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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

  • #63,481
  • May 12, 2010 2:17am May 12, 2010 2:17am
Quoting joelcf
Options volume is massive. Why? Because they are one of the best ways for a company to hedge downside risk while retaining upside rewards (albeit at a cost), and they are the only way to properly hedge uncertain future cashflows - a big thing with mining companies and investment banks.

But barely any of it is on exchange (I think Philly has some thin fx options, and CME has even thinner options over futures), so you just arent getting reliable, usable data.
Well, maybe i had mixed options and futures lol

But you can hedge not only with options, you can do it on the futures market as well. Am I correct?
  • #63,482
  • May 12, 2010 2:38am May 12, 2010 2:38am
Quoting (Yaniv)
Well, maybe i had mixed options and futures lol

But you can hedge not only with options, you can do it on the futures market as well. Am I correct?
Definitely correct. But most companies will do it with forwards or swaps instead, since they can be tailored to your particular cashflows (whereas, being exchange traded, futures need to be fungible - so you get stuck with standard terms). The only advantage of futures for most corporates would be the ability to sell them into the market if they are no longer needed or wanted... and even that one isnt huge, since there are other ways of doint that.

But you generally dont want to hedge uncertain cashflows with futures or forwards - if the cashflow never eventuates, you have effectively taken on currency risk. Which is bad. That's where options are ideal, because you dont have to exercise them.

None of which help us here, unfortunately, because they are almost all OTC. So you wont ever know about them. Unless you happen to work in a dealing room.
When you have to shoot, shoot. Dont talk.
  • #63,483
  • May 12, 2010 2:46am May 12, 2010 2:46am
Quoting joelcf
Definitely correct. But most companies will do it with forwards or swaps instead, since they can be tailored to your particular cashflows (whereas, being exchange traded, futures need to be fungible - so you get stuck with standard terms). The only advantage of futures for most corporates would be the ability to sell them into the market if they are no longer needed or wanted... and even that one isnt huge, since there are other ways of doint that.

But you generally dont want to hedge uncertain cashflows with futures or forwards - if the cashflow...
Thank you for the deep explanation
  • #63,484
  • May 12, 2010 3:02am May 12, 2010 3:02am
Quoting Dan Gilbert
My sell order hasn't even been hit yet. I placed it below that strong ppz just in case @ 0.8880

we'll see if price can pierce down hard enough to me!
Good to hear it didn't catch your order. I am out at BE and having a decent enough month so it's all good :-)
  • #63,485
  • May 12, 2010 4:15am May 12, 2010 4:15am
Quoting jarroo
Also the .9000 could do its thing, meaning . . . give Price a reason to run away from it. lol
So where would you look to enter conservatively? Just below the low of the inside bar (about 0.89310) or below the low of the larger bar (about 0.88600)? Thanks.
  • #63,486
  • May 12, 2010 4:19am May 12, 2010 4:19am
I am still waiting for the smoke to settle and have been practicing placing PPZ.
Would appreciate comments and especially the negative ones.

Basically, I am using a round number indicator set at 500 & 200 but I only have it display on H4, then I am starting on the Monthly (Purple lines) and am making sure I get all the little flips on W1 (Red lines). As I am drawing a lot of PPZ on the weekly, I am not drawing them on D1 or H4 as it seems to cover them well and, the ones I don't get, the round number indicator seems to point them out well, without covering the entire chart with lines which block me from trading or even seeing what is going on.

Thanks in advance
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  • #63,487
  • May 12, 2010 4:32am May 12, 2010 4:32am
Quoting Steve0001
So where would you look to enter conservatively? Just below the low of the inside bar (about 0.89310) or below the low of the larger bar (about 0.88600)? Thanks.
I would look to enter much like fxprocessor did. Although my entry would have been just below the Daily IB due to the PPZ level it was sitting on. And then use it like fxp, as a stop to see if Price retests it. Maybe use the free trade approach when Price hit the .8900. I would probably have had the same result, B/E trade.


.88600 larger bar?
Indicators show the past. Price Action "Indicates" the future.
  • #63,488
  • May 12, 2010 4:41am May 12, 2010 4:41am
Quoting Pinbar
I was considering taking this PB but on further consideration and adding the second fibo. I see there are more reasons to not take it than there are to take it.

Comments or advice on PPZ heartily welcome.
That little bullish PB at a swing high. That reason alone is enough to say pass for me, Pb.

We are at a swing High confluencing with some higher time frame PPZ levels. Looking for some nice big Bearish PA is what I would be doing, Pb.
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Indicators show the past. Price Action "Indicates" the future.
  • #63,489
  • May 12, 2010 4:50am May 12, 2010 4:50am
Quoting Pinbar
I am still waiting for the smoke to settle and have been practicing placing PPZ.
Would appreciate comments and especially the negative ones.

Basically, I am using a round number indicator set at 500 & 200 but I only have it display on H4, then I am starting on the Monthly (Purple lines) and am making sure I get all the little flips on W1 (Red lines). As I am drawing a lot of PPZ on the weekly, I am not drawing them on D1 or H4 as it seems to cover them well and, the ones I don't get, the round number indicator seems to point them out well, without...

