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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

  • #76,981
  • Oct 9, 2010 2:03am Oct 9, 2010 2:03am
Hey guys,

Not too sure why the pin below didnt work. Price broke 0.95 + ppz. Retraced to form a bearish pin which didnt really work out. Any idea why?

Also, am i right to say that when looking for PA, it is better to look for them at swing highs/lows? Looking at the chart below. perhaps the only areas to look for PA would be bearish signals off the 0.9650 initially followed by bearish signals off the 0.950. Bullish PA off the PPZs marked in the chart would only mean that we are trading into a consolidation and also against the trend.
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  • #76,982
  • Oct 9, 2010 2:11am Oct 9, 2010 2:11am
Quoting melvin87
Hey guys,

Not too sure why the pin below didnt work. Price broke 0.95 + ppz. Retraced to form a bearish pin which didnt really work out. Any idea why?

Also, am i right to say that when looking for PA, it is better to look for them at swing highs/lows? Looking at the chart below. perhaps the only areas to look for PA would be bearish signals off the 0.9650 initially followed by bearish signals off the 0.950. Bullish PA off the PPZs marked in the chart would only mean that we are trading into a consolidation and also against the trend.
The first thing is, it's not a pinbar, it's the shape of a pinbar, but it's actually a inside bar, pinbar has to have a wick protuding the previous bar and open close within the previous bar. Attached is a nice pinbar, at swing low, bullish pinbar, stick to swing high and swing low pins that stand out like dogs balls.

Hope that helps.
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  • #76,983
  • Oct 9, 2010 2:37am Oct 9, 2010 2:37am
Quoting bluetrader
Hey mister, what's up.

I can't locate it now, but Jim mentions this in some of his posts. It refers to the size of the bar relative to the surrounding bars. Size can dictate momentum and strength of a potential reversal, see attached.

Hope this helps,

-- Danny
Danny thanks for the explanation..
  • #76,984
  • Oct 9, 2010 2:38am Oct 9, 2010 2:38am
Quoting melvin87
Hey guys,

Not too sure why the pin below didnt work. Price broke 0.95 + ppz. Retraced to form a bearish pin which didnt really work out. Any idea why?

Also, am i right to say that when looking for PA, it is better to look for them at swing highs/lows? Looking at the chart below. perhaps the only areas to look for PA would be bearish signals off the 0.9650 initially followed by bearish signals off the 0.950. Bullish PA off the PPZs marked in the chart would only mean that we are trading into a consolidation and also against the trend.
hey Melvin,

When we talk about trading at swing highs and swing lows, we basically are talking about trading against the trend. Thing is when you get those big outstanding bars (like the one Mr. Smith mentioned) at swing points you get a big advantage that of space and clear cut trouble areas, and that makes trading - for newbies specially, so much more easier.

Conversely, taking trend continuation setups at swing points can be tricky because you are basically heading "into the unknown". Often you won't have bar highs/low to the immediate left and that's where long term PPZs come into play big time. (I'll use your example to elaborate on this)

Either ways what you need is a strong bar that you can bank on. The bar you highlighted was an IB shaped like a PB as Smith mentioned, Indicative of bearish existence for sure, but then was it strong enough to blow through the last low AND THE 9400 PPZ?

At the first glimpse the setup looks clean (in terms of space) except that FTA of the previous bar low. Notice what price did. It bounced just above (again the markets aren't perfect enough to operate "to the pip" all the time) the 9400. Why did it do that? Throw in a horizontal line there and scroll back...don't read, do it before you read on!

Bingo!!

Tonnes of support and resistance at the level, hence a very important BRN. Combine that with a poor shaped (small despite being with the trend) PA setup and you have ample reasons to stay away from an already "tricky" trading method - i.e trading into swing points.

g.
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I believe . . .
  • #76,985
  • Oct 9, 2010 4:02am Oct 9, 2010 4:02am
Looking at this G-Bar now. 30 maybe a good target if it works out...
Any thoughts?
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  • #76,986
  • Oct 9, 2010 5:13am Oct 9, 2010 5:13am
Quoting TiaForex
Stil reading every word you write Jim. The new video series on the PF is pretty good too
How you doin' Tia?

