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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

  • #46,801
  • Oct 25, 2009 3:44pm Oct 25, 2009 3:44pm
Quoting Bemac
btw. Two Points does not a Trendline Make. Especially when the second point is SO Close to current Time.

Bemac
wait, i don't get what you're trying to say here, are you referring to my trendlines? if so do explain how I'm wrong, because I doubt I am.
ok Friendo? This is madness!?!? - THIS, IS, FOREX!!!
  • #46,802
  • Oct 25, 2009 3:49pm Oct 25, 2009 3:49pm
Quoting Liger86
wait, i don't get what you're trying to say here, are you referring to my trendlines? if so do explain how I'm wrong, because I doubt I am.
It is generally perceived that for a trendline to be valid it has to have had 3 touches not 2.
  • #46,803
  • Oct 25, 2009 4:22pm Oct 25, 2009 4:22pm
Huge BUOBs EURGBP

I've got a question about the BUOB/BEOB formation. Assume the example below (E/G) has confluence (I haven't checked), and is with the trend.

How do you play such a huge bar?
There is a similar BEOB on the GBP/CHF for friday on my feed as well. It's actually probably a better example as it is with a clear trend.

BUOB
http://i189.photobucket.com/albums/z...obquestion.gif

BEOB
http://i189.photobucket.com/albums/z...obquestion.gif

Thanks!
  • #46,804
  • Edited 4:39pm Oct 25, 2009 4:29pm | Edited 4:39pm
Attachment
Quoting Liger86
wait, i don't get what you're trying to say here, are you referring to my trendlines? if so do explain how I'm wrong, because I doubt I am.
OK. This is important so don't take it as a slam. It's intended as advice.

I can plot a Trendline from Anywhere in history to the Current Price. How much Faith {Money} should I risk on that?
Ans: Zip: Nada: Didley: Squat!

Trendlines visualize Constant Rejections. {Up or Down}
That means that Price has made Numerous Attempts to puncture them but has failed.
The more it has been rejected, the more volitile it MAY be on breech.

Look for Mature Old Buggers {like me} that when they conceed, they roll over.



Bemac

ps.
But sometimes...
Lady Luck has a Smile for you.
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  • #46,805
  • Oct 25, 2009 4:48pm Oct 25, 2009 4:48pm
i concur, to throw my 2c in
  • #46,806
  • Oct 25, 2009 4:52pm Oct 25, 2009 4:52pm
I've been through babypips - I've blown my first live account - I've read through approximately 300 pages of this thread - And honestly, I am still in the trading to trade stage - I want to grow outta this and hopefully sooner rather than later.
My demo acct is a small live acct - just cause I feel or question the 'identicalness' of a demo vs. live - maybe not that much difference - but it makes a difference to me.
I did post a question on babypips - but so far no answer - I wrote a small paragraph - and tried to insert a word to replace pinbar - maybe I'll get an answer here.

I'll just cut n paste the whole thing here - thanks in advance for the input

I've been reading through the thread at forex factory - and I'm trying to summarize what I think I know --- but I want to verify that what I think I know is accurate - - so I am hoping others will chime in with there 2cents.

I was just jotting down yesterday - some entries - because I was going to trade Pinbars ONLY - but I think these will be very few and very far between - so I was trying to remember what else triggers a possible entry just like a pinbar would.

So here is what I think - keep in mind - these entries are after you've determined other factors such as support/resistance - - confluence -- divergence - - in other words - you think you've got a great setup - - and there it is - ((the pinbar)) - - so you set your order to buy or sell a few pips beyond the high or low of pinbar.

