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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

  • #53,041
  • Jan 27, 2010 9:52am Jan 27, 2010 9:52am
Quoting nasir.khan
Hey Ghous can you comment on this IPB, this a stock of a local bank.

I told my Brother in law yesterday (at that time this IPB was't formed) to buy it at the red line.
Looks great!

How many do you reckon actually look at bars/candles and do their technical homework on their investments in the stock exchange specifically?

I have a friend who trades at the KSE merely by doing what he "hears" the big players are doing (AKD for instance) He doesn't know what the heck is a "candle"...scary...

g.
I believe . . .
  • #53,042
  • Jan 27, 2010 10:05am Jan 27, 2010 10:05am
Quoting ppfx
just took the trade short based on a 1h BEOB , hope that the 4h bar will close as a pin which will give double confirmation that it will go short

Attachment
and it has closed as a pin on 4h chart

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  • #53,043
  • Jan 27, 2010 10:05am Jan 27, 2010 10:05am
Quoting ghous
... I have a friend who trades at the KSE merely by doing what he "hears" the big players are doing (AKD for instance) He doesn't know what the heck is a "candle"...scary...

g.
i'd call this gambling
  • #53,044
  • Edited 10:20am Jan 27, 2010 10:08am | Edited 10:20am
Hi: I have been studying and trading the methods on this thread for about two weeks and am fortunate enough to be having success with the methods risking only $20 per trade with a 150 unit bankroll. I am having difficulty with trying to get my stops to break even as quickly as James16 seems to recommend in some of his videos. In particular, I watched his video on support and resistance in so-called "side-to-side markets" where he seems to indicate that even after having a very small move in your favor he advocates moving your stop to break even to ensure that a small winner does not turn into a losing trade. This seems to mean, however, in some or many instances that after price breaks a price action bar and then hits resistance at the high or low of the bar immediately before the price action bar, you get out of some of your position or at least move your stop to break even.

This seems safe and ensures a minimal amount of losers but doesn't it also lead to a lot of trades that take you out because your stop is too close to price only to see the trade move on to become a winner without you?

Can anyone point me to any posts with good rules of thumb for when you do move your stop to break even after price hits the high / low of the bar immediately preceding your price action bar?

Can anyone confirm whether what I described above is the way James16 is recommending we trade to get weeks on end of no losers as he does things?

Can anyone lead me to any threads of others who use break even and exit rules similar to those recommended by James16 in the video described above. I have been unable to find posts of others detailing how they move their stops to break even very quickly to avoid losers. I have seen some exit strategy posts early on in this thread. but I cannot find any posts, other than from James16 himself, that advocate moving the stop to break even as quickly as he seems to do it.

Thanks for considering my request. Any help would be much appreciated.
  • #53,045
  • Jan 27, 2010 10:12am Jan 27, 2010 10:12am
Quoting perch
... - -so it's more of a can't sit idle type of problem.
Hey perch... Ghous gave some great advice.

I would only add (as a newbie), one of the things that has helped me sit on my hands with dailies is keeping a detailed journal. When I'm tempted by average setups, I go over my bad trades and start to 'feel the pain' of my bone-headed moves. Suddenly, passing up on OK setups doesn't bother me so much. To me this part is 100% psychology -- you made references to this.

This is a total journey into self-discovery and sometimes following this thread can give you a sense of being inadequate when it comes to trading. I'm just like you -- just have faith your skills will grow exponentially every month.

Finding yourself and your style will be key... I'm getting there no matter how long it takes. You will too perch, just have faith in the power of determination.

-- Danny
  • #53,046
  • Jan 27, 2010 10:17am Jan 27, 2010 10:17am
Nice intra-day opportunity this trading session. Got out @ 4030 and took profits, and cancelled my sell order.
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lowest draw down possible please.
  • #53,047
  • Jan 27, 2010 10:26am Jan 27, 2010 10:26am
Quoting Dan Gilbert
If I wanted to play the GBPCHF, here is the breakout box I would have used (pink lines), and this one would not have given me a false break either! (the way gbpjpy did)

(target would be obviously 1.7000)

the 4hr pin forming right now sure looks good
I like your charts Dan, an your explanations of your trades ,its a great help ! thanks Gary
  • #53,048
  • Jan 27, 2010 10:47am Jan 27, 2010 10:47am
Quoting ghous
Looks great!

