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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

  • #45,401
  • Oct 7, 2009 7:06am Oct 7, 2009 7:06am
This is a location I'll be watching...

Perhaps Rac will be also?
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  • #45,402
  • Oct 7, 2009 7:12am Oct 7, 2009 7:12am
I'm in on the break of this BEOB on the NZDUSD 4hr...anyone else?
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"Whether you think you can or can't, you're right." Henry Ford
  • #45,403
  • Oct 7, 2009 7:13am Oct 7, 2009 7:13am
Quoting Jduester
This is a location I'll be watching...

Perhaps Rac will be also?
Maybe, maybe, right now my focus is/was somewhere else...
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  • #45,404
  • Oct 7, 2009 7:26am Oct 7, 2009 7:26am
Quoting supremeChaos
personally, i would've taken this. if i did, i will monitor momentum. what happened is after the PB, price ranged around the 1.06 area, instead of shooting upwards, for 3 H4 bars (that's 12hours of no expected action!!;
REMEMBER: "a good setup is a high momentum setup" --jarroo). this will give me concern & lead me to think/re-think my [buy] trade [b](specifically considering the lack of action & the current [down] trend). so probably, i would've tightened my stop &/or closed...
Very nice sChaos. I look for Price to run at the break depending on the time of day and pair (asian session/ london session). It better show me something in a relatively short period of time or I'm out of there.

For the record, "my" quote on momentum is completely paraphased from Mike's discussions on Price Action setups being inherently a momentum movement of Price.
Indicators show the past. Price Action "Indicates" the future.
  • #45,405
  • Edited 8:16am Oct 7, 2009 7:45am | Edited 8:16am
Quoting supremeChaos
How?
price wont meander around a range, price will move in 1 direction for some time.
Check out FinnTrader's $cad H4 chart. he bought off of a PB, but since there was no momentum (no demand/buyers), price consolidated around 1.0600 (taking out stops, whatever), then finally more sellers came in pushing price downward.
if there was momentum off of that PB he took, then price would've shot up & not consolidate.


random analogies:
in martial arts, if i kick u & my kick has enough momentum, u will either get hurt &/or...
Your on a roll today sChoas, great post.

I love analogies. I think one has to find their own analogies or put what they read here in there own words to help better understand this method.

The more analogies the better. Here's another one on momentum.
If your driving in a boat on a calm lake and your riding along at a good speed then you try to stop suddenly, what happens? Well you can't stop suddenly in a boat, even if you throw it in reverse. You will still be moving forward in the same direction.
Indicators show the past. Price Action "Indicates" the future.
  • #45,406
  • Oct 7, 2009 7:57am Oct 7, 2009 7:57am
Quoting raczekfx
Maybe, maybe, right now my focus is/was somewhere else...
You'd have a perfect buy on Geppy just about too. Woudn't you, smarty pants?
Bundy's status today: "Waiting..."
  • #45,407
  • Oct 7, 2009 8:01am Oct 7, 2009 8:01am
Quoting atton
"a good setup is a high momentum setup"

How do I understand when we have that momentum ?
The quality of a Price Action setup in and of itself can help you understand when we have momentum.

Take Scot Pippin's 4 hour BEOB on the Nzd/Usd. We have BEOB at a swing High, the size is bigger then the previous bars, the .7350 is a Weekly PPZ level. These are the characterisics of a quality PA setup.

The big bearish bar that makes up the BEOB is up against alot of pressure to keep going down, i.e. supporting confluences. A nice hard break of this setup didn't hurt either.
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Indicators show the past. Price Action "Indicates" the future.
  • #45,408
  • Oct 7, 2009 8:08am Oct 7, 2009 8:08am
Quoting Scot Pippin'
I'm in on the break of this BEOB on the NZDUSD 4hr...anyone else?
i like this also although i have a different bar on my feed. there is a few Ob setting up on my charts on the 4hTF (bar closes on the hour) au/us i like as it closes below the round number. it has divergence on the 1h chart but not on the 4h??
gb,us,eu/yen all have nice looking BUOBs. any thoughts on these??
cheers jon

p.s. thanx for the input i asked for on the nz/yen setup it always helps me a lot to see different perspectives on the how the charts look
PATIENCE... DISCIPLINE
  • #45,409
  • Oct 7, 2009 8:13am Oct 7, 2009 8:13am
Quoting Scot Pippin'
I'm in on the break of this BEOB on the NZDUSD 4hr...anyone else?
A bit of traffic on this one Scot but looks good. No surprises if it reverses.
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Indicators show the past. Price Action "Indicates" the future.
  • #45,410
  • Oct 7, 2009 8:22am Oct 7, 2009 8:22am
EURAUD just formed a BUOB or two-bar pin on 4hr chart. Price hit the weekly ppz and 1.6500 round number, with macd divergence. Swing low location with space. Is this a good setup to go? The blue box in 4hr is the 1st trouble area, am I identify it correctly? Would like to hear your opinion on this. Thank you.
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  • #45,411
  • Oct 7, 2009 8:35am Oct 7, 2009 8:35am
Quoting Lyra
EURAUD just formed a BUOB or two-bar pin on 4hr chart. Price hit the weekly ppz and 1.6500 round number, with macd divergence. Swing low location with space. Is this a good setup to go? The blue box in 4hr is the 1st trouble area, am I identify it correctly? Would like to hear your opinion on this. Thank you.

