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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

  • #82,441
  • Dec 14, 2010 10:00am Dec 14, 2010 10:00am
Quoting couriermike
noob question:

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

...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?
Hey Mike, what's up.

Mike (mbqb11) made a great post on this subject 11 hours ago, right here:

http://www.forexfactory.com/showpost...ostcount=82413

Hope this helps,

-- Danny
  • #82,442
  • Dec 14, 2010 10:05am Dec 14, 2010 10:05am
Hey Mike,

Can I ask you a question? If there's a bullish PinBar on Daily and there's also a bearish PinBar on 4 Hour -which one will you take assuming setup is great and other things being equal? I mean 4 Hour make up the daily, right? For the daily PB to work out, does the 4 Hour PB have to fail? Or does it the other way around? Or both could still work? It's kinda like eggs and chicken, doesn't it?
  • #82,443
  • Dec 14, 2010 10:09am Dec 14, 2010 10:09am
Quoting Be Cool
Hey Mike,

Can I ask you a question? If there's a bullish PinBar on Daily and there's also a bearish PinBar on 4 Hour -which one will you take assuming setup is great and other things being equal? I mean 4 Hour make up the daily, right? For the daily PB to work out, does the 4 Hour PB have to fail? Or does it the other way around? Or both could still work? It's kinda like eggs and chicken, doesn't it?
Hey BC

I don't have a simple answer. For me I try to keep it all separate. If I am in a daily trade, I manage that. If a 4hr trade comes up, I manage that. I am picky so this is pretty rare but it can happen. A more likely occurrence may be a daily trade one way and an hourly trade another. Again they both have their own flow so I stick with keeping them separate for the majority of the time. Kind of like someone who drops down from a daily to manage on the hour. If it works for you it works. But it can often lead to more noise. I just think of James. He always posts and does things on the same timeframe. Keeping it simple.

best
Mike
  • #82,444
  • Dec 14, 2010 10:13am Dec 14, 2010 10:13am
Quoting couriermike
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...
Hi !I'm not one of the seniors,but this is a thread where the traders help each other,so I'll give a try.Between 19 oct 2007 and 22 feb 2008 the price was in consolidation(range market) limited by blu lines.Personally,I think the better way to trade the buob that shows that the buyers had the force to push up the price from that consolidation,is to wait that price turns at the upper range's limit what act as support, and buy WITH pa confirmation .
P.S. A classic Mike's situation !
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Nothing personal,just business
  • #82,445
  • Dec 14, 2010 10:17am Dec 14, 2010 10:17am
Quoting fxgroup
Hi !I'm not one of the seniors,but this is a thread where the traders help each other,so I'll give a try.Between 19 oct 2007 and 22 feb 2008 the price was in consolidation(range market) limited by blu lines.Personally,I think the better way to trade the buob that shows that the buyers had the force to push up the price from that consolidation,is to wait that price turns at the upper range's limit what act as support, and buy WITH pa confirmation .
P.S. A classic Mike's situation !
Yep this is definitely one way to play them. Waiting for a re-test of the range.

This is also a good one b/c you have the BUOB popping out of a very strong range that you also showed. I call this the preemptive breakout and it is also a favorite play of mine. You then have the top of the range to help manage the trade as well.

Nice simple analysis though FXG that is key

Mike
  • #82,446
  • Dec 14, 2010 10:23am Dec 14, 2010 10:23am
I think the song "Goodby my love,goodby"(Denis Roussos) is the right end of the story!
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Nothing personal,just business
  • #82,447
  • Dec 14, 2010 10:27am Dec 14, 2010 10:27am
This is what i am talking about Mike. Someone mentioned this 4H PB earlier. Setup looked great, but that daily PB in the opposite direction worried me. I know micro managing is bad, but what i am asking is if one isn't already in a trade, which one to choose: lower TF or higher TF?
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  • #82,448
  • Dec 14, 2010 10:29am Dec 14, 2010 10:29am
Quoting Be Cool
This is what i am talking about Mike. Someone mentioned this 4H PB earlier. Setup looked great, but that daily PB in the opposite direction worried me. I know micro managing is bad, but what i am asking is if one isn't already in a trade, which one to choose: lower TF or higher TF?
Hey BC

I wouldn't be looking at the daily. If the 4hr meets my criteria then I trade the 4hr, the daily does not come into play for me at all

Best
Mike
  • #82,449
  • Edited 10:40am Dec 14, 2010 10:36am | Edited 10:40am
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

Os.

I believe Pinbar (username) highlighted the same potential earlier in this post but in the form of an IPB.
I thought it was a good shaped IPB at a good location being rejected at 1.6. In addition 50% retracement of previous swing high.
Sell order placed below open of arrowed bar. Just moved SL to (BE+slight profit). Free trade now.............
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  • #82,450
  • Dec 14, 2010 10:39am Dec 14, 2010 10:39am
Quoting mbqb11
Hey BC

I wouldn't be looking at the daily. If the 4hr meets my criteria then I trade the 4hr, the daily does not come into play for me at all

Best
Mike
Would your answer be different if that FTA was not too close on the daily chart? Or do you gravitate towards trading the lower TF PA and watching what happens to the higher TF PA? Sorry for bugging you - i am really confused
  • #82,451
  • Dec 14, 2010 10:42am Dec 14, 2010 10:42am
Quoting Be Cool
Would your answer be different if that FTA was not too close on the daily chart? Or do you gravitate towards trading the lower TF PA and watching what happens to the higher TF PA? Sorry for bugging you - i am really confused
Hey BC

If anything that daily supports that 4hr BEOB. That really isn't a pinbar based on the location. It is more of an IPB as brought to these pages by ghous(not a traditional j16 bar). But that daily bar is not one James would ever present to trade. Notice how it is towards a swing high point/traffic/middle of no where. But also notice it is up against but could not close above the BRN of 1.6. So to me this isn't strength as opposed to weakness combined with the IPB if I had to use the daily to help.

