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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

  • #67,161
  • Jun 23, 2010 7:28pm Jun 23, 2010 7:28pm
Quoting novice198
Hi Possmer,

I have also started trading on demo account. However, as I do not find or "see' any good setups in the daily / weekly charts using the J16 method...
Cheers
Novice 198
Novice,

All of the trades I took yesterday (and since I started my demo) have been based off of J16 setups on the daily. I'm also watching the weekly, but haven't seen any setups yet. To clarify, I am looking for PBs that bounce off of S/R levels that I can clearly plot on my charts. I am then overlaying one or two layers of fibs to gain confluence. To me (and senior members will undoubtedly have higher standards), I could find good reasons to take all of the pinbars I found yesterday, with the exception of the EURAUD and EURCAD, which I thought were somewhat marginal because of the lack of support underpinning them. I just "had a feeling" about these two, which is not necessarily a great reason for taking the trades.

In the end, sound trade management showed me that pinbars can be profitable, even if they aren't A++, which I'm not even sure I know what those look like yet Ok, I have an idea, but I'm not picky enough.

For the senior guys, how could the GBPCHF daily not be an A++? It had the perfect shape and plenty of confluence.

Not trying to be argumentative. I have a long way to go.
  • #67,162
  • Jun 23, 2010 7:28pm Jun 23, 2010 7:28pm
Quoting bug
Dear Seniors, I turn to you with a question: there's a small pin* on EU daily. Imagine for a second that the pin has a longer wick, just for the sake of the argument.
1. If the right eye is going to test the pin, would you rather have it test the low of the PB's body, which is also at the same level with the left eye's body low (1.2268) OR the low of the left eye's wick (1.2251).
2. If we have a bigger round number, say 1.2 or 1.3 as support instead of the not-so-fancy 1.23, would you consider taking such a trade at the brake of the pin without...
Hey Bug

I think if I understand your general question is about where the bar after the pin tests if there is a preference. Firstly for me I always wait for a break of the high(in this case), but I do prefer to see price retrace before breaking. The reason is to see if you get contiued support and demand in this case. I would prefer it be the low, but even the low of the body is fine. Again this case is tough cause the pin is so super small any retrace is going to hit it. BUT, this isn't essential. Meaning if I determine a pin is worth gonig for I don't have to see any kind of retrace, or it has to retrace to X point. I prefer it to do certain things as with my mgmt style it makes it easier to reduce risk or see good areas to reduce risk on. If you are one to take trades on a retracement you can use the left eye area as a good place for an entry(stick a fib up on the bar/round number etc).

So you will have different people wanting different things, this is just me

Mike
  • #67,163
  • Jun 23, 2010 7:32pm Jun 23, 2010 7:32pm
Quoting Possmer
For the senior guys, how could the GBPCHF daily not be an A++? It had the perfect shape and plenty of confluence.

Not trying to be argumentative. I have a long way to go.
The issue comes with this arbitrary rating system. Generally speaking when we discuss bars in this thread we keep it beyond beyond as basic and simple. Simply b/c most traders in here are new to this stuff so it makes sense to say things like that bar is not an A+ etc. To start to get people to train their eyes.

The fact is one persons A+ bar can be another persons C bar. In the case of the gbp/chf it was far from a big bar, far from having a lot of space, and trading into trouble pretty quick. Notice the low of the nose is not really sticking all that far away from the previous bar low. BUT even with that all aside we can still make a reasonable judgment on the trouble areas and then as a trader must determine if this is worth putting our hard earned money behind.

Again we can still look at this and say where is price likely to go(see chart). Devise a game plan around this knowledge and never be caught off guard by what the market does. That 50 odd pips can be worth a hell of a lot to some people and a trade like this can be A+ to them, and at the same time C+ to someone else.

Hope that helps clear it up
Mike
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  • #67,164
  • Jun 23, 2010 7:40pm Jun 23, 2010 7:40pm
Wow Mike, that was like 4 minutes it took for you to reply! Did Merlin teach all the folks who were here at the start some kind of dark magic or something?

