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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

  • #78,621
  • Oct 27, 2010 12:26pm Oct 27, 2010 12:26pm
Quoting john225
Are you guys making first the PPZ Levels and wait for the PA or are you drawing this Levels then when the PA has been formed?
Hallo Landsmann, personally I draw them before seeing any PA and I think it's the way to go for a beginner. Here's why: Drawing PA and learning how price reacts at these points/ranges is mandatory for trading J16 style. It tells and teaches you a lot about price behaviour and with that you will learn how to predict what price is likely to do. It will also give you some perspective as to when a trading opportunity will arise for you. Drawing PPZ on the screen structures this whole mess of ups and downs and gives you an explanation why things happen the way they do.

I think most of the advanced traders draw them before PA shows up. But as you get better you certainly don't have to draw each one of them because you can spot them in the blink of an eye just by looking at a naked chart.

Here is a nice exercise I do (inspired by the great Dr. Pinbar ) and that helps me a lot with spotting PPZ and doing chart analysis:
1. Take a random chart and put only BRNs and PPZs on it.
2. Then add numbers where you see something relevant.
3. Describe/write down exactly what it is you see at each number (e.g. S/R behavior, price pressure, PA indication, what does the mass of traders probably think and do at certain points, etc.)

Here's one I'm doing at the moment. I go through it bar by bar. Everywhere I see something relevant happen I put a number and write down what I see and expect there. Just do one chart and you'll have a totally new perspective on price behaviour in general.

Hope this helps
Hans
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Thanks J16, Sam Seiden, Udine and Jacko
  • #78,622
  • Oct 27, 2010 12:29pm Oct 27, 2010 12:29pm
Quoting HanSolo
Hello Ghous, I confess I'm a little bit confused about you pointing this out. Since spotting relevant trends for J16 trading is giving me a headache lately I wondered why you considered it in spite of the long uptrend on the daily. Is it just that you're risk awareness differs from the other traders or is there anything I miss on this chart? I know there's divergence, but is it so relevant in this case?
Hey Hans,

That was far from an A+ pin bar. I see a huge up trend and a small pin bar that get's even more tinier when compared with the up trend. No way can one expect it to turn the up trend around...well...it can...but again we're not trading this pin bar with fingers crossed and our a$$es at the edge of the chair hoping it would reverse the up trend. We need good logic...very good logic when we're trying to catch trend reversals of such dominant trends.

Get the point? No you didn't. read through the above para...

Still don't get it....read through again...one more time.

Yup! That's it. I said "we're not trading this pin bar with fingers crossed and our a$$es at the edge of the chair hoping it would reverse the up trend"

keyword is underlined.

For traders starting out with the j16 method, nothing beats the patience you learn by waiting for the A+ trades, or the confidence you get by "hanging on to a runner". Its this knowledge upon which you can later on in your career build a trading system tailor made to suit your own personal style.

I trade a little more aggressively than some traders here but that doesn't mean I'll take that AUDCAD pin bar and hope for it to push price down like a dropping stone.

Conservatism is an important part of successful trading. When you can afford to be a bit lenient on your entry criteria the screws have to tighten up in your trade management.

I took full profit at the 1.000 BRN and because I am looking for that quick pull back to the 1.00 I felt I didn't need the best pin bar the pair had ever seen to indicate that to me. Again its a matter of personal trading style and...chart time of course.

You have absolutely no need to get overwhelmed or fret over trades others are taking which you never saw, Hans. Remember there is no "system" here at the thread, its a "method". What's A+ for one j16er might be untradable for another j16er and they both know their trade management styles to create that edge they need for long term survival.

g.
I believe . . .
  • #78,623
  • Oct 27, 2010 12:33pm Oct 27, 2010 12:33pm
Quoting supremeChaos


what a crap exam, disturbing ghous' trading. lol
btw, seems like u are reading this thread more than those 4 chapters.
Good luck.
So true...

Sometimes I wonder what freedom is, and despite us claiming that we're free, are we really...well...free?
I believe . . .
  • #78,624
  • Oct 27, 2010 12:35pm Oct 27, 2010 12:35pm
Order get's hit.

