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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

  • #53,861
  • Feb 3, 2010 7:28pm Feb 3, 2010 7:28pm
Quoting Cbh123
Mike,

I totally needed to hear this today. Thanks! I am getting more and more confident at identifying possible trouble areas on the daily charts, but my current challenge is trying to decide which ones could really stop a trend and which ones will just bounce the price before moving on.

I'm always hesitant to take .5, or .25 R on a trade, but honestly if I had been more willing to do that up until now I bet I'd have around a 90% hit rate (about 75% or 80% right now) and a lot less stress from watching positive trades go negative! More importantly...
Hi Mike,Cory,

Could you check if my understanding of risk-reward is correct. When you guys says 0.5R, does this means setting up a trade where for example TP=10 pips and SL=20pips? Or when u say 0.25R it means TP=10pips and SL=40pips? Is the ratio of TP/SL = (X)R? Appreciate your guidance as usual.

CY
  • #53,862
  • Feb 3, 2010 7:39pm Feb 3, 2010 7:39pm
Quoting ertorque
Hi Mike,Cory,

Could you check if my understanding of risk-reward is correct. When you guys says 0.5R, does this means setting up a trade where for example TP=10 pips and SL=20pips? Or when u say 0.25R it means TP=10pips and SL=40pips? Is the ratio of TP/SL = (X)R? Appreciate your guidance as usual.

CY
Hi Ertorque. Yes, your understanding is correct. However, I wouldn't say we're always "setting up a trade" with that risk to return. It is just that we need to be willing to take a small return on our risk if price hits a strong area and is getting rejected. Of course, if it blows through the first trouble area then happy day for us! But, we need to be prepared to take what the market gives us. There are traders that do well expecting a fixed R:R, but I think the majority of successful traders on this thread use PPZs and round numbers for profit taking or trail their stops to make the most of what the market gives them.

But to answer your question, yes your math is correct. Make sure to include the spread in your calculations as well.

Cory
  • #53,863
  • Feb 3, 2010 8:35pm Feb 3, 2010 8:35pm
I got many questions on how I managed the BEOB Daily Cad. I thought I would share them here.

I closed my 1st half for 27 pips and my 2nd half was closed at break even.
I do think that this is a high quality setup, is it an A+ setup? Probable not due to the traffic and I would have liked to see the swing High higher , like at the 1.1000.

I could have done the free trade approach, meaning the 2nd half stop loss placement would be -27 pips for a net zero result, but I did not. I wanted Price to prove that this setup had the momentum to get through the minor trouble areas in blue.


Those of you that have taken it with their stop loss above the BEOB, it is a valid placement. I do believe it will hit the 1.0500 before it will it the 1.0700. But then again maybe it won't.

My trading stlye is very comfortable to me. It allows me to place an order on a setup with a very good chance that my worst outcome will be a "no loss" trade. And my best outcome will be riding on a runner.

Believe me, when I turn off my computer and go about my business (or sleep) I never have to "worry" that my trade is say -148pips and growing.

Just some thoughts.


Jim
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Indicators show the past. Price Action "Indicates" the future.
  • #53,864
  • Feb 3, 2010 9:12pm Feb 3, 2010 9:12pm
Just because you catch a losing trade, doesnt mean you cannot get redemption... We can all hope and pray to the forex gods that todays bar closes within yesterdays.... if so.... well, you know what to do....

I have highlighted previous time this scenario happened on this 80.00 round number, and highlighted what is in progress now. stay tuned guys.
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Many choose unhappiness over uncertainty.
  • #53,865
  • Feb 3, 2010 9:20pm Feb 3, 2010 9:20pm
Quoting jarroo
I got many questions on how I managed the BEOB Daily Cad. I thought I would share them here.

I closed my 1st half for 27 pips and my 2nd half was closed at break even.
I do think that this is a high quality setup, is it an A+ setup? Probable not due to the traffic and I would have liked to see the swing High higher , like at the 1.1000.

I could have done the free trade approach, meaning the 2nd half stop loss placement would be -27 pips for a net zero result, but I did not. I wanted Price to prove that this setup had the momentum to get through...
I like this Jim.

I saw that trade, and skipped it. I like a little more room to get to BE than what that trade afforded, but that is me and my comfort zone. It works for me.