Your answer is just what I wanted to know. I have another one, though (we rookies never seem to run out of them) - in past posts, SeekingLight used the middle area between the 61.8 and 78.6 retracement as a buying/selling area. Was that just a personal preference to weed out the weak or is it something more widely used among J16 followers?
Thanks.
If you don't risk, you don't ever have to lose.
  • #67,165
  • Jun 23, 2010 7:48pm Jun 23, 2010 7:48pm
Quoting bug
Wow Mike, that was like 4 minutes it took for you to reply! Did Merlin teach all the folks who were here at the start some kind of dark magic or something?

Your answer is just what I wanted to know. I have another one, though (we rookies never seem to run out of them) - in past posts, SeekingLight used the middle area between the 61.8 and 78.6 retracement as a buying/selling area. Was that just a personal preference to weed out the weak or is it something more widely used among J16 followers?
Thanks.
LOL , merlin dang miss him, and a few of the old forum guys. Lucky got to speak with an old friend yest that was the rock to this place


but onto your question. I think just a personal thing. I think the idea for seek was that once you are at the 61.8+ you are at the pretty much deepest part of a retrace if price should then decide to continue forward. Gives a nice area to watch. Some like b/w the 50 and 61.8 etc. I don't use fibs much but I like the 50%+ from an eyeball visual standard

Best
Mike
  • #67,166
  • Jun 23, 2010 7:53pm Jun 23, 2010 7:53pm
Quoting mbqb11
The issue comes with this arbitrary rating system. Generally speaking when we discuss bars in this thread we keep it beyond beyond as basic and simple...
Hope that helps clear it up
Mike
Thanks, Mike - very insightful and all valid points that I need to think more about.
  • #67,167
  • Jun 23, 2010 7:55pm Jun 23, 2010 7:55pm
Quoting Cyrus
Yet another big RN =)

As usual, let me know if I've missed anyone out.
You'll need winrar to open the files btw.
Genius
  • #67,168
  • Jun 23, 2010 8:28pm Jun 23, 2010 8:28pm
Quoting bug
Wow Mike, that was like 4 minutes it took for you to reply! Did Merlin teach all the folks who were here at the start some kind of dark magic or something?

Your answer is just what I wanted to know. I have another one, though (we rookies never seem to run out of them) - in past posts, SeekingLight used the middle area between the 61.8 and 78.6 retracement as a buying/selling area. Was that just a personal preference to weed out the weak or is it something more widely used among J16 followers?
Thanks.

Yeah I don't know how he does it. It would take me 10 times as long with half the substance. lol

Just to add to this. (Chart) Its better to wait for the break.

The quality of this setup would be # 4, likely. (Bullish PB at a swing High, small PB, etc.)


We all like # 1.

Mike, I believe, was referring to # 2 which I like as well.
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Indicators show the past. Price Action "Indicates" the future.
  • #67,169
  • Jun 23, 2010 8:45pm Jun 23, 2010 8:45pm
Quoting mbqb11
The issue comes with this arbitrary rating system....

I am game Mike..Especially as I have confined myself to the weekly.

I think these bar highs and lows were a good hint at where the next bar may have trouble.

EDIT: Of course this is easy after the fact!
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  • #67,170
  • Jun 23, 2010 8:55pm Jun 23, 2010 8:55pm
Quoting Pinbar
I am game Mike..Especially as I have confined myself to the weekly.

I think these bar highs and lows were a good hint at where the next bar may have trouble.

EDIT: Of course this is easy after the fact!
Yes this could certainly be where demand was as it has proven itself historically, just as the 1.65 is where supply/demand has also shown(aka our PPZs. So where has price stalled 1.65 as we would expect, now it may well find support there or turn around there. This is the waves of price moving up and down and rarely just one way or the other. THis is what creates our PPZs these areas of supply/demand. It might seem easy after the fact but you will begin to see this all in real time and use it to your advantage. It isn't perfect, but it is more then good enough to be profitable. That is what is the most important.

Time and practice is what it is all about
Mike
  • #67,171
  • Jun 23, 2010 8:56pm Jun 23, 2010 8:56pm
Quoting jarroo
Yeah I don't know how he does it. It would take me 10 times as long with half the substance. lol

Just to add to this. (Chart) Its better to wait for the break.

