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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

  • #61,101
  • Apr 18, 2010 5:22am Apr 18, 2010 5:22am
Quoting kk007
I have read about pinbar at swing high/low, but I have found out that the consideration of swing high/low position has no predictive power, because the fact that swing high/low is a swing high/low can only be known in hindsight.

Let me explain the point with the following figures. In Figure 0, we see a pinbar, but is it a swing high/low, it cannot be told yet. Price after the pinbar can go up and can down. If it goes up, you can then see it is a swing low (Figure 1), and the fortune teller now tell you their prediction works out. If the price...

It didn't work? It looks like it worked out just as expected. A successful Pin Bar in my book.
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Indicators show the past. Price Action "Indicates" the future.
  • #61,102
  • Apr 18, 2010 5:50am Apr 18, 2010 5:50am
Quoting jarroo
It didn't work? It looks like it worked out just as expected. A successful Pin Bar in my book.
This is not a real chart, I just sketch some bars into it to illustrate the idea in my post.

Really amazing, thing worked out just as expected in your book. You may be able to be profitable no matter how I sketch my chart.
  • #61,103
  • Apr 18, 2010 6:07am Apr 18, 2010 6:07am
Quoting jarroo
Great posts jon. Just for the fact that if one wanted to trade on the Hourly, it all starts on the Daily/Weekly. This info alone from your posts is Gold.
, i never thought to highlight that fact, it just comes as second nature these days, i dont think about it anymore, i trade off my PPZs one way or another. all of which start on the higher TFs. period.
cheers

jon
PATIENCE... DISCIPLINE
  • #61,104
  • Apr 18, 2010 6:29am Apr 18, 2010 6:29am
Quoting kk007
This is not a real chart, I just sketch some bars into it to illustrate the idea in my post.

Really amazing, thing worked out just as expected in your book. You may be able to be profitable no matter how I sketch my chart.
In your chart the first trouble area was hit after the pin par which is what J highlighted. Look over some historical charts and see how often this happens

At this stage many of us would have taken partial profits and moved S/L to B/E. In my case I would close out all of my position at the line Jaroo drew on your chart. That would be a successful PB
Anything can happen.
  • #61,105
  • Apr 18, 2010 6:36am Apr 18, 2010 6:36am
Ok. Ok. You talk about how to trade with the fake chart? Rather than discuss the main issue addressed?

I think for those who get my point in the post they get it. For those who do not get it, they do not get it.

Quoting ddinnov
In your chart the first trouble area was hit after the pin par which is what J highlighted. Look over some historical charts and see how often this happens

At this stage many of us would have taken partial profits and moved S/L to B/E. In my case I would close out all of my position at the line Jaroo drew on your chart. That would be a successful PB
  • #61,106
  • Apr 18, 2010 6:48am Apr 18, 2010 6:48am
Quoting bundyraider
Welcome Mauzzz,

It'll most likely be location, or where you are taking trades on the chart , that's causing the most problems....
Thanks, Bundy. I suppose you are right and it really is all about the location and the bars themselves are only a way to get into a trade. I wish I could figure out that significance of location and be able to tell what is a good location and what is not. So far, this just seems to evade me. Anyway, I'll start posting charts later.



Quoting supremeChaos
we all go throught those same...
Thanks! You summed it up very nicely, sir! From my short experience, I found all of your points to be true. The question is, how do I figure this all out without going crazy?

I suppose, as someone has mentioned before, this is a long journey, which one has to walk one step at a time. I'll start by posting some charts later.

Quoting phpscott
Hang in there. When I started, I stayed on demo for nine months. I went live and traded a ...
Scott
Thanks, Scott. It is nice to hear a story like that, because right now it just seems to me I'll never be able to figure out this stuff. But I guess that's all we go through, the initial stage of frustration.



Ï would like to thank you all again for participating in this thread and being so helpful, you guys are awesome!

P.S. Mike, if you read this, I cannot reply to your message via PM because I'm not a full member yet. I sent you an email to your yahoo email address. Let me know if you don't use that email address and I can just post the reply here, I guess. Thanks.
  • #61,107
  • Apr 18, 2010 7:08am Apr 18, 2010 7:08am
Price would also have hit a strong trendline. An easy pass for me :-)

If you think these factors are irrelevant you do not understand the essence of price action trading as taught here.

As you say. I think for those who get my point in the post they get it. For those who do not get it, they do not get it :-)

Quoting kk007
Ok. Ok. You talk about how to trade with the fake chart? Rather than discuss the main issue addressed?

I think for those who get my point in the post they get it. For those who do not get it, they do not get it.
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  • #61,108
  • Apr 18, 2010 7:13am Apr 18, 2010 7:13am
I know your point of trendline, and you can see the price break your trendline. But, yes. It is irrelevant to the main issue addressed in the original post. I was talking about swing high/low, the chart is just for illustration purpose. No interests in talking about how to trade the fake chart at this point.