THE QUESTION is :
are the following setups - a simple replacement for the "pinbar"
Can I put the following words in the above paragraph in the paranthesis?
1. ((BEOB)) = bearish outside bar
2. ((BUOB)) = bullish outside bar
3. ((DBLHLC)) = Double bar high with a lower close
4. ((DBLLHC)) = Double bar low with a higher close

Ok - maybe there is more than 1 question here -
A) the above question -
B) is this what james16 is trying to teach? or are these terms just part of his trading - and they DO NOT actually substite for pinbar as I have outlined
  • #46,807
  • Oct 25, 2009 5:40pm Oct 25, 2009 5:40pm
Quoting Liger86
Here is that parallel I mentioned earlier, it hits the spot quite right.
It hits the spot quite right because there is nothing else to compare it to... its almost like you are trying to make the line fit the chart (if that makes any more sense)
  • #46,808
  • Edited 6:19pm Oct 25, 2009 6:00pm | Edited 6:19pm
Quoting Bemac
Attachment OK. This is important so don't take it as a slam. It's intended as advice.

I can plot a Trendline from Anywhere in history to the Current Price. How much Faith {Money} should I risk on that?
Ans: Zip: Nada: Didley: Squat!

Trendlines visualize Constant Rejections. {Up or Down}
That means that Price has made Numerous Attempts to puncture them but has failed.
The more it has been rejected, the more volitile it MAY be on breech.

Look for Mature Old Buggers {like me} that when they conceed, they roll over.



Bemac

ps.
But...
hi guys, iv just been catching up on the thread and i would just like to make a point. what you say Bemac is very true but i believe/believed he was talking about drawing parallels from correctly drawn TLs as a possible target?? at least that is what i thought?
The lower TL on the chart has only two points and so is not yet confirmed but the angle of these lines are often repeat and the peaks and troughs often coincide. im sure you know more about this than i do!! and as im not sure about these lines yet i dont/rarely use them in my trading.
i wish you would share your thoughts on this also?
cheers
jon

p.s. i love that word..solidification.
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PATIENCE... DISCIPLINE
  • #46,809
  • Oct 25, 2009 6:27pm Oct 25, 2009 6:27pm
Quoting g_j_hook@yah
hi guys,...i believe/believed he was talking about drawing parallels from correctly drawn TLs as a possible target?? at least that is what i thought?
Well, between the both of us, hopefully we got him thinking.
How much is That worth?
The last statement of MasterCard.



{for those that don't understand; I attempt to Force you to THINK} the previous statement attempts to induce using Your brain.
  • #46,810
  • Oct 25, 2009 7:16pm Oct 25, 2009 7:16pm
Quoting jarroo
Weekly Gbp/Usd PB and BEOB on the Daily. Should be an interesting week.

Quoting jarroo
Daily BEOB on the Gbp/Jpy is looking good. Let's see how strong that big RN 150.00 really is. Meaning that Price could still bounce up from the 150 level and retrace into the BEOB and then break the 150.00 downward.

Pretty easy stuff . . . right guys?
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Indicators show the past. Price Action "Indicates" the future.
  • #46,811
  • Edited 7:41pm Oct 25, 2009 7:37pm | Edited 7:41pm
Quoting perch
So here is what I think - keep in mind - these entries are after you've determined other factors such as support/resistance - - confluence -- divergence - - in other words - you think you've got a great setup - - and there it is - ((the pinbar)) - - so you set your order to buy or sell a few pips beyond the high or low of pinbar.

THE QUESTION is :
are the following setups - a simple replacement for the "pinbar"
Can I put the following words in the above paragraph in the paranthesis?
1. ((BEOB)) = bearish outside bar
2. ((BUOB)) = bullish outside
3....
Succinctly summed up 300 pages - well done

The only other thing to bear in mind is that these PA formations should ideally occur at swing highs / lows, with plenty of space to run.

That is my understanding anyway - comments from seniors?
  • #46,812
  • Oct 25, 2009 7:43pm Oct 25, 2009 7:43pm
Jarroo, just wondering, where did you place your stop loss.

I was looking at this trade. I am sure it will come back eventually for a 2nd chance at getting in. But you got the strong break you were looking for.
  • #46,813
  • Oct 25, 2009 7:51pm Oct 25, 2009 7:51pm
Quoting unlv_tj
Jarroo, just wondering, where did you place your stop loss.

I was looking at this trade. I am sure it will come back eventually for a 2nd chance at getting in. But you got the strong break you were looking for.
Just above the 150.00 on the Gbp/Jpy and just above the 1.6300 on the Gbp/Usd. About 40 pips above the breaks of the two.