The quality of this setup would be # 4, likely. (Bullish PB at a swing High, small PB, etc.)


We all like # 1.

Mike, I believe, was referring to # 2 which I like as well.
Yea #1 never hurts But then people always want to get in on a retracement, then number 1 happens, so they start buying/selling on the close, then price fails to break and they chase themselves . Consistency is very important and attributes of all traders I know that do well.

Yes #2 was what I was referring to , thanks for the pictorial Jim!

Mike
  • #67,172
  • Jun 23, 2010 9:04pm Jun 23, 2010 9:04pm
Quoting mbqb11
Yea #1 never hurts But then people always want to get in on a retracement, then number 1 happens, so they start buying/selling on the close, then price fails to break and they chase themselves . Consistency is very important and attributes of all traders I know that do well.

Yes #2 was what I was referring to , thanks for the pictorial Jim!

Mike
I forgot the one that retraces and doesn't break, all the way through the Low. lol You only have to have this happen a few times, then you start waiting for the break.

Thanks Mike.
Indicators show the past. Price Action "Indicates" the future.
  • #67,173
  • Jun 23, 2010 9:30pm Jun 23, 2010 9:30pm
Quoting bug
....in past posts, SeekingLight used the middle area between the 61.8 and 78.6 retracement as a buying/selling area....
price does not always stop & reverse at 61.8 retracement.
sometimes, price goes above 61.8, sometimes even above 78.6 ret (others use 76.4 ret, instead of 78.6 --- the difference is negligible IMHO, use what suits u).
other times, price stops & reverses at or below 38.2 or 50% ret.

if price gets to +/-61.8 or 78.6, &reverses (in your trade's favor), then u get a deep discount.
  • #67,174
  • Jun 23, 2010 9:45pm Jun 23, 2010 9:45pm
personally if i see a great bar set up occur between those two levels its time to sit up and take notice. if there happens to be a pivot and/or BRN there also then so much the better. here is an example.

Quoting bug
Wow Mike, that was like 4 minutes it took for you to reply! Did Merlin teach all the folks who were here at the start some kind of dark magic or something?

Your answer is just what I wanted to know. I have another one, though (we rookies never seem to run out of them) - in past posts, SeekingLight used the middle area between the 61.8 and 78.6 retracement as a buying/selling area. Was that just a personal preference to weed out the weak or is it something more widely used among J16 followers?
Thanks.
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  • #67,175
  • Jun 23, 2010 9:47pm Jun 23, 2010 9:47pm
Quoting james16
personally if i see a great bar set up occur between those two levels its time to sit up and take notice. if there happens to be a pivot and/or BRN there also then so much the better. here is an example.

That would be a # 1, hard break and to the moon.
Indicators show the past. Price Action "Indicates" the future.
  • #67,176
  • Jun 23, 2010 9:59pm Jun 23, 2010 9:59pm
http://imgur.com/GdbYr.png
Price is beautiful. A repetitive method is a competitive method.
  • #67,177
  • Jun 23, 2010 10:01pm Jun 23, 2010 10:01pm
these types of losses arent too bad.. was really .2 pips i saw it in an instant
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  • #67,178
  • Jun 23, 2010 10:17pm Jun 23, 2010 10:17pm
You guys are all awesome...I thought I knew a few things, but

It sounds like the overwhelming preference is to wait for the bar to break to force the price to prove it wants to confirm the pinbar's intentions.
  • #67,179
  • Jun 23, 2010 10:48pm Jun 23, 2010 10:48pm
Quoting nwo-trader
....
eurchf, right?

check the chart below. (compare the two pins in white boxes)
the strong downtrend is pretty obvious. & that pin is VERY small.
having said that, price may take off, significantly or not.

(the red pin in the middle, which took price to 1.45 - 1.46, has a much longer nose, & formed after price stalled at the strong 1.4000 support)
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  • #67,180
  • Jun 23, 2010 11:03pm Jun 23, 2010 11:03pm
I've been doing a bit of study on divergence lately. Just wondering in what scenarios the regular MACD setting would work better and what scenarios the RSI 6 would be more suitable. I've read that the RSI 6 is more sensitive and responds better to short term movements.
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