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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

  • #53,701
  • Feb 2, 2010 5:50pm Feb 2, 2010 5:50pm
Quoting treefingers
do any of your guys here use the jacko anti-hedge strategy when you get stopped out?
do not place blind entrys, if you have pa to support your entry at that level,sure, go for it....
Never forget, your whole purpose on this site is to learn pa........
Take care, graham
  • #53,702
  • Feb 2, 2010 6:05pm Feb 2, 2010 6:05pm
Quoting Treefingers
Do any of your guys here use the Jacko anti-hedge strategy when you get stopped out?
Only if I'm trading in the direction of the primary trend, never on a counter trend.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #53,703
  • Feb 2, 2010 6:06pm Feb 2, 2010 6:06pm
Quoting Janegra
do not place blind entrys, if you have pa to support your entry at that level,sure, go for it....
Never forget, your whole purpose on this site is to learn pa........
Take care, graham
Blind entry huh?
LMAO...
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #53,704
  • Feb 2, 2010 6:25pm Feb 2, 2010 6:25pm
Quoting mbqb11
Hey Michal My answers in bold

Hello Mike,
if you'd be so kind and answer following question I'd be thankful...

1, Are you still using 2 bar exit strategy?
Yes it is part of my arsenal of exits.

2, If yes, how is it working over time?

[b]Still works just as good as ever. It is knowing when to apply it....
[/quote]

Hi Mike:

Can you please refer me to any past posts that outline your rules for use of the two-bar exit strategy? I use a variation of it as follows but I am concerned it's too conservative and it leads to too many trades that get stopped out early and then go on to be winners. Here are my rules for longs (reverse for shorts):

1. Enter on A+ pin bar or outside reversal bar;

2. Place initial stop loss at bottom of pin bar or outside reversal bar set up;

3. Set price/profit target of 1 x risk (1 X R);

4. As price moves in my favor trail a stop loss one tick below the lowest low of the last two fully completed bars in your time frame. You cannot count the low of the bar that is currently in progress (i.e. the current 15 minute, 30 minute, daily, etc. bar in your time frame) until it is completed.

5. If price makes it to the high of the bar immediately prior to the pin bar or outside reversal bar, and that price high gives you some type of reasonable profit, then move stop to break even at that point and continue trailing two-bar stop below lows once the lowest low of two bars is greater than the break even pont.

6. Exit at the earlier to occur of a profit target equal to 1 X R plus enough to cover slippage and commissions, the break even stop, or the lowest low of the prior completed two bars, whichever occurs first.

I use this in 15 minute bar day trades in stocks because I find that profitable trades can turn into losers quickly. Does this plan seem workable? Perhaps I am limiting my upside too much due to 1) the fact that I exit every winner that makes it this far at 1 x R so I never get a big runner; and 2) I move my stop to break even when price hits the price high of the bar immediately to the right of the set up bar. I do that because it looked to me like James16 was sort of indicating in one of his support and resistance videos that he often does that. The downside of that is you get taken out at break even a lot more and miss some trades that then move on to become winners.

Anyone's thoughts on the foregoing would be appreciated.
  • #53,705
  • Feb 2, 2010 6:35pm Feb 2, 2010 6:35pm
Quoting mbqb11
Hey Imp

This is sort of like polling what is better chocolate or vanilla ice cream

The reality is they can all work if you develop a method for it....
Hi Mike:

It would be great if you could look at the post I made earlier today (I think right before this post) which explains how I use a trailing two bar stop for intraday trading. I try to strike a balance between being too conservative, letting winners run, but getting out a lot without a big loss and trying to make sure that small winners are still a lot larger than my average loss. It should be a few posts behind this one. I would really welcome your response to it.
  • #53,706
  • Feb 2, 2010 6:54pm Feb 2, 2010 6:54pm
Quoting Treefingers
Do any of your guys here use the Jacko anti-hedge strategy when you get stopped out?
What a good question. Jacko, as far as I know trades just the EU. I am not aware of anyone who does that here, but ...

There are a few things to consider - first, that approach works exceedingly well in a trend. So price pulls back, and you look for PA to get in again. Your entry fails - say it ain't so! And price continues in a retrace, so according to the rules, I believe that price must retreat 100 pips (the EU) for you to stand up your trade again where it last fell. The idea is to let the trend once again sweep up your position and carry you along. Ask in that thread for clear details.

This approach has a tendency to suck wind in a range - which is the majority of time, but I am sure some careful thought would enable you to adapt parts of this thing to many market conditions.

If you wish to employ such a method, please demo for at least 3 months in a profitable fashion (see post one) Also, pay attention to PA, I've seen plenty of traders trying out Jacko's stuff get creamed when trading into blatant PPZ's and even more blatant PA at a PPZ pointing in the other direction.

Jacko likes to say 'park your brain at the door' - and I agree, but keep your eyes open!

