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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

  • #56,501
  • Feb 26, 2010 8:59pm Feb 26, 2010 8:59pm
Quoting Jcp
Hey jarroo, here's a purchase from yesterday
Hey Jcp,
cant see your chart clearly... (maybe u can post a zoom-ed in chart)
very small pin u took here. be careful next time. it's great it worked out for u, though.

Again, Welcome to the thread
  • #56,502
  • Feb 26, 2010 9:11pm Feb 26, 2010 9:11pm
Quoting ljr
Hi Benji...
Just a question about space. How far to the left do you look? There is a bar low further over to the left and a little lower down from 12/02/10. Do you take this into consideration when determining your first problem area or only look at the space immediately to the left...
Hey Leon,
if i may...
personally, i put more weight on the recent price action, but i take consideration of the past price action (S/R's, PPZs) too.

if u noticed, the Feb.2 bar low is @ 121.38ish & ben's orange horizontal line/PPZ is @ 121.57ish --they are near each other & this area is where price stopped/reversed.
always remember it's a zone/area (a few pips or many pips), not a specific price.
  • #56,503
  • Feb 26, 2010 9:27pm Feb 26, 2010 9:27pm
Quoting supremeChaos
Hey Jcp,
cant see your chart clearly... (maybe u can post a zoom-ed in chart)
very small pin u took here. be careful next time. it's great it worked out for u, though.

Again, Welcome to the thread
Thanks Supreme, I agree, it was a very cautious entry on my part, I entered on a lower time frame with a tight stop, sold quickly for 30pips.
  • #56,504
  • Feb 27, 2010 2:25am Feb 27, 2010 2:25am
Quote:
Originally Posted by vlazaf http://cdn.forexfactory.com/images/buttons/viewpost.gif
Similar setup on USDCHF.

Any thoughts on this one?


Quoting jarroo
Your thoughts summed it up nicely. An easy pass on this one.
Hey Vlazaf,
Think you would have noticed this.
Had you taken this 'less than A+' setup, would have made u some pips. But this is the kind of scenarios that we as traders have to deal with......it is wiser not to risk loosing money (by not settling for less than A grades setups) even though that may mean loosing potential winning trades......or is it?

cy
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  • #56,505
  • Feb 27, 2010 2:31am Feb 27, 2010 2:31am
Quoting Ryanmcd
You just HAVE to get to a point when you have 0 guessing going on, for me I look at the chart say okay this looks good and take the trade and go back to playing xbox live if I get stopped who cares, if it goes my why who cares lol. I really do trade this way, If I had 10 million I would do it the same too as I have 0 care of what happens now.
These words are all so true. The emotions of fear and greed are so so powerful and underestimated in trading. The hardest thing about trading IMO is eliminating emotions.

In order to pregress I needed to do the following / eliminate the following traits etc.

1. Being able to take a trade without thinking about money...just trading what the chart tells you.

I do the same as Ryan - I dont have anything that shows me £ / pips gained / losses on my screen. I dont 'panic' like I used to when a trade goes in drawdwon (often caused my risking too much on a trade in anycase) and I dont exit just because I've gained $xx.

I found this helped enormously as I kept trading my P&L...i.e. kept saying thats enough money I'll close the trade instead of just exiting at areas my chart told me too, therefore whilst still taking the normal amount of losses I was cutting winners far too early.

2. Being able to sit in front of a screen all day and not take a trade

Patience and discipline and not trading for the sake of trading - this is a tough one too IMO as it was for me...luckily I have Call of Duty now to keep me busy if nothing pops up, also I set alerts when price is near an area I'm watching rather than just constantly watching the screen - this helped me overcome this weakness.

I also have everything pre-thought out at the areas I'm wathcing so I know in advance what I'm going to do at these price areas thus eliminating having to think too much when price hits that area i.e. I am following a pre-thought out plan.

3. Beng able to take a loss and being able to take the next trade without the previous trade affecting you (winner or loser).

Essentially eliminating feelings from the previous trade and just having the 100% confidence in your trading style to know that on balance you will win in the long term (this confidence is gained from lots of research, backtesting, forward testing of your trading setups and proper money management).

Lastly, having an exit plan is so important, i.e. when to move to BE, take partial profit take full profit etc. and again eliminates having to think with emotions in real time.

