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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

  • #54,941
  • Feb 13, 2010 6:28am Feb 13, 2010 6:28am
I don't think many on here look at monthlies, but if you are invested is US stocks or index funds this is interesting on the long-term view. The Dow Jones is at the 50% retracement of the last move down and printed a beob. The gray box is the 50% area.

Not trying to spread doom and gloom, but it sure hints at a drop coming for the Dow. For what its worth........


Nathan
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  • #54,942
  • Feb 13, 2010 6:35am Feb 13, 2010 6:35am
Is anyone from here who looks at zar,although is a third world currencies 70% of the worlds legal diamonds come from South Africa and is the largest exporter of platinum and the second largest exporter of gold. The ZAR is also a high-yielding currency, currently paying 7.0% interest.

I'm not interested that much for trading it,but instead I was trying to see how is afecting gold chart(they have negative correlation)

In the last month I was looking at both of the charts and see how they play at major S/R,and is seems that zar is acting as a leader and gold as a follower, when zar break downside gold follow it breaking upside.

I need some further notes from those who know more insights about it,or if anyone have some experience with it!

thanks!
  • #54,943
  • Feb 13, 2010 7:59am Feb 13, 2010 7:59am
Another one I am watching............
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  • #54,944
  • Feb 13, 2010 11:04am Feb 13, 2010 11:04am
Quoting Cbh123
Hi Scott, this is the one I use. Hope it's okay to post it here.

Cory
Thanks Cory..that was the one I was looking for. I used it on a different computer but couldn't seem to find it again.

Scott
  • #54,945
  • Edited 11:28am Feb 13, 2010 11:16am | Edited 11:28am
Quoting nasir.khan
I just started checking out Facebook.

But it's a pure time waste (for me at least).

So lurking through the Facebook for this entire morning, i am back home.
Blah, facebook sucks man. I used it to find out stuff that's coming up over the weekends but then got "lured in" and lost money because of lost trades so it had to be deleted asap. There's a chat feature on it and when I start flirting, there's just no stopping lol Damn you facebook, damn you!

For the thread's sake, I'm looking to see the gbp/jpy break out long this week. Check out the chart and you can see all the initial false breaks and then the close above. 143 looks mighty fine this time of year.
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I dream, therefore I become.
  • #54,946
  • Feb 13, 2010 11:20am Feb 13, 2010 11:20am
CHARTS
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  • #54,947
  • Feb 13, 2010 12:21pm Feb 13, 2010 12:21pm
Quoting benji533
CHARTS
Heh. Simple, right? But not "easy"... for the vast majority.

The tough part for many is to not try to 'curve fit' a setup, because of the need to make money, and then implement a solid set of repeatable rules (meaning - rules you use and follow).

And there is much much more...

Time and experience is the commodity all have to bring to the table.

The stuff just works - if we let it.
I'm pretty much done with all this ...
  • #54,948
  • Feb 13, 2010 1:20pm Feb 13, 2010 1:20pm
Quoting StoragePro
Heh. Simple, right? But not "easy"... for the vast majority.

The tough part for many is to not try to 'curve fit' a setup, because of the need to make money, and then implement a solid set of repeatable rules (meaning - rules you use and follow).

And there is much much more...

Time and experience is the commodity all have to bring to the table.

The stuff just works - if we let it.
This is why psychology is so important, and dangerous for trades. When you say "experience", I guess it's related to the psychological/emotional issues one should get over in order to become profitable.

We have the fact: if you are going to trade these great bars at great locations, and protect yourself at the first trouble area, you are going to not lose 95%+ of your trades.

The method is working. The only thing that can rune it is you. There are three psychological barriers which can destroy you:
1) You do not trust the method to do what it has proved itself to do. Solution: spend enough hours on back-testing and demo trading it exactly as it supposed to be, until you have enough confidence.
2) Your risk management is not tolerable for you. If your position size/account size doesn't fit your risk tolerable, you are very likely to ruin your trades by having an emotional reaction for seeing the amount of money you have on the table during the trade (both positive pips and negative pips). Solution: Adjust your position size according to your risk tolerance.
3) Lack of patient, will push you to take bad trades. Then you are going to trade just to trade, but not to trade for making money. You are going to gamble instead of running a solid business with a well proven record (It is like going and flipping coins with your friends instead of going to work at your office). Solution: Trade only on demo until you have saved enough money for putting a smile on your face after a single winning trade per month which made you your monthly salary.