I have take some off the table (1st targets hit) and reduced my stop loss not to break even but just above those round numbers. Just in case we get a retrace/retest.
Indicators show the past. Price Action "Indicates" the future.
  • #46,814
  • Oct 25, 2009 7:59pm Oct 25, 2009 7:59pm
Quoting Concept
So now theoretically the Daily chart shows us that there is bearish signals, but dropping down to the 4hr like you did shows us that it broke the 9200 level and closed right on it.

Since we noticed the PA on the Daily, is it best to watch the 4hr now and see what it does to manage the entry?? (*IF* there is a valid entry)??

Let's see . . .we had a Weekly BEOB that fullfilled itself to its 1st obvious target. .9000 PPZ level. And now we have a Big Weekly PB that's not at a swing low but has some support from the .9000 & .9200 level. You do have to respect that size.

On the Daily we have a big BUOB that is at a shallow swing low with support from the .9200 PPZ level. So a break of the Daily BUOB (Weekly PB) should be managed carefully since the PA locations are not at the ideal.

The 4 hour and Hourly time frames can provide some good entries with the higher time frames biases. We still want the best PA ideals at these time frames.
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Indicators show the past. Price Action "Indicates" the future.
  • #46,815
  • Oct 25, 2009 8:04pm Oct 25, 2009 8:04pm
Quoting jarroo
Just above the 150.00 on the Gbp/Jpy and just above the 1.6300 on the Gbp/Usd. About 40 pips above the breaks of the two.

I have take some off the table (1st targets hit) and reduced my stop loss not to break even but just above those round numbers. Just in case we get a retrace/retest.
Hey Jim,

So your style summed up is pretty much to play the hard breaks of daily PA with very tight stops based on SR levels. and super quick break evens, taking some off the table very quickly and moving the SL up at the same time (not to break even because the break often gets retested). Did I get that right as a summary?

I usually put a buffer of around 10 pips on a daily bar break before entry. Do you use as big a buffer. Considering your tight stops I imagine the buffer makes a bigger difference to you than it does to me.

It's really wonderfully simple your style and I like it a lot. Avoids drawdown, quick into profit or break even, and price doesn't have to move far to give you a payday. Scalping off a daily chart is what I believe the big guy calls it. I've been noticing as well recently how James16 also does most of his touch trades off a daily chart as well. Similar principles.

Appreciate you and your work here as always. Hope you have a great week.
  • #46,816
  • Oct 25, 2009 8:18pm Oct 25, 2009 8:18pm
Quoting TiaForex
Hey Jim,

So your style summed up is pretty much to play the hard breaks of daily PA with very tight stops based on SR levels. and super quick break evens, taking some off the table very quickly and moving the SL up at the same time (not to break even because the break often gets retested). Did I get that right as a summary?

I usually put a buffer of around 10 pips on a daily bar break before entry. Do you use as big a buffer. Considering your tight stops I imagine the buffer makes a bigger difference to you than it does to me.

It's really...
That's it in a nutshell Aaron. When you catch a runner it sure is fun. I use to get many small losses and break even trades, but I found when I'm pickier with my setups the fewer losses I received (isn't that always the case no matter what style you use. lol)

I would like to say I use a 10-15 pip buffer on every Daily setups but I don't. Jim's "This is Critiial" and the traffic ahead plays a big role to take the initial break or have a big or small buffer.

The beauty of "scalping" on the Daily is that Price will run a lot farther than say the 15min or 5min scalp.

Mike's post here is a good example of a entry placement I would look for on a high quality setup.

http://www.forexfactory.com/showpost...ostcount=46627
Indicators show the past. Price Action "Indicates" the future.
  • #46,817
  • Oct 25, 2009 8:28pm Oct 25, 2009 8:28pm
Quoting Liger86
wait, i don't get what you're trying to say here, are you referring to my trendlines? if so do explain how I'm wrong, because I doubt I am.
Quoting Bemac
Attachment
I can plot a Trendline from Anywhere in history to the Current Price. How much Faith {Money} should I risk on that?
Ans: Zip: Nada: Didley: Squat!

