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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

  • #58,361
  • Edited 2:16am Mar 17, 2010 1:26am | Edited 2:16am
Quoting skinfx
Hi all,

I believe currently this pair is forming a BOVB. But somehow i got resist line above this bar. so how do i know if my S/R line are valid (normally if it break the price already move too far and miss the trade, or if it is resist mostly will get stop out.) I am still learning to draw good S/R line. And how about the fibo, i will say pt 4 will be my 0%. But where should i start to draw it (1, 2 or 3)?

Thank you.
skin
The best way I have found to find my PPZ levels (where Support and Resistance levels meet; flip zones.), is to start on the Weekly time frame and mark them there.

Then go to the Daily time frame and fine tune them (if needed) to Round Numbers or the .50 depending on the pair. On the Daily you will find other PPZ levels not seen on the Weekly. These are important levels as well, but the weekly levels are stronger.
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Indicators show the past. Price Action "Indicates" the future.
  • #58,362
  • Mar 17, 2010 1:46am Mar 17, 2010 1:46am
Quoting jarroo
The best way I have found to find my PPZ levels (where Support and Resistance levels meet; flip zones.), is to start on the Weekly time frame a mark them there.

Then go to the Daily time frame and fine tune them (if needed) to Round Numbers or the .50 depending on the pair. On the Daily you will find other PPZ levels not seen on the Weekly. These are important levels as well, but the weekly levels are stronger.
you know Jaroo you just opened my eyes re: the 1.5200 on the cable

i got spiked out last nite looking to catch the pbs reversal on the weekly

so, by waiting to see if the 1.5200 acts as support this will help me decide the strength of the uptrend, ok?
  • #58,363
  • Mar 17, 2010 1:59am Mar 17, 2010 1:59am
Quoting Dan Gilbert
Today I was sitting at the top of a mountain, with my legs hanging off the side of the cliff, enjoying the view... and I thought of you lol.....
are u making me jealous or are u pulling my leg?
  • #58,364
  • Mar 17, 2010 1:59am Mar 17, 2010 1:59am
Quoting antgal23
you know Jaroo you just opened my eyes re: the 1.5200 on the cable

i got spiked out last nite looking to catch the pbs reversal on the weekly

so, by waiting to see if the 1.5200 acts as support this will help me decide the strength of the uptrend, ok?

Yes it will give a good indication to support an uptrend if the Resistance of the 1.5200 will now act as Support.

Since the PB on the Weekly was so small, it didn't have the strength to cause a reversal. (Just read up on Mike's stuff.)

But what will happen is that Price will consolidate and form a "base" to provide strength to support a reversal, if it ocurrs.
Indicators show the past. Price Action "Indicates" the future.
  • #58,365
  • Mar 17, 2010 2:03am Mar 17, 2010 2:03am
Quoting skinfx
Hi all,

And how about the fibo, i will say pt 4 will be my 0%. But where should i start to draw it (1, 2 or 3)?

Thank you.
skin
I use the most recent, obvious move up or down (not the highest/lowest point) which is determined by the time frame.

The (A) on the Daily chart would be consider the most recent move down. Price moved down from (3) then there was a consolidation period then a strong move down.

What I mean when I say . . .determined by the time frame . . . is that your (3) would be the most recent move on the Weekly time frame.

Hope this makes sense.

Jim
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Indicators show the past. Price Action "Indicates" the future.
  • #58,366
  • Mar 17, 2010 2:09am Mar 17, 2010 2:09am
Quoting jarroo
Yes it will give a good indication to support an uptrend if the Resistance of the 1.5200 will now act as Support.

Since the PB on the Weekly was so small, it didn't have the strength to cause a reversal. (Just read up on Mike's stuff.)

