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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

  • #65,321
  • Jun 2, 2010 7:25am Jun 2, 2010 7:25am
Quoting bun888
Hello everyone,
....
If price is below that clogged area, then would the red line would act as a resistance zone? And if price breaks that red line, does the yellow line (the upper limit of the traffic area) gets to be the second resistance that price have to overcome in order to go upwards?
Hello bun,
assuming the right half portion of the chart is still absent..
the answer is yes.
  • #65,322
  • Jun 2, 2010 7:30am Jun 2, 2010 7:30am
Quoting g_j_hook@yah
glad to help,
heres one im watching atm small TF though. Also it comes after consolodation rather than a run up so it is not the best setup. i might take a decent bullish trigger bar from the lower border or the break north if it happens with some momentum. i like to play these with a 15 pip stop and all out at +30-45 (on these i ignore RN etc unless it is gonna break right into a strong PPZ)with a TSL of 15 pips. they are a good setup when they come as a genuine break in a trend. which this one isnt! lets see what happens

jon
just want to follow up this post. the set up for me is now invalid...

jon
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PATIENCE... DISCIPLINE
  • #65,323
  • Jun 2, 2010 7:30am Jun 2, 2010 7:30am
Quoting supremeChaos
Hello bun,
assuming the right half portion of the chart is still absent..
the answer is yes.
Hi SupremeChaos,
Thanks for the reply
Just to confirm, is it a yes for both questions?

bun888
  • #65,324
  • Jun 2, 2010 7:31am Jun 2, 2010 7:31am
Quoting bun888
Hello everyone,

On this thread, I read about traffic area on a chart that acts as a support or resistance (Trouble Area). I understood a bit about it from reading other posters on this thread, but I still have questions regarding traffic area so, I hope you could help me.

If for example we have a price level clogged by a couple of candles as can be seen in the figure attached (marked by the yellow line and the red line).

If price is below that clogged area, then would the red line would act as a resistance zone? And if price breaks that red line,...
Hi Bun,

You pretty much have it right.

It can be either of those that will cause problems on the way up with the Yellow line being the strongest , since it took a lot more effort for that one to be breached upwards (It defined the top of the range!) . (i.e. It was the the absolute resistance level during the range. The more persistent level where sellers stood.)

For the opposite case (A break downward)... On the way down the absolute bottom of the range is the strongest, of course. With the red line just being a minor problem... or pause of price movement.
Bundy's status today: "Waiting..."
  • #65,325
  • Jun 2, 2010 7:33am Jun 2, 2010 7:33am
Quoting supremeChaos
just wanna say, be alert with this trades, if ever u took them.
imho, u are taking CT (counter-trend) trades.
just my view

EDIT:
i just noticed, these trades hit/breached their respective FTAs.
i hope u took profit (partial or full)
hit 1st tgt ...now freebe
  • #65,326
  • Jun 2, 2010 7:35am Jun 2, 2010 7:35am
Quoting bundyraider
Hi Bun,

You pretty much have it right.

It can be either of those that will cause problems on the way up with the Yellow line being the strongest , since it took a lot more effort for that one to be breached upwards (It defined the top of the range!) . (i.e. It was the the absolute resistance level during the range. The more persistent level where sellers stood.)

For the opposite case (A break downward)... On the way down the absolute bottom of the range is the strongest, of course. With the red line just being minor.
Thanks for the reply bundyraider.
  • #65,327
  • Jun 2, 2010 7:35am Jun 2, 2010 7:35am
Quoting bun888
...
Just to confirm, is it a yes for both questions?
....
yes, yes.

Quoting Atc
hit 1st tgt ...now freebe
excellent
  • #65,328
  • Jun 2, 2010 7:38am Jun 2, 2010 7:38am
Quoting supremeChaos
yes, yes.


excellent
Okie, thanks for the confirmation
  • #65,329
  • Jun 2, 2010 7:50am Jun 2, 2010 7:50am
Quote
..
bun888,
no problem, fellow Asian
  • #65,330
  • Jun 2, 2010 8:10am Jun 2, 2010 8:10am
Quoting supremeChaos
just wanna say, be alert with this trades, if ever u took them.
imho, u are taking CT (counter-trend) trades.
just my view

EDIT:
i just noticed, these trades hit/breached their respective FTAs.
i hope u took profit (partial or full)
Thanks SC,

My style is always "very quick to BE" even on continuation trades.
This one was very definitely CT so was extra cautious
I was taken out on the retrace to 7000,
not a big deal

J
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  • #65,331
  • Edited 8:53am Jun 2, 2010 8:37am | Edited 8:53am
Quoting supremeChaos
Hello Novice 198,
same concept, different charts
see arctos' chart here (which is the same, second chart in #47112)? turn it upside down. it looks like the audjpy monthly chart.

the minor difference is audjpy's DBHLC


i believe u misinterpreted the post. please read this carefully.
[url="http://www.forexfactory.com/showpost.php?p=3187734&postcount=47113"][b]Sir james16...
SC,
Pls pardon my persistence as I am still confused.
Arctos was trying to play a BUOB which retraced 50% from the Low point of the swing. Pls note the low of the BUOB was close to the swing low and bar went all the way up to 50%. Playing this bar for the upside is risky, which James pointed out and makes sense.