I still have your qoute in the signature. It still gives me thinking when im trading. If im not sure whats gonna happen (with this i mean if the trade is not so good, some would say if the trade is not A/A+) and i have doubts whether to take it or not, i rather stay out and just observe it.
  • #76,987
  • Oct 9, 2010 5:14am Oct 9, 2010 5:14am
Is IBFX an Australian broker?

Just downloaded the demo and installed it and it says IBFX-AUS.

Maybe, I got the demo from the wrong site.
  • #76,988
  • Oct 9, 2010 5:49am Oct 9, 2010 5:49am
Quoting Pinbar
Is IBFX an Australian broker?

Just downloaded the demo and installed it and it says IBFX-AUS.

Maybe, I got the demo from the wrong site.
I dont think IBFX is australian:
Quote
...Headquartered in Salt Lake City, UT, USA...
http://www.ibfx.com/About/
  • #76,989
  • Oct 9, 2010 5:54am Oct 9, 2010 5:54am
Ok this will be my next victim.
Any criticism for why this may not work would be highly appreciated!
Thank you.

http://cdn.forexfactory.com/attachme...1&d=1286619847
  • #76,990
  • Oct 9, 2010 5:59am Oct 9, 2010 5:59am
Quoting Adilius07
Ok this will be my next victim.
Any criticism for why this may not work would be highly appreciated!
Thank you.

http://cdn.forexfactory.com/attachme...1&d=1286619847
nice pic...i think the target will be 15.7if she break...
  • #76,991
  • Oct 9, 2010 6:02am Oct 9, 2010 6:02am
Quoting lucas101
nice pic...i think the target will be 15.7if she break...
Thanks Lucas for reply, yes I will enter @14.06 and my target is 15BRN.
  • #76,992
  • Oct 9, 2010 6:24am Oct 9, 2010 6:24am
on downside we find immediate PPZ. looking for upside breakout
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  • #76,993
  • Oct 9, 2010 6:29am Oct 9, 2010 6:29am
Quoting Adilius07
Ok this will be my next victim.
Any criticism for why this may not work would be highly appreciated!
Thank you.
Well i have something to say if i may. The BUOB definitely looks good, but i dont like the big downtrend. Sure the trend can be over, but still. I like much more the BEOBs that i marked. They are much safer. Remember the trend is your friend.

Just my opinion.

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EDIT:
Quoting Adilius07
Thanks Lucas for reply, yes I will enter @14.06 and my target is 15BRN.
I just saw this next post of yours. If you're planning to enter @14.06 seems much more reasonable since this would indicate a break, but it also can reverse and end like a weekly pinbar. Dont know.(I watched some similar examples in the past myself )
  • #76,994
  • Oct 9, 2010 6:46am Oct 9, 2010 6:46am
TP1 and TP2 are marked as blue rectangle, stoploss is high of the bar. i like the free space. also rejected off fib 0.61 level (marked as yellow dashed line).
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  • #76,995
  • Oct 9, 2010 6:47am Oct 9, 2010 6:47am
Quoting ppfx
Well i have something to say if i may. The BUOB definitely looks good, but i dont like the big downtrend. Sure the trend can be over, but still. I like much more the BEOBs that i marked. They are much safer. Remember the trend is your friend.

Just my opinion.

Attachment

EDIT:


I just saw this next post of yours. If you're planning to enter @14.06 seems much more reasonable since this would indicate a break, but it also can reverse and end like a weekly pinbar. Dont know.(I watched some similar examples in the past myself )

Ppfx, thanks a lot for your analysis! Yes those previous two you marked were just perfect examples of strong bars in strong locations + trend!

Me too feel nervous when going against the main trend ( I remember to stay out from my previous habbit of trying to catch a high or bottom)

But this one caught my attention for several reasons (besides bar itself that is strong and engulfs several previous bars):

1. First pic is Div. It is clear divergance. Usually I do not pay much attention to div, but as I learned in Jankone M5 thread, looking for Div when goin against trend may be one good strategy.