I have no clue of what Jim's account size it. But sure there is a reason for 1) he can take only the best setups and manege them extremely tight. 2) he risks up to 3% of his account per trade.

Well, lets assume he trades a 500,000$ account. 1) he knows that even 0.5% gain per month will make him enough money for the entire month. 2) He risks 3% of his account, which is tons of money, only because he know what are the odds he has for winning that single trade. Not the dumbest person on earth will risk 15K and just sit and hope to get his money back. James knows his method works, therefore he is highly confident in it.

Trust your method, adjust your risk so you can tolerate it, and do not expect making billions of dollars safely starting with a 1,000$ account.
And remember, this is a marathon, not a sprint. If you can tolerate only 0.01% risk, it's fine. With enough time and experience, like SP had mentioned, you will gain more confidence, and then maybe adjust your risk accordingly. Take your time - this is a very benefiting business if you do not look for shortcuts.

Now hey, I'm only 17, so I am able to understand this, and will be able to apply this as well, everyone here should

Cheers,

Benji
  • #54,949
  • Feb 13, 2010 2:15pm Feb 13, 2010 2:15pm
Quoting benji533
This is why psychology is so important, and dangerous for trades. When you say "experience", I guess it's related to the psychological/emotional issues one should get over in order to become profitable.

We have the fact: if you are going to trade these great bars at great locations, and protect yourself at the first trouble area, you are going to not lose 95%+ of your trades.

The method is working. The only thing that can rune it is you. There are three psychological barriers which can destroy you:
1) You do not trust the method to do what...
Hi Benji (and anyone else who wants to chip in)

Been studying and occasionally chipping in this thread. Trying to read the whole thread but hard keeping up with the present rate of posts! Also looking at J16 material

- got a couple of queries

Main points I understand (sort of) PPZs, RNs, higher time frames etc. Different styles are evident, not surprisingly, and seem a bit confusing. Particularly, the emphasis on swing high/low, going with trend etc plays which makes sense but then James advocates also playing sideways markets where there never seems much of swing either way. Not sure if sideways markets is something that I should be having a crack at this stage (all demo of course)

If you have got great confluence (RNs, PPZ, double top etc) but not the best PA in terms of pin bar, BUOB etc do you still consider this a worthwhile trade generally?

I guess we are talking baby steps first with target as first trouble area after A+ set up then b/e. Lower time frames, touch trading (still not quite sure what this is?) etc comes with more confidence and a lot more trading practice.

Hope this makes some sense

Thanks

Jeremy
  • #54,950
  • Feb 13, 2010 5:26pm Feb 13, 2010 5:26pm
Quoting benji533
This is why psychology is so important, and dangerous for trades. When you say "experience", I guess it's related to the psychological/emotional issues one should get over in order to become profitable.
Plus there is just the part where we have to develop our 'eye'. It does take some time. Younger people often have a head start because they have not developed the bad habits their parents have worked hard to acquire... Youth is a fine thing to be able to take advantage of.


Quote
The method is working. The only thing that can rune it is you. There are three psychological barriers which can destroy you:
1) You do not trust the method to do what it has proved itself to do. Solution: spend enough hours on back-testing and demo trading it exactly as it supposed to be, until you have enough confidence.
2) Your risk management is not tolerable for you. If your position size/account size doesn't fit your risk tolerable, you are very likely to ruin your trades by having an emotional reaction for seeing the amount of money you...

Good start! There is so_much_more. A few years in the Army will reveal quite a lot to you. You won't even recognize yourself.

Quote
Well, lets assume he trades a 500,000$ account. 1) he knows that even 0.5% gain per month will make him enough money for the entire month. 2) He risks 3% of his account, which is tons of money, only because he know what are the odds he has for winning that single trade. Not the dumbest person on earth will risk 15K and just sit and hope to get his money back. James knows his method works, therefore he is highly confident in it.

Aim higher. Half a point on 500K won't pay the bills in our neck of the woods. Not even close. Pretty good money for dinner out a few times and a few shows with enough left over for groceries. 3% is better, but to be honest, that ain't big bucks either. There are folks here in this forum that do that on a regular job. And they are not looking for parity from trading.

But your point is well taken, carefully grow your account and you can get to the place where a few well placed trades a month will make you more money that you can dare dream of today.

