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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

  • #65,881
  • Jun 10, 2010 12:27am Jun 10, 2010 12:27am
Jarroo

I have a question if you are not too busy.

Normally when we draw PPZ we are using the absolute highs and lows of the candles. I am wondering after moving to the current NZD/USD Monthly candle and drawing PPZ, if the open and close of these candles have any significance.

I just noticed a lot of them around the area I drew the PPZ at.
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  • #65,882
  • Jun 10, 2010 12:33am Jun 10, 2010 12:33am
Now we have a BEOB (would've been better if closed below 150EMA) at BRN and retest of a broken TL.

I'll wait for it to break through the 150EMA, then "close" below it and then i'll enter at retest of 416 or 440.
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  • #65,883
  • Jun 10, 2010 12:35am Jun 10, 2010 12:35am
Quoting Pinbar
Jarroo

I have a question if you are not too busy.

Normally when we draw PPZ we are using the absolute highs and lows of the candles. I am wondering after moving to the current NZD/USD Monthly candle and drawing PPZ, if the open and close of these candles have any significance.

I just noticed a lot of them around the area I drew the PPZ at.

Well that would be because of the BRN, .7000.
Indicators show the past. Price Action "Indicates" the future.
  • #65,884
  • Jun 10, 2010 1:50am Jun 10, 2010 1:50am
Quoting jarroo
Well that would be because of the BRN, .7000.

Right....Doh!

I am probably now looking too hard at the candles and ignoring price.
  • #65,885
  • Edited 2:17am Jun 10, 2010 2:04am | Edited 2:17am
Question for Mike concerning that chart.

When these bars are in play, we do not have the comfort of seeing them at a top or a bottom because the next candle does not exist.

I mean, if we look at these candles without the next bars, what makes them at a top or bottom. Couldn't the next candle form and just as easily make a higher top or lower bottom?
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  • #65,886
  • Jun 10, 2010 2:18am Jun 10, 2010 2:18am
Quoting Pinbar
Question for Mike concerning that chart.

When these bars are in play, we do not have the comfort of seeing them at a top or a bottom because the next candle does not exist.

I mean, if we look at these candles without the next bars, what makes them at a top or bottom. Couldn't the next candle form and just as easily make a higher top or bottom?
They are at swing highs and lows my friend. That's what we are looking for.
Indicators show the past. Price Action "Indicates" the future.
  • #65,887
  • Jun 10, 2010 2:43am Jun 10, 2010 2:43am
Quoting jarroo
They are at swing highs and lows my friend. That's what we are looking for.

Spinning my wheels again eh.

Hmmmm
  • #65,888
  • Jun 10, 2010 3:05am Jun 10, 2010 3:05am
Currently I'm playing around with PPZ, trying to place them at the right levels. Please correct me if I'm wrong at any point in my reasoning:

I saw several charts where PPZ'z were based on closing or opening levels of bars. Now that's where I'm having doubts. Feeds in differnt timezones generate different charts and bars for the 4H and 1D TF. Thus PPZs placed at opening/closing of bars in these TFs are 'weaker' and less reliable because less traders see them. This would not be the case with monthly, weekly and hourly opening/close, because months, weeks(roughly) and hours end/start at the same point in time regardless whether you're in London, NY or Tokyo.

Note that this problem does not occur when placing PPZ on base of extremes (high/lows of bars) and/or RNBs. So drawing PPZ on my charts I would definitely only use exteremes and RNBs.

What's your opinion, how do you identify PPZ?
"Put your shoulder to the wheel!"
  • #65,889
  • Jun 10, 2010 3:09am Jun 10, 2010 3:09am
Quoting Pinbar
Question for Mike concerning that chart.

When these bars are in play, we do not have the comfort of seeing them at a top or a bottom because the next candle does not exist.