2. Second pic is daily of the same share. It is clear that the daily trend is violated and price closed above.

So based on all these I decided to give it a shot. To me it feels like there should be some retracement before it could go up. But for now in my trading I just enter on a break of the bar with +/-10 cents buffer.

Thanks PPFX, every comment on this thread makes me a better trader I believe!!!
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  • #76,996
  • Oct 9, 2010 7:17am Oct 9, 2010 7:17am
Quoting bluetrader
This one is slightly better.
Positives are: swing low, round number, 61 fib.
Negatives are: small bar relative to surrounding bars, tough road ahead.

Will this pin bar make pips? Possible. Would I bet on it? No, because of size and the potential trouble areas above price. See the attached chart. Your bar is #3. See how #1 and #2 are different with regards to size and protrusion from surrounding bars?

Hope this helps Osman.

-- Danny
Hi Blue

GBP/JPY daily PB doesnt look bad at all imo. There is BUOB on weekly chart and the high of pb is at 131 RN. There is some traffic to the upside but 131 could be a good flip area for price and with good trade management you could get the breakeven point just under the 131. If BOJ would intervene in near future it could workout very well. Just be carefull and keep an eye on the g7 , imf meeting this weekend.

Cheers and have a nice weekend
  • #76,997
  • Oct 9, 2010 7:36am Oct 9, 2010 7:36am
Hey Jaroo,
When you started to get interested in the Forex Market, did you visit any other resources, other than the James thread, that have made important contributions to your trading skills and knowledge ? I have been looking around for additional resources, there's one professional trader/hedge fund manager called Chris Lori who seems to get only positieve reviews about him as a trader and educator. He also uses pure price action in collaboration with standard technical analysis (S/R lines, TL's, technical patterns) and candle patterns. Have you ever heard of this guy, I've seen a youtube-video of him giving a interview about the Forex business in general and that gave me a very good impression about him.
Pipcrawler
  • #76,998
  • Oct 9, 2010 7:41am Oct 9, 2010 7:41am
Quoting ghous
hey Melvin,

When we talk about trading at swing highs and swing lows, we basically are talking about trading against the trend. Thing is when you get those big outstanding bars (like the one Mr. Smith mentioned) at swing points you get a big advantage that of space and clear cut trouble areas, and that makes trading - for newbies specially, so much more easier.

Conversely, taking trend continuation setups at swing points can be tricky because you are basically heading "into the unknown". Often you won't have bar highs/low to the immediate...
Hey Ghous and Mr Smith,

Thanks for the clarification. In this case, what would be your conditions for trading continuation bars? I'm quite confused because in the many instances I back-tested with continuation bars that broke through important ppzs, there would (more often than not) be some box of consolidation on the left that i'm trading into when I dont do them at swing points. So the 'bad location' (or so i think hahah) makes it difficult to decide whether to enter or not and also set a proper FTA.
  • #76,999
  • Oct 9, 2010 7:51am Oct 9, 2010 7:51am
Quoting xmzhang
Adidas weekly, short play to RNB,PPZ @ 4400, tight stop few pips above RNB @ 4600.
What a bummer, stopped out @ BE. At 4 october when price reached the BRN @ 4500 I moved to BE, I was then about 85 pips in profit. The very next day price reversed and went all the way up and stopped me out.
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Pipcrawler
  • #77,000
  • Oct 9, 2010 7:56am Oct 9, 2010 7:56am
Quoting Adilius07
Ppfx, thanks a lot for your analysis! Yes those previous two you marked were just perfect examples of strong bars in strong locations + trend!

Me too feel nervous when going against the main trend ( I remember to stay out from my previous habbit of trying to catch a high or bottom)

But this one caught my attention for several reasons (besides bar itself that is strong and engulfs several previous bars):

1. First pic is Div. It is clear divergance. Usually I do not pay much attention to div, but as I learned in Jankone M5 thread, looking for Div...
1.Jankone is not the only one who looks for div. when going against the trend. James does it too. This is his chart and here is the conversation regarding the chart: link
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