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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

  • #82,381
  • Dec 13, 2010 2:34pm Dec 13, 2010 2:34pm
Quoting mbqb11
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
This is interesting Mike. I read somewhere that they (marketmakers) many times would mark up/down the price below hi/lo, to see if there are adequate # of orders (so they too can initiate their positions) if they see no real pressure they let the price go to the other side really hard.
(excuse my english if this is a really primitive explanation).
But you get the idea of what I mean.

This perfectly (in my view) goes well with PB formation.
And this example you show is for the same reasons?

Just trying to understand why you say you would like to see that bar having lower low...
  • #82,382
  • Dec 13, 2010 2:37pm Dec 13, 2010 2:37pm
Quoting Adilius07
This is interesting Mike. I read somewhere that they (marketmakers) many times would mark up/down the price below hi/lo, to see if there are adequate # of orders (so they too can initiate their positions) if they see no reall pressure they let the price go to the other side really hard.
(excuse my english if this is a really primitive explanation).
But you get the idea of what I mean.

This perfectly (in my view) goes well with PB formation.
And this example you show is for the same reasons?...
Hey Adi

I like that lower low so I can see price testing what was under the most recent point of buying. It is also a chance to wash out stops and weak players. So for me it helps give me some more information. Of course it comes back to everything together as a whole. But this is part of it. Just as Jim says to look for these bars at good areas of confluence and swing highs/lows.

Best
Mike
  • #82,383
  • Dec 13, 2010 2:41pm Dec 13, 2010 2:41pm
Quoting mbqb11
Hey Adi

I like that lower low so I can see price testing what was under the most recent point of buying. It is also a chance to wash out stops and weak players. So for me it helps give me some more information. Of course it comes back to everything together as a whole. But this is part of it. Just as Jim says to look for these bars at good areas of confluence and swing highs/lows.

Best
Mike
Thank you Mike. Just one last thing if you could, just can't get it.

Of course I understand there are lots of stops. But they are Sell orders (long trader's stops) so if price goes to test it, those longs would be washed out - which is not good for our future long position??

Can't see the logic. Of course I saw many times that price bounce hard after breaking that previuos buying level, but why, we washed out many longs so shorts must be stronger at this point no?
  • #82,384
  • Dec 13, 2010 2:48pm Dec 13, 2010 2:48pm
Quoting Adilius07
Thank you Mike. Just one last thing if you could, just can't get it.

Of course I understand there are lots of stops. But they are Sell orders (long trader's stops) so if price goes to test it, those longs would be washed out - which is not good for our future long position??

Can't see the logic. Of course I saw many times that price bounce hard after breaking that previuos buying level, but why, we washed out many longs so shorts must be stronger at this point no?
Hey Adi

IN terms of just a general statement. Cause you can't make a blanketed statement that the market always fits into.

But if you had to put a large order into the market, you need liquidity to do so. You don't just click buy or sell or you could take major hit. So if you know an area where there are a lot of orders, those orders = liquidity. So if you want to get in LONG, you need people to SELL to you. If someone is in long, there stop loss is a SELL order. So these areas become good pockets of liquidity and now someone could put in a nice buy order there.

How it sustains after that is again no general way to talk about everything. Just some things that do occur in all traded markets.

Best
Mike
  • #82,385
  • Dec 13, 2010 2:49pm Dec 13, 2010 2:49pm
Hi guys,

What do you think about USD/JPY daily setup ?

 

  1. We have a BEOB engulfing 3 bars
  2. Strong resistance @ 84, (4 daily candles werent able to close above it)
  3. Downtrend


- Don´t like the close, prefered a close around 83.20-83.30 (1h for close, let see ...) retouch the 83.5 and down again

We´ve got FTA @ 83.00, 82.5 and 81.70-81.50

What do you think ?

Os.

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Trade Smart
  • #82,386
  • Dec 13, 2010 2:52pm Dec 13, 2010 2:52pm
Quoting mbqb11
Hey Adi

IN terms of just a general statement....
Wow thanks!!! Great explanation. Yes I got it. All I wanted to know, just how is this possible... now is clear, all makes sense.

Really market is a cruel thing, all small traders fall victims to a strong predator! Thanks!
  • #82,387
  • Dec 13, 2010 3:16pm Dec 13, 2010 3:16pm
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...
Wow. I'm in awe; that's how to analyze a chart. I'll add this to my list of posts to return to again and again. I really appreciate the help, Ghous!

By the way, how do you pronounce that - as in the bird or rhymes with house?

--Dave
  • #82,388
  • Dec 13, 2010 3:19pm Dec 13, 2010 3:19pm
Quoting ghous
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.
Again, my thanks. As I rewrote the question, I felt that I was really already answering it for myself. I know that I have a tendency to chase the market, and this has cost me plenty in the past. I think for now I'm just going to either take a setup when it presents itself or not take it at all. Keep it simple, yes?

