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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

  • #80,421
  • Nov 19, 2010 8:56am Nov 19, 2010 8:56am
Quoting mbqb11
Hey Han

I am not quite sure what you are asking if you could clarify.

Confluence is nothing more then multiple reasons to make an "area" important. Layers. This doesn't mean the market has to do one thing or another there. Just gives us areas/reasons to get into/stay out of trades.

I am not quite understanding the last part

Thanks
Mike
Hi Mike. I've got a basic confluence question that your response bolded above triggered. Can't post a chart right now, but thought I would ask anyway.

Let's say I have three confluences lined up, a PPZ, BRN and retracement level. For this one lets say that the retracement is up an up move. I can expect the PPZ to either act as resistance or support, depending on the PA at the area (or really just cruise right through could happen as well).

If price goes through the zone and the zone flips (to resistance in my example), would the retracement level no longer be confluence for the short entry.

Long-winded way to say, when I consider retracement as confluence I'm always using it as confluence for a bounce,never for continuation. That's the way I've been using retracement levels anyway.

Sorry if the question isn't worded the best.
  • #80,422
  • Nov 19, 2010 8:58am Nov 19, 2010 8:58am
Quoting mbqb11
Hey Han

I am not quite sure what you are asking if you could clarify.

Confluence is nothing more then multiple reasons to make an "area" important. Layers. This doesn't mean the market has to do one thing or another there. Just gives us areas/reasons to get into/stay out of trades.

I am not quite understanding the last part

Thanks
Mike
Hey Mike, thanks for your help. It's a little bit hard to explain as second-language speaker. I just got the impression while backtesting that multiple important levels like PPZ, BRN, TL etc. when they are a few pips apart from each other can give price a very hard push through the area instead of acting as S/R.

I attached an example. Not the best one but it shows what I mean. It looks as though sellers behind the TL and EMAs are all contributing to price momentum and pulling it down. I've seen other examples with far bigger bars and wondered if confluence levels stacked up like this could be a way of anticipating big moves.
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Thanks J16, Sam Seiden, Udine and Jacko
  • #80,423
  • Nov 19, 2010 9:02am Nov 19, 2010 9:02am
Quoting Donkey
Hi Mike. I've got a basic confluence question that your response bolded above triggered. Can't post a chart right now, but thought I would ask anyway.

Let's say I have three confluences lined up, a PPZ, BRN and retracement level. For this one lets say that the retracement is up an up move. I can expect the PPZ to either act as resistance or support, depending on the PA at the area (or really just cruise right through could happen as well).

If price goes through the zone and the zone flips (to resistance in my example), would the retracement...
Hey Donkey

I think I got you. Yes it would still be confluence. The area is still an important point that buying OR selling can take place at. This is why BRNs are key for me. THink about if price is in a downtrend and it's approaching a BRN. Well it very well MAY stop this move down for the time being(take even eur/usd right now off the 1.35. What do we think really stopped price here? Orders stacked at 1.35). But now when price goes back through this area it is a VERY good area to look for selling once again. Same goes for your other confluences in my eyes too (of course support/resistance being the most crucial.

Hope I got you right
Mike
  • #80,424
  • Nov 19, 2010 9:02am Nov 19, 2010 9:02am
Quoting HanSolo
Hey Mike, thanks for your help. It's a little bit hard to explain as second-language speaker. I just got the impression while backtesting that multiple important levels like PPZ, BRN, TL etc. when they are a few pips apart from each other can give price a very hard push through the area instead of acting as S/R.

I attached an example. Not the best one but it shows what I mean. It looks as though sellers behind the TL and EMAs are all contributing to price momentum and pulling it down. I've seen other examples with far bigger bars and wondered...
If I may Han, here's how I see it. They don't have to line up exactly on top of one another. I look at confluence as zone, just like PPZ (of course the closer the better). As long as the PA bar "tests" the multiple levels of confluence I think it's valid. In your chart it looks like the bear bar cut through all your identified confluences.
  • #80,425
  • Nov 19, 2010 9:03am Nov 19, 2010 9:03am
Quoting HanSolo
Hey Mike, thanks for your help. It's a little bit hard to explain as second-language speaker. I just got the impression while backtesting that multiple important levels like PPZ, BRN, TL etc. when they are a few pips apart from each other can give price a very hard push through the area instead of acting as S/R.

