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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

  • #79,441
  • Nov 7, 2010 4:11am Nov 7, 2010 4:11am
Quoting Pinbar
"Learning his material and this material. I see that PPZ really work most...
Yes I agree of course. Is just my point was this - If we consider boxes as S/R too then when are we going to trade? there are so many PPZ on the way PLUS the boxes (which are in between PPZ) we will not have a room to make a trade. And when we still make a trade we would feel guilty for breaking our own rules. What may seem a space would not be space if we go left fair enough there would be a box.

So that's why I thought that maybe boxes are used for the breakout setup, which would be one more setup in my toolbox. If we should see them as one solid S/R how to trade?
  • #79,442
  • Nov 7, 2010 4:14am Nov 7, 2010 4:14am
Quoting Adilius07
Yes I agree of course. Is just my point was this - If we consider boxes as S/R too then when are we going to trade? there are so many PPZ on the way PLUS the boxes (which are in between PPZ) we will not have a room to make a trade. And when we still make a trade we would feel guilty for breaking our own rules. What may seem a space would not be space if we go left fair enough there would be a box.

So that's why I thought that maybe boxes are used for the breakout setup, which would be one more setup in my toolbox. If we should see them as one solid...

Well, the major TF are how to use them, I was just showing the lower tf to show what this PPZ is made up of.

I mean the weekly and daily consolidation areas are where we are going to trade them.

This is where the ICCE system comes into play by projecting fibos off of the consolidation areas.
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  • #79,443
  • Nov 7, 2010 4:16am Nov 7, 2010 4:16am
Quoting Pinbar
Well, the major TF are how to use them, I was just showing the lower tf to show what this PPZ is made up of.

I mean the weekly and daily consolidation areas are where we are going to trade them.
Ok, thanks Pinbar, I need to practice them, I still don't understand.
  • #79,444
  • Nov 7, 2010 4:20am Nov 7, 2010 4:20am
Quoting Adilius07
Ok, thanks Pinbar, I need to practice them, I still don't understand.

Maybe, you will when Ghous explains how he uses them.

Mike was saying in a video on this subject, how it is probably the most important aspect of trading.
  • #79,445
  • Nov 7, 2010 8:18am Nov 7, 2010 8:18am
Quoting Fxknkw987
Man, trying to read from the start of the thread and then keeping up with the more recent post to learn as things are progressing is dang hard to cover with a full time job. My social life is non-existent except seeing my girlfriend and making sure she understands my continual hermit lifestyle. However, I tell myself it will be worth it in the end.

All this to ask, Mike on the NZD/USD trade, do you leave positions on over the weekend or are you planning to place the orders to continue on with the trade on Sunday?
Hey FX

Not sure what you mean, my NZD/USD closed out. I posted a video here that I did as well. But if I am in trades I don't just close them down for the weekend if everything is still the way I want to be. If I were to close a trade down before friday, then it's not going to get reopened and I am closing it for good.

Best
Mike
  • #79,446
  • Nov 7, 2010 8:26am Nov 7, 2010 8:26am
Quoting clovist
hey, just a couple of questions for you guys

1 - When setting up a break entry, what do you do if the low or high is being broken a lot before the bar closes?

Do you set your order on the current low and enter even if it breaks before it closes?
Do you only setup orders after the bar has closed?
Does it depend on how much of the bar is left, say 30m on a 4hour still has to much time left but on a daily that would be fine?

Just wondering as when looking at setups i have found many break before the close and make the trade less appealing or even...
Hey Clovist

I am a bit confused by your question since you say many break before the close. This cant happen as the bar must close before we have our highs/lows to establish where the NEXT bar will break to confirm it.

Once a bar we want to trade closes if you are trading the break, then your entry goes once that bar closes.

So if I am watching a daily pinbar forming to go short. And my daily bar closes at 5pm est. Once that close is there and the bar is fully formed(ie closed) then my sell order would go under that daily pin. The break is what we call when the LOW of that pinbar gets taken out. This can then happen anytime after that close of the bar was already established.

