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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

  • #60,541
  • Apr 10, 2010 9:02pm Apr 10, 2010 9:02pm
Quoting jarroo
Yes that does look good as a bearish IPB.

The Close could be closer to the top but still it fits.

With all of Price Action formations, location and confluence is the most important factor. The 145.00 is a Big Round Number and a key level. I would like to see Price touch or piercing that 145.00. Let me put it this way, if the IPB's head was sitting on top of that 145.00 it would look a whole lot better. Price may not be done with that 145.00 just yet.
if it was at 147 would you like even more?
Many choose unhappiness over uncertainty.
  • #60,542
  • Apr 10, 2010 9:07pm Apr 10, 2010 9:07pm
Quoting ertorque
Hey Jaroo, SChoas,

For the sake of "correctness", would like to clarify something here about the need to have an IPB's short wick stick out a bit. According to Ghous in his post below, the preferable scenario would be having the wick NOT protruding out from the previous bar.

In his attempt to explain the BEARISH IPB (in an upswing), he says (see bold). This means the wick ie the high of the IPB is prefered not be higher than the previous bar (it could be higher but only if a little higher).
And vice versa for the BULLISH IPB,...
There are no hard and fast rules as to whether an IPB should or should not protrude a wick outside the previous bar. I.e an IPB need not necessarily be an IB also.

I like'm when the shorter wick stays inside the high/low of the previous bar and that's because my stop get's added protection from 2 bar highs/lows. One from the IPB and the other from the bar just before it. (look at the chart below or a visual).

But then obviously if the shorter wick does poke out of the range of the previous bar the setup isn't invalid. It may not even be any less valid than one where the IPB shorter wick stays inside the range.

g.
I believe . . .
  • #60,543
  • Apr 10, 2010 9:12pm Apr 10, 2010 9:12pm
Quoting g_j_hook@yah
hi everyone, i thought i would give an unbiased explanation of the IPBs as they are in discussion.

the point i think Jarro was making was the an IPB which DOESNT stick out above the previous bar is by definition an IB, and as IBs can be any shape even an IPB is still also an IB by definition. What makes an IPB...
Good post John,

The way I trade them is aggressive in the sense that there is no "buffer" for my entries...I enter at the close of the bar. This is one reason why I always tell people to be extremely careful in trading these, tight stops and no buffers means more risk in addition to more profits.

g.
I believe . . .
  • #60,544
  • Apr 10, 2010 9:16pm Apr 10, 2010 9:16pm
Quoting cprao
If this is a good IPB, what should be my conservattive entry points ?
That it just a pin bar, for an IPB it has to have a long tail in the opposite direction of the current trend. I.e A long to the downside in an up trend and a long nose to the upside in a down trend...look through the last few pages for specific examples of the IPB.

g.
I believe . . .
  • #60,545
  • Apr 10, 2010 9:17pm Apr 10, 2010 9:17pm
whats the diff between an inverted pin bar and regular pin bar going with the trend?
  • #60,546
  • Apr 10, 2010 9:19pm Apr 10, 2010 9:19pm
Quoting jarroo
Yeah . . . I saw that.

I think a better definition, and I'm sure ghous would agree, is instead of
" or better still...it fails to make a high any higher than the previous bar's high" . IF the Close fails to make a higher high.

Just like with PBs we want the Open and Close within the previous bar, IPBs need to have this same definition. I'l have to check with ghous for his thoughts.

Here is a case in point.

Nasir.khan was asking ghous if he was "feeling it" with this potential IPB on the Daily Eur/Gbp....
Absolutely Jim!

Because an IPB is a pin bar hence it has to meet all the basic requirements of one. The open and close have to be within the previous bar.

g.
I believe . . .
  • #60,547
  • Apr 10, 2010 9:24pm Apr 10, 2010 9:24pm
Quoting cprao
Quite a few pairs friday behaved in line with the pin bar strategy HOWEVER USDJPY retraced back to the H4 trendline


PB Pros: Swing low ?
Off BRN 93.00
No confluence or traffic on left

Does this makes sense to take a long trade from this point ?

This was a nice little PB setup. Although the PB was a bit too small.

Yes, at swing low and it was off a PPZ level, Retracement level (61.8) and RN 93.00 confluence. Price broke the PB and hit its 1st target (blue line which is a PPZ level). For me, this setup has filled itself, it serve its purpose and hit its target. Others may say that since the PB hasn't broken the bottom or low of the PB, it is still valid. And they would be correct too.

Price has now came back down to the PPZ, 93.00 level. I would wait for confirming bullish PA for a long trade to make sense.

I'm not a fan of floor pivots for the forex markets. For futures and equities sure.
Attached Image (click to enlarge)
Click to Enlarge Name: jpy pb09.gif Size: 26 KB
Indicators show the past. Price Action "Indicates" the future.
  • #60,548
  • Apr 10, 2010 9:25pm Apr 10, 2010 9:25pm
Quoting ghous
Absolutely Jim!