How many do you reckon actually look at bars/candles and do their technical homework on their investments in the stock exchange specifically?

I have a friend who trades at the KSE merely by doing what he "hears" the big players are doing (AKD for instance) He doesn't know what the heck is a "candle"...scary...

g.
Well there is only one guy that i know out of many individual traders who do TA. Actually i was inspired by him in the beginning when i started to look at charts ( months before FX).

In KSE anyone like AKD, JS, AH could move a stock in any direction they wan't but of course they need this crowd ( ones like your friend and my B-in-Law) for their liquidity need.

When the crowd gets a rumor/news it's actually floated by them so they could snatch their holdings and when the move is over there's another news/rumor to offload the stock at these poor people.

I heard many stories about AKD (from his personal trader) that when some T.A tells him about a strong S/R level and the next day there is no S/R there.

But nobody can hide the truth when PA develops cause it develops because of there actions. But not many follow it here in KSE. All they can think of is " whats the RSI of this stock ".

PS: If this IPB fails tomorrow, i'll tell him to blame Ghous.
  • #53,049
  • Jan 27, 2010 10:50am Jan 27, 2010 10:50am
Today, only took one trade, on Gbp/JPY for 60 pips.


Chart one hour Gbp/Jpy. Short at 145.18 Tp 145.54


Wake up late and lost lot of opportunities.




Good trades.
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  • #53,050
  • Jan 27, 2010 11:16am Jan 27, 2010 11:16am
Quoting perch
Well for me, I was thinking it would be good to get away from the thread - away from trying to learn something new - away
.
.
DOWN.
Hi Perch,

I know how you feel, and just wanted to offer some words of encouragement. It shows a lot of discipline to avoid the forum and just trade on your own to avoid distractions; this shows me that you really care about succeeding as a trader.

Time and time again James16 and Mike have spoken of the importance of waiting for A++ setups. I promise you these setups do come, they work well, and more importantly are easier to manage than B trades, C trades, etc. If you are just trying to get past the point of losing to have your first breakeven or winning month, let me ask you, would you rather trade everyday, or make money? It sounds like you are trying to overcome the same problem I have faced, which is overtrading.

In order to overcome this, here is my challenge to you. For the next month, only allow yourself 1 trade per week. You can note other trades you would have taken and watch them, but in your demo account (please tell me you are demoing!) you only have one bullet. This will help you to wait for an ideal daily setup, and in my experience there is usually one tradeable nice set up each week on the daily timeframe.

You will definitely be rewarded for your patience and self-restraint if you decide to try this out. Best of luck and hope to hear more from you as you progress.

Cory
  • #53,051
  • Edited 11:30am Jan 27, 2010 11:24am | Edited 11:30am
Thanks for the replies -

Yep determination I have - general overall patience I think I have - I know it'll take time and I know the losers can teach you more than the winners - IF you recognize and understand 'what went wrong'.

I may be on the verge of understanding that you will change your trading 'style'
when you trade for $.01 a pip - super easy to gamble.

when you trade for $1.00 a pip - I guessing from me only - still super ez to gamble


when you trade for 10.00 apip - - well now a 30-40 positive is $300-$400 bucks that means something.

Ultimate goal - trade for $100.00 a pip or even more???? well that same 30-40 pip move is now $3000 or $4000 I am pretty sure I cannot physically move my stop quick enough holy moly


I guess the point of stating the obvious - it's easy to know it as fact - I think the difference may be - 'believing it' well that's not even the right word.
Lets look for the right word.
I believe it -- yep
I know for a fact - - yep
I understand - -yep
.
.
.
here is the one I am focusing on - - I need to experience it.

I need to experience the patience and how it will pay off.
I need to experience A great setup with Proper MM - that went wrong - a loss sometimes it happens key word here was Proper,
If I keep experiencing losses on setups that aren't a part of my trading method/strategy - this expereince means nothing, or worse - means I am moving backwards instead of forwards.
Conversely and worsely (yeah I know worsely is not a word but you get it)
experiencing the wins that are not part of the strategy - this is just fundamentally wrong.

sorry for being so long winded - but it does help to write it out - and expose oneself.



