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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

  • #53,501
  • Jan 31, 2010 12:35pm Jan 31, 2010 12:35pm
Quoting nasir.khan

Third and biggest advantage you have is that YOU KNOW NOTHING
.
couldn't agree more lol. This for sure is a huge leg up on where most of us were!

Mike
  • #53,502
  • Jan 31, 2010 12:57pm Jan 31, 2010 12:57pm
Quoting mike w
Fundamental analysis is shown through technical analysis. 'Tis true, whether it's believable to you or not yet. I haven't looked at news events for a very long time, other than the biggies like FOMC and NFP days, and I'm still able to hold onto positions for weeks (if it's in a trend and necessary).

"I ignore news like the plague" The granddaddy of this thread wrote that up. With his credentials, I found it wise to follow suit and it's paid off.
fair enough, if you make money doing what you do then keep doing it .
  • #53,503
  • Jan 31, 2010 2:42pm Jan 31, 2010 2:42pm
Quoting MattW
EUR/CHF,
On March 12th price shot up and on June 24th price shot up, so surely we are expecting price to head up (EUR strength, CHF weakness)?
I am still thinking of a sell stop and then a tight close position and even a trailing stop. Thia is not gambling it is reading my charts and taking a calculated risk based upon past performance.
Thank you! Jimbo
  • #53,504
  • Jan 31, 2010 3:41pm Jan 31, 2010 3:41pm
you guys don't use moving averages? dang, i couldn't do it without them, 20,50,100 are great for hourlies, buy pullbacks i hourly trend with pin bars as an entry
  • #53,505
  • Jan 31, 2010 4:02pm Jan 31, 2010 4:02pm
Quoting ppfx
i've just seen an interesting situation on a few monthly charts of some stock markets... it seems like there has formed a reversion on them, looks like the main trend has changed from bullish to bearish (nice BEOB at swing high)

will see what will happen...
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Where do you find charts with currencies plus gold, silver, stock exchanges? Thanks.
  • #53,506
  • Jan 31, 2010 4:03pm Jan 31, 2010 4:03pm
Market's opened and we have a gap.. I don't know a whole lot about gaps but from the little I know, it could serve as resistance. Bears are still in IMO. Any thoughts?
  • #53,507
  • Jan 31, 2010 4:08pm Jan 31, 2010 4:08pm
Quoting Bryan
Where do you find charts with currencies plus gold, silver, stock exchanges? Thanks.
FXPro demo has Au, Ag and some stocks and indices. I think a few people around here use them.
  • #53,508
  • Jan 31, 2010 4:13pm Jan 31, 2010 4:13pm
beware of gold and commodities, it's more than just 'price action' , gold is a supply/demand market and the D/S is driven mainly by economics. the dollar etc, that said, if a market is trending upwards you'll probably make money buying.
  • #53,509
  • Edited 4:47pm Jan 31, 2010 4:14pm | Edited 4:47pm
Quoting perch
So I am assigned the challenge - 4 bullets - I get four shots to fire in Feb.
I already hate the challenge because - well simply because I only get four.

So that brings on my first option - and I am trying to figure if it's worth shooting that first one already.

I am thinking if a break low - entry at 2.2670 - with a TP at 2.2575...
hi perch,

until now I was doing about 10 trades a month, where I'd say half of them were mediocre (B and worse). I couldn't get over break even(1 month -7%, 2 months BE). So I also decided to go with BULLETS exercise, I've still not decided how many bullets will I give to myself but it's gonna be 3-5(chances are it's gonna be 4 :-) like you). Will see how it goes.

Now, to your chart.

1, Nice outside bar/pin bar? (textbook shape, big enough compared to previous bars) CHECK
2, At strong support/resistance? well, I'd prefer if it were on 2.3086 or at 2.3270. half check
3, Round number? CHECK
4, FIB? It's around 76.4 so CHECK but 61.8 is just 40 pips away
5, DIVERGENCE NO check

So now it depends how many IFs do you have in your criteria to rate trade A+. More IFs=better trades as Jim says in one of his videos.

Trouble with BULLETS exercise is that we never know in advance how many good setups there will be in a month. So we might end up with 2 trades only, or take 4 and miss other 4 perfect A++ because we're out of bullets. After my previous experience I'd say less is more. For me this setups has 3.5 IFs out of 5 which makes it A trade, but I want A+ and better. No trade for me. (of course now I'm gonna see this pair to run 300 pips down in 5 days, but it doesn't matter, rules are set and RULES ARE RULES. I might change them later if proven bad, but for now I stick to them!)

