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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

  • #82,421
  • Dec 14, 2010 5:31am Dec 14, 2010 5:31am
At the moment I'm going through all my posts to see how much BS I have said along the way

and found this:

Quoting triger88990
seems that .4700 is history, although there was a real fight there between the bulls and the bears.The bears haven't giving any chanse to go that up and they clearly say it what will going to happen this year

4580 whould be the high of this year, maybe

wish you the best!
it seems that between them I've made some good predictions

I'm a badass I know

PS: where is all the fun gone from this thread, miss a lot of seniors : like bundyraider, SeekingLight, the_wizard, rustyjeff, StoragePro, Ryanmcd, raczekfx
  • #82,422
  • Dec 14, 2010 5:34am Dec 14, 2010 5:34am
Quoting Kalbar
Hey Hans

I totally agree with your post and would like to second everything that you say. Understanding of market structure is crucial to a fuller undersranding of what we are doing and it is an area I need to delve into in greater depth. If anyone can point us towards further reading/books/resources etc that would be a great help.

Thanks,

kal

I wonder what James16's opinion is on this subject.

Isn't price action enough?

I mean, you don't have to become a mechanic to drive a car, right?

By the way, not posting much as I have done my back in again...

I think I have a curse on me or something, recently, this must be the second time I have put my back out in 2 months.

maybe, too much sitting in the chair for too long.
  • #82,423
  • Dec 14, 2010 5:40am Dec 14, 2010 5:40am
Quoting Xhale12
Does not get much better than this! Beautiful setup.

http://content.screencast.com/users/...20.58%20PM.png
Can I get some feedback on my chart?
What is any ocean but a multitude of drops?
  • #82,424
  • Dec 14, 2010 5:41am Dec 14, 2010 5:41am
Quoting Pinbar
I wonder what James16's opinion is on this subject.

Isn't price action enough?

I mean, you don't have to become a mechanic to drive a car, right?
Right, but if you enjoy fixing your car yourself instead of going to mechanic is it bad? Some people love cars so much they do everything themselves.
Same here.
  • #82,425
  • Dec 14, 2010 6:46am Dec 14, 2010 6:46am
Quoting Pinbar
I wonder what James16's opinion is on this subject.

Isn't price action enough?

I mean, you don't have to become a mechanic to drive a car, right?

By the way, not posting much as I have done my back in again...

I think I have a curse on me or something, recently, this must be the second time I have put my back out in 2 months.

maybe, too much sitting in the chair for too long.
Hey Pin

Yes PA is an excellent approach to trading the markets but a fuller understanding of the whole operation of markets and their participants can only, i feel, be beneficial to us. Its always good to have a wider perspective - think of any profession(eg teaching) - teachers teach on a day to day basis but keep sight of the bigger picture in terms of whats going on in the profession as a whole and any changes that are taking place which may impact their job. Traders should do the same if they approach it from a business perspective.

Best wishes to you and your back!

Kal
  • #82,426
  • Dec 14, 2010 7:52am Dec 14, 2010 7:52am
Jarroo BEOB retracement on 4hr

We had a BEOB on G/CAD

 

  1. Engulfing 3 previous bar
  2. Rejection of the 1.60 level
  3. 150 ema above
  4. 50fib of the previous down move..rite in line with the 1.60 area
  5. Kinda triple top off the 1.60 area
  6. Divergence


Also we have been in a kinda box for a few days, thats why im already at B/E

We can see the candle after the beob went to retouch the lows of the engulfed bars (red line), thats a Jaroo retracement

Os.

Attached Image (click to enlarge)
Click to Enlarge Name: g-cad4hr.gif Size: 46 KB
Trade Smart
  • #82,427
  • Dec 14, 2010 7:55am Dec 14, 2010 7:55am
Quoting HanSolo
Hey triger & Mike, I feel this is a very important topic for us traders and I've learned a lot about it on this thread, through some books and my own analysis. Still it feels like I'm missing something and need a new starting point. So just a general question to both of you: What would IYO be a good way to dig deeper into this topic? Which sources did/do you use to understand this topic in depth?

