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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

  • #70,981
  • Aug 9, 2010 11:40am Aug 9, 2010 11:40am
Quoting spookie94
Do you have an example you could share (chart). You kind of lost me. I thought if you had 2 matching lows you were looking for a move up?
sure here spookie

Like anything there are better and worse setups. The more Matching lows/highs, the better in my book
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  • #70,982
  • Aug 9, 2010 11:49am Aug 9, 2010 11:49am
Quoting nycc
EURGBP beob. The first trouble area is the purple line in my chart. Am I right?
I'm a newbie, so take my chart with a grain of salt...I see a minor ppz just below RN 8300 at around 0.8290-which looks to be in the middle of some consolidation. Of course, I'm looking at the chart 3 hours later too.
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  • #70,983
  • Aug 9, 2010 11:54am Aug 9, 2010 11:54am
Quoting ts63
Hey everyone. What's the difference between a rising wedge and an ascending triangle. Could someone please help ?
I would venture to guess that is one in the same TS
  • #70,984
  • Aug 9, 2010 12:41pm Aug 9, 2010 12:41pm
I have been studying the J16 material for a few months now, and every time I think that I am ready to begin demoing, I realize that I need a better understanding of one of the major concepts. The last one that I seem to be struggling with is Price Pivot Zones. I understand that they are flips between support and resistance.

I spent the weekend re-reading the material from the first page, the posts that Jduester's Summary highlights, the posts that Mike references when explaining PPZ to newbies, as well as the posts that I have copied from Cyrus' senior summaries, and I still have a couple of questions. I mentioned my weekend work because I appreciate the assistance that everyone provides on the board, and I don't want to be perceived as someone who asks the thread to do their work.

I understand how the PPZ can help you determine where to put your Stop Loss, and I also understand the importance of James16 "This Is Critical".

Nonetheless, while re-reading posts, I encountered a number of posts that said: "Draw the PPZ on your chart and wait for the price to react with them." Am I missing something? Or am I overcomplicating things? Does "wait for the price to react" simply mean that I need to wait for a PA formation?

Additionally, "How do PPZ act as confluence for entering a trade"?

LOC
  • #70,985
  • Aug 9, 2010 12:41pm Aug 9, 2010 12:41pm
Quoting Donkey
I'm a newbie, so take my chart with a grain of salt...I see a minor ppz just below RN 8300 at around 0.8290-which looks to be in the middle of some consolidation. Of course, I'm looking at the chart 3 hours later too.
There's nothing wrong with your chart. It questions whether this is a flag formation. Generally speaking a flag formation forms during a pause in a much steeper fall than we see here. Secondly, the safest place to take a trade off a (genuine) flag formation is the lowest low. That much I know.
Gone to a better place
  • #70,986
  • Aug 9, 2010 1:14pm Aug 9, 2010 1:14pm
Quoting mbqb11
sure here spookie

Like anything there are better and worse setups. The more Matching lows/highs, the better in my book
Thanks for the example Mike. Now I see what you were talking about. Like they say ' a picture is worth a 1000 words'. It also make the book more interesting. LOL
  • #70,987
  • Aug 9, 2010 1:36pm Aug 9, 2010 1:36pm
Quoting nycc
EURGBP beob. The first trouble area is the purple line in my chart. Am I right?
Hey nycc. Welcome to the thread.


Outside Bars in consolidation areas can be tricky and they do tend to retrace alot before they hit their final target.

I like your .8325 PPZ level, very clear on the higher time frames and that the BEOB's Low was below the .8300, another PPZ level. Would have been better if the BEOB's Close was below the .8300.

The immediate previous bar Lows would be the first trouble or target area, which is pretty tight . . traffic wise. The traffic over all is pretty tough. The BEOB is trading right into another consolidation area in purple. I do like your target but as a secondary one.

As I said, Outside bars in condildation area can be tricky but they are tradable, purple line is a possible retracement path. But they need to be big in Size, off strong PPZ levels, BRNs and have other confluences supporting them like divergence, etc.

