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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

  • #75,341
  • Sep 22, 2010 3:17pm Sep 22, 2010 3:17pm
Hello,

I was just wondering about psychology behind pin bars and outside bars.
Can anyone point me in the right direction?
  • #75,342
  • Sep 22, 2010 3:32pm Sep 22, 2010 3:32pm
Quoting bee24
Hello,

I was just wondering about psychology behind pin bars and outside bars.
Can anyone point me in the right direction?
Hey bee, this thread obviously has golden nuggets throughout and pin bar psychology is one of them. One of the clearest explanations I've read is from Martin Pring himself (Pring on Price Patterns). The book is fantastic, I'll quote just a few points from the book...

Quote
... During the Pinocchio period of trading, when the price is temporarily above resistance in an uptrend or below support in a downtrend, either buyers or sellers have a chance to push prices in their direction, but they fail...

Quote
... it is the trading beyond the resistance or support level in question that indicates that the signal is false. We can also take this a step further by saying that the bigger the nose, the bigger the lie...

Quote
... To put it another way, the wider the bar, the greater the number of traders that have the potential to be locked in at losing prices...


Hope this helps,

-- Danny
  • #75,343
  • Sep 22, 2010 3:59pm Sep 22, 2010 3:59pm
Thank you for this. Explains a lot. I wanted to buy that book for a long time. I guess now I have my reason to do so
  • #75,344
  • Sep 22, 2010 7:16pm Sep 22, 2010 7:16pm
Quoting pipmyride
some of the new people here really need to be careful .. go back over the thread and understand what is A+

How is a small H4 pin that is totally COUNTER the trend as can be seen on your own chart, A+ ?
Granted it might work for a few, at least u might get safe at BE, but that is by no means A+

Please be careful until u understand low risk setups
cool so the question I was going to ask regarding the set up was not silly :-). I thought exactly the same way as your comments pipmyride. I heard about PB at Swing High/Low, just wanted to make sure if my understanding is correct.

For a better/stronger set up

- We should look for 'bearish' PB at swing high ( essentially retracement) when we are in downtrend.
- We should look for 'bullish' PB at swing low ( essentially retracement) when we are in uptrend.

Am I on right track :-)?

cheers
  • #75,345
  • Sep 22, 2010 7:26pm Sep 22, 2010 7:26pm
Quoting mbqb11
Hey Safe

I like the location, but the size of bar and time of day makes that easy pass in my book....
Wow !! now thats called experience ( which I clearly lack). When I looked at the original post, I thought it was a nice bar ( at PPZ- resistance becoming support, and 50% retracement). I did not trade it after reading your post.

Now when I look at the chart, there is no momentum and there are 2 small bars after that pin and not able to breakout. Brilliant observation Mike !!

Can you please share some good looking pinbars you will call A++ ( just from size perspective - not location criteria) so I learn to visually compare and understand what it means? I want to be picky like you and understand it can only get better with experience.

What do you mean by time of the day? Do you mean asian sessions are generally slower than Europe/US?

Appreciate anything you can share and your comments.

cheers
  • #75,346
  • Sep 22, 2010 7:37pm Sep 22, 2010 7:37pm
Quoting nasir.khan
But look who is back posting again.

A brave trader with a big heart.


.
Hey nasir good to see you again.

What??? .. . no charts? ..
Indicators show the past. Price Action "Indicates" the future.
  • #75,347
  • Sep 22, 2010 7:41pm Sep 22, 2010 7:41pm
Quoting Imphilomath
Wow !! now thats called experience ( which I clearly lack). When I looked at the original post, I thought it was a nice bar ( at PPZ- resistance becoming support, and 50% retracement). I did not trade it after reading your post.

Now when I look at the chart, there is no momentum and there are 2 small bars after that pin and not able to breakout. Brilliant observation Mike !!

Can you please share some good looking pinbars you will call A++ ( just from size perspective - not location criteria) so I learn to visually compare and understand what it...
Hey Imp

Yes time of day goes like this

Europe/US Liquid most active sessions(with the overlap being the most active and it fades after lunch of NY )
Asian/Aust sessions are notoriously he slowest thinnest, so one has to ask themselves how much a move is going to sustain or if they are willing to hold through that. Also things like how much weight should we give to a bar that may form after the active sessions as simply b/c the session is winding down and people are tidying up their positions.

as for some Pins, who better then the big guys posts

http://www.forexfactory.com/showpost...ostcount=59055
http://www.forexfactory.com/showpost...ostcount=39344
http://www.forexfactory.com/showpost...ostcount=39300

Best
Mike
  • #75,348
  • Sep 22, 2010 7:59pm Sep 22, 2010 7:59pm
Quoting ppfx
Thanks Yes you're right. I didnt see the fib confluence.
To tell you the truth i didnt imagine it would hit my TP at 1.5700 . I was confident about the TP1, then i saw that because of the FOMC statement the pair was going up with a lot of momentum and i thought the best i can look out for is the TP2 @1.5620 . I closed the majority of the position at 1.5600 and since it was a free trade i went to bed without worring and i just let it go. And when i woke up i found a nice surprise-my TP at 1.5700 was hit

Interesting comparison, and even...