I mean, if we look at these candles without the next bars, what makes them at a top or bottom. Couldn't the next candle form and just as easily make a higher top or lower bottom?
Loving that first pin with the 8000 level,
BUOB looks a bit shabby in my opinion
  • #65,890
  • Edited 3:50am Jun 10, 2010 3:39am | Edited 3:50am
Quoting gc7
Thanks Mike, Jim for the advise. I think I will skip that one, but am curious how the MM would work for a trade that is in a bit of traffic.
Mike, from what I understand from some of your posts, you would not trail under those circimstances. Would that mean exit everything at the first trouble area? Or could you enter AFTER the first trouble area, from which point you may have a cleaner run?
Jim, are you still in that H4 trade?

Grant

Sorry gc, I missed your question. I got out on this one; half a postion at breakeven and the other half for -7 pips.

I liked how Price retest the break and stayed above the break during the asian hours.(as seen on the Hourly). But it failed to make my FTA where I would have free traded it. The reason why I would have placed a free trade was due to its small size and countering a strong move down.

I do like the location 1.0400 and the PB hasn't failed yet and may work out fine, but that's how I play'em. I want to see a hard break and continuation of the setup once it breaks. Which did not happen.
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Indicators show the past. Price Action "Indicates" the future.
  • #65,891
  • Jun 10, 2010 3:46am Jun 10, 2010 3:46am
Quoting Pinbar
Spinning my wheels again eh.

Hmmmm
Totally getting what you mean. But what we mean by swing highs and lows is there has been a run of bars (or PA) up until that point that has had some legs on it. ...Rather than a short pullback etc.

You probably DO need to calibrate your eyes a little with this one.

How big of a preceding run of bars is good enough? ...usually one with "space" as Mike so brilliantly explains it.

Example in my chart...

(yellow example would have been the type of place we'd want a swing high pinbar/etc to be at.)
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Bundy's status today: "Waiting..."
  • #65,892
  • Jun 10, 2010 3:47am Jun 10, 2010 3:47am
Quoting james16
WOW I DIDNT THINK CANADA HAD EVER CUT SPENDING.

I was trading futures back then but i find the monthly chart below to be interesting.

a ten year run straight up started with a bullish outside bar in the early 90"s. was this in conjunction with what you speak of? someone else will have tro answer that.
I think Dan is right that the bar your referring to is the start of the US tech boom. However the 1998 retracement I think is a result of the Canadian public spending cuts.
The greatest force on earth is compound interest.
  • #65,893
  • Jun 10, 2010 3:53am Jun 10, 2010 3:53am
Quoting bundyraider
Totally getting what you mean. But what we mean by swing highs and lows is there has been a run of bars (or PA) up until that point that has had some legs on it. ...Rather than a short pullback etc.

You probably DO need to calibrate your eyes a little with this one. How big a run is good enough? ...usuall one with "space" as Mike so brilliantly explains it.

Example in my chart...

(yellow example would have been the type of place we'd want a swing high pinbar/etc to be at.)

Thanks Bundy, I am glad somebody understood what I meant by removing the other bars. LoL

So, basically, we need a run of bars showing strength then failure to break a RN, rather than the one in red which looks like an exhaustion bar?

Funny though, the one in red seemed to do better as a short than the one in Yellow, which seemed to range quite a lot.
  • #65,894
  • Jun 10, 2010 4:15am Jun 10, 2010 4:15am
Quoting Pinbar
Thanks Bundy, I am glad somebody understood what I meant by removing the other bars. LoL

So, basically, we need a run of bars showing strength then failure to break a RN, rather than the one in red which looks like an exhaustion bar?

Funny though, the one in red seemed to do better as a short than the one in Yellow, which seemed to range quite a lot.
I was just illustrating the swing high/low concept that many seem to think is something you don't know until history proves you are right.
...Well they ARE right in saying that, but we are talking talking about distinguishing between a trade that has room to move and one that doesn't.

The one in red is most likely to catch people out with a reversal and stop out loss after the break than one that develops at the yellow point. More importantly the yellow area has lots of space to accelerate down into profit with easier trade management. The red one you have to be a LOT more careful in the earlier stages of the trade. Which is trickier for a newcomer.

Trades that are at these potential swing highs/lows with plenty of "Space" are SO easy to make good gains off of if you pick a good location. The last major resistance to your chosen direction was at the opposite end of the move. It took 3 good bearish bars!! and a little more to get down to and match the last major order pool at the .8280 area.