The ideal situation is when there are at a swing High(/Low) were they have limited traffic and room to run. (2nd Chart)


Welcome again,

Jim
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Indicators show the past. Price Action "Indicates" the future.
  • #70,988
  • Aug 9, 2010 1:37pm Aug 9, 2010 1:37pm
Quoting Location
...I seem to be struggling with is Price Pivot Zones. I understand that they are flips between support and resistance.

Nonetheless, while re-reading posts, I encountered a number of posts that said: "Draw the PPZ on your chart and wait for the price to react with them." Am I missing something? Or am I overcomplicating things? Does "wait for the price to react" simply mean that I need to wait for a PA formation?
I too was having trouble with drawing the PPZs. In fact... I was actually drawing it out wrong and then found this post by Jarroo.

http://www.forexfactory.com/showpost...ostcount=12729

This part I consider the most important in his description: PivotPointZones are made up of Support and Resistance levels. S/R levels can come together and be on top of each other and be very tight as Jim has shown a few posts back. Or they can be wide in range.
The area between the Sup and Res levels is the PPZ.

Once you have PPZs which are areas, wait for PA to present itself. If that PPZ is strong, more often than not there will be a PA setup.


zoopy
  • #70,989
  • Aug 9, 2010 1:52pm Aug 9, 2010 1:52pm
Quoting zoopy
I too was having trouble with drawing the PPZs. In fact... I was actually drawing it out wrong and then found this post by Jarroo.

http://www.forexfactory.com/showpost...ostcount=12729

This part I consider the most important in his description: PivotPointZones are made up of Support and Resistance levels. S/R levels can come together and be on top of each other and be very tight as Jim has shown a few posts back. Or they can be wide in range.
[color=darkred][b]The area between...

Hey zoopy . .yeah I remember that one.

But what I failed to mention on that Daily Usd/Jpy is that the 109.09 and 108.39 are the tight PPZ levels, where Price filps, are the ones we look for. . . . I guess I did a little bit when I went back in time.
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Indicators show the past. Price Action "Indicates" the future.
  • #70,990
  • Aug 9, 2010 2:03pm Aug 9, 2010 2:03pm
Quoting jarroo
Hey zoopy . .yeah I remember that one.

But what I failed to mention on that Daily Usd/Jpy is that the 109.09 and 108.39 are the tight PPZ levels, where Price filps, are the ones we look for. . . . I guess I did a little bit when I went back in time.
Ok... I think I'm even more confused now haha

On your chart you have two levels marked off. Are you saying they are two separate zones? I'm asking because in your link you said "The area between the Sup and Res levels is the PPZ". I thought that means the area between 109.09 and 108.39 is the area where I would look for PA? That make sense? Something tells me I still have it wrong lol...
  • #70,991
  • Aug 9, 2010 2:17pm Aug 9, 2010 2:17pm
Quoting zoopy
Ok... I think I'm even more confused now haha

On your chart you have two levels marked off. Are you saying they are two separate zones? I'm asking because in your link you said "The area between the Sup and Res levels is the PPZ". I thought that means the area between 109.09 and 108.39 is the area where I would look for PA? That make sense? Something tells me I still have it wrong lol...

Yes that area between the the 109.09 and 108.39 is a PPZ area. But that area is wide in range. We want PPZ levels that are tight, where Price will take off one way or the other.

Take the Weekly Usd/Jpy. The 108.39 is a tight PPZ area. It is so tight that it can be seen as a single line . .the 108.39. The space is this small (pressing index and forefinger together very hard). lol

But we know this is an area, more like the 108.39ish level, meaning the PPZ area is more like 108.30-108.50. Its in this area that we look for PA.

Did that help?
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Indicators show the past. Price Action "Indicates" the future.
  • #70,992
  • Aug 9, 2010 2:26pm Aug 9, 2010 2:26pm
Quoting ts63
Hey everyone. What's the difference between a rising wedge and an ascending triangle. Could someone please help ?
Hi ts63,

A Rising Wedge is a bearish reversal pattern, and an Ascending Triangle is bullish continuation pattern.

Imho I think we have a Rising Wedge, which appears to be breaking down a little.

Have a look here for some good TA information http://stockcharts.com/help/doku.php...chart_patterns.

HTH.

A question for those that know, is the IPB of the 5th also a DBHLC formation?