For me I find that if I can do as much pre-planning as possible before price has hit my area I'm watching (and then if a setup is confirmed) the better, then all I am doing is executing that plan and then setting some new price alerts and walking away back to call of duty again...this for me helped eliminate the pesonality flaws that were stopping me progress...they are still there but now I do things that dont give them a chance to intervene in my trading.
  • #56,506
  • Feb 27, 2010 2:32am Feb 27, 2010 2:32am
Quoting jarroo
I do like the location and swing low, but after such a strong move down we need some big bold PA to counter act that move.

Your target is a bit aggressive, I could say that the 4 hour PB's 1st target was already hit.

Welcome btw, Jack.
Thanks jaroo. Fortunately I didn't take it because of the strength of the down move + it being late on a friday. just wondered if others thought the good location may make it worth a shot.
  • #56,507
  • Edited 8:30am Feb 27, 2010 2:46am | Edited 8:30am
Quoting ljr
Hi Benji

These last couple of charts have really been great. I hope you continue 'attacking this thread'.

Just a question about space. How far to the left do you look? There is a bar low further over to the left and a little lower down from 12/02/10. Do you take this into consideration when determining your first problem area or only look at the space immediately to the left.

Leon

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Well, you are right. My chart is a bit confusing.
What I tried to show by that box is how far is the first major trouble area that most likely price will reach and reserve (there I would take full or partial profit).

I define space like I learned from Mike. Look at my first chart below. See how much space I marked by the orange lines on my chart. That is an area which is free from bars, meaning less chances that price would have a reason to stall around that area.
Now look at the purple line. You can see how price fell in an angle like looks like a rainbow. It looks like a brunch of a cherry tree, and then you have that juicy red cherry hanging there for you to pick it.
That's generally how I define space. You can find in in Mikes free video about pin bars. This is his stuff, and it's great. That's the way I play pure price action bars, and if I have additional confluence like that big round number and divergence...that's a heck of a trade.
Also, notice the difference between the cherry brunch looking, between the eurgbp 4h pin bar that have formed yesterday before the market closed. For me getting a PA bar in space after such a spike, is way different than getting a PA bar at space in a cherry form. You can visually see the difference of the momentum you are trading against. Do not try to catch a falling knife.

Now for management. Look at the second chart and see how each bar high has a reason for being there. Again, using James16's principals you can actually KNOW WHAT IS GOING TO HAPPEN NEXT IN THIS MARKET. no surprise what price has done.
For break even, I would move my stop at the first trouble area marked on my chart, but if I do not see momentum, and I am like +30 pips, I would sure reduce my risk or cut it to zero by taking the first half for +30 pips, and move the stop of my other half 30 pips below the entry. That's because the first trouble area is relativity very far.

Hope that helps.

Ben
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  • #56,508
  • Feb 27, 2010 2:58am Feb 27, 2010 2:58am
Quoting lovejoy80
These words are all so true. The emotions of fear and greed are so so powerful and underestimated in trading. The hardest thing about trading IMO is eliminating emotions.

In order to pregress I needed to do the following / eliminate the following traits etc.

1. Being able to take a trade without thinking about money...just trading what the chart tells you.

I do the same as Ryan - I dont have anything that shows me £ / pips gained / losses on my screen. I dont 'panic' like I used to when a trade goes in drawdwon (often caused my risking too much...
Awesome post lovejoy80! So true.
  • #56,509
  • Feb 27, 2010 3:34am Feb 27, 2010 3:34am
Quoting benji533
Well, you are right. My chart is a bit confusing.
What I tried to show by that box is how far is the first major trouble area that most likely price will reach and reserve (there I would take full or partial profit).

I define space like I learned from Mike. Look at my first chart below. See how much space I marked by the orange lines on my chart. That is an area which is free from bars, meaning less chances that price would have a reason to stall around that area.
Now look at the purple line. You can see how price fell in an angle like looks like...

Thanks Benji this helps

If I understand correctly you identified your first target/trouble area but were also aware of that single bar low which may cause problems. As price reaches the single bar low area you watch carefully to see what price does and react accordingly as it could turn around at this point but your main target is still the area you marked on your first chart ( from your original post )

Looking at the 4H charts (FxPro feed) there are two examples ( EurGbp & GbpChf charts below ) which show quite decent Pins but price has turned around at the first bar high/low. Up to now I have more been 'hoping' that price will break through these first bar high/lows but what I am realising is you MUST be aware of them and have a plan if price turns at them.