But dreams won't get anyone there, we know that. Carefully, day ofter day protection of capital over lots of time - might.


Quote
Now hey, I'm only 17, so I am able to understand this, and will be able to apply this as well, everyone here should

You are in such a good place. I know you'll take full advantage.
I'm pretty much done with all this ...
  • #54,951
  • Feb 13, 2010 5:37pm Feb 13, 2010 5:37pm
Quoting jspeakman
Hi Benji (and anyone else who wants to chip in)

Been studying and occasionally chipping in this thread. Trying to read the whole thread but hard keeping up with the present rate of posts!...
Hi Jeremy - you make a lot of sense.

I suggest sticking to the fundamentals and mastering them as Jim and MBQB11 teaches them and _forget_ everything else - for the time being.

When you master - proven by 3 to 6 consecutive months of profitable trading - than look to add in a little something.

What you will find is that you will develop your own relationship with the market - meaning you will find out what you are really good at and can exploit. You can work on other things, but you will have to develop a way to trade that works for you.

I do not do exactly like anyone else on this forum, and what I do works well for me.

Take your time - find PPZ's. Find confluence (with divergence, fibs, BRN's). Find good and proper bars at those places. Pay close attention to what price does, and use your own eyes and thoughts. Price has a memory - use that knowledge. Trying out everyone's stuff here will likely elongate the chore.

Eventually the core message taught here *will* suddenly dawn on you, and you'll have it.

Oh - and one ore thing - post up charts and ask questions that will force folks to help you to focus in on The Core. (MBQB11 is really good at this - hint hint)

Cheers!

- mike
I'm pretty much done with all this ...
  • #54,952
  • Feb 14, 2010 12:16am Feb 14, 2010 12:16am
Quoting StoragePro
Hi Jeremy - you make a lot of sense.

I suggest sticking to the fundamentals and mastering them as Jim and MBQB11 teaches them and _forget_ everything else - for the time being.

When you master - proven by 3 to 6 consecutive months of profitable trading - than look to add in a little something.

What you will find is that you will develop your own relationship with the market - meaning you will find out what you are really good at and can exploit. You can work on other things, but you will have to develop a way to trade that works for you.

I...
Thanks Mike - great stuff as always from you and everyone on this thread. I really appreciate people's generosity and have really learnt a great deal. At the moment I doing ok identifying good moves after they have happened - now if I could just.....
  • #54,953
  • Feb 14, 2010 3:32am Feb 14, 2010 3:32am
Quoting mike w
Blah, facebook sucks man. I used it to find out stuff that's coming up over the weekends but then got "lured in" and lost money because of lost trades so it had to be deleted asap. There's a chat feature on it and when I start flirting, there's just no stopping lol Damn you facebook, damn you!
I turned chat 'off' within a week . lol

New 'friend' on chat window :-
"HI!!!! How R U? Haven't seen you in ages! What U been up 2??"
(Translated: "Where do you live. Can I have your phone number too? I want to txt you 10 times a day. Haven't seen you for 2 weeks!")

Me:
-"Hi. Yeah great! How are you? Been a little while I suppose. "
(Translated: " ummmm... Oh s__t. I knew confirming you as a friend would be a pain in the a___. How's your mental state this week? I'd better fake a connection failure, stat.")

...Though now you can create separate friends lists and turn on the lists you don't mind chatting too separately from the others whenever you wish.

Facebook's great though. Caught up with sooo many old school friends that lost contact. (and visa versa) None of them like the above example , fortunately. lol
Bundy's status today: "Waiting..."
  • #54,954
  • Feb 14, 2010 3:49am Feb 14, 2010 3:49am
Quoting dobe_r_man
I see a good short term move to the upside on Caterpillar........nice weekly buob that if broken will also break through a pivot. First expected target / area of resistance at 61.00 level.

Nathan
Hi Nathan ,

That trend line you've drawn is too much "Curve fitten" like for my tastes.

If you have to cut through a weekly charts swing low like that, not too many people will be taking notice of the levels it creates.

The next closest candidate is probably like what I've drawn below.( using the line chart 'close price' levels).

Or the two options lower down , that merge to similar levels.

(edit: Or the one I edited and added above. Again using the close price chart, btw)

,B
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Bundy's status today: "Waiting..."
  • #54,955
  • Feb 14, 2010 6:19am Feb 14, 2010 6:19am
I'm a bit confused as to what exactly constitutes a DBLHC or DBHLC.