We now watch eagerly at where the daily closes Pin Bar. We want a strong close so we know price is looking to break your PPZ.

g.
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I believe . . .
  • #78,625
  • Oct 27, 2010 12:45pm Oct 27, 2010 12:45pm
Quoting ghous
So true...
Sometimes I wonder what freedom is, and despite us claiming that we're free, are we really...well...free?
on the bright side,
working or studying have some good effects on us:
-it gives us a framework, or a routine to revolve on. (school-related examples: wake up at x:xx, go back home around x:xx; daily math class 1hour, science class next for 1 hour also... blablabla)
-it instills & maintains discipline. (u have to go to school/work daily; cant play or watch tv too much, blablablah)
-among other things

somehow these (routine, imposed discipline, etc) are the things that are lacking or at least have been reduced in my life right now.... me being out of school or un-/never employed --me being my own boss (just trading) now.
so in my case, too much freedom has been detrimental a bit. (self-reliance, self-discipline, goals helps tremendously to help keep one on the right track --- these have helped)

lol, too much 'drama talk' from me before i
  • #78,626
  • Oct 27, 2010 12:50pm Oct 27, 2010 12:50pm
Quoting supremeChaos
on the bright side,
working or studying have some good effects on us:
-it gives us a framework, or a routine to revolve on. (school-related examples: wake up at x:xx, go back home around x:xx; daily math class 1hour, science class next for 1 hour also... blablabla)
-it instills & maintains discipline. (u have to go to school/work daily; cant play or watch tv too much, blablablah)
-among other things

somehow these (routine, imposed discipline, etc) are the things that are lacking or at least have been reduced in my life right now.... me being out...
Can't believe a lifestyle so sexy. Wow lol. So you're already living your dreams...well except perhaps the Veyron as the only subtraction for a short while I guess

g.
I believe . . .
  • #78,627
  • Oct 27, 2010 12:52pm Oct 27, 2010 12:52pm
Just took a full bar loss on 4h pinbar. The location was very good imo and shape beside the close being under the open wasnt bad aswell. I was going to take some of the table and move stop to be at 1.3875 but sadly price didnt make it there. Sometimes it is painfull to watch how one trade can erase gains from previous two.
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  • #78,628
  • Oct 27, 2010 12:58pm Oct 27, 2010 12:58pm
Quoting Greenhaze
Just took a full bar loss on 4h pinbar. The location was very good imo and shape beside the close being under the open wasnt bad aswell. I was going to take some of the table and move stop to be at 1.3875 but sadly price didnt make it there. Sometimes it is painfull to watch how one trade can erase gains from previous two.
1387 does seem like a logical level to be used for trade management, but I would watch out for those three bar lows sticking out on the left specially when the trigger bar itself wasn't all that good looking (close below the open)

Either ways just learn from your mistakes and move on buddy

g.
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I believe . . .
  • #78,629
  • Oct 27, 2010 1:03pm Oct 27, 2010 1:03pm
Quoting ghous
Can't believe a lifestyle so sexy. Wow lol. So you're already living your dreams...well except perhaps the Veyron as the only subtraction for a short while I guess
B.Veyron?
cant afford that &will not even think of buying it or a car half its price.
i'd rather buy roomful of chocolates &/or donate &/or summit Mt.Everest 10 times or whatever.
i only dream of buying &/or riding a porsche, ferrari, or this(the white one on the extreme left &right.... oooops, i mean the gray one in the middle)

im not living my dreams yet. did i make it sound that way?
sorry, i must be too sleepy now, so much so that i dont know what im typing. lol
....probably 1 or 2 years more.
  • #78,630
  • Oct 27, 2010 1:10pm Oct 27, 2010 1:10pm
Quoting Greenhaze
Just took a full bar loss on 4h pinbar. The location was very good imo and shape beside the close being under the open wasnt bad as well....
it was relatively small, size-wise.
imho, it has reached FTA.
i took trades prior/after the PB formed & took in many tiny losses (very tight stops), just checking if price has momentum to go up.

seeing PA today& recently, i'll be looking for longs, if at all, much lower (1.34 - 1.37).
  • #78,631
  • Oct 27, 2010 1:16pm Oct 27, 2010 1:16pm
What about that divergence?
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Don't give up
  • #78,632
  • Oct 27, 2010 1:17pm Oct 27, 2010 1:17pm
Quoting ghous
Hey Hans,

That was far from an A+ pin bar. I see a huge up trend and a small pin bar that get's even more tinier when compared with the up trend. No way can one expect it to turn the up trend around...well...it can...but again we're not trading this pin bar with fingers crossed and our a$$es at the edge of the chair hoping it would reverse the up trend. We need good logic...very good logic when we're trying to catch trend reversals of such a dominant trends.