But what will happen is that Price will consolidate and form a "base" to provide strength to support a reversal, if it ocurrs.
cheers Jaroo,

forgot to add

Happy St. Patricks Day!
  • #58,367
  • Mar 17, 2010 2:11am Mar 17, 2010 2:11am
Quote
Anyone have any new trading/eco book recommendations? Going to NYC for a week, so 23ish hours stuck on a plane each way... and i need something to keep me occupied.
Hey Joel,

After reading your other post 'Fibs are Fun'.............

I thought of something to fill in you 23 hours or so........write your own book!!!

'cause if you can bash out something that knowledgeable and call it a rant, I imagine in the time it takes to fly from Sydney to NYC you could write something well worth reading!!!!

Or better still write more posts here for all of us!!

Thanks for the post,

Dave.
  • #58,368
  • Mar 17, 2010 2:12am Mar 17, 2010 2:12am
Quoting nasir.khan
Hey Joel,

SP is right i'll go with charts.

And Btw "you don't need books - books need you".
.
P.S Thanks 4d ramble.
.
Well said nasir.

(I wish I'd had said that.)
Indicators show the past. Price Action "Indicates" the future.
  • #58,369
  • Mar 17, 2010 2:17am Mar 17, 2010 2:17am
Quoting joelcf
Big round numbers are key. PPZs are a close second (although notice they are almost always at/around BRNs, usually within 20 pips* +/-?). Which is why, when you get a confluence of these factors and PA, you can pretty safely go book that holiday you have been wanting for a while. They both point to order clusters that are going to work reliably time and time again.

Fibs are a useful guide, but only when we see strong PA. I guess I am saying they add weight to a decision I am already making, but they are never the reason for entering [i]per...
I sometimes wonder if there is an element of self fulfilling prophecy in Fibs/PA etc- 'look its retraced to 61.8 + swing low/high + pin = lets sell/buy' ?. If we all believe it will happen, we go ahead and do it.

Interested in books you mentioned and would be grateful for any recommendations. Have avoided additional reading mainly to focus just on this thread and not get side tracked but would appreciate additional reading material that would assist.

Thanks as always

J
  • #58,370
  • Mar 17, 2010 2:27am Mar 17, 2010 2:27am
Quoting jspeakman
I sometimes wonder if there is an element of self fulfilling prophecy in Fibs/PA etc- 'look its retraced to 61.8 + swing low/high + pin = lets sell/buy' ?. If we all believe it will happen, we go ahead and do it.

Interested in books you mentioned and would be grateful for any recommendations. Have avoided additional reading mainly to focus just on this thread and not get side tracked but would appreciate additional reading material that would assist.

Thanks as always

J

it is suicide to believe that fib alone are some voodoo stuff,there is more than just the simple fib numbers. If you think that you can use them randomly you are wrong. you can give weight to fib numbers only in some circumstance when they aligned at zones with confluence.The clasical breakout pullback is the most easy way you can use the fib.

if you want some research to do,try to look back to rack's post,he use a lot the fib tool,with time everything will be more clear to you but you must give it some time

hope it helps.!!
  • #58,371
  • Mar 17, 2010 2:30am Mar 17, 2010 2:30am
Quoting jarroo
Well said nasir.

(I wish I'd had said that.)
I could delete my post if you say so.
.
  • #58,372
  • Mar 17, 2010 2:31am Mar 17, 2010 2:31am
Quoting nasir.khan
I could delete my post if you say so.
.
lol
Indicators show the past. Price Action "Indicates" the future.
  • #58,373
  • Mar 17, 2010 2:44am Mar 17, 2010 2:44am
Quoting triger88990
it is suicide to believe that fib alone are some voodoo stuff,there is more than just the simple fib numbers. If you think that you can use them randomly you are wrong. you can give weight to fib numbers only in some circumstance when they aligned at zones with confluence.The clasical breakout pullback is the most easy way you can use the fib.

if you want some research to do,try to look back to rack's post,he use a lot the fib tool,with time everything will be more clear to you but you must give it some time

hope it helps.!!
I agree that you certainly don't want to follow Fibs alone or other PA action just blindly. My point is I just wonder how much FIBs/PA/BRNs etc are a cause (as in trigger) or an effect (as in indication) of Market moves.
  • #58,374
  • Mar 17, 2010 2:56am Mar 17, 2010 2:56am
Quoting jspeakman
I agree that you certainly don't want to follow Fibs alone or other PA action just blindly. My point is I just wonder how much FIBs/PA/BRNs etc are a cause (as in trigger) or an effect (as in indication) of Market moves.