Smart trade management ppfx . . .well done sir. . .
Indicators show the past. Price Action "Indicates" the future.
  • #75,349
  • Sep 22, 2010 7:59pm Sep 22, 2010 7:59pm
Quoting mbqb11
Hey Imp

Yes time of day goes like this

Europe/US Liquid most active sessions(with the overlap being the most active and it fades after lunch of NY )
Asian/Aust sessions are notoriously he slowest thinnest, so one has to ask themselves how much a move is going to sustain or if they are willing to hold through that. Also things like how much weight should we give to a bar that may form after the active sessions as simply b/c the session is winding down and people are tidying up their positions.

as for some Pins, who better then the big...
Thank you Mike , great posts !!
  • #75,350
  • Sep 22, 2010 8:01pm Sep 22, 2010 8:01pm
Quoting Forex007
Nah... Raczek is right...

Hi Jarroo, Raczek and the rest of the gang. It's great to see the same old crowd here.

Gotta run now...


lol. .. .hey 007 . .good to see you brother . .
Indicators show the past. Price Action "Indicates" the future.
  • #75,351
  • Edited 8:44pm Sep 22, 2010 8:31pm | Edited 8:44pm
Quoting dabbledave
Is that a formation or setup of note?

Hey, PB, how'd you get the pip spread to show on your chart?

Cheers

D

Sorry, a bit late with the reply, been busy over at the PF.
Yes, the cup and handle is a reversal pattern, bullish or bearish depending on the orientation of the cup.

In the case of USD/JPY Bearish. Just showing this on H1 because we can see how large it really is.
That said, I would only trade this pattern with confirming J-16 PA.




One indicator is for the price, the other is the spread indicator.


Here you go.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: cup-707642.bmp.jpg Size: 34 KB
Click to Enlarge Name: pic.gif Size: 157 KB
Attached File(s)
File Type: ex4 THV3 MMPrice.ex4   3 KB | 314 downloads
File Type: mq4 Spread.mq4   3 KB | 301 downloads
  • #75,352
  • Edited 9:07pm Sep 22, 2010 8:48pm | Edited 9:07pm
Quoting bluetrader
Hey melvin,

It's best to take into consideration all bars to the left of the pin bar. We want the pin bar to protrude "in space" and close strongly inside prior highs or lows. How much takes practice, but I attached some charts to illustrate the difference.

Hope this helps,

-- Danny
Great example Dan. Its the kind of PBs we like to see. Big PBs at swing High and Lows, which gives much needed Space to run. And a protruding or rejecting nose that takes out previous High/Lows, and/or a PPZ level.

Your 1st chart shows these characteristics with one difference . .the PB is in a consolidation. So, the Space that we like to have goes out the window. But the nose protrusion and the taking out of the previous Lows was there. Also, the PB reached its target.

I'm just pointing this out, not to take away from your great post which you have illustrated the importance of what we like to see in quality PBs.

But just to show that areas of consolidation or what James16 calls "sideways markets" can be a tradable situation, albeit a bit more advanced because of the lack of Space.
Attached Image (click to enlarge)
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Indicators show the past. Price Action "Indicates" the future.
  • #75,353
  • Sep 22, 2010 8:59pm Sep 22, 2010 8:59pm
Quoting Pinbar
If we wrap the weekly chart in these extreme ranges in two different colors and then, move to a daily chart, look what we get!

You may have just found your own thing there, Pb.

I have always thought that when we start learning this material, we can get a better understanding of it, if we put it in our own words or format or analogies or whatever. . .it will sink in quickier.

Keep at it, Pb.
Indicators show the past. Price Action "Indicates" the future.
  • #75,354
  • Sep 22, 2010 9:11pm Sep 22, 2010 9:11pm
Quoting pwellsau
Hi everyone,
Would appreciate any feedback on my thought process on this (demo) trade, GBP/AUD daily....

Complete newb here. Been reading J16 free stuff for about 2 years and still struggling.