--Dave
  • #82,389
  • Dec 13, 2010 3:25pm Dec 13, 2010 3:25pm
a small pin e/u.
the two bars before look too strong to consider a trade.
on the other side, the pb reversed at a big resistance zone + divergence.

opinions?
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meine augen sind die sterne
  • #82,390
  • Dec 13, 2010 4:54pm Dec 13, 2010 4:54pm
Quoting aserbfx
a small pin e/u.
the two bars before look too strong to consider a trade.
on the other side, the pb reversed at a big resistance zone + divergence.

opinions?
If I took it I would be looking to get out around ~1.3300 or a little above.
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  • #82,391
  • Edited 6:41pm Dec 13, 2010 5:52pm | Edited 6:41pm
Quoting xmzhang
Are you referring to my post about the C-J of two weeks ago ? Yes, I was looking for a buy PA on the lower TF to enter that weekly BUOB, but price didn't gave me a clear PA for quite some time so I lost interest, I don't want to wait that long for a entry ....... maybe I should be more patient

Yeah, we might have talked about the Weekly BUOB on the Chf/Jpy some time back. Price had been bounce off the previous bar high (no bar closed below it on the weekly) for some time.

The Chf/Jpy can be a very spiky pair on the lower TFs. Pairs like this, it is always better to work off the Weekly and/or Daily TFs to smooth out the edges . .also the Weekly looks like a 4 Hour chart to me.

BUOB hit its target. Would have liked to have had a Daily close above that 86.50. Price may retrace to the 85.00 BRN to test it as Support.
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Indicators show the past. Price Action "Indicates" the future.
  • #82,392
  • Dec 13, 2010 6:02pm Dec 13, 2010 6:02pm
Where's that Donkey chart on the Usd/Chf .. .here it is . .you nailed it, brother ..


Quoting Donkey
I'll give it a shot...
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Indicators show the past. Price Action "Indicates" the future.
  • #82,393
  • Dec 13, 2010 6:14pm Dec 13, 2010 6:14pm
Quoting Oldice
Thanks, PB....

You could be right, after I read the Ghous post in which he is talking about an IB's close. Never noticed that post before. I always thought the only way to determine the direction and IB may take us in was the S&R.

Thanks, we live and learn, and that is what it is all about.
  • #82,394
  • Dec 13, 2010 7:23pm Dec 13, 2010 7:23pm
Does not get much better than this! Beautiful setup.

http://content.screencast.com/users/...20.58%20PM.png
What is any ocean but a multitude of drops?
  • #82,395
  • Edited 8:07pm Dec 13, 2010 7:54pm | Edited 8:07pm
Do we have a nice Ghous bar on GBP/CAD Daily?

Broke out low of the massive consolidation area it was in and gives us a PB stopping dead on the 1.6000 & the 50 fibo.


The weekly chart is a little confusing, maybe Jarroo could explain his thoughts on this.
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  • #82,396
  • Dec 13, 2010 8:12pm Dec 13, 2010 8:12pm
Quoting Pinbar
You could be right, after I read the Ghous post in which he is talking about an IB's close. Never noticed that post before. I always thought the only way to determine the direction and IB may take us in was the S&R.

Thanks, we live and learn, and that is what it is all about.
Ain't that the truth, brother. When we stop learning, that's when we is dead!

--Dave
  • #82,397
  • Dec 13, 2010 8:31pm Dec 13, 2010 8:31pm
Quoting Oldice
Ain't that the truth, brother. When we stop learning, that's when we is dead!

--Dave

Yes, Dave, you are right.

Thanks for bringing the IB thing up, if you hadn't I would have oblivious to it.
  • #82,398
  • Dec 13, 2010 9:15pm Dec 13, 2010 9:15pm
Quoting lallous
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)?
Dan Gilbert's posts.

g.
I believe . . .
  • #82,399
  • Dec 13, 2010 9:17pm Dec 13, 2010 9:17pm
Quoting Oldice
Wow. I'm in awe; that's how to analyze a chart. I'll add this to my list of posts to return to again and again. I really appreciate the help, Ghous!

By the way, how do you pronounce that - as in the bird or rhymes with house?

--Dave
lol.

Ghous pronunciation

g.
I believe . . .
  • #82,400
  • Dec 13, 2010 9:19pm Dec 13, 2010 9:19pm
Quoting Oldice
Again, my thanks. As I rewrote the question, I felt that I was really already answering it for myself. I know that I have a tendency to chase the market, and this has cost me plenty in the past. I think for now I'm just going to either take a setup when it presents itself or not take it at all. Keep it simple, yes?

--Dave
Yup! Know your rules and you'll know your setups. A setup is either your setup or it isn't. What becomes of a setup is then irrelevant.

g.
I believe . . .
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