I don't know if you can distribuite the wieght of each variable in a adequate way,but is clear that big round numbers and PA are carrying more weight. The think is that the more people are looking at it the more weight it has,so if you spot a setup with all the variables is clear more people are looking at it becasue of the diversity of the confluence.

hope you get the point

ps:it is just my view of the market hope it helps
  • #58,375
  • Mar 17, 2010 3:05am Mar 17, 2010 3:05am
Quoting triger88990
I don't know if you can distribuite the wieght of each variable in a adequate way,but is clear that big round numbers and PA are carrying more weight. The think is that the more people are looking at it the more weight it has,so if you spot a setup with all the variables is clear more people are looking at it becasue of the diversity of the confluence.

hope you get the point

ps:it is just my view of the market hope it helps
Very interesting points - thanks

J
  • #58,376
  • Mar 17, 2010 3:36am Mar 17, 2010 3:36am
What do you do with this (not yet formed, but getting there) H4 pin on USDCHF?

It touched 2 fibs, but didn't quite make it to 1.05 nor the trendline. It would have been an A++, but now... We wait for another one? (Assuming it will end up as a pin)

Edit: Just saw the divergence on both MACD and RSI.
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  • #58,377
  • Mar 17, 2010 3:36am Mar 17, 2010 3:36am
Quoting triger88990
it is suicide to believe that fib alone are some voodoo stuff,there is more than just the simple fib numbers. If you think that you can use them randomly you are wrong. you can give weight to fib numbers only in some circumstance when they aligned at zones with confluence.The clasical breakout pullback is the most easy way you can use the fib.

if you want some research to do,try to look back to rack's post,he use a lot the fib tool,with time everything will be more clear to you but you must give it some time

hope it helps.!!
Actually mate, the thing that is REALLY changing my world view is asking myself this:

"Why does price do what it does?" ("why")
And using James' principles to build a framework around it. ("how". ie: how to profit off it)

Someone said, "it all works and it all doesn't work".
How can James, Mike, Rac, Jarroo use different applications of the same principle... all different! But yet, all profitable?
Fibs, confluence, PPZ, PA, etc etc... great great tools... now what's beyond the surface and how do you make it work for yourself?

The seniors teach great principles. Asking myself WHY they work, is what made it gradually sink deeper into my mind.

I hope to provoke more thinking. =)
One Mind, Any Market
  • #58,378
  • Mar 17, 2010 3:45am Mar 17, 2010 3:45am
How are you guys calculating PPZ because my platform (GFT UK - Dealbook 360) doesn't automatically do it?
"I made all my money by selling too soon"
  • #58,379
  • Mar 17, 2010 3:50am Mar 17, 2010 3:50am
Quoting Bleek
How are you guys calculating PPZ because my platform (GFT UK - Dealbook 360) doesn't automatically do it?
Its not a calculation. Its a visual location where Support and Resistance meet.
Indicators show the past. Price Action "Indicates" the future.
  • #58,380
  • Mar 17, 2010 3:52am Mar 17, 2010 3:52am
Quoting Bleek
How are you guys calculating PPZ because my platform (GFT UK - Dealbook 360) doesn't automatically do it?
PPZ are pivot price zones, they aren't automatically drawn, we manually draw them based on previous reversal zones (places where prices flipped in the past).

Maybe you are reffering to Pivot Points. There's a formula for that, and some indicators on MT4, but I haven't seen anyone use them here.
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