Get the point? No you didn't. read through the above para...

Still don't get it....read...
Hey Ghous,

impatience is not the reason why I'm asking all these dumb questions. The reason why I may sound fretful even about things I don't know how to trade yet and that would surely burn my fingers, is that I am keen to understand what happens on the screen and try to get to the bottom of it. I know it all boils down to experience and doin it yourself, but I still hope that's ok and my questions are no p in the a. Reading and writing here just speeds up learning big time and I really enjoy it. Besides I hope that some other newbies may benefit from me making a fool out of myself.

Quoting ghous
Remember there is no "system" here at the thread, its a "method". What's A+ for one j16er might be untradable for another j16er and they both have know their trade management styles to generate that edge they need for long term survival.
I think that's a very important thing for me to remember: It's not a system, it's a method and no rules are set in stone. I will try to keep that in mind next time I compare your styles.

I appreciate your help, G.

Thanks
Hans
Thanks J16, Sam Seiden, Udine and Jacko
  • #78,633
  • Oct 27, 2010 1:23pm Oct 27, 2010 1:23pm
Quoting geomink
What about that divergence?
that divergence may or may not help reverse the current trend. look for solid PA to go long with. (with divergence already present)

Quoting HanSolo
...Reading and writing here just speeds up learning big time and I really enjoy it. Besides I hope that some other newbies may benefit from me making a fool out of myself...
enthusiasm is very different from foolishness
  • #78,634
  • Oct 27, 2010 1:26pm Oct 27, 2010 1:26pm
Quoting supremeChaos
that divergence may or may not help reverse the current trend. look for solid PA to go long with. (with divergence already present)
Don't give up
  • #78,635
  • Oct 27, 2010 1:53pm Oct 27, 2010 1:53pm
That's some Ghous material over there
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  • #78,636
  • Oct 27, 2010 2:03pm Oct 27, 2010 2:03pm
Quoting Greenhaze
Just took a full bar loss on 4h pinbar. The location was very good imo and shape beside the close being under the open wasnt bad aswell. I was going to take some of the table and move stop to be at 1.3875 but sadly price didnt make it there. Sometimes it is painfull to watch how one trade can erase gains from previous two.
Hey Green

I think your target was very logical, I think if the bar closed above those bar lows it changes the trade completely. These probably do work out more times then not, but the headache when you catch a loss like this used to drive me bananas. Wait for that close to get above those bar lows and it should help you, it did for me.

Best
Mike
  • #78,637
  • Oct 27, 2010 2:09pm Oct 27, 2010 2:09pm
Quoting mbqb11
Hey Green

I think your target was very logical, I think if the bar closed above those bar lows it changes the trade completely. These probably do work out more times then not, but the headache when you catch a loss like this used to drive me bananas. Wait for that close to get above those bar lows and it should help you, it did for me.

Best
Mike
Thanks for Your reply Mike , Ghous , Supreme.

By saying wait for the close to get above those bar lows you meant the close of the pinbar?
  • #78,638
  • Oct 27, 2010 2:15pm Oct 27, 2010 2:15pm
Quoting Greenhaze
Thanks for Your reply Mike , Ghous , Supreme.

By saying wait for the close to get above those bar lows you meant the close of the pinbar?
Yeah. Think of those lows as a prior level which control was set at. By getting price to close above a level that has not be closed above in a small timeframe price will give you a better idea of who has temporary control.

Closes are very important to me

Mike
  • #78,639
  • Oct 27, 2010 2:46pm Oct 27, 2010 2:46pm
nice trade Ghous


Quoting ghous
1387 does seem like a logical level to be used for trade management, but I would watch out for those three bar lows sticking out on the left specially when the trigger bar itself wasn't all that good looking (close below the open)

Either ways just learn from your mistakes and move on buddy

g.
  • #78,640
  • Oct 27, 2010 2:56pm Oct 27, 2010 2:56pm
I have noticed this setup... might just demo this one..

would have perfered it to touch brn... as per previous..
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