Thanks for sharing your thoughts
Hans
This is extremely hard because market microstructure is basically the study of how the markets work.. and the markets are always changing.. this is what professionals mean when they say some strategies dont work in certain markets because the market is never the same.. the statement is very vague.. but for example when they passed law to ban short selling in financials.. that was a change to the market microstructure.. instead of seeing short limit orders piling on the bottom side of the market price action it was investor liquidation only which in turn increase the market value areas into closer points.

but to help on your research search.. market microstructure is made up of basically four major points..
Market structure and Design
this deals with whats called a
Dealer Market
Auction Market
Dealer-Auction Hybrid Market
And what type of structure depends on what type of market your trading in

The NYSE and European Markets for example started as call auction markets..
The Nasdaq started as a pure dealer market and is now a Hybrid auction-dealer market
The NYSE is now a Hybrid auction-dealer market as well..

Forex is an odd one.. it has a unified market structure.. combinding dealer and auction as well as hybrid auction-dealer marketplaces into a single order processing entity...
Price Formation and Discovery
this is the 2nd point of Market microstructure..
market microstructure deals with bid-ask and effects on price
also friction and affects on price
Inventory risk in some markets
quote midpoints/realized spread/and how the market shifts to lock and unlock liquidity..
how liquidity attracts price and builds price action/orderflow I mean this is a huge part...
Transaction Costs and Timing Costs
Costs are a huge deal in trading
price takes the most liquid path of least resistances lol
costs are something that cant be denied.. they are expensive.. when you day trade they are 20% or so of your revenues... when you invest they are .02% of your revenues.. the way the market is setup to distribute capital Is as important as to how its setup to absorb capital..
Information and Disclosure
this is the last part..
This section dealers with trading with and against the people that know and the people that dont.. There is an information void among most traders and some trade with relevant information and some do not.. this is one of the most rapidly changing areas in market microstructure.. so good luck lol.. most of what your going to find that is old is going to be worthless.. what you will find relating to the price action and volume will be priceless...

good luck dom
  • #82,428
  • Dec 14, 2010 7:57am Dec 14, 2010 7:57am
Quoting Osman
Jarroo BEOB retracement on 4hr

We had a BEOB on G/CAD

 

  1. Engulfing 3 previous bar
  2. Rejection of the 1.60 level
  3. 150 ema above
  4. 50fib of the previous down move..rite in line with the 1.60 area
  5. Kinda triple top off the 1.60 area
  6. Divergence

Also we have been in a kinda box for a few days, thats why im already at B/E

We can see the candle after the beob went to retouch the lows of the engulfed bars (red line)

Os.

Hey OS

you def have the eye for spotting good setups my friend - this looks like another one and your charts are nice too. This trader(learner) for one loks forward to your posts!

cheers

kal
  • #82,429
  • Dec 14, 2010 8:06am Dec 14, 2010 8:06am
Quoting supremeChaos
- i trade M5 to daily. this thread is mainly focused on higher TFs to facilitate learning for newer traders
-i 'touch trade'/trade without PA; again, for learning purposes, this thread teaches trading with PA
Thanks SC -Sorry for the late reply.
Wow -daytrading & touch trade -you never cease to amaze me No wonder you always seem to really know what you're doing.
Quote
-im a very hands-on dad of a similarly inquisitive 2year old
Daytrading and caring for a child - i really don't know how you manage your time to do both.You probably juggle on a mono cycle as well LOL.
Quote
having said that, i will help u in other ways as much as possible.
Thanks buddy - really appreciate that.
  • #82,430
  • Edited 8:54am Dec 14, 2010 8:27am | Edited 8:54am
Quoting triger88990
Speaking about me I've documented myself from many sources,I'm not saying that I've grasp all of it but I'm trying to keep everything as simple as possible.

A book that is simple and accessible to everyone is Market microstructure for practitioner, but I think that more information I've gathered together from market wizards book series and from Reminiscent of a stock,just look on the way they conducted business, found lots of tips and tricks which have helped me.

and also is needed lots of time staring at charts

hope it helps!
Great, thank you! Market microstructure for practitioners was also recommende by joelcf. It's on my list.

Googling "Market microstructure" also brought up some nice results.
Thanks J16, Sam Seiden, Udine and Jacko
  • #82,431
  • Dec 14, 2010 8:45am Dec 14, 2010 8:45am
grabbing from some old post I have found this:


http://img127.imageshack.us/img127/8280/chicklv0.gif

LOL I'm still laughing when I look to it
  • #82,432
  • Dec 14, 2010 9:15am Dec 14, 2010 9:15am
Quoting Xhale12
Does not get much better than this! Beautiful setup.

http://content.screencast.com/users/...20.58%20PM.png
Can I get some feedback on my chart?