Good luck with it - I've wondered myself, but have not done the heavy lifting to make it go - or not. Elongated trends can be very enriching, and if you learn the stuff in this thread, you'll be successful even if a trend never appears again...

When you come right down to it, there are a number of ways to make money in any market. But bedrock across all of them is a clear and working understanding of Price Action. Get that, and you win.

mike
I'm pretty much done with all this ...
  • #53,707
  • Feb 2, 2010 7:08pm Feb 2, 2010 7:08pm
Quoting Dan Gilbert
Hey Mike, I was looking at this, and I was curious if you ever play something like this.

Yes I know it's not at a swing high, and there's a TON of traffic right below it (actually, the bar closes right on a very strong PPZ), but lets pretend this bar formed straddling the .9500, with little to no traffic below, would you ever see that as the "straw that broke the camals back" and consider it a precursor to a...
^^^^^^^^^^^^^^^^^
http://www.forexfactory.com/showpost...ostcount=53405



It worked....
Attached Image
Many choose unhappiness over uncertainty.
  • #53,708
  • Feb 2, 2010 7:09pm Feb 2, 2010 7:09pm
Quoting StoragePro
What a good question. Jacko, as far as I know trades just the EU. I am not aware of anyone who does that here, but ...


mike

Thanks Storage, its not something I am looking at using any time soon as I have enough to get on with at this stage. I was just interested as like many newcomers we read this thread & Jacko's.

Also I would just like to confirm what many have said about reading Trading in the Zone, I have just about finished reading it & its a fantastic book not just in regards to trading but to psychology in general.
Learning to be rigid in my rules & flexible in my expectations
  • #53,709
  • Feb 2, 2010 7:11pm Feb 2, 2010 7:11pm
Quoting Dan Gilbert
^^^^^^^^^^^^^^^^^
http://www.forexfactory.com/showpost...ostcount=53405



It worked....

Nice trade Dan, I am in the ride back up North, currently at BE.
Learning to be rigid in my rules & flexible in my expectations
  • #53,710
  • Feb 2, 2010 7:18pm Feb 2, 2010 7:18pm
Quoting Treefingers
Nice trade Dan, I am in the ride back up North, currently at BE.
actually I didn't trade it lol... I had no idea if it would work so I asked Mike, and he said he likes that type of trade. I just watched it play out w/o me...
Many choose unhappiness over uncertainty.
  • #53,711
  • Feb 2, 2010 7:19pm Feb 2, 2010 7:19pm
Quoting Treefingers
Thanks Storage, its not something I am looking at using any time soon as I have enough to get on with at this stage. I was just interested as like many newcomers we read this thread & Jacko's.

Also I would just like to confirm what many have said about reading Trading in the Zone, I have just about finished reading it & its a fantastic book not just in regards to trading but to psychology in general.
Zone is a very good book.

Read it for sure. Then read it again. I found that rereading it (after a number of months) made the light go on. Nothing like a little experience under your belt to light the lamp of recognition!
I'm pretty much done with all this ...
  • #53,712
  • Feb 2, 2010 7:24pm Feb 2, 2010 7:24pm
Just wanted to drop a line to say Hello to the crazy amount of people that have participated in this forum. Ive been looking through the pages of FF for a while now and for some reason this attracted my attention esp. James sincerity and commitment to help. Who is this guy?! Some sort of modern day Forex Jesus? Ha and of course, in addition to PA being pretty compelling material to really pay attention to from what I've seen. Does James still participate here or is he just on his PF now a days? Anywyas, Ive read suggestions of reading through this whole forum and um... Im on page 35 of what page is this? 3000+?! Wow, really? Has this topic digressed or are there 3000+ pages of relevant material I should seriously go through. I dont have a problem with that if it is truly beneficiary. Let me know guys. Glad to have finally posted something, I plan on being a little more interactive!

-Chris-
  • #53,713
  • Feb 2, 2010 7:25pm Feb 2, 2010 7:25pm
Quoting marxdhr
Hi Mike:

It would be great if you could look at the post I made earlier today (I think right before this post) which explains how I use a trailing two bar stop for intraday trading. I try to strike a balance between being too conservative, letting winners run, but getting out a lot without a big loss and trying to make sure that small winners are still a lot larger than my average loss. It should be a few posts behind this one. I would really welcome your response to it.
Hey Marx

It seems as if you are trying to do too many different things at once. That is let your trade run, get to b/e, and set a take profit, all while trailing. IMO this is a disconnect b/w the functions of each of those styles. Without fully understanding what is the reason for using each. Again from my perspective I will use a trailing stop where I believe price has a lot of room to run, not if I am looking to flat out take profit at 1:1(Isn't that taking away from the reason to trail out?, ) or get to b/e at the previous bars high. This is going to take away from what a trailing stop is, which is to give room to run. Now I am not saying this won't work, I have no clue if it will, but it sounds like you are trying to get the best of everything but in turn it might lead to getting the best of nothing. If you want to get your stops to b/e asap, then choose that and build from there. I really tend to just decide for each trade and work from there, but I don't always do one thing and I change as a trade develops. Another thing I see you talking about 15 minute bars, but like James I full agreement no one should be under daily/weekly until they can trade that profitably too , so i thought I would bring that up. So I would not try to do all those different pieces at once, and maybe try sticking with one and building from there. Obviously exits are nearly the most difficult for people b/c they don't have a concrete trading plan or an idea of what to do and they get lost like you have. So it is very normal as you learn what works and what doesn't for you.