Everyone has to figure out what works for them individually. And when you do - watch out! You have a great shot at making it.
I'm pretty much done with all this ...
  • #53,866
  • Feb 3, 2010 9:31pm Feb 3, 2010 9:31pm
Quoting StoragePro
I like this Jim.

I saw that trade, and skipped it. I like a little more room to get to BE than what that trade afforded, but that is me and my comfort zone. It works for me.

Everyone has to figure out what works for them individually. And when you do - watch out! You have a great shot at making it.

Thanks SP.

One really has to figure out what their style is and run with it. It's funny , one style can grow to other styles over time. But for me its managing risk to point of comfort, which is zero risk. lol

I've been enjoying your interview with Fiji. Great stuff, brother.

I'm sure your asking yourself . . . . is this how Jack Schwager got started. lol

Hope there is more in the future.


Jim
Indicators show the past. Price Action "Indicates" the future.
  • #53,867
  • Feb 3, 2010 9:46pm Feb 3, 2010 9:46pm
Quoting jarroo
Thanks SP.

One really has to figure out what their style is and run with it. It's funny , one style can grow to other styles over time. But for me its managing risk to point of comfort, which is zero risk. lol

I've been enjoying your interview with Fiji. Great stuff, brother.

I'm sure your asking yourself . . . . is this how Jack Schwager got started. lol

Hope there is more in the future.


Jim

I have found that zero risk suits me real well too. It is all in how you do it though! I only get a few (3 to 5) positive winners and bunch of BE's a month. Works like buttah!

I'll be posting up a link to folks here soon about the recorded interviews. Psychology stuff, and they are really powerful. That Fiji knows his stuff.

There are things in there that will rock_your_world.
I'm pretty much done with all this ...
  • #53,868
  • Feb 3, 2010 10:08pm Feb 3, 2010 10:08pm
Quoting jarroo
I got many questions on how I managed the BEOB Daily Cad. I thought I would share them here.
Jim
Hi Jim, I'd like to know why you took that setup. Did the ema's influence you in any way (they are trending down)? MACD shows no divergence to the downside, either. Was it pure PA?
  • #53,869
  • Feb 3, 2010 10:15pm Feb 3, 2010 10:15pm
Quoting albertsy2
Hi Jim, I'd like to know why you took that setup. Did the ema's influence you in any way? MACD shows no divergence to the downside, either. Was it pure PA?
The ema didn't influence the trade because it wasn't confluenced with the setup. Divergence would have been nice but not a trade breaker for me.

Yes, pure PA, off a strong PPZ level 1.0650 and RN 1.0600 and Daily trendline. It still has a very good chance of falling further but just a bit to choppy for my likely to stay with the trade.

I like the setup and would take it again in a heart beat.
Indicators show the past. Price Action "Indicates" the future.
  • #53,870
  • Feb 3, 2010 10:20pm Feb 3, 2010 10:20pm
^Thanks, Jim!

When exactly can I combine 2 bars into a 2-day pin bar (railroad tracks)? I understand that I take the open of the first and the close of the second, and look at the higher high and lower low, and if it "merges" into a PB then I can take it. But how do I decide to do this? It seems that there are many different consecutive candle formations that I can use these "merging" rules in order to make myself a PB... or is this the point, that I can do this on any 2 consecutive candles?
  • #53,871
  • Feb 3, 2010 10:31pm Feb 3, 2010 10:31pm
Quoting albertsy2
^Thanks, Jim!

When exactly can I combine 2 bars into a 2-day pin bar (railroad tracks)? I understand that I take the open of the first and the close of the second, and look at the higher high and lower low, and if it "merges" into a PB then I can take it. But how do I decide to do this? It seems that there are many different consecutive candle formations that I can use these "merging" rules in order to make myself a PB... or is this the point, that I can do this on any 2 consecutive candles?
I prefer just using two consecutive candles but you can use more. Remember that a Weekly PB is just a 5 day PB. So there can be many different combinations. I prefer just the two consecutive candles.

