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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

  • #71,961
  • Aug 17, 2010 2:37pm Aug 17, 2010 2:37pm
Quoting xmzhang
Great explanation http://cdn.forexfactory.com/images/icons/icon14.gif

Sometimes that's all I think Price is doing in the Market . . . breaking Support or Resistance and retesting them . .over and over again.
Indicators show the past. Price Action "Indicates" the future.
  • #71,962
  • Aug 17, 2010 2:54pm Aug 17, 2010 2:54pm
Quoting spookie94
Jarro,


Is there a point where you do not enter because the retrace doesn't look good?

Thanks for your input
Forgot this question spookie and its an important one.


Yes, depending on the pair, it may mean that Price is going the other way.

Continuing on with the Weekly GU, if Price breaks through this obvious previous bar Low, PPZ level . .something else may be going on, meaning it may be wanting to retest the 1.6000 or the uptrend is continuing.
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Indicators show the past. Price Action "Indicates" the future.
  • #71,963
  • Aug 17, 2010 3:01pm Aug 17, 2010 3:01pm
hello jarroo


attached is the daily chart for GBPUSD for 2009

Apart from the two pins shown by arrows, are there any other trades you would have taken? Are these pins evens pins you would have taken?

Thanks
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  • #71,964
  • Aug 17, 2010 3:11pm Aug 17, 2010 3:11pm
Quoting Pirabuji
hello jarroo


attached is the daily chart for GBPUSD for 2009

Apart from the two pins shown by arrows, are there any other trades you would have taken? Are these pins evens pins you would have taken?

Thanks
I might have taken those, lol I'll have to check.

The 1st arrow PB is at a retracement level but a bit too small in size but a tight stop loss below the left eye would have worked nicely after the break.


The 2nd arrow PB was really good . .nice size off the 1.6000, notice that's where it retraced to before it broke. 2nd PB is definitely better then the 1st one.
Indicators show the past. Price Action "Indicates" the future.
  • #71,965
  • Aug 17, 2010 3:13pm Aug 17, 2010 3:13pm
Quoting Pirabuji
hello jarroo


attached is the daily chart for GBPUSD for 2009

Apart from the two pins shown by arrows, are there any other trades you would have taken? Are these pins evens pins you would have taken?

Thanks
I am not Jarroo (one of a kind great guy)

but here is my favorite bar of that year on this pair/timeframe

False breakout of a tight wedge, massive divergence, Big round number, BEOB

yummy
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  • #71,966
  • Aug 17, 2010 3:17pm Aug 17, 2010 3:17pm
Quoting jarroo
Sometimes that's all I think Price is doing in the Market . . . breaking Support or Resistance and retesting them . .over and over again.
Good evening Jarroo,
Am I correct if I summarize your method of working as follows:
1. First you search for those well known PA-patterns in the price chart
2. If you encounter such a PA-pattern, then and only then you start marking off PPZ-levels in the vicinity of that PA-pattern, such as RBN, BRN, Previous bar highs/lows, fib. levels, S/R flipzone's.
3. Then you look at the position of that PA-pattern relative to the levels found in (2)
4. You also look for confluence between the PA-Patterns and the levels found in (2)
5. If the PA-pattern is tradeable you also use the levels found in (2) as FTA

Is this an correct summary of your working method ?

May the force be with you,
Pipcrawler
  • #71,967
  • Edited 4:34pm Aug 17, 2010 3:23pm | Edited 4:34pm
Quoting The Lord
Today, I have an order sitting above the top of 2-day pinbar. Daily Eur/Cad
Quoting jarroo
It would not surprise me at all, to see the 1.3350ish PPZ level to act as support again. Looks good Lord.

Good thing we wait for the break (2 Day PB), right Lord?

One thing I failed to mention on this one was what was going on on the Weekly BUOB.

Atc should remember this one.

Quoting jarroo
Hey Atc . . my take on the Eur/Cad was a bit premature. Waiting for a Weekly bar to close below the 1.3350 would have given my assessment more credibility. With that said, the 1.3350 will act as strong Support.

The small Daily PB off the strong 1.3350 PPZ level gave a great small risk trade in my book. Moving to break even or covering your risk prior to the NFP was available since Price broke the PB before the announcement.
Now that we have had a Weekly Bar close below this 1.3350ish PPZ level we may see some nice bearish moves coming our way.

Support turning into Resistance.
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Indicators show the past. Price Action "Indicates" the future.
  • #71,968
  • Aug 17, 2010 3:24pm Aug 17, 2010 3:24pm
Hi mike,

thanks for the response.