Trendlines visualize Constant Rejections. {Up or Down}
That means that Price has made Numerous Attempts to puncture them but has failed.
The more it has been rejected, the more volitile it MAY be on breech.
As usual, my thoughts are completely in line with Bemacs.

Your bottom line is just the connection of two arbitary points. The start of a sloping support? Maybe, but probably means nothing.

The top line? I get that it is parallel to the bottom one, and touches a swing high... but aside from that, it also probably means nothing.

Why? Because you are the only one looking at it.

A trendline is valid if it shows a bunch of rejection from it, since that tells us that alot of money is also looking at the line. That's the essence of support and resistance - you dont care about the line itself, you care that a bunch of other people are happy to throw $xx million at it. Those orders move price. And so on a rejection, you get a tradeable spike. On penetration, you get a tradeable burst.

On the other hand, if you just go drawing arbitary lines on a chart because 'they are parallel', there is no basis to it. No one else can see your line, no one else is trading it, and so there is a pretty decent chance that the market is going to completely ignore it.

The markets arent geometrical, despite what Elliot thought (although, in fairness, what he actually thought is miles away from what passes as modern 'elliot wave trading').

Ian Fleming once wrote 'once is chance, twice is coincidence... thrice is enemy action'. He was probably talking about trendlines.
When you have to shoot, shoot. Dont talk.
  • #46,818
  • Oct 25, 2009 8:31pm Oct 25, 2009 8:31pm
Quoting jarroo
The 4 hour and Hourly time frames can provide some good entries with the higher time frames biases. We still want the best PA ideals at these time frames.
Here on the Hourly Eur/Gbp we have a BUOB at a swing High . . .wait a mintue . . we want BUOB at swing Lows. Since this is not the ideal, strict trade management is in play. Also the setup agrees with the Weekly and Daily Bullish PA.
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Indicators show the past. Price Action "Indicates" the future.
  • #46,819
  • Oct 25, 2009 8:38pm Oct 25, 2009 8:38pm
Quoting jarroo
That's it in a nutshell Aaron. When you catch a runner it sure is fun. I use to get many small losses and break even trades, but I found when I'm pickier with my setups the fewer losses I received (isn't that always the case no matter what style you use. lol)

I would like to say I use a 10-15 pip buffer on every Daily setups but I don't. Jim's "This is Critiial" and the traffic ahead plays a big role to take the initial break or have a big or small buffer.

The beauty of "scalping" on the Daily is that Price will run a lot farther...
Thanks Jim, that makes good sense to me. And it shows how this material can be adapted and used in many different ways.

I figured your buffer would be smaller because when you move your stop up, the logical place to put it is behind the high/low of the daily bar in case of a retest. With a big buffer for entry (and with tight stops) that's a big chunk if you get stopped out. Whereas an entry closer to the bar breach tightens that up somewhat.

And those runners that never look back must be mighty lucrative.

Do you ever allow yourself to re-enter if you get stopped out the first time? And do you have concrete rules for that? (Thanks for answering my nosey questions btw ... )
  • #46,820
  • Oct 25, 2009 8:43pm Oct 25, 2009 8:43pm
Quoting TiaForex
Thanks Jim, that makes good sense to me. And it shows how this material can be adapted and used in many different ways.

I figured your buffer would be smaller because when you move your stop up, the logical place to put it is behind the high/low of the daily bar in case of a retest. With a big buffer for entry (and with tight stops) that's a big chunk if you get stopped out. Whereas an entry closer to the bar breach tightens that up somewhat.

And those runners that never look back must be mighty lucrative.

Do you ever allow yourself to re-enter...

No problem at all Aaron, I enjoy it.

If Price on a quailty setup has not reached its 1st obvious target , which is a major confluened round number PPZ level, etc, I will re-enter on the orginal break or lower time frame PA towards that orginal break. High quality setups tend to want to fullfill itself at that 1st target.
Indicators show the past. Price Action "Indicates" the future.
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