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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

  • #45,701
  • Oct 10, 2009 12:22pm Oct 10, 2009 12:22pm
Our goal is to be very picky so I say wait for the PA bar then you have an A+ setup.
"Whether you think you can or can't, you're right." Henry Ford
  • #45,702
  • Oct 10, 2009 12:25pm Oct 10, 2009 12:25pm
Quoting steviet
Those were the days eh Mike?

Still, there have been friendships made here that will continue (as will J16 in whatever form), whether FF is still here or not

Have yourself a great weekend matey!

Kind Regards
Steve
Steve my friend! Someone I have known from day 1, what a guy he is

Be good steve and hope your son is still doing well

Mike
  • #45,703
  • Oct 10, 2009 12:28pm Oct 10, 2009 12:28pm
Quoting Scot Pippin'
Thanks Mike,
So would you say that divergence is a must or rather a plus that gives more confidence in a setup? Cause going through I see alot of setups without divergence that I can tell. It seems to show up around double tops/bottoms, has to do with price exhaustion?
Divergence is a tool to be used as such. Sometimes you have trades that don't show, sometimes you do. Some people only trade divergence + PA + double tops/bottoms. Divergence can be deadly if you wait for the good locations/PA. Example double bottom, round number, very big buob. This is an A+ setup any day of the week for me

Best
Mike
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  • #45,704
  • Oct 10, 2009 12:30pm Oct 10, 2009 12:30pm
Quoting arthurwtm
i see quite a good setup forming in the usd/jpy weekly chart

-MACD divergence
-triple bottom?
-hitting previous support

comments/criticism?

my question is, what if i use the daily timeframe to look for an entry point, but the bars DO NOT form any price action bars/pinbars etc at the bottom, is it advisable to trade?

*the turqoise lines are confluence fib levels
Depends on how you trade. Some people will play a pure touch of these areas(ala raczefx double bottom/top plays). That is you put a buy limit, or sell limit at these double bottoms/tops respectfully. Others will only wait for PA to show up, and if none then we pass.

Mike
  • #45,705
  • Oct 10, 2009 12:51pm Oct 10, 2009 12:51pm
Quoting smjones
"Jim, I agree with you completely here. ...

Fading away, Scott
That makes three of us...
I always say, If you can change things, start your own things.
Why wait? Ok, give 'em some time to reconsider. If that doesn't work, let's do this right.

Jim, you're a legend here and beyond.

Bandwidth and server space is dirt cheap these days. Broker's adds should cover majority of the monthly expenses and I bet, you won't have any problems attracting them. I just KNOW..
  • #45,706
  • Oct 10, 2009 12:53pm Oct 10, 2009 12:53pm
Quoting mbqb11
Steve my friend! Someone I have known from day 1, what a guy he is

Be good steve and hope your son is still doing well

Mike
I'll echo that. Stevie T is great guy who embodies the spirit of humility and kindness that I aspire to as a trader and a human being.

Mike's not too bad either...
  • #45,707
  • Oct 10, 2009 12:54pm Oct 10, 2009 12:54pm
Quoting mbqb11
Divergence is a tool to be used as such. Sometimes you have trades that don't show, sometimes you do. Some people only trade divergence + PA + double tops/bottoms. Divergence can be deadly if you wait for the good locations/PA. Example double bottom, round number, very big buob. This is an A+ setup any day of the week for me

Best
Mike
Mike, i didn't get the chance to thank you for carifying the ancronyn BUOB (I search for it and found it).

In that setup, after the BUOB when should we enter the trade? 10 pips above the top of BUOB?

A few pages ago I posted some pictures with a ongoing GBPUSD trade. If you have the time I would like to have your short comment.

Cheers,
Nos
  • #45,708
  • Edited 6:22pm Oct 10, 2009 12:56pm | Edited 6:22pm
I'll also say that wherever Jim goes, I'll go with him. Whatever he taught me for free, I will try my best to pass onto others, for free.

What Jim teaches is so much more than how to trade. And he deserves a home that supports and recognises that.
  • #45,709
  • Edited 2:13pm Oct 10, 2009 1:06pm | Edited 2:13pm
Quoting arthurwtm
besides a 61fib level, which other fib levels are more significant?
and when u said 'tiny stop' what do you mean?

congrats on that trade tho!
I'm not the Rac-man but I could shine some light on the importance of Fib Levels and other confluencing tools.

