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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

  • #66,801
  • Jun 20, 2010 1:57pm Jun 20, 2010 1:57pm
Quoting djmartymac
Hi all and happy birthday J16

I am looking at the GBPAUD at the minute. We have an overall strong down trend. On the daily we broke and closed below the 1.70 round number ppz. On the weekly we are following a large bearish bar off 23/38 confluence which was just short of being a BEOB. There is very little traffic between here and 1.68 and could be a good target area. Some nice price action around 1.70 should be good for a short. What do you all think?
Just wondering if some of the more experienced people could have a look at this and let me know what they think.
  • #66,802
  • Jun 20, 2010 2:10pm Jun 20, 2010 2:10pm
Quoting djmartymac
Just wondering if some of the more experienced people could have a look at this and let me know what they think.
Hey DJ

Personally I wouldn't really want to be shorting into 1.69(see chart). This could play out as a continuation but I would need more information personally. Just not enough on the chat for me one way or the other. 1.68 is a very nice area to watch for a long as you said though.

Mike
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  • #66,803
  • Jun 20, 2010 2:15pm Jun 20, 2010 2:15pm
Thanks for the quick reply mike. On my feed it just gapped on the open to 1.6840. How would you treat this normally Mike?
  • #66,804
  • Jun 20, 2010 2:20pm Jun 20, 2010 2:20pm
Quoting djmartymac
Thanks for the quick reply mike. On my feed it just gapped on the open to 1.6840. How would you treat this normally Mike?
Just as normal really, I tend to wait for gaps to close or I will trade a gap to close it if the right situation is in play. Otherwise you can look to the gapped area to act as PPZ often and are good areas to watch for trades as well.

Best
Mike
  • #66,805
  • Jun 20, 2010 2:37pm Jun 20, 2010 2:37pm
Quoting jarroo
Thanks g.

I may take a small postion. Also that bar High, 4 bars previous, is bugging me. Should be fun to watch.

Hey g.

I knew that bar high was bugging me for a reason. If they are not perfect, they are not worth the risk. This IPB located at the 65.00 would have been much better.
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Indicators show the past. Price Action "Indicates" the future.
  • #66,806
  • Jun 20, 2010 4:27pm Jun 20, 2010 4:27pm
Quoting mbqb11
Just as normal really, I tend to wait for gaps to close or I will trade a gap to close it if the right situation is in play. Otherwise you can look to the gapped area to act as PPZ often and are good areas to watch for trades as well.

Best
Mike

Thanks mate, I am just trying to wade through all the material and you are a great help.
  • #66,807
  • Jun 20, 2010 5:53pm Jun 20, 2010 5:53pm
Quoting sollavia
One of the points I've grasped is that it's necessary to have a large account with a small risk. I just want to know how large should an account be?
It isnt necessary to have a large account - thanks to brokers with flexible position sizing (Oanda started it, others have since followed), you can effectively trade any size account. So you have no worries there.

The key is the second point you make - you have to limit your risk. So we set the risk per trade at a % of your account. This %, generally between 0.5% and 2%, minimises the chance of losing your account due to variance.

The problem comes where you try and combine the two. Risking $40 per trade isnt going to appeal to most people who assume that tradin the forexes can automagically turn their $200 account into a superyacht within 30 days.

So it is really a question of what you want to achieve.
Do you want to live off trading your $2k? It isnt going to happen.
Do you want to slowly compound it into something worthwhile? Absolutely possible.

Quoting sollavia
I'm just a college student at the moment, and a $2,000 deposit for live account is fine, but I'm afraid not more than that. Is it ok?
I'm impressed that you saved away $2k - I cant remember my wallet ever containing more than the cost of a case of beer at anytime during college

Just make sure you read Jim's 'sternly worded' advice about demoing until you are profitable, then going live. He isnt messing around.
When you have to shoot, shoot. Dont talk.
  • #66,808
  • Jun 20, 2010 6:53pm Jun 20, 2010 6:53pm
Quoting ghous
I have said it before and I am going to say it again...

You enter an entire new dimension in your trading career, on the very the day you stop "bar hunting"

It's when the chart "appeals" more to the naked eye than when it only hosts a PA bar at a particular location, that you know you are now legitimately trying to understand what, why, when and where price does what it does,

We come have come to know a term called "price pivot zone" from some of the gurus in the business. the day you realize that this tool here is more than just...
Not sure if this can relate to your post Ghous, but I have this thinking that trading with the trend is always much safer than going against it. This is because retracements happen way more than reversals. Yes some people might profit from every corner the price makes (the little reversals off retracements, and who doesn't want to catch an extreme reversal??), but for safety, I think beginners like me should trade with the trend as an insurance. When the price looks like it reverses, I should look for signs that it will return to its major trend.

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  • #66,809
  • Jun 20, 2010 7:19pm Jun 20, 2010 7:19pm
Quoting sollavia
Please....
One of the points I've grasped is that it's necessary to have a large account with a small risk. I just want to know how large should an account be? I'm just a college student at the moment...
Kababayan!
There are no stupid questions!

i agree with Sir joel, $2k is quite a huge sum of money, specially since u are from this country of ours.
where did u learn about the James16thread?

Excellent first post (done in this thread).
Good luck in your journey
  • #66,810
  • Jun 20, 2010 7:22pm Jun 20, 2010 7:22pm
Quoting fxeturn
....I have this thinking that trading with the trend is always much safer than going against it....
yes!
trading with the trend is better, easier, safer & more profitable.
  • #66,811
  • Jun 20, 2010 7:30pm Jun 20, 2010 7:30pm
Quoting jarroo
Welcome sollavia.