Anyone? Want to make sure I am doing this right....
What is any ocean but a multitude of drops?
  • #82,433
  • Dec 14, 2010 9:15am Dec 14, 2010 9:15am
Quoting triger88990
grabbing from some old post I have found this:


http://img127.imageshack.us/img127/8280/chicklv0.gif

LOL I'm still laughing when I look to it
Nice.

  • #82,434
  • Dec 14, 2010 9:20am Dec 14, 2010 9:20am
Quoting domino
This is extremely hard because market microstructure is basically the study of how the markets work.. and the markets are always changing.. this is what professionals mean when they say some strategies dont work in certain markets because the market is never the same.. the statement is very vague.. but for example when they passed law to ban short selling in financials.. that was a change to the market microstructure.. instead of seeing short limit orders piling on the bottom side of the market price action it was investor liquidation only which...
Wow, great. Thanks, domino. This will keep me busy for some time.

Quoting Pinbar
I wonder what James16's opinion is on this subject.

Isn't price action enough?

I mean, you don't have to become a mechanic to drive a car, right?
I know what you mean, PB. I often thought about this. And I'm sure it's not necessary to know all the details.
One reason I did not study musicology was my fear that I would over-analyze music and wouldn't be able to just listen to and enjoy it anymore. When I took some advanced music courses later in high-school I found that this really was the case sometimes. But the more those things I learned became second nature the more I actually enjoyed listenening to music. I became aware of details I was blind to before and there was a great range of musical opportunities opening up to me. I suspect the same thing to be true for trading (and many other things).
Thanks J16, Sam Seiden, Udine and Jacko
  • #82,435
  • Dec 14, 2010 9:25am Dec 14, 2010 9:25am
noob question:

Do you ever trade an outside bar as a trend continuation signal?

Pring on Price Patterns treats alot of the price action patterns as reversal patterns, but can you also trade them in the direction of the last trend? Like say, price goes up, consolidates in a rectangle or even just retraces a single bar, then there's a big outside bar pointing up?

Here is an example of what I'm asking about. The last bar is Feb 26, 2008, eurusd, daily time frame. Thanks.

http://i877.photobucket.com/albums/a...mike/22608.png
  • #82,436
  • Dec 14, 2010 9:25am Dec 14, 2010 9:25am
Quoting Pinbar
I wonder what James16's opinion is on this subject.

Isn't price action enough?

I mean, you don't have to become a mechanic to drive a car, right?

By the way, not posting much as I have done my back in again...

I think I have a curse on me or something, recently, this must be the second time I have put my back out in 2 months.

maybe, too much sitting in the chair for too long.
The thing about PA Analysis(meaning everything we do), encompasses a lot of market microstructure into it. But since we look and see we often don't ask why for certain things(which I encourage people to do with their trading). For example why round numbers? Why Big bars? Why closes in certain places? Why long noses on pins? the list goes on and on. These are in turn microstructure questions and most have answers that a person wanting to learn that stuff can come to the conclusion with this stuff. We still must be able to apply and that is the most important.

Yes chair sitting will do that Pin. I just got an aeron posture-fit and boy what a difference.

Best
Mike
  • #82,437
  • Dec 14, 2010 9:31am Dec 14, 2010 9:31am
Quoting Jigsaw
Nice.


Sorry for stealing from you , but I found it very funny the way it moves .

by the way you can find it on page 1500 if my memory doesn't let me down.

all the best!
  • #82,438
  • Dec 14, 2010 9:34am Dec 14, 2010 9:34am
Quoting triger88990
Sorry for stealing from you , but I found it very funny the way it moves .

by the way you can find it on page 1500 if my memory doesn't let me down.

all the best!
LOL
  • #82,439
  • Dec 14, 2010 9:37am Dec 14, 2010 9:37am
Quoting Jigsaw
Nice.

JIGSAW!!!
I believe . . .
  • #82,440
  • Dec 14, 2010 9:56am Dec 14, 2010 9:56am
Quoting Xhale12
Can I get some feedback on my chart?

Anyone? Want to make sure I am doing this right....
Hey X, all I can tell based on your chart is that it was a good trade. The confluence was there with the fib.

I can't tell what pair that is. I would also guess that the move is 600 pips, not 60,000.

I can give you more feed back if you phrase your post in the form of a question.

Hope this helps.

-- Danny
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