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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

  • #82,361
  • Dec 13, 2010 7:17am Dec 13, 2010 7:17am
Quoting Osman
Excellent examples Jaroo !!

Thanks Os . .simple stuff . .


Later
Indicators show the past. Price Action "Indicates" the future.
  • #82,362
  • Dec 13, 2010 7:21am Dec 13, 2010 7:21am
Quoting Osman
GM guys,

Anybody took this ? I personally missed it

Very nice 4hr setup on G/CHF
Big strong BEOB engulfing 10 bars, close below 1.55
365 ema above.
50% of previous down move

Os.
bingo nice

Always be more just stay patient
  • #82,363
  • Dec 13, 2010 7:22am Dec 13, 2010 7:22am
Quoting john225
Only 9 pages left and we hit an BRN ;-)
haha, I'm pretty sure it will not be able to provide any resistance
  • #82,364
  • Dec 13, 2010 7:24am Dec 13, 2010 7:24am
Quoting Adilius07
haha, I'm pretty sure it will not be able to provide any resistance
Yeah for sure
  • #82,365
  • Dec 13, 2010 7:31am Dec 13, 2010 7:31am
Quoting Adilius07
haha, I'm pretty sure it will not be able to provide any resistance

Nice one adi !!!
Trade Smart
  • #82,366
  • Dec 13, 2010 7:36am Dec 13, 2010 7:36am
Quoting mbqb11
bingo nice

Always be more just stay patient
Yeah, It pays out the waiting time

That one was a "Mike setup"
Big BEOB screaming "tradee meeee tradeee meee" + a close below a BRN


Os.
Trade Smart
  • #82,367
  • Dec 13, 2010 7:42am Dec 13, 2010 7:42am
Quoting ghous
IBs can be bearish and bullish yes.

an IB by definition is obviously a bar that get's engulfed by the previous bar. Thing is if you go looking for such bars, you'll end up over trading because IBs by definition are everywhere and at the end of the day you'll have a bunch of long and short orders on your charts waiting for either end of the IBs to break. That you obviously don't want. You need a filter that will help you take only the strong ones.

One way to do that is to obviously look for confluence (S/R flips/PPZs, fibs, BRNs, MAs). Additionally...
Ghous, that makes complete sense. Thanks very much!

Any thoughts on the psychological dilemma I posed - that is, missing an entry, only to be tempted to enter when price gets back to that point but there is no new PA to confirm the entry. This is something I've done time and time again; need to stop!!!

--Dave
  • #82,368
  • Edited 8:53am Dec 13, 2010 7:43am | Edited 8:53am
Quoting ghous
IBs can be bearish and bullish yes.

an IB by definition is obviously a bar that get's engulfed by the previous bar. Thing is if you go looking for such bars, you'll end up over trading because IBs by definition are everywhere and at the end of the day you'll have a bunch of long and short orders on your charts waiting for either end of the IBs to break. That you obviously don't want. You need a filter that will help you take only the strong ones.

One way to do that is to obviously look for confluence (S/R flips/PPZs, fibs, BRNs, MAs). Additionally...
Here's a follow up chart, with my viewpoint illustrated. A bearish IB that does not have a bearish close, but is still worth calling for in my book.

1 - First thing to notice. Price is in a mess.

2 - A BUOB. What does it do? Closes above the 1.6! Yes a good sign. What can you expect next? The holding up of 1.6 as support?

3 - You bet! Next bar takes off. Where does it stall? Any surprises why it didn't shoot to the moon? This is where the knowledge of sideways markets (point 1) comes into play. Expecting big runners and S/R flips to be pierced like a knife through cake is a BIG mistake, and the primary reason why people complain "ranging markets are tough". If you know J16, you know you are not at the mercy of a sweet trend. We guys know price. Say it after me - WE GUYS KNOW PRICE.

4 - What do we have? Price pulling back all the way to 1.6 and holding up. First indications of bullish weakness (a major trait of a sideways market. Neither party dictates terms for an extended period of time)...

5 - Blimey! An Inside Bar straddled at the 1.6 BRN. It's an I4B actually - the stronger version of the PA bar. Notice how the low penetrates 1.6 but price closes above, though not exactly on a bullish note - an important plus. Do you see the the three bar lows lining up at the 1.6? What can be expected off them if this winding spring get's released to the downside? (Remember we suggested weak bullish momentum following the BUOB reversing at the S/R flip) That's right. They along with 1.6 will probably hold as resistance if price breaks through them. EDIT: Just checked the M15 and it proves the break was a hard one, and price never looked back after making its way through 1.6

6 - Look where today's daily bar found support? Can it blow through it (the last swing low) and establish a new low? Maybe yes, maybe no. The IB has done its job.

****----------****

There we are. That's an example of a "story" which I (and many others) often talk about. Sideways market action, combined with a BRN, combined with an I4B - a killer combo. A bar alone is insignificant

g.
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I believe . . .
  • #82,369
  • Edited 9:19am Dec 13, 2010 7:51am | Edited 9:19am
Quoting Oldice
Ghous, that makes complete sense. Thanks very much!