The 38.2, 61.8 Fib levels, the 50% retracement level, long term MAs, trendlines, etc have minor significance by themselves. But when they align or line up with a strong PPZ level is when they show their true strength.

Example of the Daily Eur/Gbp a few months ago.

We have a bearish PB that is not at a very deep swing High, but it is at the 61.8 fib level/ 50% retracement level. The key to what gave it strengh was that it lined up with a strong PPZ level, .8800 (in green). Also the 150 ema is confluencing well in this area.

Your Rac entry was at the 61.8 level which is also at a PPZ level (in blue)/150 ema.(red arrow)

So the question, "which fib levels are more significant? would be answered with another question "Do they line up with a PPZ level?"

Stop loss placements would be tight, probably 20-30pips.

Jim
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Indicators show the past. Price Action "Indicates" the future.
  • #45,710
  • Oct 10, 2009 1:07pm Oct 10, 2009 1:07pm
Quoting ghous
I must be dreaming

To find an entry somewhere around where Rac has got it, is an achievement, The happiness of which i cannot express

What a great occasion for such an achievment!

Have a great 2009 Guys!!!

Regards,
Ghous.
Hi all!

Sorry for bringing back the old stuff, but why this one was taken?
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  • #45,711
  • Oct 10, 2009 1:14pm Oct 10, 2009 1:14pm
Here is a tool that I have used for helping me to indentify divergence. I found it on the metaqoutes forum. It is based on the OSMA histogram. You may be able to set it to reflect the MACD. I am not sure how the indicator is programmed. Please do not rely on it to show you every good instance of divergence. It misses some and will mark some that are not really good for trading. It helps to get an idea anyway.

I like RSI better for divergence. If both RSI and this indicator show divergence, as they do in this example, then I start to pay attention.

Hope it helps.
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File Type: mq4 FX5_Divergence_V2[1].1.mq4   11 KB | 447 downloads
  • #45,712
  • Oct 10, 2009 1:30pm Oct 10, 2009 1:30pm
Quoting NosferatuMan
Mike, i didn't get the chance to thank you for carifying the ancronyn BUOB (I search for it and found it).

In that setup, after the BUOB when should we enter the trade? 10 pips above the top of BUOB?

A few pages ago I posted some pictures with a ongoing GBPUSD trade. If you have the time I would like to have your short comment.

Cheers,
Nos
Hey Nos

Generally the buffer is 10 pips above the high. But it will vary for me. See this post here

http://www.forexfactory.com/showpost...ostcount=45518

As for the gbp/usd. Yes that is a valid trade. I would like to see you be more picky about your bars since you are still learning this. That will be your greatest asset if learned early. You can see the first trouble area of this trade was right where your red line is now on that chart(where your stop line is). Those bar highs could have been the first problem area. It looks as if you went to even b/e there you could have caught the next leg of that move. Then the most major trouble area was the recent swing high as of that time it was just breaking that. As you can see after running those highs it reversed quick.

Hope that helps
Mike
  • #45,713
  • Edited 2:44pm Oct 10, 2009 1:43pm | Edited 2:44pm
Quoting Publius
Hi all!

Sorry for bringing back the old stuff, but why this one was taken?

Looks like an Inside Bar entry at a swing low. A bit risky with no divergence to help with some confluence, but with a tight stop loss, some positive pips were made.
Indicators show the past. Price Action "Indicates" the future.
  • #45,714
  • Oct 10, 2009 1:43pm Oct 10, 2009 1:43pm
James (Jim),

I haven't visited this thread as often as I'd like, and posted even less. This is only through pressure of time though.

I would just like to ask if you could confirm that it was really you who recently posted a thread on Trade2win entitled "Thanks Dante"?

I was going to PM you, then found I wasn't enabled for PM, then thought it might as well be cleared up in the open.

I note that you have some fears for the way FF is going. As I haven't been following it closely, I could not be a judge of that. However, some of us members of T2W have similar fears about that place. There are some very odd things happening there at the moment, including but not limited to scammers, plagiarists, cynics and people pretending to be others. That being the case, it would be good to have it confirmed that that really was you, especially as you had apparently never posted there before (at least under the name "James16").