But with that aside, I would simply be looking and analyzing the 4hr chart by itself. That's it. If I am going to choose to trade the daily I am going to manage it on the daily (90%) of the time. Same goes for the 4hr. I don't start trying to do multi timeframe analysis it doesn't help add value to my trading personally.

Hope that helps
Mike
  • #82,452
  • Dec 14, 2010 10:42am Dec 14, 2010 10:42am
Possible short here? In sinc with longer term, fibs confluence, Pin bar, PPZ.
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Trading is a test match not a Twenty20.
  • #82,453
  • Dec 14, 2010 10:48am Dec 14, 2010 10:48am
Quoting decentchap
Possible short here? In sinc with longer term, fibs confluence, Pin bar, PPZ.
The location sure is nice chap. Also nice to have the monthly BEOB on your side.

We'll see how she closes.


-- Danny
  • #82,454
  • Dec 14, 2010 10:48am Dec 14, 2010 10:48am
Quoting mbqb11
Hey BC

If anything that daily supports that 4hr BEOB....
Ok I see - that's an IPB (better start reading ghous' posts)
Thanks Mike
  • #82,455
  • Dec 14, 2010 10:51am Dec 14, 2010 10:51am
Quoting Xhale12
Does not get much better than this! Beautiful setup.

http://content.screencast.com/users/...20.58%20PM.png
Nice Trade
But it isnīt an DBLHC because the low of the second candle isnīt matching with the low of the first candle ;-)
  • #82,456
  • Dec 14, 2010 10:54am Dec 14, 2010 10:54am
Quoting bluetrader
The location sure is nice chap. Also nice to have the monthly BEOB on your side.

We'll see how she closes.


-- Danny
Ya, I will be looking for a DIBS or short TF PA to enter..
Trading is a test match not a Twenty20.
  • #82,457
  • Dec 14, 2010 11:06am Dec 14, 2010 11:06am
Just a quick rant post as we are quickly approaching year end.

Attached is the GBP/AUD Daily BUOB that formed last week. (sorry if the chart isn't great, I do not have access to my MT4.)

I took this bar along with a few other members on the forum. I am posting this today because if you did not use the methods J16 teaches here you may have finally been stopped out for a full bar loss. Something we definitely dont want to happen often.

I took this trade. It had quite a few things going for it. Large Bar, Good strong close above the 1.60 and sort of a triple bottom that Mike pointed out.

Now, what I want to stress to newer traders is that you can learn all of these things about picking a good entry point but the next part of the puzzle, and probably more importantly is identifying your FTA(First Trouble Area) and understanding the power of support and resistance.

I personally took this trade and took quick profit at the 1.61 level for a .2R return. Notice that the 1.61 was the Round number below the rectangle. Now I wasn't mad that price in fact made it a bit higher before reversing.
I understood that this was a trouble area and acted accordingly.

I believe Mike took the same trade and got out with a small win or Breakeven trade. He was looking to take profit closer to 1.62 but he still understood what that rectangle meant and moved his stops up.

My point is that if you do not see what this rectangle means in terms of a trouble area on a bar against the main trend, today you would take a full bar loss.

Please just understand that it is not all about the entry and that managing the trades comes with hours of screen time. If some of you are new to the group and want to open a live account, please demo first and become comfortable with the material.

You definitely do not want to lose money on full bar losses such as these because you do not understand simple support and resistance. (Not to say that it is understood simply, it takes practice, but it is a simple tool once understood)

Come January it will be my 2 year anniversary with J16 group and my trading has come very far. I hope all of you can finish the year strong an focus on 2011.

Sorry for a rant just saw that that bar become invalid today.

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  • #82,458
  • Dec 14, 2010 11:36am Dec 14, 2010 11:36am
anyone else liking that 4h gold BEOB??
PATIENCE... DISCIPLINE
  • #82,459
  • Edited 12:36pm Dec 14, 2010 12:16pm | Edited 12:36pm
Quoting g_j_hook@yah
anyone else liking that 4h gold BEOB??
In my opinion the bar itself is nice, but i do not like the location. We are trading (on fxpro feed) right into ppz and 38.2 fib. Also the low never broke. See that BEOB at the ultimate high. That is what we realy want to see.
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  • #82,460
  • Dec 14, 2010 12:17pm Dec 14, 2010 12:17pm
Quoting dmc
Just a quick rant post as we are quickly approaching year end.

Attached is the GBP/AUD Daily BUOB that formed last week. (sorry if the chart isn't great, I do not have access to my MT4.)

I took this bar along with a few other members on the forum. I am posting this today because if you did not use the methods J16 teaches here you may have finally been stopped out for a full bar loss. Something we definitely dont want to happen often.

I took this trade. It had quite a few things going for it. Large Bar, Good strong close above the 1.60 and...

Hey Dmc

Your post is excellent advice for us newer traders to adhere to. As you say the principles of suport and resistance are simple when you know what you are doing and have experience, but not quite so easy when leaarning the ropes.

Nice chart and good analysis about FTAs.

kal
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