Quoting fxprocessor
Price would also have hit a strong trendline. An easy pass for me :-)

If you think these factors are irrelevant you do not understand the essence of price action trading as taught here.

As you say. I think for those who get my point in the post they get it. For those who do not get it, they do not get it :-)
  • #61,109
  • Apr 18, 2010 7:32am Apr 18, 2010 7:32am
No wonder you soo succesfull Jarroo.......ave been watchin ur style...as i build ma account balance.......

Quoting jarroo
It didn't work? It looks like it worked out just as expected. A successful Pin Bar in my book.
  • #61,110
  • Apr 18, 2010 8:02am Apr 18, 2010 8:02am
Ok, we get it---I will validate your point I understand.

On the other hand your point reminds me of a newspaper headline...it doesn not tell the whole story. You need the context.

You are taking one microscopic view of price action and focusing on it, instead of comprehensively focusing on the context that the signal is occurring....this is what others I believe are trying to share with you and I believe you understand this.

My concern is that for those with limited experience in charting that your point attempts to invalidate pin bars and/or price action.





I think for those who get my point in the post they get it. For those who do not get it, they do not get it.[/quote]
  • #61,111
  • Apr 18, 2010 8:31am Apr 18, 2010 8:31am
Quoting kk007
Ok. Ok. You talk about how to trade with the fake chart? Rather than discuss the main issue addressed?

I think for those who get my point in the post they get it. For those who do not get it, they do not get it.
Hey KK

The real problem is that sketching your own chart leaves the whole entire story out. I know what you are saying in terms of if it puts in the swing point you don't know till price moves away. That is really not what the focus on understanding WHEN and the TYPE of swing point you are at. That should be the factor in REAL time. When I get say a huge pinbar at confluence at a CURRENT potential swing low. This is what is going through my head. Then you must go into trade mgmt based on all these factors. Again it isn't hindsight it is real time analysis with your game plan. Then the idea is to see if what you do works out over the series of many trades. So swing points are extremely important because in context(this is the key) they tell you must more about price.

Hope that helps
Mike
  • #61,112
  • Apr 18, 2010 8:41am Apr 18, 2010 8:41am
Quoting kk007
I have read about pinbar at swing high/low, but I have found out that the consideration of swing high/low position has no predictive power, because the fact that swing high/low is a swing high/low can only be known in hindsight.

Let me explain the point with the following figures. In Figure 0, we see a pinbar, but is it a swing high/low, it cannot be told yet. Price after the pinbar can go up and can down. If it goes up, you can then see it is a swing low (Figure 1), and the fortune teller now tell you their prediction works out. If the price...
Hey KK below is an example chart is for you.

Assuming we have no data before point X.

When price was traveling from point A to B the very first blue line is our major swing low.

Price breaks the swing low makes a new low at second blue line and goes up to point C. Now when it's traveling from point C to point D we will say that the second blue line is our swing low, When price is traveling from point E to F we will say that third blue line is our swing low and so on as you can see in the chart.

and this is how we choose our swing points no matter if they hold or price breaks them they are the swing points.

What you are saying is that every time we see a pin we assume that if this pin works it will be a swing low and if pin fails it won't be. Sorry but no that's not the way we do it.
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  • #61,113
  • Apr 18, 2010 8:45am Apr 18, 2010 8:45am
Quoting jarroo
It didn't work? It looks like it worked out just as expected. A successful Pin Bar in my book.
yah, that's what i meant below

