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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

  • #85,201
  • Jan 11, 2011 8:38am Jan 11, 2011 8:38am
Thanks Kal. It did seem a little weak for a big turn.

You know, I think I came to this thread at just the right time.

I had seen it mentioned numerous times, and it's the only one I didn't jump to immediately. I had always found that a little strange, as I had jumped everywhere else on the spot.

While subconsciously ignoring this thread, I made all the mistakes it's possible to make. That's totally typical of me- I can never learn from other people's mistakes- only my own!

Had I found this thread earlier, I would most likely have dismissed all Jim's warnings and gone on to make the same mistakes anyway, and then resented this thread later, always feeling that it was telling me a big [b]I told you so! [b]

Now that I've come to the thread at last, I think(hope) I'm mature enough to let it all sink in.

I have already seen so many setups I would previously have jumped in on and lost miserably!

As an analogy, all my other mistakes and lessons have taught me the rules of holdem, but this thread has taught me the difference between queen nine off suit and pocket aces.

So glad to be here!
  • #85,202
  • Jan 11, 2011 8:46am Jan 11, 2011 8:46am
Quoting ghous
Yes it is an IPB - and a pretty valid one too...

g.
Thanks yaar... I like your explanation on price exhaustion. I think it's more difficult than finding Good PinBars and OutSide Bars.

0908
  • #85,203
  • Jan 11, 2011 8:50am Jan 11, 2011 8:50am
I do hope I'm ready for my new avatar!

No more standing in the open with a shotgun, I hope
  • #85,204
  • Jan 11, 2011 8:50am Jan 11, 2011 8:50am
Quoting xmzhang
I'am still in my A-N trade of last week on my remaining position, price has at the moment invalidated a so called bottom tweezer on the weekly (one of my other favourite setup bars next to outside bars which are my favourite ) Next obvious target would be BRN @ 13000, I've moved my SL a few pips above RNB @ 13100, profit at the moment on my remaining position is about 140 pips.
Price has reached and broken the BRN @ 13000 moved my stop a few pips above the last swing high on the 30m-TF @ 13020 (that's where I entered originally) banking some more pips on my remaining position, let's see if that 13000 holds as resistance.
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Pipcrawler
  • #85,205
  • Jan 11, 2011 9:21am Jan 11, 2011 9:21am
Quoting forex0908
Thanks yaar... I like your explanation on price exhaustion. I think it's more difficult than finding Good PinBars and OutSide Bars.

0908
Its not difficult at all.

Its really just all there on your chart and pretty obvious most of the times. I was using this concept extensively with my Constrictor system.

Here's how I use the concept:

In strong trends only (side ways and choppy markets carry way too many wicks already to make any logical sense out of a consistent pattern) you keep an eye out for regular wicks appearing on either ends of bars as possible momentum exhaustion signs. Price never moves in a straight line so such a situation is always round the corner.

Importantly the concept works no better than the theory of indicator divergence. You don't long/short a pair based off divergence alone. Likewise wicks appearing consistently are also just a warning sign and help me in preparing to safe guard a running trade or look for a potential trade setup. You will still need the confidence of a nicely located IB,PB,OB,IPB for the final heads up.

At times such wicks only represent a minor breather as price consolidates and then quickly resumes and other times they end up reversing trends...just like divergence does.

In case you haven't noticed the IPB (and PB) is really just an extention of the same concept.

Here are a few chart examples, with one more factor to keep in consideration when trading in strong trending markets.

g.
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I believe . . .
  • #85,206
  • Jan 11, 2011 9:30am Jan 11, 2011 9:30am
Quoting ghous
Yes it is an IPB - and a pretty valid one too...

g.
Hey Ghous,

To trade an IPB it has to be against the wall... meaning a strong PPZ, no ?

This one closed below 1.25 BRN, it that case it wouldnt be a tradable one.. no ?

Can you provide me a link where I can read more about them.. i still dont get them.

Thx

Os.
Trade Smart
  • #85,207
  • Jan 11, 2011 9:37am Jan 11, 2011 9:37am
Quoting ghous
Its not difficult at all.

Its really just all there on your chart and pretty obvious most of the times. I was using this concept extensively with my Constrictor system.

Here's how I use the concept:

In strong trends only (side ways and choppy markets carry way too many wicks already to make any logical sense out of a consistent pattern) you keep an eye out for regular wicks appearing on either ends of bars as possible momentum exhaustion signs. Price never moves in a straight line so such a situation is always round the corner.

Importantly...
Speechless. Your's and Dan's posts actually make me think more. I never though chart reading would be so enjoyable.

I was late to the EURCHF party, but I am already up by a quick 60 pips in my demo. Had I noticed this over the weekend, I would have bought at the close of Friday's Daily Candle.

My next question. When do you enter?

1. Close of the previous candle (Friday's daily candle in this case).
2. Or you wait till, let's say 50% or 61.8% RET in the direction of the wickof the IPB?

And place the SL just below the low of the IPB, right?

I assume Constrictor System is a part of the PF?