Any thoughts on the psychological dilemma I posed - that is, missing an entry, only to be tempted to enter when price gets back to that point but there is no new PA to confirm the entry. This is something I've done time and time again; need to stop!!!

--Dave
I don't see a problem with that. It's ok to wait for momentum to line up for you before you decide to go in.

As long as you are not dumping a weekly setup only to go for it 3 days later 'just because price is headed in the right direction' and as long as the PA bar is still valid, you should be fine.

Make sure, you know for sure when you've missed a setup and when a setup's a pass.

Again my 2 cents only.

g.
I believe . . .
  • #82,370
  • Dec 13, 2010 8:40am Dec 13, 2010 8:40am
Quoting ghous
Here's a follow up chart, with my viewpoint illustrated. A bearish IB that does not have a bearish close, but is still worth calling for in my book.

1 - First thing to notice. Price is in a mess.


There we are. That's an example of a "story" which I (and many others) often talk about. Sideways market action, combined with a BRN, combined with an I4B - a killer combo. A bar alone is insignificant

g.
WE GUYS KNOW PRICE.. WE GUYS KNOW PRICE... WE GUYS KNOW PRICE

Great explanation...thx Ghous !!
Trade Smart
  • #82,371
  • Dec 13, 2010 9:07am Dec 13, 2010 9:07am
E/G PB

Great location but don't like previous 2 big bullish bars (chart attached), could be retest of 84.5 based on the weekly bearish bar that close below it as Jaroo showed us... if it didn't had those two bars previous it I would take a shot at it..

Whats your view ?
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Trade Smart
  • #82,372
  • Dec 13, 2010 9:09am Dec 13, 2010 9:09am
Quoting Osman
E/G PB

Nice location but don't like previous 2 big bullish bars (chart attached), could be retest of 84.5 based on the weekly bearish bar that close below it as Jaroo showed us... if it didn't had those two bars previous it I would take a shot at it..

Whats your view ?
Agreed.

Those 2 big bullish bars certainly dwarf the PB (and its validity).

Thought process is on the right track bud.

g.
I believe . . .
  • #82,373
  • Dec 13, 2010 9:56am Dec 13, 2010 9:56am
Quoting ghous
Agreed.

Those 2 big bullish bars certainly dwarf the PB (and its validity).

Thought process is on the right track bud.

g.
Thx Ghous !
Trade Smart
  • #82,374
  • Dec 13, 2010 9:57am Dec 13, 2010 9:57am
Quoting mbqb11
bingo nice

Always be more just stay patient
I missed that too ! What a golden nugget that setup was.
But as Mike said Patience is a virtue
  • #82,375
  • Dec 13, 2010 10:12am Dec 13, 2010 10:12am
Quoting ghous
Here's a follow up chart, with my viewpoint illustrated. A bearish IB that does not have a bearish close, but is still worth calling for in my book.

1 - First thing to notice. Price is in a mess.

2 - A BUOB. What does it do? Closes above the 1.6! Yes a good sign. What can you expect next? The holding up of 1.6 as support?

3 - You bet! Next bar takes off. Where does it stall? Any surprises why it didn't shoot to the moon? This is where the knowledge of sideways markets (point 1) comes into play. Expecting big...
I loved the bar by bar analysis.
Outstanding piece of information Ghous !!
More more please !!
Can you kindly point me to additional resources regarding the I4B (inside 4 bar)?
  • #82,376
  • Dec 13, 2010 11:17am Dec 13, 2010 11:17am
Quoting ppfx
down again?

Attachment
...and it did exactly what it was supposed to do

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  • #82,377
  • Dec 13, 2010 12:03pm Dec 13, 2010 12:03pm
I think i will make a small break with trading and start again next year. But i will still read and study the method till next year. I found out that trading in December is difficult anyone found that out too?
  • #82,378
  • Dec 13, 2010 12:04pm Dec 13, 2010 12:04pm
Quoting john225
I think i will make a small break with trading and start again next year. But i will still read and study the method till next year. I found out that trading in December is difficult anyone found that out too?
Decembers can be choppy or thin since a lot of people begin to close up show. It has been pretty choppy up and down month for me as well.

I'll close up shop next week
  • #82,379
  • Dec 13, 2010 12:12pm Dec 13, 2010 12:12pm
Mike did i notized it right that this setup hasnīt enough space so it is an easy pass?

PS: The name of the attachement is wrong it is not the AUDUSD chart it is the NZDUSD Chart;-)
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  • #82,380
  • Dec 13, 2010 12:18pm Dec 13, 2010 12:18pm
Quoting john225
Mike did i notized it right that this setup hasnīt enough space so it is an easy pass?

PS: The name of the attachement is wrong it is not the AUDUSD chart it is the NZDUSD Chart;-)
For me it isn't so much no space here as it is the location of the bar(where the bar sits). I would want to see it have a lower low then the recent swing low(drew it in). Where as this sort of just in middle there. A break we have a good area of where price should end up testing(blue box).

Best
Mike
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