But, as you know, it is where these combinations are located and the confluences that support them that is the key to their success.
Indicators show the past. Price Action "Indicates" the future.
  • #53,872
  • Feb 3, 2010 10:48pm Feb 3, 2010 10:48pm
IB trades...
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Back to the beginning ... demo
  • #53,873
  • Edited Feb 4, 2010 12:13am Feb 3, 2010 10:53pm | Edited Feb 4, 2010 12:13am
Quoting Treefingers
Amazing the unemployment rate going up being there is only about 17 people currently living in NZ. Maybe they include the sheep.
The NZ unemployment rate always seems to spike at the end of summer... must have something to do with Bondi Beach getting overcast and all the backpackers heading back to Christchurch

Quoting triger88990
if you don't paly with uchf, you should look at it like a leader to fiber.

simply saying usd/chf is the leader and eur/usd is the follower.

you will see a change in your trading,thats for sure,just play more with it and try to see the realtion leader-follower,hope that helps
Probably want to be careful with that one. Look at the volumes of each currency traded - particularly the swissie, and how much of its turnover is usd vs eur.

*edit* jesus christ this thread moves fast. 174 pages, 2617 posts to catch up
When you have to shoot, shoot. Dont talk.
  • #53,874
  • Feb 3, 2010 11:15pm Feb 3, 2010 11:15pm
Quoting StoragePro
I have found that zero risk suits me real well too. It is all in how you do it though! I only get a few (3 to 5) positive winners and bunch of BE's a month. Works like buttah!

I'll be posting up a link to folks here soon about the recorded interviews. Psychology stuff, and they are really powerful. That Fiji knows his stuff.

There are things in there that will rock_your_world.
...and I might as well add that the words in bold handsomely underestimate the true worth of those nuggets!

Love ya'll!

g.
I believe . . .
  • #53,875
  • Feb 3, 2010 11:18pm Feb 3, 2010 11:18pm
Quoting goldtrader
IB trades...
Should you not be waiting for the break of the IB at least?

...

Or may be you've worked out a method that allows you to enter a trade before it breaks...in which case we'll love an elaboration.

g.
I believe . . .
  • #53,876
  • Feb 4, 2010 12:48am Feb 4, 2010 12:48am
Quoting ghous
Should you not be waiting for the break of the IB at least?

...

Or may be you've worked out a method that allows you to enter a trade before it breaks...in which case we'll love an elaboration.

g.
goldtrader is pretty good.... should be interesting to see it play out....
Many choose unhappiness over uncertainty.
  • #53,877
  • Feb 4, 2010 12:50am Feb 4, 2010 12:50am
Quoting joelcf
The NZ unemployment rate always seems to spike at the end of summer... must have something to do with Bondi Beach getting overcast and all the backpackers heading back to Christchurch



Probably want to be careful with that one. Look at the volumes of each currency traded - particularly the swissie, and how much of its turnover is usd vs eur.

*edit* jesus christ this thread moves fast. 174 pages, 2617 posts to catch up
Hey Joe glad to see you back.

Those currency correlation are making me crazy i need serious help.

I know what they all say about correlations like Take the best setup etc, but i can't do it

i just end up messed in my trades when i see conflicting signals.

You recommended 6 pairs in this post.

So can you add 3-5 more ( having no effect on each other) in these pairs and what about Cable and GJ (i like them so much).

Thanks.
.
  • #53,878
  • Feb 4, 2010 12:51am Feb 4, 2010 12:51am
Silver BO and retest
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May all your fits be loose.
  • #53,879
  • Feb 4, 2010 1:31am Feb 4, 2010 1:31am
Quoting ghous
Should you not be waiting for the break of the IB at least?

...

Or may be you've worked out a method that allows you to enter a trade before it breaks...in which case we'll love an elaboration.

g.
Exactly.
  • #53,880
  • Feb 4, 2010 1:37am Feb 4, 2010 1:37am
Quoting Dan Gilbert
goldtrader is pretty good.... should be interesting to see it play out....
Dan, thanks for your vouch , it's my first, like my first live trade, very exciting... and nerve

Quoting ghous
Should you not be waiting for the break of the IB at least?

...

Or may be you've worked out a method that allows you to enter a trade before it breaks...in which case we'll love an elaboration.

g.
I just focus on the R, so I have to lose the hit rate, I see if i can get into the bar before it breaks, the R is huge...1 winner can cover lots of losers, it just my thought... I think I'm new so i have to try everything...
Back to the beginning ... demo
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