I wanted to post my graph and share with the above poster that the bars on my graph don't at all line up to the above posters. I know the broker feeds can be different but it seemed quite a bit different.

Any explanations from the seniors?

Thank you, I will be posting more since just reading is not changing my trading account.
Attached Image (click to enlarge)
Click to Enlarge Name: example.gif Size: 19 KB
  • #75,355
  • Sep 22, 2010 9:14pm Sep 22, 2010 9:14pm
Quoting Fxknkw987
Complete newb here. Been reading J16 free stuff for about 2 years and still struggling.

I wanted to post my graph and share with the above poster that the bars on my graph don't at all line up to the above posters. I know the broker feeds can be different but it seemed quite a bit different.

Any explanations from the seniors?

Thank you, I will be posting more since just reading is not changing my trading account.
Hey FX

Welcome glad to see you posting and getting involved, hopefully we can shine the light a bit for you

You are correct it is simply broker feeds. Some feeds may deviate up to 4hrs and during that time can drastically change the look of one brokers close times vs another. This is of course cause FX is not a centralized market and most brokers charts close in respect to their timezones. I personally use a 5pm est broker close

Let us know if you have more questions
Mike
  • #75,356
  • Sep 22, 2010 9:14pm Sep 22, 2010 9:14pm
Quoting Atc
Did you take this IPB? Was at a good location.
Not an IPB . .its an Inside Bar.
Indicators show the past. Price Action "Indicates" the future.
  • #75,357
  • Sep 22, 2010 9:17pm Sep 22, 2010 9:17pm
Quoting jarroo
You may have just found your own thing there, Pb.

I have always thought that when we start learning this material, we can get a better understanding of it, if we put it in our own words or format or analogies or whatever. . .it will sink in quickier.

Keep at it, Pb.
Agreed, PB typed this earlier and I had to google it and read up on it. One more trick up my sleve (if I am quick enough to catch it).

Here is another one, that I had read about years ago, but could not remember why the chart looked familiar. The GBPUSD retraced right to 1.5500 where I had expected to go long. But there was no P/A that was easy to follow at that area. I stayed out and now looking back, there was P/A that I had seen years ago, but forgot about.

On the chart I attached is the GBPUSD off the 1.5500 level. The P/A above the arrow is a tweezer bottom. Completely forgot about it.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 15 KB
  • #75,358
  • Sep 22, 2010 9:32pm Sep 22, 2010 9:32pm
Quoting mbqb11
Hey FX

Welcome glad to see you posting and getting involved, hopefully we can shine the light a bit for you

You are correct it is simply broker feeds. Some feeds may deviate up to 4hrs and during that time can drastically change the look of one brokers close times vs another. This is of course cause FX is not a centralized market and most brokers charts close in respect to their timezones. I personally use a 5pm est broker close

Let us know if you have more questions
Mike
Thank you Mike for the immediate response. I truly appreciate your post and been reading your post for awhile now.

Would I be able to change the broker close or is it set by the broker?

I use MB Traders MT4 platform and I know they are based on CA but I believe the daily candle starts on Eastern time. Would this make the broker close 5pm eastern?

Thank you for your time guys.

PS, Mike the EJ_CandleTime expert advisor, I am having a difficult time getting it to work on MB Traders MY4 version. I wasn't sure if there was something I missed when trying to get it to run, would you have any advice?
  • #75,359
  • Sep 22, 2010 9:38pm Sep 22, 2010 9:38pm
Fantastic! Thanks so much, PB.

Quoting Pinbar
Sorry, a bit late with the reply, been busy over at the PF.
Yes, the cup and handle is a reversal pattern, bullish or bearish depending on the orientation of the cup.

In the case of USD/JPY Bearish. Just showing this on H1 because we can see how large it really is.
That said, I would only trade this pattern with confirming J-16 PA.




One indicator is for the price, the other is the spread indicator.


Here you go.
  • #75,360
  • Sep 22, 2010 9:44pm Sep 22, 2010 9:44pm
Quoting Fxknkw987
Complete newb here. Been reading J16 free stuff for about 2 years and still struggling.

I wanted to post my graph and share with the above poster that the bars on my graph don't at all line up to the above posters. I know the broker feeds can be different but it seemed quite a bit different.

Any explanations from the seniors?

Thank you, I will be posting more since just reading is not changing my trading account.

Your bar formations may be difference due to when the bar closes, as Mike has mentioned, thus giving you different PA formations.

But you PPZ levels are the same . .very important.
Attached Image(s) (click to enlarge)
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Indicators show the past. Price Action "Indicates" the future.
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