arrow. A BIG Bearish Outside Bar or something. As that would have made for an awesome signal to go short. The rest of that chart allowed me to start showing what I meant at least.

Please, please, please ask further if you need it. Like I said I'm kind of not in a "post a clear explanation" - type of mood. LOL


I get what you mean and I'm sure others answered this as well.

What happens though is the full bar losses aren't that numerous, ....when you choose the right trades. There are a lot of winners.

Wait for the trades that have strong protection behind them ...like what I talked about with those violent rejections above. Wait for the best price trade. Wait for the one that is your ideal trade entry, rather than getting in on a trade early with half a position or whatever "just so you don't miss out when it leaves without you" <---really avoid doing that. LOL

...Really wait! , ...and say "NO" more often too. (-:

Is it the opposite?

Got stopped out for another full loss

What did I miss out?

Hey tradertt,

That BEOB, had a good shape, but look all the support that you have. Is like a wall. You can draw a fib retracement and look the mini ppz in 4h confluence with level 50.

Hope this can help you.

Congrats man. really excellent.

I went thru a period where I was pretty sure that the method was BS... and Jim was a scammer ... Believe it or not. I DID find the BS, it was inside of me. Since then I got profitable on demo, and then went live.

I remember the light shining a whole lot brighter when I saw Mike's "Cherry" video too. It was a Eureka moment for me.

Now the hardest part of this is to keep the concepts simple and trade the best setups. As soon as I get sloppy, or start making crap up, I get clubbed on a trade.

Looks to be setting up a nice pin bar in between round number s/r's 1.70000 and 1.71000 on daily. Nose has broken through 1.70000 and fib, then retraced. Any thoughts?

Yep, It's a interesting pin in a RN+little divergence. But we have in a clear downtrend, so this is a counter-trend trade. Also, Look all the resistence that you have above that pin. And I know that Mike would like this trade if the pin would be much bigger.

Move stop to BE very quickly could be a good idea. o better stay out.

IMHO.

Great insight, Ikki! I didn't even think about that ceiling of resistance waiting to push a long trade back down. Sometimes you can't see the forest for the trees. I think I'll ride the pine on this one and just watch it play out.

Hi

I've have been trying to follow james PA strategy for awhile, but there are a few points I have trouble with. My biggest problem has been managing trades. I seem to get into trades at a decent time and make some pips then the trade turns on me and I lose all that profit and take a hit.

1. When do you guys set your stop loss to break even? Do you do this the second it reaches break even,or do wait until price goes up more so your trade has breathing room?

2. I live on the west coast so my best trading times are from 12am-8am. I'm usually not around to manage any open trades at this time, and any trades I take usually go my way and then turn on me and I end up with a loss. Do you think I should set a take profit for the trades I will not be around to manage? It hurts to see a trade go my way and the get stopped out early, but it hurts just as much to lose altogether.


Thanks

I would not touch that PB even with a scammers money. Big 'ol PPZ right in front of it.

The PB looks rather shapely though. Reminds me of the girls in High School - seemed friendly, but hit very hard...

Perm -

Here is where *real* rules will help. One of the rules might read something like:

"The break of the bar must have at least 50 pips of headroom before the first trouble spot"

That way you can move to BE, or take profit that is reasonable. A rule takes the thinking out of it - along with all the usual BS our minds play with us in an effort to rip your heart out.

on this weeks market action on the 5min... Please see attached chart.

lots and lots of chop, maybe we'll get somthing now that we've got past 1.47

Ya it's so slow I got a screen next to my tv to watch it, I dont even sit in my office anymore lol

Congratulations! Your are almost home.


I have a rule to handle this. You need to find out what works for you personally. You can move your stop after x pips to BE. You can take partial profit and move the rest to BE. You can simply notice where price is going, and take full profit there. Better setups generally yield more pips and they tend to run faster.

They key is to make a rule and stick to it like glue. You may find after a number of months, the rule needs an adjustment. Keep track of the options and add it all up. What will the equity curve look like - and can you stand implementing the rule? I find, what works for me is not often what I think I'd like to do.


I think you answered your own first question. Read my cry-baby post from yesterday. I hate losing like poison.

Personally - I am moving to Spain someday in order to allow myself to trade the meat of the market - both Europe and the American markets. I am even learning to speak Spanish. (That and I LOVE Europe. They just do things so well) Pimsleur is very, very good for this, and I am speaking the language daily at work.


You are welcome. Again - you are close to the goal line - the hard part is what to do once we see a good setup.

Please ask for more clarification and post up some charts showing what you believe would work for you. It is fun to help out where i can.