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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

  • #75,041
  • Sep 17, 2010 11:12am Sep 17, 2010 11:12am
Quoting dmc
Nice!!

One last question and I will stop bothering you. What technical Candelstick do you browse? Hammer? Inverted? Doji?

Also do you just search at end of day/ Market close?
No problem
I scan for "hammers and inverted hammers", as the definition of a hammer requires a very strong close (I like these bars the most)

And I scan once a day before the market opens (the US market opens at 2.30pm here in the UK, so I have plenty of time)
  • #75,042
  • Sep 17, 2010 11:17am Sep 17, 2010 11:17am
Once again , thanks Jonny.

This year has been my best trading year in FX so far. and once 2011 starts I am going to look to expand my trading and I think this is a great/simple way. Thanks for the info


Quoting Jonnyislost
No problem
I scan for "hammers and inverted hammers", as the definition of a hammer requires a very strong close (I like these bars the most)

And I scan once a day before the market opens (the US market opens at 2.30pm here in the UK, so I have plenty of time)
  • #75,043
  • Edited 12:38pm Sep 17, 2010 12:24pm | Edited 12:38pm
Quoting melvin87
Hi everyone,

I was doing some backtesting and had some problems on a pin on USD/CAD during the june 2010 period which didn't quite really work out but i'm not too sure why.

Would appreciate if you guys could critique my thought process:
- Bullish divergence in the march/april period
- Bullish Pin on 14/6/2010 with 61.8 fib and PPZ confluence

It wasn't clear to me at that point of time that the market would start trading sideways since i was doing the backtesting 1 bar at a time.

...

Hey Mel.

Its great that you're back testing PA . .its a great exercise and one that I still do all the time. .

You will find that just looking for PA formatons is not the complete story of your back testing. You'll hear again and again through out this thread, that it is the Location and its suporting confluences that is the key to what makes Price Action work.

So take into account the PPZ levels, BRNs, retracement levels, divergence and other confluences is your back testing search. I say this only because I see no other "parts of the story" in your chart . . just PA.


Looking at the Usd/Cad weekly time frame the 1.0300 is a strong PPZ level. The analogy of a PPZ level can act as hot electrical wire then this is one of them.

On the Daily, the PB in June, it lines up nicely with the 1.0300 and a 61.8 fib . . a nice confluence. So the locational confluence of this PB is very good, imo.

Next we look at the Space or Traffic, Size, Structure. Structure looks good, Open and Close within the previous bar. Size could be much bigger compared to the previous move down. Space: We like to have some good Space to see if it has room to run or at least cover our risk. This where the Swing High or Low comes into play. These swing points give this much needed Space.

As Mike has said, the choppiness of this pair at the time gave little breathing room for this PB to move upward without hitting a lot of previous bar Highs or Lows; aka . . traffic.

So, imo, the Location was very good, but the Space (traffic) and Size was not good at all. If we are trading A+ setups only . .then this is a easy pass.
A+ setups have greatness on all sides of the equation.


. . .but is it tradable? Absolutely. . .but your trade managent is different then an A+ setup, meaning an A+ setup can be given more leeway because of its greatness-ness. My way, on this June PB (if I chose to trade it), would be a hard break, tight SL, etc.

just some thoughts,

Jim
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: cad dd.jpg Size: 127 KB
Indicators show the past. Price Action "Indicates" the future.
  • #75,044
  • Sep 17, 2010 12:29pm Sep 17, 2010 12:29pm
Hi Guys ,great thread thanks to all advanced traders,is anyone considering going short on this pinbar if formed at end of day.Any thoughts would be appreciated
  • #75,045
  • Sep 17, 2010 12:39pm Sep 17, 2010 12:39pm
Quoting Dan Gilbert
in a Jarroo free trade now.

i4b straddling VBRN... I have not been taking many trades at all this past month.... feels boring but all the best trades have been happening on 4hr at about 5-7 AM mountain time.... no way I can catch those lol....

edit: my stop loss was initially under the low of the I4B
I think I might be a bit dense but no matter how long I look at this chart I just can't see an I4B.

Can someone show me what I'm missing.
  • #75,046
  • Sep 17, 2010 12:43pm Sep 17, 2010 12:43pm
Quoting stewrigh
I think I might be a bit dense but no matter how long I look at this chart I just can't see an I4B.

Can someone show me what I'm missing.
The #4 in the "I4B" is included in the I4B.
Attached Image (click to enlarge)
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Indicators show the past. Price Action "Indicates" the future.
  • #75,047
  • Sep 17, 2010 12:44pm Sep 17, 2010 12:44pm
Quoting stewrigh
I think I might be a bit dense but no matter how long I look at this chart I just can't see an I4B.

Can someone show me what I'm missing.
Hey Stew

It is an inside bar, that has a smaller range(high - low distance / size of bar) then the previous 3 bars.