Cheers, Ollie.
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  • #70,993
  • Aug 9, 2010 2:28pm Aug 9, 2010 2:28pm
Quoting Geofract
Hi ts63,

A Rising Wedge is a bearish reversal pattern, and an Ascending Triangle is bullish continuation pattern.

Imho I think we have a Rising Wedge, which appears to be breaking down a little.

Have a look here for some good TA information http://stockcharts.com/help/doku.php...chart_patterns.

HTH.

A question for those that know, is the IPB of the 5th also a DBHLC formation?

Cheers, Ollie.
thank Ollie, that makes more sense. Yes I look at your chart and it screams retracement is due as well. Names I am not the best with

Thanks for the refrence

Mike
  • #70,994
  • Aug 9, 2010 2:28pm Aug 9, 2010 2:28pm
Quoting jarroo
Yes that area between the the 109.09 and 108.39 is a PPZ area. But that area is wide in range. We want PPZ levels that are tight, where Price will take off one way or the other.

Take the Weekly Usd/Jpy. The 108.39 is a tight PPZ area. It is so tight that it can be seen as a single line . .the 108.39. The space is this small (pressing index and forefinger together very hard). lol

But we know this is an area, more like the 108.39ish level, meaning the PPZ area is more like 108.30-108.50. Its in this area that we look for PA.

Did...
Yes I think. Trade ppzs which are tighter in range

Thanks Jarroo.
  • #70,995
  • Aug 9, 2010 2:32pm Aug 9, 2010 2:32pm
can anyone help me choose the right broker. I want a firm that doesnt have dealing desk. i am going to open a $1000 account.


thks

good thread btw
  • #70,996
  • Aug 9, 2010 2:34pm Aug 9, 2010 2:34pm
Quoting zoopy
Yes I think. Trade ppzs which are tighter in range

Thanks Jarroo.

Think of a PPZ level as a "live electrical wire" and Price as a "squirrel". When Price (the squirrel) hits the PPZ level (the live electrical wire) that Price is going to jump one way or the other.
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Indicators show the past. Price Action "Indicates" the future.
  • #70,997
  • Aug 9, 2010 2:39pm Aug 9, 2010 2:39pm
Quoting jarroo

But we know this is an area, more like the 108.39ish level, meaning the PPZ area is more like 108.30-108.50. Its in this area that we look for PA.

Did that help?
For me, yes and no.

Zoopy, thanks for pointing out Jarroo's post. I thought I was getting it until Jarroo said that the 108.39-109.09 range is too large.

I originally thought that 108.39 was a PPZ. Should PA start in the 108.30-108.50 range? Or should it just end in that range? Or should it extend throughout that range?
  • #70,998
  • Aug 9, 2010 2:47pm Aug 9, 2010 2:47pm
Quoting Location
For me, yes and no.

Zoopy, thanks for pointing out Jarroo's post. I thought I was getting it until Jarroo said that the 108.39-109.09 range is too large.

I originally thought that 108.39 was a PPZ. Should PA start in the 108.30-108.50 range? Or should it just end in that range? Or should it extend throughout that range?

Hey Location,

You are correct . . .it is the 108.39. But usually a PPZ level is not a single horizonital Line (unless your raczekfx), its a zone or area.

Yes, we would like our PA to be at or through this Price Pivot Zone.
Indicators show the past. Price Action "Indicates" the future.
  • #70,999
  • Aug 9, 2010 2:47pm Aug 9, 2010 2:47pm
Quoting Geofract
Hi ts63,

A Rising Wedge is a bearish reversal pattern, and an Ascending Triangle is bullish continuation pattern.
Thank you very much Geofract
  • #71,000
  • Aug 9, 2010 2:48pm Aug 9, 2010 2:48pm
Quoting mbqb11
thank Ollie, that makes more sense. Yes I look at your chart and it screams retracement is due as well. Names I am not the best with

Thanks for the refrence

Mike
No problem Mike & ts63. Chart patterns I know well, the rest of this trading larks a mystery

Is the IPB of the 5th Aug on NZD/USD creating a valid DBHLC formation do you think?

Thanks, Ollie
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