Edited - Thanks Cory - Yes demo - and I think yes to the challenge - 1 trade per week

And yes part of it - I do like to be in a position and managing it- that is fun I want to do it more - - - hence the overtrading. yep I do trade to trade - I am attempting to not do this - - cause the whole point of being in this business is to make money.
I can go to a casino to gamble.
  • #53,052
  • Jan 27, 2010 11:25am Jan 27, 2010 11:25am
Quoting marxdhr
Hi: I have been studying and trading the methods on this thread for about two weeks and am fortunate enough to be having success with the

Thanks for considering my request. Any help would be much appreciated.
Hi marxdhr,

I am definitely not an expert, but there was a discussion at one point in the thread (pretty sure it was Jarroo) that really helped me on this point. I had a couple trades (one was last week) where I moved my stop, then price barely hit my stop and shot down to my target. It is very disappointing to have that happen, even though you don't lose anything.

Jarroo commented that often times, price will retest the high/low of our entry bar (which is 10 pips or so past our B/E point because we wait for a 10 pip buffer to enter on the break of a pb or other setup). This means instead of setting our sl to breakeven, we should set it to slightly below the high or above the low of our entry setup, in case there is a retest. I know Jarroo sometimes will take off half his position at plus 38 pips then set his sl to -38 pips so worst case he ends up breakeven, but allows his position breathing room in case of a retest.

Like I said, I am not an expert, but this has helped me avoid getting stopped out on good trades by moving to B/E to early. I'm sure some of our more experienced traders can offer even better advice.

Cory
  • #53,053
  • Jan 27, 2010 11:42am Jan 27, 2010 11:42am
Quoting ghous

He doesn't know what the heck is a "candle".

g.
Did't he told you to stay on the topic, When you asked him.
  • #53,054
  • Edited 12:07pm Jan 27, 2010 12:04pm | Edited 12:07pm
Quoting Cbh123
Hi marxdhr,

I am definitely not an expert, but there was a discussion at one point in the thread (pretty sure it was Jarroo) that really helped me on this point. I had a couple trades (one was last week) where I moved my stop, then price barely hit my stop and shot down to my target. It is very disappointing to have that happen, even though you don't lose anything.

Jarroo commented that often times, price will retest the high/low of our entry bar (which is 10 pips or so past our B/E point because we wait for a 10 pip buffer to enter on the...
Thank you Cory. That is good advice. I will test out moving the stop to the point above the high, or below the low (for longs) of my entry bar. I have been just trailing a stop above the high, or below the low (for longs), of the bar that is 2 bars behind the current bar that has not yet closed. I think it makes some sense to move the stop to the entry bar limit because of the issue you raised regarding a retest of the high/low of the entry bar. It may be a good compromise between moving the stop to b/e too quickly and not moving it at all when you have some profit.

I am still a bit confused by the videos by james16 because there are many instances where he shows having only a small profit, then price moves against him and he says at worst you still should have been break even on the particular trade. I am going just from memory, but there are other examples in the videos where there is a small profit in a trade, the next one or two bars moves against the trade back into negative territory, and then goes to big profit and there is no mention of getting stopped out because he would have moved the stop to b/e very quickly and then been taken out when price moved temporarily against him. I know it's just me but the videos did confuse me on this point. On all other points they are far and away the best trading videos and instruction that I have ever seen in this business. He has done us all a great and benevolent service by starting this post and contributing so much valuable content to it.
  • #53,055
  • Jan 27, 2010 12:16pm Jan 27, 2010 12:16pm
Quoting Bee3a
Hey Mike, I run Fxsol Demo and my data feed shows a 10 pip difference between the close of the prior bar and the one we're talking about..
How far apart do u think in your opinion generally a close of the BEOB should be to the prior bar if it was at such location (continuation bars) ?
Hey Bee

For me it is just a personal preference. I like almost all my outside bars to close above or below the prior bar. This one would be tricky almost any way you cut it b/c of that low from dec 18 would be close by(which happens to be where price stalled today). Actually if anything when those two lows break it would work out better). My feed the bar did not close below the low I use fxpro. So even if it isn't a continuation bar i am still looking for those strong closes. Just part of my methods.