Very good Pb. They look great.
Indicators show the past. Price Action "Indicates" the future.
  • #63,490
  • May 12, 2010 4:53am May 12, 2010 4:53am
Quoting jarroo
That little bullish PB at a swing high. That reason alone is enough to say pass for me, Pb.

We are at a swing High confluencing with some higher time frame PPZ levels. Looking for some nice big Bearish PA is what I would be doing, Pb.

Yes, I see what you mean.

I must learn to watch PA on higher TF and not only the TF I am trading.


Appreciated Jarroo
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  • #63,491
  • May 12, 2010 4:57am May 12, 2010 4:57am
Quoting jarroo
Very good Pb. They look great.

Many thanks Jarroo.

But, I was anxiously anticipating some negative comments.

Humans are never satisfied.

By the way, I slipped back into my, I can't draw these PPZ, what if I am missing one! I need an indicator........I am over it now.

Phew, crafty things these indicators combined with human emotions of fear.
  • #63,492
  • May 12, 2010 5:01am May 12, 2010 5:01am
Quoting Pinbar
Yes, I see what you mean.

I must learn to watch PA on higher TF and not only the TF I am trading.


Appreciated Jarroo

(on your chart)

Is this what I mean about what? The size of the PA?
Indicators show the past. Price Action "Indicates" the future.
  • #63,493
  • May 12, 2010 5:04am May 12, 2010 5:04am
Quoting Pinbar
Many thanks Jarroo.

But, I was anxiously anticipating some negative comments.

Humans are never satisfied.

By the way, I slipped back into my, I can't draw these PPZ, what if I am missing one! I need an indicator........I am over it now.

Phew, crafty things these indicators combined with human emotions of fear.

Just look at your Daily and 4 hour chart. Nice clean lines showing Price flips. Only about 5 on both, nice.

Not sure why you use the short term moving averages. It kind of blocks Price. But if you use them . . ok.


Your eyes are the best indicator.
Indicators show the past. Price Action "Indicates" the future.
  • #63,494
  • May 12, 2010 5:04am May 12, 2010 5:04am
Quoting jarroo
(on your chart)

Is this what I mean about what? The size of the PA?


I meant the PB at the swing high.

That little bullish PB at a swing high. That reason alone is enough to say pass for me, Pb.



PS: Yes, I will kill the 10 & 25 EMA



Jarroo.....Can you throw a bit difficult pair at me for PPZ practice?


I am convinced that PPZ are more than half the battle.
  • #63,495
  • May 12, 2010 5:10am May 12, 2010 5:10am
Quoting Pinbar
I meant the PB at the swing high.

That little bullish PB at a swing high. That reason alone is enough to say pass for me, Pb.



PS: Yes, I will kill the 10 & 25 EMA



Jarroo.....Can you throw a bit difficult pair at me for PPZ practice?


I am convinced that PPZ are more than half the battle.
The little PB from you chart.
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Indicators show the past. Price Action "Indicates" the future.
  • #63,496
  • May 12, 2010 5:15am May 12, 2010 5:15am
Quoting jarroo
The little PB from you chart.


Oh, I see.
Sorry, I thought you were commenting about your Monthly chart.

Yes, I must also take in the size the PA compared to surrounding PA & also the space around it.
  • #63,497
  • May 12, 2010 5:16am May 12, 2010 5:16am
Quoting Pinbar
Jarroo.....Can you throw a bit difficult pair at me for PPZ practice?


I am convinced that PPZ are more than half the battle.
Try this one. Use only 4 or 5 lines. Only the best ones.
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Indicators show the past. Price Action "Indicates" the future.
  • #63,498
  • May 12, 2010 6:22am May 12, 2010 6:22am
Phew.....This is a REAL tough one.

No matter how I move the lines, it always appears like I need one more line where I drew the RED one.

I do not think this is correct at all.
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  • #63,499
  • May 12, 2010 6:28am May 12, 2010 6:28am
Aiming for .8600, this bullish H4 bar is a counter trend bounce off .8450. Both these levels are monthly/weekly important levels. Not much in between. What do you think?

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Gone to a better place
  • #63,500
  • May 12, 2010 6:40am May 12, 2010 6:40am
Quoting jeurre
hi, bundyraider, can you provide some comparison between the pullback systems and the pa method we are discussing here?
They can be one in the same though.

For instance, in the link Mbqb11 gave James gave you a part of what he does with the systems.

The systems have multiple scenarios which I won't copy out here, but by using what James has said as an example in the link above... He is using the cross of those big EMAs and then trading the pullback to the EMA later on. He even said in those posts... combine that pullback with the same S/R (PPZs etc) you learn here with PA and they can work very very well. Most other MA systems are based on complex crossings and immediate entries after the cross and blah blah blah... "Zip your lips like a padlock. And meet me in the back. With the jack and the jukebox"

Using S/R and PA to improve on an existing system.
Nothing new really in the world of this thread. It's still about trading at great confluences. Location, location location!

Bundy's status today: "Waiting..."
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