So once a bar closes and give us the price bars we are looking to put our pending orders in. For me the NEXT bar must break the high/low(depending if I am going long or short respectfully). If it doesn't I cancel my order.

Best
Mike
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  • #79,447
  • Nov 7, 2010 9:26am Nov 7, 2010 9:26am
Quoting Pinbar
Adi, look at the top and bottom of the boxes and the PA there on the daily TF.
This is exactly how I use the consolidation boxes.

One thing I'd like to clarify before I begin is that I don't use boxes extensively, but they will catch my attention immediately when they are obvious.

How I understand them is just what the name suggests "Consolidation" box. That is they represent a period where price instead of riding a dominant bias in the market looks to hold up a bit and strengthen before it either reverses or continues on with the same trend. I look at these as "price breathers". The analogy of the spring is rather an effective measure to understand their dynamics. What do you get when you open a jack in the box . The shrieks I know...but it's that clown that's hiding in a coiled position within the box and that pounces at you once the spring is released when the box is opened that makes you go "Yikes!!". When price begins to go sideways it sort of is the same as you're pushing the clown into the box and trying to put the lid on. The breakout from the consolidation box is similar to the action packed jack in the box opening.

What makes them important is the fact that price never really does move in one direction strongly for ever. If you've traded for a week even, you would know this. It likes to stop, pull back, go sideways, resume, fake out in either direction...its mass psychology on the go, we know "man isn't the most sure and confident thing there is specially when it boils down to something as important as money".

Like I've already said I tend to work with them mostly when they are extremely obvious. A few other things that I look out for is the location at which the box is forming (round number, divergence, a heavy look etc) the length of time price stays in the box (the longer price stays inside the stronger is the breakout - definitely not always but often) and the lower and the higher range of the box. To me the box does not loose value once price breaks out of it. As pin bar shows in the chart above, a line drawn at the high and the low of the box itself can act as a wonderful PPZ even if it's not at a BRN. The logic is obviously pretty simple. The multiple touches at the low and high of the box make that very price level/s responsive and they tend to sustain this responsiveness if and when price decides to retest them later.

What do I do with these boxes and lines? Well clearly I stay away form a pin bar that's heading straight into a box and I take an outside bar that points towards a breakout from the box. The "box strategy" though isn't what my trading is based on entirely. I tend to merely use the box concept as a confluence factor, and to manage trades (taking profit at the high/low of a box for example)

g.
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I believe . . .
  • #79,448
  • Nov 7, 2010 9:45am Nov 7, 2010 9:45am
Quoting nasir.khan
here is the next prediction....

Just kidding

It's justonly a zone to watch out near NFP.
.
Still in play and with more confluence....
.
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  • #79,449
  • Nov 7, 2010 10:09am Nov 7, 2010 10:09am
Quoting ghous
This is exactly how I use the consolidation boxes.

One thing I'd like to clarify before I begin is that I don't use boxes extensively, but they will catch my attention immediately when they are obvious.

How I understand them is just what the name suggests "Consolidation" box. That is they represent a period where price instead of riding a dominant bias in the market looks to hold up a bit and strengthen before it either reverses or continues on with the same trend. I look at these as "price breathers". The analogy of the spring is rather an...
Thank you very much Ghous! This is a great analysis. I will try to spot them on my chart and will pay more attention. Thanks!
  • #79,450
  • Nov 7, 2010 10:13am Nov 7, 2010 10:13am
Quoting ghous
This is exactly how I use the consolidation boxes.

One thing I'd like to clarify before I begin is that I don't use boxes extensively, but they will catch my attention immediately when they are obvious.

How I understand them is just what the name suggests "Consolidation" box. That is they represent a period where price instead of riding a dominant bias in the market looks to hold up a bit and strengthen before it either reverses or continues on with the same trend. I look at these as "price breathers". The analogy of the spring is rather an...
Thanks ghous well explained
  • #79,451
  • Nov 7, 2010 10:21am Nov 7, 2010 10:21am
Quoting 4X=0
this is my own personal trading performance for last month.

