james16 Chart Thread

Hello guys,
The Stuff with 2 day PB and other goes like this.
for us to understand a Pin bar or a 2 Day Pin bar and Whipsaw or Flase breakout or BUOB and BEOB we must understand the following term first.

Rejection

What is Rejection ?
According to my R&D rejection is the price trying to ignore a certain level.
Considering that rejection is the prices ignorance to approach a particular level,what comes into my mind is PPZ,if there is a Strong PPZ or a cluster of PPZ in a tight region there is very likely the price is going to reject that level.

Consider the prices movement described as below, the price is rising risin and finally the price reaches a particular level,and that level is a strong PPZ,now when price hits that level price is supposed to reverse,but sometimes it doesnot,because the orders coupled around that PPZ is scattered in a tightened region rather then exact single line,that is why i say Rejection occurs at PPZ in Clustered form.So when price hits the PPZ and if violates the PPZ even by few ticks it lock in the unwary buyers or sellers above that PPZ,now all those buy oders lead to runawya up to the top but there is a cluster of PPZ so we get a rough ride,in this runaway when cascade of buy orders has ended this forms a long rising price formation which i call a tower.

Next is the fall,i mentioned that there are cluster of PPZ at a place the price finally exhausts at one of those PPZ the price starts to fall,now all those buyers are locked in at higher prices,what they will do is cover and we will get momentum in opposite direction.

Other case could be of trendline or a range,here price temporarily bounces above a range and/or trendine locking in some orders leading to a whipsaw.
Why is there a whip saw,because the trendline is very strong and the orders to push the price above/below are not there,that is why we call it exhaustion because buyers/sellers have exhausted themselves and are on wrong side of the move when they will cover the momentum will build in other direction.

So Where is Rejection?

Rejection is term for price behavior around strong Clusters of PPZ ie Confluent areas.when price is wanting to go away from a region because there is no demand or supply above or below that point.


Rejection and Whipsaw and Pinbars and 2 Day Pinbars:
Well all of them have rejection,price breaks above a strong PPZ locks in some orders and the drags itself down to lock those order holders with a loss.
Because in a Market just above a PPZ there are orders placed and which when triggered will lead to the wick of Pin bar.
Same in Whipsaw and Pinbar price break in opposite direction then expected locks in some buyers or sellers then goes in its original direction.

Outside bars and rejection?
Ever thought why outside bars have lower wicks to cover previous bars lower portions, the reason is people got whipsawed to death there people expected break below or motion in there direction, but they were exhausted rejected at that level and the rejection was caused because of buy or sell orders place against there orders price hit that level locked in those buyers or sellers at loss.

I have a proof:

http://img227.imageshack.us/img227/8...outsidebar.gif


http://img708.imageshack.us/img708/2...tsidebardd.gif


I will correct any unclear terms in my post later, thank you J 16.
Regards
Taz

Pinbar they are Called Tweezer Tops/Bottoms.
Yeah DBHLC or DBLHC are showing validation of Strong Support and resistance in two bars and the winning Part.

Ie read what i think.

1. Price Comes,stops there because of complete lack of orders.
2. Price falls right there.
3. Price closes a little lower or a lot lower then first bar leading to bearish/bullish confirmation.

Three Observations from the above facts:

1. The Level is strong PPZ or S/R i should say.
2. The Price no longer wants to go up which is validated by close and open of both bars right in line.
3. The Price falls below previous bar low validating opposite party has won.

http://img837.imageshack.us/img837/2444/69110495.gif

Here is an excellent video on candle addition

It did make it to the 2 bar highs.

g.

i just confused that ,when price go to the S&R area again , how can i know it will be breaking or reversing ??? how can i determine is it really breaking (reversing) of fake breaking (reversing) ???

i am so sorry to asking the foolish question ,but i just do not know .

thank you for your answer advance .

Hey G

There is no way to EVER know for sure. WE can develop a good understanding and make good assumptions to throw the odds in our favor.

The more important thing is to realize where price CAN potentially have a bounce. Then you know areas to protect yourself. For example when we identify a very strong PPZ , then we stop trying to trade into those areas, and instead look to trade away from those areas.