Best
Mike
  • #53,056
  • Jan 27, 2010 12:17pm Jan 27, 2010 12:17pm
Quoting Cbh123
Hi marxdhr,

I am definitely not an expert, but there was a discussion at one point in the thread (pretty sure it was Jarroo) that really helped me on this point. I had a couple trades (one was last week) where I moved my stop, then price barely hit my stop and shot down to my target. It is very disappointing to have that happen, even though you don't lose anything.

Jarroo commented that often times, price will retest the high/low of our entry bar (which is 10 pips or so past our B/E point because we wait for a 10 pip buffer to enter on the...

Hi there,

I use this exact strategy most of the time when the trade is not rated A++. You will get some breakeven trade more often but at most important it is worry free trade.

Thanks!

PM
  • #53,057
  • Jan 27, 2010 12:23pm Jan 27, 2010 12:23pm
Quoting Cbh123
Hi Perch,

I know how you feel, and just wanted to offer some words of encouragement. It shows a lot of discipline to avoid the forum and just trade on your own to avoid distractions; this shows me that you really care about succeeding as a trader.

Time and time again James16 and Mike have spoken of the importance of waiting for A++ setups. I promise you these setups do come, they work well, and more importantly are easier to manage than B trades, C trades, etc. If you are just trying to get past the point of losing to have your first...

Cory I was just about to type a long winded rant when you beat me to it

I always tell people who are overtrading, set ground rules. Give yourself 3 bullets for the whole month. If you waste them in one day b/c you have to be in the market then it is shame on you and you have to wait a whole month to trade. It is not about trading, it is about making money. Discipline is probably the #1 problem for people everyone, including me. When I lack my discipline I get smacked around. I always say to people can you show me one absolutley A+++ bar a month that you know for sure you would take. They all say yes. I then say if you took just that trade wouldn't you be making money? They say yes. Think about that, and build from there. I think thats pretty much how I did.

And yes please to those few recent posts of the new traders DEMO DEMO DEMO. If you can't do it on demo you can't do it with real money, so no need to put it to risk.

Good stuff
Mike
  • #53,058
  • Jan 27, 2010 12:24pm Jan 27, 2010 12:24pm
great response sir


Quoting perch
Thanks for the replies -

Yep determination I have - general overall patience I think I have - I know it'll take time and I know the losers can teach you more than the winners - IF you recognize and understand 'what went wrong'.

I may be on the verge of understanding that you will change your trading 'style'
when you trade for $.01 a pip - super easy to gamble.

when you trade for $1.00 a pip - I guessing from me only - still super ez to gamble


when you trade for 10.00 apip - - well now a 30-40 positive is $300-$400 bucks that means something....
  • #53,059
  • Jan 27, 2010 1:24pm Jan 27, 2010 1:24pm
Quoting alifari
Took this trade on NZD/USD 30min (demo). Reasons mentioned on chart. Stop loss moved to break even. Let's see if it reach take profit target or not.
Take Profit Hit +45 Pips.
Attached Image (click to enlarge)
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The purpose of knowledge is action, not knowledge
  • #53,060
  • Edited 1:56pm Jan 27, 2010 1:37pm | Edited 1:56pm
Quoting mbqb11
I always say to people can you show me one absolutley A+++ bar a month that you know for sure you would take. They all say yes. I then say if you took just that trade wouldn't you be making money? They say yes. Think about that, and build from there. I think thats pretty much how I did.

Good stuff
Mike
Thanks Mike -
Yeah - I could do that too. (feeling so pre-teen it's not even funny)

Ghous - I've answered the questions you posted - and it provided 1 ah ha moment among a few other things (it turned into a 3 page word doc - ahh self reflection)
So I'll provide an excerpt here.
Please note this is taken out of context a bit there was already some other information - so don't take my "because it's not fun" answer at face value = ===
Ask yourself what just won't allow you to sit on the side lines till a very obvious setup appears that a child could see and take?
Because that’s not fun. I am here to trade not to -- uh oh -- that one rung a little bell. Reinforced the sentiment that I am in this business to trade – and have fun - -
Gotta re-arrange that stuff.
First – I gotta make money.
Then – hopefully it will be fun
Then - you can trade –
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