I should just like to add that I strongly support your good self and the methods you teach, this thread, and Dante, who took a lot of what you and others here teach, added to it his own experience and thoughts, and synthesised a way he thought he could teach relative beginners to trade successfully, giving a lot of himself and his time over a long period in so doing.

Best wishes,
Regards, Mike Still learning my trade.
  • #45,715
  • Oct 10, 2009 1:57pm Oct 10, 2009 1:57pm
Quoting Scot Pippin'
I want to start to incorporate divergence into my trading so I wanted to look for a recent example. Please take a look at this and tell me whether I'm on the right track.

Looking at the 2-pin there. Yes/No ?
http://www.elitetrader.com/tr/index....8&action=print

I had a hard time really understanding divergence until I found this explanation with examples in the link above. Then it was easy. Explains when divergence is bullish and when it's bearish, which is all we need to know I'd say.

Examples use stochastics, but MACD, RSI, etc. all work the same re. divergence.

For what it's worth
  • #45,716
  • Oct 10, 2009 2:10pm Oct 10, 2009 2:10pm
scott may be my personal most respected person here. him and some of the other old timers like jarroo. dont want to miss anyone but you know who you are.

ENOUGH IS ENOUGH.

IF YOU CARE ABOUT THIS PLACE ITS TIME TO STAND UP.

I AM GOING TO MAKE THE FOLLOWING REQUEST.

IF YOU AGREE WITH SCOTT USE THE CONTACT US LINK AT THE BOTTOM AND MAKE YOUR OPINION KNOWN.

IF WELL WORDED COMPLAING IS NOT YOUR USUAL CUP OF TEA THEN SUCK IT UP AND DO IT FOR THE TEAM.

BE KIND. BE STRAIGHT TO THE POINT. DONT DO IT BECAUSE I ASKED. DO IT BECAUSE YOU BELIEVE WHAT SCOTT IS SAYING HERE IS TRUE AND YOU WANT THIS PLACE TO REMAIN DECENT.

CMON LETS ROLL.

JIM




Quoting smjones
Jim, I agree with you completely here. In fact, I have given up posting in the main forum and am finding myself drifting away from here, because it is just to painful for me to watch what is happening in the forums I gave so much time for. I am saddened it appears that it was for not. I can see constant bickering and scamming and copyright infringements and mis-information and plagiarism. I see the same people doing this stuff, I temporarily suspend them as we are suppose to do and then they are right back the next day, doing the same thing. I am...
  • #45,717
  • Oct 10, 2009 2:54pm Oct 10, 2009 2:54pm
What are you thinking when you look at the chart?

When I am looking to make a trade, it seems to me that I should be looking for certain things to add value to the setup and help to assure that it is a good trade. I would like to list them as I understand so far and would hope for some imput.

When looking to make a trade, the following are things to consider:

Price action- Pin Bar, Bearish Engulfing Open Bar, Bullish Engulfing Bar, Double top, Head and shoulders, etc.

Trend direction- Up or down on your respective time frame.

Support or Resistance- Where are the recent highs or lows?

Divergence- Is there any trend difference between the highs or lows of the price action and the highs or lows of the indicator direction?

Fibonacci- Where is the price at in relation to the fibs that are drawn?

Round numbers- Is the price approaching; or at a round number?

365 Moving average- Is the price near this?

Confluence- How many of the factors above have come together that would influence the price one way or the other?

I am still learning and may have ommitted some important considerations. Please mention what I have missed.

I know that everybody goes through some sort of mental checklist whenever that next chart is pulled up. This is what I do, but my thoughts are scattered sometimes. I know that I still need more practice and experience. But, I wonder what others do. I know that sometimes it just cannot be defined...it is just the result of years of experience. But, if it can be defined somehow, maybe in the terms listed above, I would be happy to hear how you go about it. A healthy process for reviewing the information presented on the screen would be a good thing for a new guy like me.

For example: Do you look for PA first, then check the S+R, then maybe you look for how the fibs line up?

Or maybe you look for trend direction first, divergence next, and round numbers next.

Again, I realize that it maybe hard to define, but any thoughts on the best way to review the information would be appreciated.

Thanks, Stephen
  • #45,718
  • Edited 3:42pm Oct 10, 2009 3:18pm | Edited 3:42pm
Quoting Ebont74
What are you thinking when you look at the chart?