Did you play any other daily bars on that pair that year?
Why did u take that bar u pointed - i though you wait for a break out of consolidation and then pullback?

thanks,



Quoting mbqb11
I am not Jarroo (one of a kind great guy)

but here is my favorite bar of that year on this pair/timeframe

False breakout of a tight wedge, massive divergence, Big round number, BEOB

yummy
  • #71,969
  • Aug 17, 2010 3:25pm Aug 17, 2010 3:25pm
Quoting mbqb11
I am not Jarroo (one of a kind great guy)

but here is my favorite bar of that year on this pair/timeframe

False breakout of a tight wedge, massive divergence, Big round number, BEOB

yummy

You forgot to mention BBBIIGGG BBBARRR. lol
Indicators show the past. Price Action "Indicates" the future.
  • #71,970
  • Aug 17, 2010 3:29pm Aug 17, 2010 3:29pm
Jarroo

thanks for the post....found it amazing

wheni looked at the weekly gu - i didnt think of trading it as the bar size wasnt massive and even though it was off BRN on weekly all BRN's are soo close.

also did you find the size of the bar big enough - it only engulfed the previous bar

If i was to have taken it i would have just gone in on the break of the bar - that 200 pips worse then how you got in. Do you always take the retest ? and is the retest the low of the previous bar if shorting and high if going long ?

Do you find this works in most cases ? what if it breaks hard - how do you manage it then?

When i looked at that weekly i did not feel hughly confident with that setup - but looking at ure explanation it seems great now.

Thats the issue im having - waiting for perfect trades - cannot find them - then find them in in hinsight



Quoting jarroo
Outside Bars, at their most basic definition, are a pattern where Support turns into Resistance, BEOB (you can also add DBHLC) or Resistance turns into Support, BUOB (DBLHC). And we know what Sup and Res levels are when they meet . . they are PPZ Levels. Which means Price likes to jump away from them when they're hit, (like an electrical wire).

So these areas of retracement of Outside Bars are usually the previous bar High or Low.

I usually like to want for the break of the Outside Bar and then enter at its retracement level . . .it all depends...
  • #71,971
  • Aug 17, 2010 3:33pm Aug 17, 2010 3:33pm
Quoting Pirabuji
Hi mike,

thanks for the response.

Did you play any other daily bars on that pair that year?
Why did u take that bar u pointed - i though you wait for a break out of consolidation and then pullback?

thanks,
Yes i also played the daily BEOB in the beginning of June.

As for why I took the pin/beob bar I posted that chart above. False breakout of a very tight range. Massive divergence confirming this false breakout. Huge(thanks J) beob bar, closing under a large round number. That's about as A+ as it gets in my book. This screamed down in my book

Breakout and pullbacks are simply another tool in my tool box for types of trades I watch. It isn't only one way or another. I am flexible to all different situations

Best
Mike
  • #71,972
  • Aug 17, 2010 3:34pm Aug 17, 2010 3:34pm
Quoting xmzhang
Good evening Jarroo,
Am I correct if I summarize your method of working as follows:
1. First you search for those well known PA-patterns in the price chart
2. If you encounter such a PA-pattern, then and only then you start marking off PPZ-levels in the vicinity of that PA-pattern, such as RBN, BRN, Previous bar highs/lows, fib. levels, S/R flipzone's.
3. Then you look at the position of that PA-pattern relative to the levels found in (2)
4. You also look for confluence between the PA-Patterns and the levels found in (2)
5. If the PA-pattern is...

I would change 1. and 2. I look for strong PPZ levels, BRNs, confluenced levels . . . First and Foremost. Then PA as confirmation at those levels, meaning . . . is Resistance turning into Support or vice versa.
Indicators show the past. Price Action "Indicates" the future.
  • #71,973
  • Aug 17, 2010 3:55pm Aug 17, 2010 3:55pm
Quoting gonnamakeit
Jarroo

thanks for the post....found it amazing

wheni looked at the weekly gu - i didnt think of trading it as the bar size wasnt massive and even though it was off BRN on weekly all BRN's are soo close.

also did you find the size of the bar big enough - it only engulfed the previous bar

If i was to have taken it i would have just gone in on the break of the bar - that 200 pips worse then how you got in. Do you always take the retest ? and is the retest the low of the previous bar if shorting and high if going long ?

Do you find this works...
I don't always take the retest of the previous bar of Outside Bars. Only if they are very clear like the GU . . The EU is not so clear, although the 1.3000 is temptiing. Usually I will look for PA at these levels for confirmation on a lower time frame.

Yes, previous bar High for a long on BUOB and previous bar Low for a short on BEOBs.

I will take a simple break and manage it accordingly to its traffic, but you will usually see these retracements to the previous bar before they break, which is a good sign of a successfull hard break.


I was the same way . . . finding them in hindsight . . this too will pass . .just takes a little time .