I know that might seem kind of confusing but it is the only way I know how to explain it based on your post. So hopefully it makes sense when I say start with one of those concepts and build from there, or see if it is working. Be it through massive backtesting, and of course DEMO forward testing. Only once you get substantial data to analyze can you build from there and see what is working and what is not working.

Hope that helps
Mike
  • #53,714
  • Feb 2, 2010 7:56pm Feb 2, 2010 7:56pm
Quoting printer69
Hi everybody / mbqb11 / James

after few days surfing on the web and based on your advices this is my study plan for the next ... months

would appreciate if someone of you has a minute to check me on this and give me a go / no go "for launch"

BOOKS:
martin pring -...
Hi print,
Not sure if anyone has answered u yet, but if I may...

Nison is a good read. Forget the next "advanced candlesticks" (something like that) book of his though. I only found 1 thing useful, which is that 50% mark of super huge candles is support/resistance. The rest is... esoteric and complex stuff that is pretty useless IMO.
When reading candles, remember to ask yourself about what it is telling you about the underlying buying/selling. Technically, a dragonfly doji is different from a nice green hammer. But in essence it's saying "buying coming in" but diff degree.

Pring & Murphy are good. Didn't quite appreciate Elder.
---
BUT

I highly recommend that you read the posts from the seniors first. I read through all the stuff you mentioned above (and ALOT more) before I found this thread and wished I started here instead.

I have compiled posts sorted by individual..Mike, James, Jarroo and the rest of the seniors. Its sorted by every 500 pages since the inception of this thread. Just posted 3000 to 3500.

The summaries of posts before 3000...are somewhere in this thread.

Run a search. Reading through their stuff has helped me ALOT.
There is a neigh fixed learning curve that I think Mike has seen so many times from his tireless effort here. Reading through the posts of the seniors will shorten your learning curve greatly.

There is nothing like having senior traders share their worldview of the markets with you.
The ONE thing you cannot get from books is personal insight into how profitable traders think.
It's how you think that counts the most.

I have a close friend who does unarmed combat for special forces troopers. He quotes Hunter B. Armstrong, "One Mind, Any Weapon"
I believe "One Mind, Any Market" also applies to us as speculators.

My 2pips. =)
Cy
One Mind, Any Market
  • #53,715
  • Feb 2, 2010 8:15pm Feb 2, 2010 8:15pm
Well, Downloading FXPRO gave me a whole new set of stuff to look at - - and I'm excited.
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Many choose unhappiness over uncertainty.
  • #53,716
  • Feb 2, 2010 8:20pm Feb 2, 2010 8:20pm
Quoting Dan Gilbert
Well, Downloading FXPRO gave me a whole new set of stuff to look at - - and I'm excited.
What is CAT?
Learning to be rigid in my rules & flexible in my expectations
  • #53,717
  • Feb 2, 2010 8:21pm Feb 2, 2010 8:21pm
Quoting Dan Gilbert
Well, Downloading FXPRO gave me a whole new set of stuff to look at - - and I'm excited.
very excited....
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Many choose unhappiness over uncertainty.
  • #53,718
  • Feb 2, 2010 8:22pm Feb 2, 2010 8:22pm
Quoting FxChris
Just wanted to drop a line to say Hello to the crazy amount of people that have participated in this forum. Ive been looking through the pages of FF for a while now and for some reason this attracted my attention esp. James sincerity and commitment to help. Who is this guy?! Some sort of modern day Forex Jesus?

-Chris-
LOLOLOLOLOLOL - Dude - you are welcome here ANYTIME !!!




Jim is not a Forex Jesus, but I did see him heal several traders of over trading, too much risk, indicators and of course he has healed everyone of liberalism....

Jim is love. He turns water in Beer and once he raised a dead account.
I'm pretty much done with all this ...
  • #53,719
  • Feb 2, 2010 8:22pm Feb 2, 2010 8:22pm
Quoting Treefingers
What is CAT?
Stock for Caterpillar Inc.
  • #53,720
  • Feb 2, 2010 8:25pm Feb 2, 2010 8:25pm
Quoting Treefingers
What is CAT?
http://www.apolloautotransport.com/cat79702big.jpg
Many choose unhappiness over uncertainty.
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