I know James16 talks at length about this in his videos and your recent posts have reinforced this again. I have somehow been almost overlooking the very close ones but those are the ones that are probably the most important.

Thanks again for your posts here Ben. Much appreciated.

SC thanks for your reply too.



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  • #56,510
  • Feb 27, 2010 4:00am Feb 27, 2010 4:00am
[quote=ljr;3504363]Thanks Benji this helps

If I understand correctly you identified your first target/trouble area but were also aware of that single bar low which may cause problems. As price reaches the single bar low area you watch carefully to see what price does and react accordingly as it could turn around at this point but your main target is still the area you marked on your first chart ( from your original post )

I always move cut my risk to zero once hitting the first trouble area. If I was in that trade, and I saw price hitting that bar low from the left, I would immediately move my stop to BE.
By saying that I would close half position and move the stop of the other according to how price behaves - that is only in cases that the first trouble area is so far like in this one. Usually the first trouble area would be closer. one you get +30 pips on a 4h chart, it's a winner in my book no matter what. I do not take loses on these.

Looking at the 4H charts (FxPro feed) there are two examples ( EurGbp & GbpChf charts below ) which show quite decent Pins but price has turned around at the first bar high/low. Up to now I have more been 'hoping' that price will break through these first bar high/lows but what I am realising is you MUST be aware of them and have a plan if price turns at them.

Exactly. These bars did what they were suppose to do. In these cases where the first trouble area is so close, you can take half off the table and move the stop of the remaining below the entry minus the pips gained from the first half. That way you have more room for the trade to move and your risk is still zero.
You can also take only A+++ bars and say they outweigh the importance of the first trouble area and not move your stop to break even. That's completely fine if you know what you are doing and following your plan. There is no just one way of doing things. I only show you what I do.

I know James16 talks at length about this in his videos and your recent posts have reinforced this again. I have somehow been almost overlooking the very close ones but those are the ones that are probably the most important.

That's the punch line. The first trouble area is the core of my trade management style.

Thanks again for your posts here Ben. Much appreciated.

SC thanks for your reply too.

No problem buddy.

Ben
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  • #56,511
  • Feb 27, 2010 4:35am Feb 27, 2010 4:35am
Quoting Ryanmcd
Once you get the emotion out of it a trade is just that, one trade. After taking 10k + trades I can be down 10-15k on the day and it does not matter because I have done this so much I know my money, just like the market, does not go up or down in a straight line.

P.S. When I trade I have ***0*** things that show me my account balance ever, I think that makes it easier if you see no value on the chart then you just trade them as you see them.
Man this thread is moving faster than I think,each morning I need to read a bunch of posts

Finnaly a good post about this subject Ryan,I don't know why others have different opinion seing that is a different story if your trade is worth xxK, really ask yourself why would be different?

I was going mad when I saw the others post

Not all the people can carry it but for me it doesn't matter if my trade is worth 200$ or 15k, why to change anything about my style then.

If you look on the forums you could see so many mental lazy people, who don't use their brain,I'm thinking how do they survive till now,maybe from here comes those percent of 95% losers(although I'm sceptical about this numbers)

If they only know that the human brain is the source of all behaviors and probably the most complex mass of protoplasm on Earth,and perhaps in our galaxy.You could ask yourself why so many poeple don't think for themselves using their one brains.

You can love me or hate me,or even blame me but thats ME.

I did have many toughs live experience till now to know myself better,If I don't know myself than who..?

I don't get excited when I win neither mad when I lose,for me a trade is the same think over and over.I can suffer drawdowns any day without carry about it because I have done this enough time to know myself.

I do understand that someone can't do it ,because is not in their personality,they are smart people because they figure out that can't do it,and they did get a style of trading which lead them to not permit any kind of drawdowns because for them it metter the drawdowns.

you could say all the above statements when you know yourself, nothing more nothing less

all the best!!

enjoy the weeknd!!
  • #56,512
  • Feb 27, 2010 4:40am Feb 27, 2010 4:40am
Quoting bundyraider
Agree with that. Do the same.

Instead of closing trades when they reach Value X, it makes it easier to just let the chart tell me when to go flat..

I'm doing this only to save more screen for the charts.