19 trades taken,

not a huge amount of actual money,

but i systematically increased my account by over 75% in a sideways market

wash rinse repeat.
Simply amazing! The desire of every trader...........
  • #79,452
  • Nov 7, 2010 10:41am Nov 7, 2010 10:41am
Quoting ghous
Where is this going folks?

(daily chart)
Hey Ghous,
I would expect it to go south. First of all it closed below 1.5, it did not close above the three highs that happened just 2-4 weeks before (I imagine them as some kind of triple top on the daily) and it has to fight a huge downtrend. Probably a retrace to the 1.5 before it goes down again.

As I'm expecting a trick question I may therefore see it with more conservative eyes. Not sure if I would trade it anyway when it happened live.
Thanks J16, Sam Seiden, Udine and Jacko
  • #79,453
  • Edited 10:55am Nov 7, 2010 10:54am | Edited 10:55am
Quoting ghous
Where is this going folks?

(daily chart)
Hey ghous, would you mind telling me how did you draw the "WIPG" charts leaving out the bars to the right of the PA bar? Thanks.
  • #79,454
  • Nov 7, 2010 11:01am Nov 7, 2010 11:01am
Quoting ghous
This is exactly how I use the consolidation boxes.

One thing I'd like to clarify before I begin is that I don't use boxes extensively, but they will catch my attention immediately when they are obvious.

How I understand them is just what the name suggests "Consolidation" box. That is they represent a period where price instead of riding a dominant bias in the market looks to hold up a bit and strengthen before it either reverses or continues on with the same trend. I look at these as "price breathers". The analogy of the spring is rather an...
Very nice charts and great analysis. Thank you very much, Ghous!

Concerning my last post: Do you think my points are reasonable and should lead to a more conservative managment of the trade or do you think it is a no brainer? I'm sometimes concerned that over-analyzing may lead to an inappropriate fear of taking trades.
Thanks J16, Sam Seiden, Udine and Jacko
  • #79,455
  • Nov 7, 2010 12:26pm Nov 7, 2010 12:26pm
Just doing some self-talk...

I lately try to get better at spotting meaningful trendlines. While doing this on a random chart I once again become aware of how great the tool of confluence is. Just click the attached animated GIF. It isn't hard to imagine how traders with different styles and approaches kick in and contribute to this 2-day-PB and -BUOB, isn't it?

Unlike many other strategies we see out there this stuff will still work in a hundred years in probably any market available.
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Thanks J16, Sam Seiden, Udine and Jacko
  • #79,456
  • Nov 7, 2010 1:03pm Nov 7, 2010 1:03pm
Quoting HanSolo
Just doing some self-talk...

I lately try to get better at spotting meaningful trendlines. While doing this on a random chart I once again become aware of how great the tool of confluence is. Just click the attached animated GIF. It isn't hard to imagine how traders with different styles and approaches kick in and contribute to this 2-day-PB and -BUOB, isn't it?

Unlike many other strategies we see out there this stuff will still work in a hundred years in probably any market available.
haha that was super cool, thanks!
  • #79,457
  • Nov 7, 2010 1:07pm Nov 7, 2010 1:07pm
Quoting Adilius07
haha that was super cool, thanks!
+1
Anything can happen.
  • #79,458
  • Nov 7, 2010 2:17pm Nov 7, 2010 2:17pm
Quoting nasir.khan
Still in play and with more confluence....
.
you want some more confluence? ....

...here you go

definitely one of the best setups for the next week...

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  • #79,459
  • Nov 7, 2010 2:19pm Nov 7, 2010 2:19pm
Quoting ddinnov
+1
+2 really great animation

...you forgot to add some smilies at the how a j16 trader sees it...
  • #79,460
  • Nov 7, 2010 2:20pm Nov 7, 2010 2:20pm
Quoting ppfx
you want some more confluence? ....

...here you go

definitely one of the best setups for the next week...

Attachment
Hey PP,.. i have both BRN and 50 Fib marked on my chart......

or maybe i am missing something?

Anyway another one before i go to sleep.
.
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