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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

  • #70,341
  • Aug 2, 2010 3:28am Aug 2, 2010 3:28am
Morning guys! That GBP/JPY trade we were discussing yesterday is doing quite well.

I've seen there's been a lot of talking about free trade. I'm not really familiar with that term. Does that mean you've moved your SL to breakeven?
  • #70,342
  • Aug 2, 2010 3:31am Aug 2, 2010 3:31am
Quoting jarroo
Hey Adilius07.

I mainly use the free trade approach on setups that look good location-wise but the PA may not be the "best" . .small in size or structurely deficient or the traffic in front of it may be heavy or strong like a BRN or PPZ level, etc. A smart trader would say, "Well, that's a pass . .next". . .and I would agree with that decision. But some situatuion make sense to me and they will for you over time.

Let me explain better with an example . .

The Daily PB on the Eur/Chf. It had locational support from the top of the Daily consolidation...
Yes, Jarroo, this is exactly why I like the idea of free trade: When there is a wick not long enough, or some traffic or something else (most of the time there is something that is not line up perfectly) - so I should either skip the trade (which is the best choice if I want to be very picky) or I can also trade it as a free trade. I know all I need is just a little chance for me to move to Net breakeven!

This approach really makes me MUCH more confident. I love this idea!

The problem I have is to let it really run. I keep on telling to myself that this is a FREE TRADE JUST LEAVE IT, but there is someone else in my head who keeps on telling me TAKE THE PROFIT C'MON lol. But I had this all the time, and now it is easier to resist knowing I have nothing to lose.

To fight this psychological greed phenomenon I try to designate a target, like for this GBP/JPY trade it would be 139.32 and I may exit before that if I see some opposing signal (like PB against me) on the same Daily time frame.

If I would be strong enough to hold to my rules I would be a hero holding profitable trade is really tough...
  • #70,343
  • Edited 4:24am Aug 2, 2010 3:51am | Edited 4:24am
Quoting mihazupan1
...
I've seen there's been a lot of talking about free trade...
Jarroo's free trade approach:.
u take (partial) profit on X amount. then u move your SL (for remaining position) to a value equal to that X amount. if your stop at X is hit, worst case scenario is ZERO loss (because X profit - X loss = 0); best scenario is your trade (remaining position) goes to the moon.

jarroo's posts will help u understand it much better.
here, here, here, here, here
check out joelcf's related post too.
  • #70,344
  • Aug 2, 2010 4:26am Aug 2, 2010 4:26am
Jarroo, may I please ask. Would you also use the same free trade approach on the IPB setup? I think about this now. Maybe with IPB the best would be to exit full position at FTA (which is the other side of PB's wick)?

Not yet understand the IPB's very well. Could we also split position in halfs, or the setup is valid only until the other side of wick is reached?
  • #70,345
  • Aug 2, 2010 4:45am Aug 2, 2010 4:45am
Quoting Adilius07
Jarroo, may I please ask. Would you also use the same free trade approach on the IPB setup? I think about this now. Maybe with IPB the best would be to exit full position at FTA (which is the other side of PB's wick)?

Not yet understand the IPB's very well. Could we also split position in halfs, or the setup is valid only until the other side of wick is reached?
If I may...

I always take full profit at the low/high of the IPB, not to say it's the only correct method though, it's what makes me most comfortable. Again depending on the location and spatial factors you might want to hold on to an IPB trade beyond the bar low/high.

Here's an example of an IPB doing wonders beyond it's low.

g.
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I believe . . .
  • #70,346
  • Aug 2, 2010 4:52am Aug 2, 2010 4:52am
Quoting ghous
If I may...

I always take full profit at the low/high of the IPB, not to say it's the only correct method though, it's what makes me most comfortable. Again depending on the location and spatial factors you might want to hold on to an IPB trade beyond the bar low/high.

Here's an example of an IPB doing wonders beyond it's low.

g.
Thanks Ghous! This is rather exceptional example The reason I am so unsure about this is that to be honest I don't really like the IPB setups lol. Psychologically it just really seems much weaker setup than classic PB to me. Of course I'm a newbie maybe that is why. But at the same time it allow for really tight stop - this is what makes it attractive on the other hand.

I am carefully analyzing my charts to choose the best way for me to play them. Maybe I would also take a full profit at FTA - the R:R in this case is still fantastic due to a very tight stop, so why risk more....
  • #70,347
  • Aug 2, 2010 4:57am Aug 2, 2010 4:57am
Hey,

Ghous, i have heard about horrible overflows in Pakistan, over 1000 people have died, terrible! Are you in safe ghous?

Happy trading all!
Nuc
  • #70,348
  • Aug 2, 2010 4:59am Aug 2, 2010 4:59am
Quoting ghous
If I may...
I always take full profit at the low/high of the IPB,....
Here's an example of an IPB doing wonders beyond it's low.
...
Quoting Adilius07
..Would you also use the same free trade approach on the IPB setup?...
like any PA setup, some IPBs go 'to the moon' too.
in other words, u can trade it as if it were a regular PB -- if possible, leave some position open to take advantage of runs.
  • #70,349
  • Aug 2, 2010 5:03am Aug 2, 2010 5:03am
Quoting Adilius07
Thanks Ghous! This is rather exceptional example The reason I am so unsure about this is that to be honest I don't really like the IPB setups lol. Psychologically it just really seems much weaker setup than classic PB to me. Of course I'm a newbie maybe that is why. But at the same time it allow for really tight stop - this is what makes it attractive on the other hand.