PS: Love that user name . .
Indicators show the past. Price Action "Indicates" the future.
  • #71,974
  • Aug 17, 2010 4:01pm Aug 17, 2010 4:01pm
what do you mean when you say you will take the retest only if its is very clear ? do u mean if its a strong break through a BRN...also it broke 1.59 / 1.58 /1.57 / 1.56 hard - do you classify these as a BRN or just a RN....

as i see it it didnt break any BRN ??

thanks in advance - hope yuo can see what i am asking


Quoting jarroo
I don't always take the retest of the previous bar of Outside Bars. Onlt is they are very clear like the GU . . .
  • #71,975
  • Aug 17, 2010 4:20pm Aug 17, 2010 4:20pm
Quoting Pinbar
...
I meant the bit above.
it sounded like you thought it was an extravagant trade to take or something.....
Quoting spookie94
I don't think he was coming across negative PB. I think he meant that when you 1st start out that big lessons (like acct management) can be learnt on even what may seem to be insignificant trades. I think he was giving you a pat on the back on this one.
yes, thanks spookie.
mainly, the point i was trying to put across is "small losses accumulate, dont take it for granted."
& it's not necessarily sound to take a trade with tight SL. imho.

in short, im giving u caution, Pinbar. so dont take it the wrong way
  • #71,976
  • Aug 17, 2010 4:22pm Aug 17, 2010 4:22pm
Quoting gonnamakeit
what do you mean when you say you will take the retest only if its is very clear ? do u mean if its a strong break through a BRN...also it broke 1.59 / 1.58 /1.57 / 1.56 hard - do you classify these as a BRN or just a RN....

as i see it it didnt break any BRN ??

thanks in advance - hope yuo can see what i am asking

I meant I will take a retest or touch trade at the previous bar Low when they are clear. I don't post touch trades here on the thread but they are based off of PA when I do, they are not a random touch trade off of a strong level like a PPZ level.

I think I understand . . .What level looks the most obvious then the others on the Weekly and Daily inrelation to the previous bar Low? The Daily 365 ema helped.
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Indicators show the past. Price Action "Indicates" the future.
  • #71,977
  • Aug 17, 2010 5:16pm Aug 17, 2010 5:16pm
Quoting jarroo
Outside Bars, at their most basic definition, are a pattern where Support turns into Resistance, BEOB (you can also add DBHLC) or Resistance turns into Support, BUOB (DBLHC). And we know what Sup and Res levels are when they meet . . they are PPZ Levels. Which means Price likes to jump away from them when they're hit, (like an electrical wire).

So these areas of retracement of Outside Bars are usually the previous bar High or Low.

I usually like to want for the break of the Outside Bar and then enter at its retracement level . . .it all depends...
I had the same idea of entering at retracement at 1.5700 and watched it closely but alas could not find a good PA at the lower TF. Look at the 1H charts when price were at approaching 1.5700; there just aren't any good signs that says price is switching direction and heading south now is there? The arrowed PB is simply not good enough, not for me at least.
I mean I felt that in this case I might have as well just do a touch trade (right after the weekly DBHLC) since price really did hit i.57 to the pip before coming down rather than wait for a bearish PA which did not materialize.
Jaroo, how do you view this aspect?
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  • #71,978
  • Aug 17, 2010 6:40pm Aug 17, 2010 6:40pm
Morning people & thanks for the encouragement.

I can see that more caution was warranted in this trade, and while it had possibility, mainly because of the RN. There was also a hot area to watch just beyond the PA and in fact this was the FTA as can be clearly seen on the weekly and daily.

I think the RN 1.0400 was the seduction for this PA bar and I fell for it without taking a step back and analyzing it, impartially.

Anyway, I shall not let this deter me, I shall let it teach me to be more impartial in my analysis, and be grateful for the lesson.

Thanks folks
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  • #71,979
  • Aug 17, 2010 6:43pm Aug 17, 2010 6:43pm
Quoting supremeChaos
yes, thanks spookie.
mainly, the point i was trying to put across is "small losses accumulate, dont take it for granted."
& it's not necessarily sound to take a trade with tight SL. imho.

in short, im giving u caution, Pinbar. so dont take it the wrong way

I understand your point now SC and the caution is appreciated.
  • #71,980
  • Aug 17, 2010 7:01pm Aug 17, 2010 7:01pm
Quoting jarroo
That was the main lesson taken from Pinbar's trade, it had some good points but the Best points of an "A" trade were missing . . .Bigger in size, deeper swing Low, supportive confluences, etc.

Even though the 4 hour BUOB on the Usd/Chf did not become invalid, meaning its Low was not breached, it does not mean that this BUOB was a good one to take. It just means that sub-bar PA will work out from time to time and that PA is a powerful thing.

So when we and Pinbar see another setup like this one, with all of its "A" catagory criteria missing...

Jarroo, I have always found the "Deeper swing low" criteria a little confusing. I mean, if we have such a deep swing low on this pair below the ranging area, it would tend to make me think the current low range may be tested as resistance and it may break South?
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