Let me know if that makes sense
Mike

edit* Jarrrrrrooo = winner
  • #75,048
  • Sep 17, 2010 12:46pm Sep 17, 2010 12:46pm
Quoting mbqb11
Hey Stew

It is an inside bar, that has a smaller range(high - low distance / size of bar) then the previous 3 bars.

Let me know if that makes sense
Mike

edit* Jarrrrrrooo = winner

I beat Mike . . whatt!!! . . .he must have been eating sandwich or something lol
Indicators show the past. Price Action "Indicates" the future.
  • #75,049
  • Sep 17, 2010 12:47pm Sep 17, 2010 12:47pm
Quoting jarroo
I beat Mike . . whatt!!! . . .he must have been eating sandwich or something lol
hahah Halo 2


just playing you're the man
  • #75,050
  • Sep 17, 2010 12:50pm Sep 17, 2010 12:50pm
Quoting mbqb11
hahah Halo 2


just playing you're the man

lol my two fingers are not that fast

I thought maybe you started using your toes . .playing halo2 and posting, confirms this .. lol
Indicators show the past. Price Action "Indicates" the future.
  • #75,051
  • Sep 17, 2010 1:09pm Sep 17, 2010 1:09pm
I don't play video games but have been feeling very slightly tempted to buy a PS3....


but then I think that about how that cash would look better deposited into my trading accounts
Many choose unhappiness over uncertainty.
  • #75,052
  • Sep 17, 2010 1:12pm Sep 17, 2010 1:12pm
Quoting mbqb11
Hey Melvin

When I see very choppy sideways action I don't think of that pin as true selling, i think of the market sentiment just taking over which is choppy. Those bars can work but the FTA can be killer on these . So I marked in blue the first area which in turn should either be the point where if it doesn't break you cut out for a small loss or your buy goes above that area. But overall the last few bars were strong bearish which would even more so keep me aside from this bar. When I take a reversal bar I want it to dictate that we have strong...
Ahh okok. I never really put a lot of thought into the choppiness before. Good learning point here hahah. Will pay more attention to it in the future. Thanks for your input!
  • #75,053
  • Sep 17, 2010 1:13pm Sep 17, 2010 1:13pm
Quoting podgy
Hi Guys ,great thread thanks to all advanced traders,is anyone considering going short on this pinbar if formed at end of day.Any thoughts would be appreciated
.
  • #75,054
  • Sep 17, 2010 1:15pm Sep 17, 2010 1:15pm
Quoting podgy
.
Tell me more about it
Indicators show the past. Price Action "Indicates" the future.
  • #75,055
  • Sep 17, 2010 1:18pm Sep 17, 2010 1:18pm
Quoting jarroo
Tell me more about it
in what way?
  • #75,056
  • Sep 17, 2010 1:19pm Sep 17, 2010 1:19pm
Quoting podgy
in what way?

Size, location, confluences, traffic, etc .. . a chart would help.
Indicators show the past. Price Action "Indicates" the future.
  • #75,057
  • Sep 17, 2010 1:24pm Sep 17, 2010 1:24pm
Quoting jarroo
The #4 in the "I4B" is included in the I4B.
Thanks J and M.

God am I being dense or what.

I thought an I4B was 3 bars all enclosed(engulfed) by the next(4th) bar.

Maybe thats why I never trade these - can't b;oody well see them - lol.
  • #75,058
  • Sep 17, 2010 1:26pm Sep 17, 2010 1:26pm
Quoting supremeChaos
yes, i believe so.
the key words are protruding & distinct.



just to add some more to mike's reply..
u seem to be concentrating on the less important aspects of discriminating potential setups.

imho, location (S/R, PPZ) & trend are the most important aspects. Fibs, which u mentioned, is just a 'confluence factor', it doesnt hold much weight like the 2 i've mentioned.

u could say that yes there was a PPZ at the PB's low. but there is a PPZ too above the PB. (mike's blue line)
PLUS,...
yup yup very valid points there. Interesting take on fibs cause i dont see a lot of people mentioning that (sorry i'm pretty new to this stuff hahaha). Will definitely take note of it in the future.
  • #75,059
  • Sep 17, 2010 1:42pm Sep 17, 2010 1:42pm
Quoting podgy
.
P,

I don't trade Cable bcos I can't/won't buy USD or Pound but my take on Cable fwiw - Price is btwn 50/61 fib so good locatation?

I'd prefer it if price was closer to 1.6 tho.

Attached Image (click to enlarge)
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  • #75,060
  • Sep 17, 2010 1:49pm Sep 17, 2010 1:49pm
Quoting Dan Gilbert
I don't play video games but have been feeling very slightly tempted to buy a PS3....


but then I think that about how that cash would look better deposited into my trading accounts
what i do is play farmville..sure beats looking at the charts while in trades..i thought id suggest it
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