Because an IPB is a pin bar hence it has to meet all the basic requirements of one. The open and close have to be within the previous bar.

g.

Thanks g. I knew that would make sense.
Indicators show the past. Price Action "Indicates" the future.
  • #60,549
  • Apr 10, 2010 9:33pm Apr 10, 2010 9:33pm
jaroo that fib is top heavy for the daily chart dont you agree?
  • #60,550
  • Apr 10, 2010 9:33pm Apr 10, 2010 9:33pm
drawn from the swing low at the outside bar you still get support at that level with more significance
  • #60,551
  • Apr 10, 2010 9:37pm Apr 10, 2010 9:37pm
Quoting Dan Gilbert
if it was at 147 would you like even more?
If your saying that the 147.00 is a strong PPZ level and that bearish PA, like a bearish IPB, would make sense. I would agree.
Attached Image (click to enlarge)
Click to Enlarge Name: gjweeklyipba.gif Size: 25 KB
Indicators show the past. Price Action "Indicates" the future.
  • #60,552
  • Apr 10, 2010 9:38pm Apr 10, 2010 9:38pm
Quoting 4X=0
whats the diff between an inverted pin bar and regular pin bar going with the trend?

Do you have a chart example?
Indicators show the past. Price Action "Indicates" the future.
  • #60,553
  • Apr 10, 2010 9:38pm Apr 10, 2010 9:38pm
one second, sir
  • #60,554
  • Apr 10, 2010 9:40pm Apr 10, 2010 9:40pm
price in an uptrend, but still below recent high. pin formed at the 23%. price rejected off the swing high.
Attached Image (click to enlarge)
Click to Enlarge Name: UJD.png Size: 36 KB
  • #60,555
  • Apr 10, 2010 9:49pm Apr 10, 2010 9:49pm
Quoting 4X=0
price in an uptrend, but still below recent high. pin formed at the 23%. price rejected off the swing high.
Is this the example of my top heavy fib placement.

I agree with you it was top heavy and longer term fib retracements are stronger. Mine was from a recent move upward, still valid

I would not make a trading decision off of just a fib retracement alone. The PPZ, 93.00 level was much stronger and the fib ret was just an added observation.

Nice chart btw.
Indicators show the past. Price Action "Indicates" the future.
  • #60,556
  • Apr 10, 2010 9:51pm Apr 10, 2010 9:51pm
Quoting 4X=0
price in an uptrend, but still below recent high. pin formed at the 23%. price rejected off the swing high.
it found support on the old weekly bar high.
Many choose unhappiness over uncertainty.
  • #60,557
  • Apr 10, 2010 9:55pm Apr 10, 2010 9:55pm
yes. looking at the weekly, the swing high is the top of a so called IPB, right?

jaroo ill get to your chart in one second.
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPYWeekly.png Size: 35 KB
  • #60,558
  • Apr 10, 2010 9:56pm Apr 10, 2010 9:56pm
my macd is f&&&ing up, dont know why.
  • #60,559
  • Apr 10, 2010 9:56pm Apr 10, 2010 9:56pm
Quoting jarroo
Yes that does look good as a bearish IPB.

The Close could be closer to the top but still it fits.

With all of Price Action formations, location and confluence is the most important factor. The 145.00 is a Big Round Number and a key level. I would like to see Price touch or piercing that 145.00. Let me put it this way, if the IPB's head was sitting on top of that 145.00 it would look a whole lot better. Price may not be done with that 145.00 just yet.
In light of jarroo said in the quoted post above:

Somebody asked Mike in a webinar of his in the pf about a weekly IPB on Eu. Mike's not into them but still gave the explanation exactly how I would have. It too had deficiencies similar to our Gj IPB.

Although not entirely untradeable, but then as jaroo mentioned "Price may not be done with that 145.00 just yet."

This is a very important concept, that applies not only to IPBs but to all other PA setups as well. Our PA setups need to be "on" a confluence zone/ppz rather than near it. In PA bars where we have large stops like Pin bars you might get away but I tell you with IPBs you want them sitting right on your perceived confluence zone.

the big games in the market are usually always related with driving price to important levels, and if price isn't quite there, you need to be cautious.

Compare the 2 charts below. Do you see any differences? There are more than one...see if you can decipher them.

(The first chart shows the original IPB that Mike was questioned about, the second chart shows an IPB I drew myself with the deficiencies removed.)

g.



Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu weekly.gif Size: 32 KB
Click to Enlarge Name: eu weekly 2.gif Size: 32 KB
I believe . . .
  • #60,560
  • Apr 10, 2010 10:02pm Apr 10, 2010 10:02pm
here is the same fib you drew on 4hr view. still mid uptrend and not dividing the full swing, but still price does respect the levels. macd divergence with no excellent price bar confirmation, but i do see an outside bar. i also see another IPB at the recent swing low.
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPYH4.png Size: 34 KB
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