Already reached it's target,
Great looking BEOB forming on the Daily too. lets hope it closes that way
james16 Chart Thread
- #65,241
- Jun 1, 2010 10:04am Jun 1, 2010 10:04am
- | Commercial User | Joined Aug 2006 | 12,004 Posts
- #65,246
- Jun 1, 2010 2:45pm Jun 1, 2010 2:45pm
My favorite continuation play(and one of my favorite plays) is when you get a continuation outside bar that engulfs a range of bars at an important area. This forces price to these first trouble areas very strongly. But I think they are more difficult to spot then the traditional way and why we stick to the swing high/low around here. Gotta cover those basics and build the foundation
Mike
Approx. like the one is forming on the USDCHF daily (some weird combo of outsidebar/pinbar/indecesionbar)?
- #65,247
- Jun 1, 2010 2:47pm Jun 1, 2010 2:47pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Approx. like the one is forming on the USDCHF daily (some weird combo of outsidebar/pinbar/indecesionbar)?
THis would still be a reversal bar more then a continuation BUT you are correct about the dynamics if it can close below the range. It MUST close below that range/round number for it to be traded for me. But yes you are sniffing them out now
Mike
proletary, I think you are missing some 1s. 1.16 and 1.17?
For me, this isn't a good enough set-up to trade. If it closes where it is now, it's not that close to the bottom of the candle, and it's still a bull bar. The rejection off the PPZ is good, but as you say, position isn't great, not being at a swing high, plus it's CT.
I'd wait for further PA to provide a better set-up.
Then again, I'm new to this so don't take anything I say too seriously
I'm still fairing better with the lower time frames, particularly M15, than I am with daily bars. Though I'm applying very similar rules in each.
For me, this isn't a good enough set-up to trade. If it closes where it is now, it's not that close to the bottom of the candle, and it's still a bull bar. The rejection off the PPZ is good, but as you say, position isn't great, not being at a swing high, plus it's CT.
I'd wait for further PA to provide a better set-up.
Then again, I'm new to this so don't take anything I say too seriously
I'm still fairing better with the lower time frames, particularly M15, than I am with daily bars. Though I'm applying very similar rules in each.
Hello everybody!
Indeed, a PB is forming on the 1D (GMT time) but is it tradeable in james16 terms? I mean can we call the place where it occurs swing high? It's rather a plateau.
Pros:
- Nice, northpointing pin bar with long nose
- pierced 1.6000 but will probably close below it
- EURUSD hit an important s/r and was rejected with force (these pairs are corelated so EURUSD could well hint us to the USDCHF movement)
Cons:
- PB is not located directly at swing high but at the end of a plateau
- short trade would be countertrend
What are your...
The problem I've got with this is that it probably won't close below the 1.15 BRN and that for me a sign of weakness of this setup. Also, on my feed the open and the current close of the bar are in the middle of the bar so it is an indecision bar rather than a pinbar; look at how price bounced off the bottom of the previous days' range. If it closed below the BRN and the range of the previous days' bars, I'd be all over it. Right now, it's an easy pass for me.
Of course, that's just my view and it could work out well in the end.
- #65,251
- Jun 1, 2010 3:19pm Jun 1, 2010 3:19pm
proletary, I think you are missing some 1s. 1.16 and 1.17?
should be 1.16, 1.17Also, on my feed the open and the current close of the bar are in the middle of the bar so it is an indecision bar rather than a pinbar; look at how price bounced off the bottom of the previous days' range. If it closed below the BRN and the range of the previous days' bars, I'd be all over it. Right now, it's an easy pass for me.
Best regards
"Put your shoulder to the wheel!"
- #65,253
- Jun 1, 2010 3:38pm Jun 1, 2010 3:38pm
Hey Wak
THis would still be a reversal bar more then a continuation BUT you are correct about the dynamics if it can close below the range. It MUST close below that range/round number for it to be traded for me. But yes you are sniffing them out now
Mike
!In my world, I'm willing to make a entry below the bar even if it doesn't close below it.
By the way, I've read the book by marting pring price patterns now. Excellent reading, it was exactly what I was looking for thanks.
- #65,254
- Jun 1, 2010 3:47pm Jun 1, 2010 3:47pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Thanks for the quick and excellent reply, however could you elaborate more when you are saying that it must close below the range before it's ok with you to make it a "tradable trade"? Whats going on in your head, tell me interesting to learn
In my world, I'm willing to make a entry below the bar even if it doesn't close below it.
By the way, I've read the book by marting pring price patterns now. Excellent reading, it was exactly what I was looking for thanks.
Hey W
Firstly let me say that this is only the way I interpret this situation and go about it. There certainly isn't one right or wrong way so if you feel confident in your approach do not let this dissuade you.
The reason I am looking for it is simply to see who is in control. If we think of the round number as our battle line, and the consolidation as the "fight" area if we can close below it(blue box) we see the bears have gained control. We also can make that assumption b/c when the bulls tried to push it above the last high it was shot down very quickly showing there are more then willing sellers. But again without that close below that area I don't like to make the assumption that the buyers have given up. This is simply to keep me in check.
Hope that helps
Mike
- #65,255
- Jun 1, 2010 4:02pm Jun 1, 2010 4:02pm
Hey W
Firstly let me say that this is only the way I interpret this situation and go about it....
Excellent post, I almost thought you were Martin Pring there for a second
.I agree with your reasoning, make perfect sense. However I'm having trouble to let the trade go, I think and hope that this kind of cation will come with time when I age as a trader. I will definitely try to reason more like this asap.
Regards
Hi All
About the only setup on dailies that looks good to me is the BEOB on CadChf.
I like the way it closed below the last 2 bars. It is also comming off the 61.8 fib from the high in 2007 to the low in 2008.
There has been a strong up trend on this pair over the last 6 months but if this is going to retrace this looks like a good position for that to happen. It is best to look at the weekly chart to get an overall view.
My concerns are that this BEOB could have been bigger considering the strong trend and previous bigger bearish bars have not reversed this trend but I think the location looks better now.
Any comments appreciated.
Leon
About the only setup on dailies that looks good to me is the BEOB on CadChf.
I like the way it closed below the last 2 bars. It is also comming off the 61.8 fib from the high in 2007 to the low in 2008.
There has been a strong up trend on this pair over the last 6 months but if this is going to retrace this looks like a good position for that to happen. It is best to look at the weekly chart to get an overall view.
My concerns are that this BEOB could have been bigger considering the strong trend and previous bigger bearish bars have not reversed this trend but I think the location looks better now.
Any comments appreciated.
Leon