Cheers,
Michal
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  • #53,510
  • Jan 31, 2010 4:29pm Jan 31, 2010 4:29pm
Quoting michal7
hi perch,

until now I was doing about 10 trades a month, where I'd say half of them were mediocre (B and worse). I couldn't get over break even(1 month -7%, 2 months BE). So I also decided to go with BULLETS exercise,...
Be careful, that's not a BEOB.
  • #53,511
  • Jan 31, 2010 4:37pm Jan 31, 2010 4:37pm
Quoting wh1zz0
Be careful, that's not a BEOB.
Why?

It encompasses previous bar and also the 2 bars before that (although only by one pip on the up side).

Here's Jim's definition:
4. BEOB: Bearish outside bar - this is a bar where the low is lower than the
previous bars low and higher than the previous
bars high. Preferably the close will be in the bottom
third to quarter of the bar. The lower the better.

Yes it would be better if closer was lower, but still, it is in lower third of the bar.

What am I missing then?

Thanks and cheers,

Michal
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  • #53,512
  • Jan 31, 2010 4:51pm Jan 31, 2010 4:51pm
Quoting michal7
Why?

It encompasses previous bar and also the one before that (although only by one pip on the up side).

Here's Jim's definition:
4. BEOB: Bearish outside bar - this is a bar where the low is lower than the
previous bars low and higher than the previous
bars high. Preferably the close will be in the bottom
third to quarter of the bar. The lower the better.

Yes it would be better if closer was lower, but still, it is in lower third of the bar.

What am I missing then?

Thanks and cheers,

Michal
Okay let me rephrase. Your definition is not wrong actually. However, since price action tries to show you market activity of bears and bulls, for me, I'd be more comfortable with BEOB's that have their closes completely below the High, Low, Open & Close. (I.e A bar 2 which completely engulfs a bar 1). That would mean more momentum IMO.

Take a good look at the following chart example and tell me if you would think twice before taking it. Simply sweet!

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  • #53,513
  • Jan 31, 2010 5:08pm Jan 31, 2010 5:08pm
Quoting wh1zz0
Okay let me rephrase. Your definition is not wrong actually. However, since price action tries to show you market activity of bears and bulls, for me, I'd be more comfortable with BEOB's that have their closes completely below the High, Low, Open & Close. (I.e A bar 2 which completely engulfs a bar 1). That would mean more momentum IMO.
Thanks, I agree, bar would be better if it closed below previous bar's low or even below lows of all 3 previous bars.
Other way to look at it from PA perspective might be that:
1, price went up, retested the resistance,
2, then went down thru whole previous bar
3, stopped at support from low of the bar from 26th
4, from there it retraces to the low of the previous bar.
5, chances are then that if price breaks low from 26th it will go down

But in spite of this as I stated earlier I don't take this trade. It's A/A- for me and I want A+ and better.

But now when I'm reading your posts, I got a feeling that maybe I should set higher standard for the bar itself. May I ask you to share your bar criteria for outside bars and pin bars? I really want to be picky and this might help me.

Thanks,

Michal
  • #53,514
  • Edited 6:18pm Jan 31, 2010 6:05pm | Edited 6:18pm
Quoting TGpop
I agree with you with everything, except for "you don't have to know whats happening with economy, what they are saying on tv and wallstreetjournal
No, of course not. If you are in any way inclined to distract yourself from proper trading and wish to add an additional factor of psychological burden and uncertainty, there is NOTHING, I repeat, NOTHING better than the clueless bleating of the sheeps that is commonly referred to as fundamentals.
Unlike a s/r level, you can't verify for yourself whether someone's opinion may or may not be correct about not just what has already happend, but for what will eventually happen. What could be more ideal to put your trust and beliefs in...


Quote
Why on earth would you ignore such vital information , which will effect the chart you look at?
That's odd, and here I thought levels and bars shaped and catapulted price around...man, where HAVE I been with my mind and eyes the last 4 years..

Quote
In my honest opinion, J16 has good setups, but it's best for daytrading, i can't see how people can swing trade the dailies without understanding the capital flows flushing in and out of economies!
Yea man. Totally agree.

I wouldn't know how anyone could get more than 1-200 pips racked up, especially on carry trades, without reading daily fundamental news.

I can only recommend to everyone: unless you want to suffer humiliating results like the attached ones, which are the only thing you can expect if you completely ignore fundamentals, you best get to reading up right now!