Nice job Lyra. Great work on the confluences.

My only concern would be the size is too small for counter trend setup.
Manage it tightly if taken.
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Indicators show the past. Price Action "Indicates" the future.
  • #45,412
  • Oct 7, 2009 8:38am Oct 7, 2009 8:38am
Quoting jarroo
....
I love analogies....
The more analogies the better. Here's another one on momentum.
If your driving in a boat on a calm lak...
Thanks Sir.
similarly, it would be very difficult to stop a roaring bullet train/car abruptly. even when the brakes are applied in the 'maximum', the vehicle will still travel in the original direction (or swerve, but that's a different matter), albeit slower than before (losing momentum/counteracted by brakes).
in the case of launched rockets, it takes a lot of fuel to propel a rocket upwards into orbit. it must overcome gravity (sellers, in trading).

Newton's laws of motion (or here or here or here), i believe, can be applied to what we are doing here too. i may not be able to comprehensively explain why, but what we do (taking high momentum setups) is an example of & testament to the 3 laws.
We are physicists here, in case u are not aware of it.
  • #45,413
  • Oct 7, 2009 8:38am Oct 7, 2009 8:38am
Quoting bundyraider
You'd have a perfect buy on Geppy just about too. Woudn't you, smarty pants?
You know me way too well...
I was late to the party (slept in), but I started buying crosses around 7am est.
  • #45,414
  • Oct 7, 2009 8:39am Oct 7, 2009 8:39am
Quoting Scot Pippin'
I'm in on the break of this BEOB on the NZDUSD 4hr...anyone else?
My take...
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  • #45,415
  • Oct 7, 2009 8:47am Oct 7, 2009 8:47am
Quoting supremeChaos
Thanks Sir.
similarly, it would be very difficult to stop a roaring bullet train/car abruptly. even when the brakes are applied in the 'maximum', the vehicle will still travel in the original direction (or swerve, but that's a different matter), albeit slower than before (losing momentum/counteracted by brakes).
in the case of launched rockets, it takes a lot of fuel to propel a rocket upwards into orbit. it must overcome gravity (sellers, in trading).

[url="http://en.wikipedia.org/wiki/Newton%27s_laws_of_motion"]Newton's laws of...
Nice one sChaos.

Although we (me) do try and break Newton's laws at times. (weak countertrend setups) lol
Indicators show the past. Price Action "Indicates" the future.
  • #45,416
  • Oct 7, 2009 9:01am Oct 7, 2009 9:01am
Quoting jarroo
Nice one sChaos.
Although we (me) do try and break Newton's laws at times. (weak countertrend setups) lol

that still counts Sir:
weak countertrend setups = weak momentum
& for the record, i love exceptions to the rule
  • #45,417
  • Oct 7, 2009 9:08am Oct 7, 2009 9:08am
hi...im still learning the price action techniques and i hope i can get some comments

i just posted some charts earlier - Daily USD/CAD
can someone help review?

thanks in advance
  • #45,418
  • Oct 7, 2009 9:43am Oct 7, 2009 9:43am
Quoting arthurwtm
hi...im still learning the price action techniques and i hope i can get some comments

i just posted some charts earlier - Daily USD/CAD
can someone help review?

thanks in advance

Hi Athurwtm

The location looks quite good but for me that bar is too small in relation to the preceding bars but even more importantly the nose of the Pin does not stick out very far past the previous bar. You want your pins to be really obvious with looong noses.

It obviously may still work out but there will be better opportunities soon enough.
  • #45,419
  • Oct 7, 2009 9:46am Oct 7, 2009 9:46am
Quoting arthurwtm
hi...im still learning the price action techniques and i hope i can get some comments

i just posted some charts earlier - Daily USD/CAD
can someone help review?

thanks in advance
Even if it does close as a pin bar it will be a very short one. We generally want the pin bar to be long at least as long as previous bars and we want the nose to protrude away further out.

There are two bearish bars right before so a short pin bar like that is not likely to be able to counteract that. I have got into a lot of trouble taking bars like that in the past.

If you do take it watch what price does at the 1.065 area. I don't think it will get much past that.
  • #45,420
  • Oct 7, 2009 9:48am Oct 7, 2009 9:48am
Quoting arthurwtm
hi...im still learning the price action techniques and i hope i can get some comments

i just posted some charts earlier - Daily USD/CAD
can someone help review?

thanks in advance
Hi,

It is too early on the day to know where the price will close.

But imagine the bar close is similar to your chart:
- first, if you zoom out you will see how small that bar is compared with the previous bars.
- the nose should clearly protrude the previous bar low
- It would be better if it had broken the 1.05 big round number and then the price managed to close above that level.
- You should be aware that you will be trading into some heavy traffic around 1.0650, so you have little space until the first potential trouble area.

Best,
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