Let's take the double bar low, higher close as an example. It's a 2 bar/candle pattern, with matching lows (max. 2 pips difference between the lows on a daily chart). No questions there. However, I am a bit unsure about the "higher close" part. Higher than what exactly? In my view, it could be one (or more) of the following 3 things:

1) higher close than the close of the previous bar/candle
2) higher close than the open of the previous bar/candle
3) higher close than the high of the previous bar/candle

So which one is it?

Option 3) is the strongest signal for sure. But would 2) or perhaps even 1) also be defined as DBLHCs?

Much obliged.

Boy
It's not about how much you make, it's about how much you don't lose.
  • #54,956
  • Feb 14, 2010 6:46am Feb 14, 2010 6:46am
Quoting SeekingLight
But since I've just used the terms fail and succeed:
Actually, if you've done everything that you can to ensure that the reason you entered a trade was a good one, i.e. one that fit your rules and criteria, then there no longer is a possibility for a failed trade.

How soon this happens shouldn't matter, nor should it matter that you go into drawdown in between, or for how long.

If a drawdown makes you queasy, then it is possible that for example you are not used to the sums you are using and shouldn't be using them to begin...
Best post in a loooong time. Nice 1 Seekinglight
  • #54,957
  • Edited 10:01am Feb 14, 2010 6:47am | Edited 10:01am
Hello all,

There are lots of abbreviations being used to I thought I will put a list together to help other beginners. If I have missed anything then please let me know

PA - Price Action
PB - Pin bar
BUB - Bullish bar
BEB - Bearish bar
BUOB - Bullish outside bar
BUOVB - Bullish outside vertical bar
BEOB - Bearish outside bar
BEOVB - Bearish outside vertical bar
IB - Inside bar
NB - Neutral bar
DBLHC - Double bar low with higher close
TBLHC - Triple bar low with higher close
DBHLC - Double bar high with lower close
TBHLC - Triple bar high with lower close
TBL - Two bar low
TBH - Two bar high
PPZ - Price Pivot zone?
TL - Trend line
Fibs - Fibonacci ratio
R:R - Risk Reward
S&R - Support & Resistance
HH - Higher High
HL - Higher Low
LL - Lower Low
LH - Lower High
BRN's - Big round numbers
RN's - Round numbers

anything else?
  • #54,958
  • Feb 14, 2010 7:32am Feb 14, 2010 7:32am
Quoting FormulaOneFa
Hello all,

There are lots of abbreviations being used to I thought I will put a list together to help other beginners. If I have missed anything then please let me know

PA - Price Action
PB - Pin bar
BUB - Bullish bar
BEB - Bearish bar
BUOB - Bullish outside bar
BUOVB - Bullish outside vertical bar
BEOB - Bearish outside bar
BEOVB - Bearish outside vertical bar
IB - Inside bar
NB - Neutral bar
DBLHC - Double bar low with higher close
TBLHC - Triple bar low with higher close
DBHLC - Double bar high with lower close
TBHLC - Triple...
Big Round Numbers, and Round Numbers,

DHB
The question about DBLHC means the close on the second bar is higher than the high of the preceding bar (options 3).

Regards
  • #54,959
  • Feb 14, 2010 8:06am Feb 14, 2010 8:06am
Quoting Dhb
I'm a bit confused as to what exactly constitutes a DBLHC or DBHLC.

Let's take the double bar low, higher close as an example. It's a 2 bar/candle pattern, with matching lows (max. 2 pips difference between the lows on a daily chart). No questions there. However, I am a bit unsure about the "higher close" part. Higher than what exactly? In my view, it could be one (or more) of the following 3 things:

1) higher close than the close of the previous bar/candle
2) higher close than the open of the previous bar/candle
3) higher close...
Hi Boy

I think most people here will also say option 3. This shows a stong close above the previous candle. Some may also consider option 1 but then you probably want to place your order above the previous bar anyway to make sure that resistance is cleared.

Option 2 is a definate NO in my opinion. This would not signify a very strong move up at all.

Leon
  • #54,960
  • Feb 14, 2010 8:18am Feb 14, 2010 8:18am
Quoting StoragePro
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.
Sorry, I can t find it. Am I missed it, or not posted, yet?
THX, PH
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