In the case of the red position the last major resistance to your chosen direction (buyers) was less than a bars length away. Manage it right and yes , you made money. This time. But most newcomers would take a full bar loss if this one didn't work out. Those more experienced, wouldn't have. ..They would have been ready for that tight first trouble area.
Bundy's status today: "Waiting..."
  • #65,895
  • Jun 10, 2010 4:35am Jun 10, 2010 4:35am
Quoting novice198
Hi Ghous,

The PB seemed to be in a swing High posn. Not much confluence with fibs or PPZ plus too close to traffic. So would be a pass. Though in hind sight it would have been ok to trade.

Cheers
The bar in question was the one I marked on the chart.

cheers.

g.
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I believe . . .
  • #65,896
  • Jun 10, 2010 4:37am Jun 10, 2010 4:37am
Quoting Pinbar
So, basically, we need a run of bars showing strength then failure to break a RN, rather than the one in red which looks like an exhaustion bar?
As one situation, yes. But what I was really trying to get across is that "Space"-thing Mike explains so well in his videos in the guest section on James' site.

(Had to add to my last post on this to answer your question directly too.lol)
Bundy's status today: "Waiting..."
  • #65,897
  • Jun 10, 2010 4:42am Jun 10, 2010 4:42am
Quoting nasir.khan
Now we have a BEOB (would've been better if closed below 150EMA) at BRN and retest of a broken TL.

I'll wait for it to break through the 150EMA, then "close" below it and then i'll enter at retest of 416 or 440.
.
Hi Nasir, looks like your scenario is materializing. This isn't a classic j16 trade is it? We could call it a "failed PB trade" (due to the bullish PB 4 bars ago). I noticed that after failing those PB generated quite a decent move in the direction where the nose is pointing (most probably due to the broken S/R)

Where do you place your SL in such trades?

Best regards
"Put your shoulder to the wheel!"
  • #65,898
  • Jun 10, 2010 4:43am Jun 10, 2010 4:43am
Quoting bundyraider
I was just illustrating the swing high/low concept that many seem to think is something you don't know until history proves you are right....
I get what you are saying Bundy.

So, in effect we are looking for a good probability swing high or low & confirming it with PA and possibly former PPZ breaking then holding as resistance at a swing high SHORT PA setup?
Rather like this trade Nasir is talking about on USD/CHF right now. I mean the confirmation of the break in this trade not the swing high, although it is on the weekly but that candle is still open.


I am watching it to see how he manages it.
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  • #65,899
  • Jun 10, 2010 5:01am Jun 10, 2010 5:01am
Quoting Pinbar
I get what you are saying Bundy.

So, in effect we are looking for a good probability swing high or low & confirming it with PA and possibly former PPZ breaking then holding as resistance at a swing high SHORT PA setup?
Rather like this trade Nasir is talking about on USD/CHF right now. I mean the confirmation of the break in this trade not the swing high, although it is on the weekly but that candle is still open.


I am watching it to see how he manages it.
That trade (especially looking at the bottom picture) is perfect example of a good "swing point" possability . Yes.

When those swing points also line up with PPZs etc it's even better. Yes.

Note how there is almost NOTHING in the way of getting to his red dash-dot-dot line below?? Awesome potential there.
Bundy's status today: "Waiting..."
  • #65,900
  • Jun 10, 2010 5:17am Jun 10, 2010 5:17am
Quoting proletary
Hi Nasir, looks like your scenario is materializing. This isn't a classic j16 trade is it? We could call it a "failed PB trade" (due to the bullish PB 4 bars ago). I noticed that after failing those PB generated quite a decent move in the direction where the nose is pointing (most probably due to the broken S/R)

Where do you place your SL in such trades?

Best regards
Hey Proletary,

The 4H PB you are talking about is not tradable cause of Space above and also the shape is not good ( @ IBFX ).

Although i took a 2H PB and it did not failed. It did hit it's FTA @ 1.1500.

The current setup i am discussing is a valid J16 trade. BEOB's and BUOB's are discussed in this thread.
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