However, ertorque wants to know how to play a huge bar which is at 50% retrace level area and not a bar which has retraced from swing Low / high to 50% of the Fib level. These are two different scenarios as I see it and as such James recommendation to arctos is not applicable here.
As someone mentioned, this could be either a "pass" trade or entry on retrace for the experienced trader who will know how to manage this type of entry.

Hope my above understanding correct?? If not than pls try again so that I can understand better.

Cheers
Novice198
  • #65,332
  • Jun 2, 2010 8:53am Jun 2, 2010 8:53am
Something I had an eye on but didn't trade,

GBP/CAD 7 hour BEOB at 1.55 BRN

Cons: Not much space
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  • #65,333
  • Jun 2, 2010 8:58am Jun 2, 2010 8:58am
USD/CAD is giving me problems trying to place the PPZ on the weekly.
It just ended up with a birdcage.

I need to work out which weekly PPZ to omit and which ones to not omit.

Maybe I even have too many monthly PPZ in red.


Any ideas folks?
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  • #65,334
  • Jun 2, 2010 9:04am Jun 2, 2010 9:04am
Hi Folks, I am very new to this thread and this will be my first go at picking a trade so go easy on me. I figure the best way to learn is to say what I see and the more experienced of you can put me on the right track.

I am looking at gbp/jpy on daily. Got a possible pin today.(although the nose is not very long) Yesterday and today tried and failed to close above fib ret, which also has confluence 38/61. This is combined with good s/r around 134.20.
Sell stop @ 133.70 first target - 132.70

Weekly and monthly are both in a good down trend but have both recent bullish candles. Is this a major factor to a daily trade

If todays candle closes fairly close to its open would this be a good set up?

Thanks for any comments and advise in advance
  • #65,335
  • Jun 2, 2010 9:12am Jun 2, 2010 9:12am
Quoting novice198
..still confused..... ..
i diagnosed the situation & found the problem.:nerd:

u missed the bold part below, in my response to ertorque
Quoting supremeChaos
...
if u plot a Fib from 2008 lows to the 2010 highs, that huge bar stopped at 50%.
i remember a post by Sir James16
........
..
u were aware of ertorque's Fib but u forgot to plot the above fib. this was the fib i was talking about (which i think eventually ertorque realized the same scenario that he was in)
after plotting the above fib, compare it with arctos chart (remember ,turn it upside down). then read this again.
Hope it makes sense now.
  • #65,336
  • Edited 9:47am Jun 2, 2010 9:23am | Edited 9:47am
Quoting benem
Yes i am....i noticed the Beob and a nice divergence on the Macd.....

I am waiting for a better entry on 1h to minimize the stop loss....and it's forming a Pin on a resistance are also around 1.100

Let's see how it's going to close this almost 1h Pin....

First trouble area 1.087
I can't help but notice that there are other divergences in your chart (CADCHF, Daily bars) which you did not highlight (Look at Dec-Jan and Feb-Mar time periods). What happened with those divergences? The pair did not reverse, but merely paused before continuing its relentless drive upward. Divergences of course do not indicate a reversal is imminent, but only that there has been a lessening of momentum. Maybe there are indications of reversal now (PA) that weren't there before, but the trade you are contemplating is still CT. If you take it, I hope you get as good entry and make it to BE.
  • #65,337
  • Jun 2, 2010 9:41am Jun 2, 2010 9:41am
I think I got it sorted out.

Looks like we may have a BEOB forming.

Location is not great but maybe it is feasibly ok.
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  • #65,338
  • Jun 2, 2010 9:46am Jun 2, 2010 9:46am
Quoting Jonnyislost
Looking at GBP/CHF 4HR

Not the best bar but a great location imo,

BEOB at VBRN 0.7000

FTA 0.6900 RN and then bar highs at 0.8740 ish

Cons: Small bar and no divergance,

Lets see how it plays out
Hey J

I took this one for a quick hitter as well, bar size could have been bigger, we actually did have hidden divergence(see below), and all the other gbp/xxx pairs were very top heavy today. Was a good quick one in my book

Mike
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  • #65,339
  • Jun 2, 2010 9:57am Jun 2, 2010 9:57am
Hey Mike,

Yeah I saw that on the MACD but I wasn't sure about looking so far back for Divergence, Wondered if I was just searching for things I wanted to see,

Anyway, Glad you made some profit

J

Quoting mbqb11
Hey J

I took this one for a quick hitter as well, bar size could have been bigger, we actually did have hidden divergence(see below), and all the other gbp/xxx pairs were very top heavy today. Was a good quick one in my book

Mike
  • #65,340
  • Jun 2, 2010 9:57am Jun 2, 2010 9:57am
Quoting djmartymac
Hi Folks, I am very new to this thread and this will be my first go at picking a trade so go easy on me....
Hey dj, welcome to the thread. I'm not a fib guy, but I can comment on the setup.

- There are still 6+ hours until market close(depending on your broker). I usually check my daily charts 20-30 minutes before market close to really assess the bar as it is near close and less likely to change shape.

- You didn't post a chart. Since there are different market closes, it helps us see what you are looking at to better comment on your particular setup.

- I like the general location. Swing high, off of resistance, with the trend.

- I don't like the traffic ahead of the bar right now. The 132.90 area is a traffic zone and it's really close the the break of the pin.

Personally, I'd wait for a better setup. Hope this helps, I'm still learning myself, so hopefully the seniors can chime in.

-- Danny
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