I attached an example. Not the best one but it shows what I mean. It looks as though sellers behind the TL and EMAs are all contributing to price momentum and pulling it down. I've seen other examples with far bigger bars and wondered if...
Hey Han

I think it depends on the type of confluence. For example an area that has acted as resistance and price keeps knocking up on it. This could be seen as a confleucned level. But the more times it knocks it's probably going to break through it.

I could be missing still what you are asking my apologies bud
Mike
  • #80,426
  • Nov 19, 2010 9:06am Nov 19, 2010 9:06am
Quoting mbqb11
Hey Donkey


Hope I got you right
Mike
Perfectly Mike. I don't use the retracements quite as much as I did when I first learned of them. But I've always thought of them as looking for a bounce, rather than support for a continuation. I'll tuck this away. Thanks!! I've been watching 8500 on EG with retracement confluence. Originally only felt I could use it as long confluence, but if it were to pass through it could be short confluence. But as you say, the S/R is most important (followed closely by bar close for me).
  • #80,427
  • Nov 19, 2010 9:12am Nov 19, 2010 9:12am
Quoting Donkey
If I may Han, here's how I see it. They don't have to line up exactly on top of one another. I look at confluence as zone, just like PPZ (of course the closer the better). As long as the PA bar "tests" the multiple levels of confluence I think it's valid. In your chart it looks like the bear bar cut through all your identified confluences.
Thanks, Donkey. I thought of it like a chain reaction: If price breaks through level 1 (TL on my chart) it is more likely that it breaks through level 2 (365EMA on my chart) as more sellers jump on the bandwagon. This in return makes it more likely that it finally also breaks through level 3 (150EMA on my chart).

Whereas if the three levels on my chart were closer together in case of a breakthrough they would not generate as much momentum b/c sell orders are closer together, too.
Thanks J16, Sam Seiden, Udine and Jacko
  • #80,428
  • Nov 19, 2010 9:14am Nov 19, 2010 9:14am
Quoting 666Doom
Are we gonna have a round of Where is price going this weekend.
I was dying to grasp some more knowledge of PPZ.
I am waiting for someone to throw a challenge.
Taz
Just downloaded a new screen capture software so I will try to get some up tthis weekend. Keep in mind I'll be drinking beer tonight, so there may be some off the wall ones!!
  • #80,429
  • Nov 19, 2010 9:17am Nov 19, 2010 9:17am
Quoting mbqb11
I could be missing still what you are asking my apologies bud
Mike
No problem. It's my bad, Mike. I've got a hard time explaining it. I will just have an eye on this topic and post charts as soon as I see a formation like this again. Thank you all for your help!

EDIT: BTW, I just saw this pyramid-shaped formation on the right side of my last chart. Is this this what Jim calls a pyramid-shaped IB? Are they more reliable than others?
Attached Image
Thanks J16, Sam Seiden, Udine and Jacko
  • #80,430
  • Nov 19, 2010 9:58am Nov 19, 2010 9:58am
Quoting HanSolo
No problem. It's my bad, Mike. I've got a hard time explaining it. I will just have an eye on this topic and post charts as soon as I see a formation like this again. Thank you all for your help!

EDIT: BTW, I just saw this pyramid-shaped formation on the right side of my last chart. Is this this what Jim calls a pyramid-shaped IB? Are they more reliable than others?
Hey Han

Notice you have multiple IBs in a row. This is showing reduce ranges within the prior ranges. So price is squeezing and squeezing. Like putting your finger on the cap of your toothpaste and squeezing from the bottom till there is no room to go but "pop"

Disclaimer: Doing this will lead to a mess but will prove my point. Do not send me a bill for your toothpaste
  • #80,431
  • Nov 19, 2010 10:06am Nov 19, 2010 10:06am
Quoting HanSolo
No problem. It's my bad, Mike. I've got a hard time explaining it. I will just have an eye on this topic and post charts as soon as I see a formation like this again. Thank you all for your help!