But is a good way to anticipate the unpredictable if you don't know yourself,which I doubt is the case here.

just want to say thanks for your posts,I enjoyed them last week when I make a ride through them,this week I was going through seekinglight posts but haven't finished yet,this guy is just a genius I'm recognize myself in many of his posts,a brilliant and a valuable player in this thread

all the best!!
  • #56,513
  • Feb 27, 2010 6:34am Feb 27, 2010 6:34am
Quoting Darkstar
Why is it every time I pop in to say hi, this thread is in a different sub forum?

Anyway, greetings to all.
DARKSTAR!

*wayne's world*
We're not worthy, we're not worthy!

Hey man, how have you been.
Always was happy to see your presence and posts around "back in the day".

Thanks for all your contributions along the way.
Trust price. Know yourself.
  • #56,514
  • Feb 27, 2010 6:43am Feb 27, 2010 6:43am
Quoting Ryanmcd
Keep it easy because if it does not make you money you do not want it on your charts.

keep ego / emotion out of trading, I even took medation classes to learn how to relax better. Once you hit 4-5 stage of trading it will change the way you look at EVERYTHING not just the market, and I feel it will make you a better person as you will worry less about what others think / feel because you have learned to control your emotions and understand yourself.
This.

Hey Ryan, always glad to see you around and still around
Trust price. Know yourself.
  • #56,515
  • Feb 27, 2010 6:44am Feb 27, 2010 6:44am
Quoting Ryanmcd
You just HAVE to get to a point when you have 0 guessing going on, for me I look at the chart say okay this looks good and take the trade and go back to playing xbox live if I get stopped who cares, if it goes my why who cares lol. I really do trade this way, If I had 10 million I would do it the same too as I have 0 care of what happens now.
Hi Ryan

you should give lessons about how traders should detach themselves from their trades

because you advice seems 100% true

keep sharing the wisdom
Cheers

Ant
  • #56,516
  • Feb 27, 2010 6:59am Feb 27, 2010 6:59am
Quoting Darkstar
Health care, search engine optimization, asp.net, the craziness in greece. Not that anyone really cares about such things, but since you asked.
Asp.net? Mvc asp.net is a great web dev platform. If only you could code mt4 In c# 3.
  • #56,517
  • Feb 27, 2010 7:40am Feb 27, 2010 7:40am
Quoting bundyraider
Sleeping pattern info...

Anyone here heard of Polyphasic sleeping??

(Most of you would have heard of your circadian rhythm anyway. )

There are three types of sleeping...

Monophasic :-...

Good Information... Great Post.
  • #56,518
  • Feb 27, 2010 9:04am Feb 27, 2010 9:04am
Quoting nasir.khan
Hey Ben you got it all wrong man.

Second you don't have any experience and skills of Top's and Bottom picking, Stochastic, MA crossover systems and many other tools that you have to master before thinking seriously about any kind of trading endeavor. You can't just simply just look at bar chart and make money.

And we would be glad to help you learn PIN BARS.

this how it's supposed to be................. or perhaps it's just me.
.
This really cracked me up. My charts looked like a lazer light show until just recently. I didn't really 'know' what was going on but the reassurance of dozens of colourful lines doing something was nice.

Thanks to J16 et al, i no longer need sunglasses to trade.
  • #56,519
  • Feb 27, 2010 9:26am Feb 27, 2010 9:26am
Interesting set-up in the NZDCAD dailies, although close not below right eye of previous bar. Still, off 0.7335 SBR level & consistent with recent downtrend. I shall endeavour to put MACD on my charts this weekend, so hopefully in future I will also be able to post these in future.

P.S ANyone know of a good broker one can demo oil with?
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  • #56,520
  • Feb 27, 2010 9:33am Feb 27, 2010 9:33am
Quoting Ryanmcd
..... Think about driving a car at 80mph with other cars around you going 80mph, that's a lot more risk then taking a dumb trade in the market
now this is the quatoation i will go with.
for me sometimes, i fear pulling (or not pulling) the trigger; if i enter and the market moves against me, i get scared and close, only for it to go my way. if its going my way, i sometimes close the trade to bank the $$ and not let a winner turn to a looser.

there is always that second-guessing.

i guess its good to adopt the "its just a trade" phylosophy and move on with it. or maybe this is just a stage in the learning curve.

anyway, thanks Ryan for sharing.
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