And this is just a glimpse of the terrible daytrading fate you will suffer.
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Trust price. Know yourself.
  • #53,515
  • Jan 31, 2010 6:21pm Jan 31, 2010 6:21pm
less black boxes please
  • #53,516
  • Jan 31, 2010 6:22pm Jan 31, 2010 6:22pm
Quoting michal7
Thanks, I agree, bar would be better if it closed below previous bar's low or even below lows of all 3 previous bars.
Other way to look at it from PA perspective might be that:
1, price went up, retested the resistance,
2, then went down thru whole previous bar
3, stopped at support from low of the bar from 26th
4, from there it retraces to the low of the previous bar.
5, chances are then that if price breaks...

Well, nothing new under the sun. It's all about patience.

For my pin bar criteria, it's still the standard one - long nose, close of the PB should be well above the previous bar's eye (for a bullish pin) or well below the previous bar's eye (for a bearish pin), e.t.c Not forgetting location e.t.c e.t.c
  • #53,517
  • Jan 31, 2010 7:21pm Jan 31, 2010 7:21pm
Quoting TGpop
.In my honest opinion, J16 has good setups, but it's best for daytrading, i can't see how people can swing trade the dailies without understanding the capital flows flushing in and out of economies!

Maybe that's just me, pin bars are good.
Pinbars on daily TF are excellent barometers fot the things about to happen (most of the time) Like on chart in this post (just the chart, ignore anything else).

Fundies? There is only one thing, I'm interested in (while looking for swings) and that's interest rates.
Not the rates themselves at any given time, but rates direction.
Anything else is short term crap. Having said all that, intraday trading is a totally different ball game..
  • #53,518
  • Jan 31, 2010 7:25pm Jan 31, 2010 7:25pm
Quoting printer69
dear Mr James,
after weeks reading forex forums trying to understand about the people and the honestly seems this one is the one...
so I give it a try
would like to ask for your advice about
- how to start trading forex from zero
- remember when you were at my zero level?.....
Hello printer69,
Welcome, in behalf of all here.
u came to the right place.

I started with nothing too. but like most people who know nothing, i experienced many (typical bad) things.
if u dont want to suffer the same fate, read the suggestions to u posted here in this thread.

since several have already mentioned, here are some more:
1. if u are going to read babypips, be sure to read this thread too. & try to concentrate your time & effort in understanding the concepts shared here & applying them well enough before reading any other method/system threads.

2. view & review James16 group free videos
they update this link with more videos from time to time.

3. trade with ZERO to very few indicators FROM THE VERY START. most traders like me started out with tons of indicators. start your trading career in a different way.

4. IMHO, u dont need to spend for your education. u just need an internet connection, PLUS dedication, zeal & focus to read this thread. if u wanna hasten your learning, try concentrate on reading only posts by certain members here (u can start with posts by James16 & mbqb11, then gradually add the other senior members). & if u so choose, u can join the james16 group (see #2 above)

if u are serious, start with the right foot, do it the right way.
u will save tons of time & money by doing so.

Never stop learning...Chase your dreams... Good luck!
  • #53,519
  • Jan 31, 2010 7:30pm Jan 31, 2010 7:30pm
Quoting supremeChaos
Hello printer69,
Welcome, in behalf of all here.
u came to the right place.

I started with nothing too. but like most people who know nothing, i experienced many (typical bad) things.
if u dont want to suffer the same fate, read the suggestions to u posted here in this thread.

since several have already mentioned, here are some more:
1. if u are going to read babypips, be sure to read this thread too. & try to concentrate your time & effort in understanding the concepts shared here & applying them well enough [u]before...
I second this advice.
  • #53,520
  • Jan 31, 2010 7:32pm Jan 31, 2010 7:32pm
Quoting SeekingLight
No, of course not. If you are in any way inclined to distract yourself from proper trading and wish to add an additional factor of psychological burden and uncertainty, there is NOTHING, I repeat, NOTHING better than the clueless bleating of the sheeps that is commonly referred to as fundamentals.
Unlike a s/r level, you can't verify for yourself whether someone's opinion may or may not be correct about not just what has already happend, but for what will eventually happen. What could be more ideal to put your trust and beliefs in...


That's...
About fundamental, I have made a polling about how important it is to the consistently profitable traders:
http://www.forexfactory.com/poll.php...lts&pollid=712
You can see!
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