I am carefully analyzing my charts to choose the best way for me to play them. Maybe I would also take a full profit at FTA - the R:R in this case is still fantastic due to...
When played at good locations they have been pretty reliable for me Adilius. They are obviously an advanced PA setup and if you find them a little tricky to trade I wish I could push your thoughts away from the IPB lol.

g.
I believe . . .
  • #70,350
  • Aug 2, 2010 5:05am Aug 2, 2010 5:05am
Quoting nuclear62
Hey,

Ghous, i have heard about horrible overflows is Pakistan, 800 people have died, terrible! Are you in safe ghous?

Happy trading all!
Nuc
I heard about this too. This is terrible. I am really sorry...
  • #70,351
  • Aug 2, 2010 5:07am Aug 2, 2010 5:07am
Quoting nuclear62
Hey,

Ghous, i have heard about horrible overflows is Pakistan, 800 people have died, terrible! Are you in safe ghous?

Happy trading all!
Nuc
I am residing in the extreme south so yeah I am safe, but it hurts to see the mess we're in. Some man made, some natural.

g.
I believe . . .
  • #70,352
  • Aug 2, 2010 5:21am Aug 2, 2010 5:21am
Quoting ghous
I am residing in the extreme south so yeah I am safe, but it hurts to see the mess we're in. Some man made, some natural.

g.
Wonderful to hear that, hope everything gets better soon!
Nuc
  • #70,353
  • Aug 2, 2010 6:12am Aug 2, 2010 6:12am
Quoting mihazupan1
Morning guys! That GBP/JPY trade we were discussing yesterday is doing quite well.

I've seen there's been a lot of talking about free trade. I'm not really familiar with that term. Does that mean you've moved your SL to breakeven?
Yes a free trade is SL to break even.
  • #70,354
  • Aug 2, 2010 8:59am Aug 2, 2010 8:59am
hello guys
watching chfjpy triangle, lets see how she breaks
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Simplicity is the key to success
  • #70,355
  • Edited 11:27am Aug 2, 2010 9:12am | Edited 11:27am
Quoting mihazupan1
Morning guys! That GBP/JPY trade we were discussing yesterday is doing quite well.

I've seen there's been a lot of talking about free trade. I'm not really familiar with that term. Does that mean you've moved your SL to breakeven?
Hi miha. Yes the pair just doesnt want to stop going north

I took it too. First at 135.20 when it was coming to retest the 135.00 and then again when it broke the blue area that i draw on my chart.

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About the question. Yes a free trade means that you move your stops to breakeven and then you dont have nothing to lose. I usually take some profit while moving stops to BE, cause you never know when the trade goes against you and take you away the profit you have just made.
  • #70,356
  • Aug 2, 2010 9:18am Aug 2, 2010 9:18am
  •  jdl
  • | Joined Oct 2006 | Status: going to master this or die trying | 101 Posts
Quoting Adilius07
Hello, Jdl. Yes I would set my buy order 5 pips above the PB. The stop loss would be 5 pips below the PB. It is a wide stop, but all I need is a chance for me to move my stop to BE, after 20-30 pips, so even before the FTA which I have as yellow line on that chart.
Adilius, you must be pretty happy with your gbp/jpy trade. I got in late, at 136.29, then watched it immediately retrace about 40 pips. I started doubting the trade, wondering if I should cut short my loss. But I told myself I have to believe in the trade. Despite the drawdown, nothing had changed to make it a bad trade. So I stopped watching it and went to bed.

I woke up to see the trade at +90 pips. Took half profit, move rest to BE +10. Nice way to start August trading. It's now +120 pips. I imagine it's more for you if you got in at the break of the PB. Nice trade you spotted!
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  • #70,357
  • Aug 2, 2010 9:24am Aug 2, 2010 9:24am
this one worked out great, I was gun shy on it but it had the makings for a great trade and it broke hard too

I know a lot of you took it well done!
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  • #70,358
  • Aug 2, 2010 9:31am Aug 2, 2010 9:31am
Quoting jdl
Adilius, you must be pretty happy with your gbp/jpy trade. I got in late, at 136.29, then watched it immediately retrace about 40 pips. I started doubting the trade, wondering if I should cut short my loss. But I told myself I have to believe in the trade. Despite the drawdown, nothing had changed to make it a bad trade. So I stopped watching it and went to bed.

I woke up to see the trade at +90 pips. Took half profit, move rest to BE +10. Nice way to start August trading. It's now +120 pips. I imagine it's more for you if you got in at the...
Thanks Jdl Congrats to you too!!!
Yes I'm in a free trade now. Well now is the most difficult part - holding to a winner!!! Will stay in it until I'll see a reason to exit.
  • #70,359
  • Aug 2, 2010 9:33am Aug 2, 2010 9:33am
  •  jdl
  • | Joined Oct 2006 | Status: going to master this or die trying | 101 Posts
Quoting mbqb11
this one worked out great, I was gun shy on it but it had the makings for a great trade and it broke hard too
Right now gbp/jpy is hitting some resistance from the top of the bar two bars back. If it can get above that, the next stop might be the 150 EMA at 138.20. If it can make it past that, it can run all the way to 139.60.
  • #70,360
  • Aug 2, 2010 9:46am Aug 2, 2010 9:46am
There she BLOWS!

I was really busy today and could get in after I stalked this all weekend.

Nice DBLHC and BUOB on H4 but it was at a swing high.


Well, I shall just watch the daily close, or maybe we will get retest and PA confirmation. Still, at least I had it in my sights.
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