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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

  • #81,021
  • Nov 28, 2010 6:38am Nov 28, 2010 6:38am
Quoting ghous
That doesn't like like a bad setup at all...in my book at least. Good location (obliging to the 2W pin bar, off the 1.000 and forming the break of the H&S pattern on the daily) Decent shape (strong close) and a very very clear idea of where price is going at the break of the BEOB.

g.
this have helped me to make a decision (to trade)
  • #81,022
  • Nov 28, 2010 6:40am Nov 28, 2010 6:40am
Quoting Adilius07
What about 110 BRN can we just ignore it?
i am sorry ,you are right ,we can not ignore it !
A chart helps those who can read it.
  • #81,023
  • Nov 28, 2010 7:38am Nov 28, 2010 7:38am
[quote=ddinnov;4203574]Thanks Ghous - +1 on saving this post for my bible as well

This is something new I've learnt about PPZ levels

With that in mind - is anyone watching AUD/CAD?

quote]

I too am watching for possible short opportunities....but concerned about the rejection seen ...i think the chart is self explanatory.

Another great post by Ghous
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  • #81,024
  • Nov 28, 2010 7:45am Nov 28, 2010 7:45am
Well maybe there would be some other volunteers.
I will post the answer tomorrow.
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  • #81,025
  • Nov 28, 2010 7:57am Nov 28, 2010 7:57am
Quoting Pinbar
EG, BUEOB.


I know it is still below the BRN, but let's ignore that for now.


EDIT:

Finished.....
Well, we knew from the BRN alone this was a NO No trade but, I think the other reasons are probably equally as valid.

This is the sort of thing, I intend to try in a more spontaneous manner.


Any opinions both good or bad, greatly welcome.

EDIT: The other more obvious story looking at the daily alone.
A nice, complete, overall very good analysis
Pipcrawler
  • #81,026
  • Nov 28, 2010 9:23am Nov 28, 2010 9:23am
Quoting Adilius07
Well maybe there would be some other volunteers.
I will post the answer tomorrow.
Lets see if I can predict the PA.

Cheers
Novice 198
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  • #81,027
  • Nov 28, 2010 9:26am Nov 28, 2010 9:26am
Quoting ghous
Hey Novice,

Nothing about the quality of setups taken is changed if you don't draw your PPZs before hand, unless of course you're in the wrong frame of mind and an empty chart looks like a "free trade area" to you. Like I said the fact that you give a lot more weight to PPZs in your trading is far more important than whether you have them on your chart before hand or they help you decide the validity of a trade setup after the PA bar has formed.

Once again, I am not marketing this approach, just saying that this is what works for me and the...
Hi Ghous,
Thanks for the clarification.
Cheers
Novice 198
  • #81,028
  • Nov 28, 2010 11:29am Nov 28, 2010 11:29am
Quoting Adilius07
Well maybe there would be some other volunteers.
I will post the answer tomorrow.
Hi Guys,Thanks for your weekend lessons and here is my view.
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  • #81,029
  • Nov 28, 2010 1:10pm Nov 28, 2010 1:10pm
Hi,

Can any1 please tell me whether this can be considered as an example of DBLHC?

0908
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  • #81,030
  • Nov 28, 2010 1:13pm Nov 28, 2010 1:13pm
@Forex0908

No because the Close of the second candle isn´t above the first candle high ;-)

Edit: Here is an example from James16

http://www.forexfactory.com/showpost...5&postcount=80
  • #81,031
  • Nov 28, 2010 1:23pm Nov 28, 2010 1:23pm
How does one play such consecutive contradictory PBs?

Can any1 please provide a link to understand Inverted PBs? I understand that it is an advanced concept.

0908
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  • #81,032
  • Nov 28, 2010 1:24pm Nov 28, 2010 1:24pm
Hi all,

Another analysis; this one's a little tougher than the last one, for me, at least. We've got a BEOB on the daily GBP/JPY; to short or not to short?

Starting with the monthly chart, we're in an obvious downtrend. I see PPZs at 148.6, 139.5, and 126.5.

On the weekly chart, I see an obvious and well-defined downward channel; price has just retested the upper limit of that channel but failed to break through. PPZs are at 138, 134.6, 133.1, and 129.7.

On the daily, price recently broke through the downtrend but then fell back below. It has also broken through the short-term uptrend that has held since Oct. 24. I see quite a few very nicely defined short-term PPZs; price closed just above a nice one at about 131, and below another at 131.4. The next one down, at about 130.4, coincides with the 50 retrace drawn from 10/24 up to 11/17. Finally, there was bearish divergence a few days ago (11/14 to 11/17) which played out in a nice drop, but no conclusive divergence to work with right now.

