Thanks Mike and ljr for making that clear. 
It's not about how much you make, it's about how much you don't lose.
james16 Chart Thread
- #54,983
- Feb 14, 2010 11:53am Feb 14, 2010 11:53am
- Joined Apr 2009 | Status: Technical Artist | 1,609 Posts
Its all in the mind.
- #54,984
- Feb 14, 2010 12:19pm Feb 14, 2010 12:19pm
- #54,989
- Feb 14, 2010 1:52pm Feb 14, 2010 1:52pm
I know this isnt the best looking pin ever, however it is off a 38 weekly fib. There is a minor ppz just below the break, so would need to get in after, or now and move to BE quickly. Also tp at BRN or at least remove all risk.
Any thoughts?
+swing high
+38.2 fib (weekly)
-Ugly pin bar.
-Lot of troubles very closely
I'd also say we have space, but when I look to the left I see bars that form the obstacles mentioned above. Behind them there's space...
And then, if you enter after the break, is it really worth it? I mean what are the chances with this ugly pin? (Of course it can run for 1000 pips, but what are the odds?)
For me this is C trade at best. But hey, I don't have much experience so don't take me too seriously
Cheers,
Mikey
- #54,994
- Feb 14, 2010 3:08pm Feb 14, 2010 3:08pm
Hi, this bar is not a good pin by my criteria since I consider a bar to be pin only if both, open and close are within bottom third of the bar(top third for bullish pin). Other than that, there's just too much obstacles very close to the bar. Which would not bother me if it was perfect pin bar with more confluence. But what do we have here?
+swing high
+38.2 fib (weekly)
-Ugly pin bar.
-Lot of troubles very closely
I'd also say we have space, but when I look to the left I see bars that form the obstacles mentioned above. Behind them there's...
I would say its B trade, it is a pin bar by definition, not the best, but the weekly fib is a good barrier usually, I wont be playing the break as you said its not got much room. I plan to only play retrace entries anyway.
Regards
Chatzi
First of all, this has nothing to do with J16 original way of trading these bars. It is something some traders had developed as their own expandation of the original way of trading PA bars. (this thread concludes so much information and different ideas that is becomes hard to separate it from the original way of trading james is teaching).
Nothing bad about playing these bars on retraces, nor having a reduced stop (placing your stop behind the left eye, minor S/R, BRN, fib, etc).
In fact, I do it a lot. And I can even tell you from experience that if you have a great bar on a great BRN, many times paying the retrace to the exact BRN is a thing that works great, and I do it myself sometimes. Or playing the break of the bar with a reduced stop is great when we have a very big bar, full of momentum, and we are planning to move our stop to BE anyways once it hit our first trouble area (I think jarroo does it sometimes as well...a hard break to confirm).
But in my opinion, the very first thing a trader which is new to this material should do, is build confidence in this method. And this is best to do by beginning with the safest style available, using J16's principals, and slowly add another thing here and another thing there once you see you get good at the current things you are doing.
As Aaron said in the past, you must learn to walk before you can run. This is a marathon, which will most likely take years to become good at, and which never ends. First get good at the basics at the higher TFs, focusing at great bars at great locations, and only after you get good at this, then go lower and try adding some ore aggressive approaches.
There is a reason james himself says he trades a lot intraday (mini dow) and some times touch trading, but never ever realeased this stuff to us here. He knows it will simply kill us early. Have a look at his very old post from years ago - if you look good, you can see that he added some tools gradually every few months, building the info from the very basics of what are PA bars at all, then pivot zones, then confluence, then divergence, trade management etc.
I know I am maybe the last one that can tell you this. I have gone down to the 5min chart and plaid touch trades so early. Have a look at my older posts. I can assure you, that has done nothing good to me except of pointing out at me the right path by the hard way. Maybe it should be like that after all...I don't know.
Following the J16's principals and being patient, will lead to early success, meaning a huge psychological advantage (once you trust this stuff 100%, nothing will stop you from trying again and again till you succeed).
Anyway, hope you dot not take offense here...just felt like letting you know what I really think.
Best,
Ben
- #54,996
- Feb 14, 2010 4:16pm Feb 14, 2010 4:16pm
- | Joined Sep 2009 | Status: Making Money > Being "Right" | 1,811 Posts
Many choose unhappiness over uncertainty.
- #54,997
- Feb 14, 2010 4:33pm Feb 14, 2010 4:33pm
You have done a great job breaking it down man
Just a word about other, and more aggressive styles of playing PA.
First of all, this has nothing to do with J16 original way of trading these bars. It is something some traders had developed as their own expandation of the original way of trading PA bars. (this thread concludes so much information and different ideas that is becomes hard to separate it from the original way of trading james is teaching).
Nothing bad about playing these bars on retraces, nor having a reduced stop...
Thanks
Chatz
- #54,999
- Edited 6:34pm Feb 14, 2010 6:23pm | Edited 6:34pm
Anybody here ever heard of a book called Market Wizards?
Anybody here ever heard of Paul Tudor Jones?
Anybody here ever heard about the documentary Trader (1987), which featured mr. Tudor Jones, and which briefly resurfaced last summer on Youtube, but has unfortunately been removed again pretty quickly?
Wanna see this legendary documentary?
*click here*
Edit: View the documentary as a little 55,000th post present from me to everyone in this great thread.
Anybody here ever heard of Paul Tudor Jones?
Anybody here ever heard about the documentary Trader (1987), which featured mr. Tudor Jones, and which briefly resurfaced last summer on Youtube, but has unfortunately been removed again pretty quickly?
Wanna see this legendary documentary?
*click here*
Edit: View the documentary as a little 55,000th post present from me to everyone in this great thread.
It's not about how much you make, it's about how much you don't lose.