But your money away for now, please . Follow the 1st post of this thread and open a Demo account. You got to prove it to yourself on demo first, my friend.

Again welcome to the journey,


Jim
Thank you for the warm welcome. I've read the very first post and is now on my way to doing the 3 months demo using the pin bars daily and weekly (and the next steps thereafter) after reading the pdf files (Pin Bars-Introduction and Advanced) and the highlighted posts in this thread. I'll be sure to hang around reading all of the informations shared here.
  • #66,812
  • Jun 20, 2010 7:39pm Jun 20, 2010 7:39pm
Quoting joelcf
It isnt necessary to have a large account - thanks to brokers with flexible position sizing (Oanda started it, others have since followed), you can effectively trade any size account. So you have no worries there.

The key is the second point you make - you have to limit your risk. So we set the risk per trade at a % of your account. This %, generally between 0.5% and 2%, minimises the chance of losing your account due to variance.

The problem comes where you try and combine the two. Risking $40 per trade isnt going to appeal to most people...


I currently have a demo account at ActivTrades and must admit that I have tried using indicators and EAs. Now, I'm using the first post by Jim as a guide for myself as I start learning the pin bars starting with its anatomy.

Thank you for pointing out about managing the risk. I'll be sure to keep it in mind as I start my journey from here. I hope to be able to follow the examples and advices given by the concerned traders. I simply love this thread.
  • #66,813
  • Jun 20, 2010 8:11pm Jun 20, 2010 8:11pm
Quoting jarroo
Hey g.

I knew that bar high was bugging me for a reason. If they are not perfect, they are not worth the risk. This IPB located at the 65.00 would have been much better.
I don't know but I am getting into this habit of passing in on an IPB whenever it is not at an extreme swing point of a pull back or a trend high/low. This wasn't an exception. Once again the extreme swing was that bar high which was bugging you jarroo...small stops are great for R:R but then they require the trade to immediately materialize which is less likely when price is near a swing point rather than at it.

g.
I believe . . .
  • #66,814
  • Jun 20, 2010 8:21pm Jun 20, 2010 8:21pm
Hi guys, big RN 4500 coming on this thread, but the extraction software is giving me ALOT of problems... post summaries might be delayed abit, do pardon that. I'm working on it. =)
One Mind, Any Market
  • #66,815
  • Jun 20, 2010 8:21pm Jun 20, 2010 8:21pm
Anyone watching the EURCHF Daily pin that is forming. It could be interesting. 40mins left to close on my feed.
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  • #66,816
  • Jun 20, 2010 8:28pm Jun 20, 2010 8:28pm
Quoting fxeturn
Not sure if this can relate to your post Ghous, but I have this thinking that trading with the trend is always much safer than going against it. This is because retracements happen way more than reversals. Yes some people might profit from every corner the price makes (the little reversals off retracements, and who doesn't want to catch an extreme reversal??), but for safety, I think beginners like me should trade with the trend as an insurance. When the price looks like it reverses, I should look for signs that it will return to its major trend.

Attachment ...
That is not at all a bad idea...in fact very smart thinking.

Me likes it!

When you have a slam dunk swing high swing low trade as per J16 methods trust your instincts to fire and give you the gut feeling that you have to go for it. These are trades that come by in months with dense confluences and bars that appear like a torch in pitch black darkness. (like the pin bar in the chart below)

Rest of the times you can always just trade with the trend and make smart money.

g.
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I believe . . .
  • #66,817
  • Jun 20, 2010 8:29pm Jun 20, 2010 8:29pm
Quoting djmartymac
Anyone watching the EURCHF Daily pin that is forming. It could be interesting. 40mins left to close on my feed.
Hey DJ

Careful here this is not a daily bar but rather just the sunday bar. Since your broker changes over times at 12am est time you are getting a different late view with the gaps. So the sunday bar looks a lot bigger. Now that might not necessarily mean it isn't valid, but in terms of J16 we ignore these sunday bars(again James teaches it like that and most of us do).

Mike
  • #66,818
  • Jun 20, 2010 8:31pm Jun 20, 2010 8:31pm
Quoting Cyrus
Hi guys, big RN 4500 coming on this thread, but the extraction software is giving me ALOT of problems...
software must be 'in consolidation'
no need to rush, bro
  • #66,819
  • Jun 20, 2010 9:14pm Jun 20, 2010 9:14pm
Quoting mbqb11
Hey DJ

Careful here this is not a daily bar but rather just the sunday bar. Since your broker changes over times at 12am est time you are getting a different late view with the gaps. So the sunday bar looks a lot bigger. Now that might not necessarily mean it isn't valid, but in terms of J16 we ignore these sunday bars(again James teaches it like that and most of us do).

Mike

OK thanks for clearing that up. It didnt end up closing inside the previous day anyway.

Just out of interest what feed are most people here using? I am in Australia and I use MB trading.
  • #66,820
  • Jun 20, 2010 9:15pm Jun 20, 2010 9:15pm
Quoting djmartymac
OK thanks for clearing that up. It didnt end up closing inside the previous day anyway.

Just out of interest what feed are most people here using? I am in Australia and I use MB trading.
I prefer a 5pm est daily close so my daily closes are based off FXpro feed

Many use anything within about 2-3 hours of that time(ibfx, alpari etc). A 12 am close to me is pushing it as you start adding that next lower liquidity day in of asia/sydney

Best
Mike
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