When I am looking to make a trade, it seems to me that I should be looking for certain things to add value to the setup and help to assure that it is a good trade. I would like to list them as I understand so far and would hope for some imput.

When looking to make a trade, the following are things to consider:

Price action- Pin Bar, Bearish Engulfing Open Bar, Bullish Engulfing Bar, Double top, Head and shoulders, etc.

Trend direction- Up or down on your respective time frame.

Support...
This is very good Stephen as well as kesh's post;


Quoting kesh
hi, ive been reading this thread for the past 3 months or so and have just registered now to say thanks to jim and also mike whos posts ive found truly eye opening.

i started trading about a year ago, began by reading a couple of books and a few articles on the internet and thought it would be a piece of cake to get the hang of and quicky double, treble, quadrouple my money.

i wont bore you with all the details but i blew 3 x £2000 accounts in that time without having a clue what i was doing. you name it i did it - went on tilt, chased...
I will look at the Weekly/Daily time frames and look for strong, clear PPZ levels at round numbers. Next I will look for other confluences around these levels; Fibs, long term MAs, trendlines, etc. Then look for PA on these time frames.

I then can look at lower time frames keeping these Weekly/Daily PPZ confluenced levels on the lower time frames.

Once on these lower times, I use the same confluencing tools relative to that time frame and wait for PA.

Example Gbp/Jpy:
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Indicators show the past. Price Action "Indicates" the future.
  • #45,719
  • Oct 10, 2009 3:31pm Oct 10, 2009 3:31pm
First let me thank you Mike, for clarifying the '10 pip brake' rule.

I fell like I'm always behind with posts here, but this thread is growing really fast

Anyway, I have another question about this trade you took/posted. As far as I understand BEOB was the PA on this one, also other criteria was met. All clear on that part. The thing is I find BEOB's more difficult to trade than PIN's, so having you explain how you managed this trade in terms of SL an PT's would be really helpful.

I hope I'm not asking too much.

Kind regards,

Bee

Quoting mbqb11
Divergence is a tool to be used as such. Sometimes you have trades that don't show, sometimes you do. Some people only trade divergence + PA + double tops/bottoms. Divergence can be deadly if you wait for the good locations/PA. Example double bottom, round number, very big buob. This is an A+ setup any day of the week for me

Best
Mike
  • #45,720
  • Oct 10, 2009 4:05pm Oct 10, 2009 4:05pm
Jim,

This has been done on a couple occasions by myself. The people on this thread may or may not know me. However, I assure you I have contributed quite a lot to this forum myself. No where near what people like yourself, smjones, mbqb11, etc... have, but quite a bit none the less.

Just recently there was yet another incident whereas a member on this forum was in fact violating my copy writes. I work for a software company, and I know a couple of things about this. The first step is to contact the site itself to have the violation removed, while asking for the removal of that member. This was done immediately(Three times now). The material was removed again, yet the person is still here doing what he does...

Second, there is almost nothing I can do about it after that. International Copy Write laws are vague at best. Right now, there are two threads I am still on the Forex factory for. This one and the EU Redux thread. I have programmed roughly 50 different indicators, scripts, EA's and calculators for people on this forum. What do I get for it? A rare thanks and a usual theft of material (here or posted elsewhere). I am done with all of that. I refuse to post another piece of code on this forum, where every asshole with a decompiler can steal my hard work.

Do I feel what Scott is saying? Absolutely! Have I emailed management? Yes. Do I think anything is going to change? No.

Ray

Quoting james16
scott may be my personal most respected person here. him and some of the other old timers like jarroo. dont want to miss anyone but you know who you are.

ENOUGH IS ENOUGH.

IF YOU CARE ABOUT THIS PLACE ITS TIME TO STAND UP.

I AM GOING TO MAKE THE FOLLOWING REQUEST.

IF YOU AGREE WITH SCOTT USE THE CONTACT US LINK AT THE BOTTOM AND MAKE YOUR OPINION KNOWN.

IF WELL WORDED COMPLAING IS NOT YOUR USUAL CUP OF TEA THEN SUCK IT UP AND DO IT FOR THE TEAM.

BE KIND. BE STRAIGHT TO THE POINT. DONT DO IT BECAUSE...
Que
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