Or when we are in a bar setup, and we see an area that has multiple bar/high/lows on it indicating support/resistance in the short term there we know that this could be an area price will react at again. If it breaks through, now you know where it may find support/resistance to help manage a trade.

Now certain things can help give us an idea, like the more time price starts banging up/down on an area in the short term(especially in a trending market) often it is a sign of a breakout to come.

So while we can't give a blanketed statement that if XYZ happens then price will break/not break. Visually we know areas that CAN have effects on price and through that we build a method that in the long run keeps us right more times then wrong. This is the key.

Best
Mike

good exercises you all did !

NOTHING but price on your charts its a beautiful thing

a good man you are .. thank you for your detailed answer . i will go to understand it through thousands charts .

good luck to you .

At-least the my next bar thing was right.
But hey we were exercising what is the next bar going to be,i am not a genious to predict the whole move.

I am still new to this stuff i will get good by next exercise.

Hey i read that before Mike,but wanted to know what mike would say.
Up-till now i believe the same as mike on that one.

Here is my way anyway:
The responsibility of the Technician is to gauge all the things available to him and see if what he is seeing tells him about the out come or not.
ie the event which is taking place remains supreme unless the weight of your tools tells you something new.
Just draw your PPZ couple confluence and couple some common sense and there you go,you are ready to tell where the price is headed.
Preparing in advance is always the preferred way,when you have your PPZ on your charts you know where price is likely to react,so you are ready.
My advice:
Learn FTA plotting as per J 16
Never take any setup without confluence.
Never take any setup pushing towards PPZ.
And always use common sense before anything.
Always hid your stop loss behind major levels.
If price goes in your way BE as soon as you feel trade is going to be a runner,and let it run.
Regards
Taz

Yeah, it did.

I think I was in my fake out mood.

More practice, is all we need.

Hey TAZ. All that stuff is great but, I just want to know the physical shape of a 2 day PB and the criteria behind it. I mean, I need to know when it is and when it is not a 2 day PB.

I mean, if we have a 2 day PB then isn't a DBHLC also a 2 day PB? If it isn't , why isn't a Daily dbhlc a 2 day PB?



Mike, Jarroo, Ghouse , Supreme, HeeeeeeeeeeeeeeeeeeeeeeeeeeeeelP!


EDIT:

OK, so can anyone tell me if this is a 2 week pin bar on AUD/USD?

Hi there, that's considered a 2 day pinbar for me, I'm pretty confident Jaroo and others would agree on that.

Lets see what others say.

EDIT:

Yes I meant 2 week pinbar

Thanks but, that is a weekly chart.

Hey Pin, I think that Smith meant 2 "week" pin. I'm not a senior, but I will go out on a limb here and call this a 2 week pin bar.

I would also venture to say that dbhlc/dblhc don't have the requirement of a long nose. Also, the second bar of a dbhlc/dblhc could engulf prior bars, which would also not be a pin bar when merged.

Personally, the easiest way for me to see 2 bar pins is to use the merging indicator widely available here. See attached.

Hope this makes sense.

-- Danny

Thanks Blue, that explains it nicely.

Is that the indicator Jarroo posted a long time ago, tried it and it did work but doesn't seem to work on this IBFX feed.

I will give it another go.

Much obliged.

The size could be bigger. Interesting where it closed, previous High from way back. It may not be done with the 1.0000 just yet.

I like it, ts.

Oh right, we were reinventing the wheel, or at least doing a tire check.


Glad to see that my chart looks remarkably like Jarroo's.

I like the silver weekly PB more than Gold.

Silver:
Good:
Nose is long
Swing High
FTA (s) are clear.

Not so good:
Wic left out at the bottom
Since there is no PPZ at the top, don't know it was truly rejected or not.. but looking at the long nose one can assume that it is a rejection than exhaustion.

Gold:
Good:
Nose is ok
Swing high
FTA is clear
Not so good:
Wic left out at the bottom
Body of the pin is bigger than ideal
Since there is no PPZ at the top, don't know it was truly rejected or not.. Since the nose is not long enough it could be treated as either a rejection or exhaustion.

Thoughts ?