EDIT: BTW, I just saw this pyramid-shaped formation on the right side of my last chart. Is this this what Jim calls a pyramid-shaped IB? Are they more reliable than others?
A little self-talk answered my question : on lower TF this pramid shape is a triangle. So, yes, it should be more reliable or at least gain more momentum as it breaks out.
Thanks J16, Sam Seiden, Udine and Jacko
  • #80,432
  • Nov 19, 2010 10:12am Nov 19, 2010 10:12am
Quoting mbqb11
Hey Han

Notice you have multiple IBs in a row. This is showing reduce ranges within the prior ranges. So price is squeezing and squeezing. Like putting your finger on the cap of your toothpaste and squeezing from the bottom till there is no room to go but "pop"

Disclaimer: Doing this will lead to a mess but will prove my point. Do not send me a bill for your toothpaste
LOL. That's a nice way to put it. The toothpaste I just bought is so pungent I would probably go blind.
Thanks J16, Sam Seiden, Udine and Jacko
  • #80,433
  • Nov 19, 2010 10:16am Nov 19, 2010 10:16am
Finally took a trade. First one this month. Eur/Cad daily. Liked the set up: off weekly PPZ, off 50 fib, good space, formed a pennenant shape, 4 daily highs within a few pips of each other, close FTA though.
Went long on a break with entry at 1.3890, FTA 1.3930, SL 1.3790. I felt this one had a chance to hit 1.4000. Price broke then started to retrace a little. I moved my SL to 1.3830 off the 1 hr support. BIG MISTAKE!!! Price retraced to 1.3824 hit my SL then made a bee line for 1.4000.
I believe I can spot a descent setup, I just really, really really need to work on my trade management .
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  • #80,434
  • Nov 19, 2010 10:38am Nov 19, 2010 10:38am
Quoting spookie94
Finally took a trade....
Spook, that was a great entry you took there.

One thing that you've probably already heard from many of the seniors is sticking to the same timeframe you entered. Especially in the beginning when we are just trying to be consistent. Many times, going to lower timeframes just gives us more reasons to exit because of all the noise.

Keep at it bud.

-- Danny
  • #80,435
  • Nov 19, 2010 11:10am Nov 19, 2010 11:10am
hello,Pinba
great!!!!!!!!!!! great great .
your 365ema is so useful , it gives me so many helps on S&R. i just use it in the lower time frame today ,get so many pips .thank you very very much .i am so excited now ...
and do you use other ma on your chart ,can you share them to me ???
great man . great choice .
A chart helps those who can read it.
  • #80,436
  • Nov 19, 2010 12:27pm Nov 19, 2010 12:27pm
Quoting Atc
Just want to say thanks squeeze----I always enjoy the simplicity of your charts -----please keep em' charts coming!
+1 its like looking at rac's touch trades from the past ...very exciting stuff
  • #80,437
  • Nov 19, 2010 1:11pm Nov 19, 2010 1:11pm
I took a retrace touch trade on USD/CHF today. When I checked the charts before work this morning it was at around 0.9950 and heading down so I put a limit buy at 0.9910 in case it made an attempt on <0.9900 before making another attempt at parity.

I saw a weak BUOB from yesterday which gave me the idea for a long trade to the high of yesterday's bar. I also figured some Friday profit taking and liquidating of USD shorts might help it along it's way.

Chose entry point of 0.9910 because it's above RN 0.9900 and I thought would have a good chance of being triggered (It went as low as 0.9874 - my SL was at 0.9850), chose to take full profit at 0.9990 as I thought the VBRN 1.000 would act as a magnet as it was so close and the PA from yesterday was bullish but not strong enough to break through.

2% up on the (semi) live account
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Anything can happen.
  • #80,438
  • Nov 19, 2010 1:31pm Nov 19, 2010 1:31pm
A dbl with a lower close, followed by a mediocre pb that makes it a triple bar low. got short at the break of the pb, had decent res at the trendline, trade worked out. does this triple bar low with a pb built in mean anything as far as higher probability?
  • #80,439
  • Nov 19, 2010 1:33pm Nov 19, 2010 1:33pm
attachment didn't post the first time...
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  • #80,440
  • Nov 19, 2010 2:36pm Nov 19, 2010 2:36pm
hey guys, awesome thread. i've read alot of it but still have alot to go. i was just wondering if i could get some feedback on why this pin didn't work? is it just not a pin and i'm not seeing or, or was it just a failed trade?


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