Quoting supremeChaos
figure 1 & 2 ...
BUT we are not surprised (that this PB fails) since we can see an immediate PPZ above the PB.
  • #61,114
  • Apr 18, 2010 8:52am Apr 18, 2010 8:52am
Quoting jarroo
It didn't work? It looks like it worked out just as expected. A successful Pin Bar in my book.
I would've doubled my account on this one.
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  • #61,115
  • Apr 18, 2010 9:40am Apr 18, 2010 9:40am
Hello everyone.
i am not a great traders like others here.in here lots of nice people sharing their knowledge.i am nothing compare to them.
still thought i must join with u guys to contribute.
if it helps some of u guys i will be glad.my english is bit poor so excuse me for that.i am setteled in uk not an english man..
what i am sharing with all of is.
its bit of understanding supply and demand levels and trade at them with the market flow.how to trade with the momentum.
please feel free to comment on my posts.
if i am wrong correct me may be i can learn something new from u guys.learning never ends.probably bit of out of james methood but any of u might pick up few things from my chart or post and u can add to ur arsenal..or may be i can learn something from ur feedback.
i mostly use supply and demand levels (obvious levels) to entry my position.
understanding supply and demand levels help u to get better entry and exit.
if u see the chart u will get the idea.a picture is worth thousand word.thats why i attached a AUD/USD 4 hour chart.
i use stocastic to see any divergence comeing in the market (nothing else)
on the supply or demand levels.
understanding those levels u can safely enter with small stops .it will make more odds in ur favoure.market is made of imbalance of supply and demand.
must have to have patience to price come to those levels and retest the levels.wait for market to make a nice entry bar or entry point for u.
there is some time u can take break out trades at those levels as well.
the more higher time frame the more stable those levels.
there is some times price will hit those levels like a train is going 120 mph.
u have to stand back.with enough practice and errors u will feel what market is telling u.momentum is with u or aginst u.
u have to see which levels u are on where are u going?
are u standing on the train line in front of the on coming train. (speed is 120 mph) .
or u wanna ride the train safely?
if u wanna ride the train know how to ride it safely.know where the train stop is.that u can get on board safely.
there is some time u must not ride the train.(if its wrong train).u have to know is it the last stop.(revarsal)

know the supply and demand levels.and trade at that levels..
those two are the foundation of profitable trader. use pin bar or any other candle stick pattern to get ur entry
and use other indicators(if u want) as just for confirmation.if u wanna use any know ins and out of that indicator.but remember price is king.less is better.

on the chart see supply levels and demand levels.
once supply level or demand levels get broken. they act as opposite force.
what i mean when supply level gets broken it become demand level.and vice versa.
hope it helps
i will visit some time to get some great knoweledge from all the great traders.

happy trading
sho
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  • #61,116
  • Edited 10:04am Apr 18, 2010 9:52am | Edited 10:04am
Quoting kk007
Ok. Ok. You talk about how to trade with the fake chart? Rather than discuss the main issue addressed?

I think for those who get my point in the post they get it. For those who do not get it, they do not get it.
KK, I am still learning this pin bar strategy. So consider that fact when evaluating my comments.

First of all, you do have a point (I think) about swing H/L. It is not known until the next bar is drawn.

However, trading is based on certain rules (worked well in the past).
Since the price moves in cycles, how do you identify those reverse or continuation points. So a pin bar (one method) provides starting point to evaluate - is the price going to reverse from here ? or continue further ?

Then by considering rest all other factors - pin bar size and shape, Location( swing H/L?), confluence, PPZ,Round numbers, Fib retracements, etc.., traders makes a determination.

When people trade with indicators (only with indicators) most of them are lagging indicators rather than leading.. But where as when it comes to PA it more on leading.

Does it mean it works always ? May be not.. but may be works 90% of the time.. Thats why this thread is so popular here..
  • #61,117
  • Apr 18, 2010 9:53am Apr 18, 2010 9:53am
heres a q. that keeps coming back to me...
why does price almost always retest the res/sup it just broke through???we see it all the time but i never really understood it???is it simply the other side trying to get control again but meeting with heavy buying/selling at the same price range as before?? and if so why? didnt all the significant orders get triggered the first time????
hope i can catch up on some interesting posts later this eve???

cheers

jon
PATIENCE... DISCIPLINE
  • #61,118
  • Apr 18, 2010 9:55am Apr 18, 2010 9:55am
Hey everyone,

I'm around page #50.. i'm still reading but i was wondering if it would be a better idea to get a membership at jim's website ( even thougth i still don't trade or have the enough income ) to keep on learning.. I know the information can't be learned in month or two.. Are there PDF files that i can save in my computer for when my membership expires?
thanks!
  • #61,119
  • Apr 18, 2010 9:57am Apr 18, 2010 9:57am
Is this an example of your trend trading? Would you mind sharing how you trade manage these? i.e. how tight do you place your stops etc.etc.

What kind of %wins do you get trading this system, & do you trade like this on your active account. I assume that you don't necessarily wait for PA when adopting this system.

Thanks in advance,


Stef

Quoting nasir.khan
I would've doubled my account on this one.
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  • #61,120
  • Apr 18, 2010 10:13am Apr 18, 2010 10:13am
Quoting NewinTown22
Hey everyone,

I'm around page #50.. i'm still reading but i was wondering if it would be a better idea to get a membership at jim's website ( even thougth i still don't trade or have the enough income ) to keep on learning.. I know the information can't be learned in month or two.. Are there PDF files that i can save in my computer for when my membership expires?
thanks!
Hey NewinTown

My recommendation is to stick to this thread for at least a few months, hang out here keep working your way through. There is a ton here to absorb and it is worth it. Keep that demo account going and learn learn learn

Oh yeah ask questions as you work your way through too!

Best
Mike
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