I am going to short a retrace of the BEOB. My reasons are as follows: 1) The long and short term trend is down. 2) The BEOB, while not huge, did close convincingly below the prior bar, not near the prior bar's low. 3) If price retraces up to the PPZ at 131.4, that should act as resistance; if price can then break through the PPZ at 131, it should then continue down to the PPZ/confluence zone at 130.4.

So my plan is as follows: enter on a limit order at 131.4, just at the bottom of the PPZ, which is also a 38 fibo retrace of the BEOB. Place my initial stop 132.2, above the high of the BEOB and just above a PPZ. If price breaks the low of the BEOB, move stop to BE; take profit at 130.5 (90 pips, more or less).

Let's see what happens...

--Dave
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  • #81,033
  • Nov 28, 2010 1:40pm Nov 28, 2010 1:40pm
Quoting ghous
A PPZ which is obvious is a strong one

A PPZ that hosts plenty of solid evidences of S/R is a strong one

...
Thank you very much, Ghous! This is really, really helpful. I'm going to study it carefully, and review my PPZs against these criteria.

--Dave
  • #81,034
  • Nov 28, 2010 1:42pm Nov 28, 2010 1:42pm
Quoting forex0908
Hi,

Can any1 please tell me whether this can be considered as an example of DBLHC?

0908
No, the green candle is actually and inside bar here. DBLHC must have its close above previous candle's high.
  • #81,035
  • Nov 28, 2010 1:54pm Nov 28, 2010 1:54pm
Hi Gang,

Generally, I think that J16 teaches us to put our initial stop just above or below the PA bar that we are playing. So, for example, if I'm taking a pin bar short, my initial stop would go just above the high of that bar.

On the other hand, I've frequently read in this thread that folks don't (or rarely) take full bar losses (which I assume means allowing price to retrace all the way from the entry point to the initial stop). I find this a little confusing. If we're not going to take full bar losses, why put the initial stop a full bar away? I understand that putting the initial stop above the PA bar gives the trade room to "breathe", and if price in fact does retrace all the way to the far end of the bar that is a very clear indication that the initial analysis was wrong. But at what point before a full bar loss happens does one move the stop closer, assuming that the trade is going against one?

If the trade is going in my favor, then moving stops as PPZs are hit (to BE or to protect profit) seems very logical. But suppose I short that pinbar; price then rises to the 38.2 retrace of the pinbar; would most folks exit there? At the 50? At the 68.2? Or is it based on one's money management rules: exit when .5%, 1%, 2% of account is lost, no matter where this happens to fall on the pinbar? And if I use a clear rule like this (fibos or MM rules, that is), why put the initial stop a full bar away at all?

I find this to be the most confusing aspect of trading; in my initial demoing I frequently took full bar losses. In fact, most of my demo losses have been full bar losses, since I never knew when to close the trade before that initial stop was hit. Is this an example of the old trap of saying "It's got to turn around soon!", as the account size dwindles off into the distance?

--Dave
  • #81,036
  • Nov 28, 2010 2:11pm Nov 28, 2010 2:11pm
what will happen to usa dollar if usa goes to war against north korea?
  • #81,037
  • Nov 28, 2010 2:14pm Nov 28, 2010 2:14pm
Quoting torontobboy2
what will happen to usa dollar if usa goes to war against north korea?
Well, if I may, I will short it or go long depending on which way a Pinbar is pointing...
  • #81,038
  • Nov 28, 2010 3:34pm Nov 28, 2010 3:34pm
Quoting Adilius07
Well maybe there would be some other volunteers.
I will post the answer tomorrow.
I personally will not trade this PB
because -
1) The PB is NOT closed above the blue box. (Edited)
2) PB is trading into BRN 1.4

However, If the next bar breaks PB, it may go to green line which is FTA.
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  • #81,039
  • Nov 28, 2010 3:36pm Nov 28, 2010 3:36pm
Quoting cprao
I personally will not trade this PB
because -
1) The PB closed above the blue box.
2) PB is trading into BRN 1.4

However, If the next bar breaks PB, it may go to green line which is FTA.
Hey Cprao. May I ask why this:

1) The PB closed above the blue box. - It is actually good for PB, no?? The box provide support. Why do you think otherwise? Just asking, because usually I view it as support so if it closed above the box I consider it is good...

EDIT: You meant within the box? Looks so..
  • #81,040
  • Nov 28, 2010 3:40pm Nov 28, 2010 3:40pm
Ok let me post the chart, maybe it was easy as I see all had no problems with it. However, again the bar itself looked really good to me. So the truth is really location is the king... location!

http://cdn.forexfactory.com/attachme...1&d=1290951893
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