0908

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  • #85,208
  • Jan 11, 2011 9:41am Jan 11, 2011 9:41am
Quoting Osman
Hey Ghous,

To trade an IPB it has to be against the wall... meaning a strong PPZ, no ?

This one closed below 1.25 BRN, it that case it wouldnt be a tradable one.. no ?

Can you provide me a link where I can read more about them.. i still dont get them.

Thx

Os.
It closed below only by a few pips which still made it a valid trade in my book. What you don't want is an IPB that is close or near a RN or a BRN, because the trade idea supports a nice hard move into the wick of the bar on the very next bar, there's no space for price to go wandering off and testing RNs and BRNs nearby (which it will often do) without taking you out.

Search through my posts with the keyword IPB. You should get enough material. Do the same with Jarroo's posts as well.

Let me know if you have more questions.

g.
I believe . . .
  • #85,209
  • Jan 11, 2011 9:47am Jan 11, 2011 9:47am
Quoting forex0908
Speechless. Your's and Dan's posts actually make me think more. I never though chart reading would be so enjoyable.

I was late to the EURCHF party, but I am already up by a quick 60 pips in my demo. Had I noticed this over the weekend, I would have bought at the close of Friday's Daily Candle.

My next question. When do you enter?

1. Close of the previous candle (Friday's daily candle in this case).
2. Or you wait till, let's say 50% or 61.8% RET in the direction of the wickof the IPB?

And place the SL just below the low of the IPB, right?

I...
The entry is always on the close of the IPB and the stop is a few pips away beyond the shorter wick. That makes it risky and advanced. (Jarroo puts it rightly when he says its just one step ahead of touch trading). The rule has an exception for Friday daily bars. Once again you don't want to be left over for the weekend and at the mercy of Monday open gaps with a tight stop and money on the line.

The Constrictor system isn't a PF produce. Its a system I developed myself (inspired by other related systems) and was working with it for some time. It needs some work to be done though, maybe in the summers...

g.
I believe . . .
  • #85,210
  • Jan 11, 2011 9:51am Jan 11, 2011 9:51am
Quoting ghous
Its not difficult at all.
Here's how I use the concept:
In strong trends
g.
Hi Ghous.

That's great information I hadn't considered before, thank you so much.

TBH, on the second chart, regardless I'm sure of any other indicators, that first PB on the run down would have lost me 1% of my account!

Would you have gone long at its break, or was there information belying a direction change?
  • #85,211
  • Jan 11, 2011 9:52am Jan 11, 2011 9:52am
Quoting Osman
Hey Ghous,

To trade an IPB it has to be against the wall... meaning a strong PPZ, no ?

This one closed below 1.25 BRN, it that case it wouldnt be a tradable one.. no ?

Can you provide me a link where I can read more about them.. i still dont get them.

Thx

Os.
http://www.forexfactory.com/showpost...ostcount=37116

http://www.forexfactory.com/showpost...ostcount=37168

0908
  • #85,212
  • Jan 11, 2011 9:53am Jan 11, 2011 9:53am
Quoting Ifmyante
Hi Ghous.

That's great information I hadn't considered before, thank you so much.

TBH, on the second chart, regardless I'm sure of any other indicators, that first PB on the run down would have lost me 1% of my account!

Would you have gone long at its break, or was there information belying a direction change?
Hey If

Do you mean the chart with the strong down trend? Notice the bar did not close within the previous bar so that is not a pinbar. When price does that think of it like hanging off a cliff. Price can't even close within the prior bar and thus there is nothing to "hold it up" in a strong down trend like that.

Best
Mike
  • #85,213
  • Jan 11, 2011 9:59am Jan 11, 2011 9:59am
Quoting mbqb11
Hey If

Do you mean the chart with the strong down trend? Notice the bar did not close within the previous bar so that is not a pinbar. When price does that think of it like hanging off a cliff. Price can't even close within the prior bar and thus there is nothing to "hold it up" in a strong down trend like that.

Best
Mike
Thnx bud!
I believe . . .
  • #85,214
  • Jan 11, 2011 10:00am Jan 11, 2011 10:00am
Hi MB

beautiful simplicity! I hope I'll always notice the little vital details like that.

PS. I don't know if you read my post thanking you for the welcome, but it's back there somewhere. So once again, thanks, and to all the other fine members here
  • #85,215
  • Jan 11, 2011 10:01am Jan 11, 2011 10:01am
Quoting Ifmyante
Hi MB

beautiful simplicity! I hope I'll always notice the little vital details like that.

PS. I don't know if you read my post thanking you for the welcome, but it's back there somewhere. So once again, thanks, and to all the other fine members here

We have a killer group of people that hang here. I am very thankful for them all too
  • #85,216
  • Jan 11, 2011 10:04am Jan 11, 2011 10:04am
Surrounded by genius!

0908, great links to some real gems, thanks.
  • #85,217
  • Jan 11, 2011 10:11am Jan 11, 2011 10:11am
Am I right to ignore the DBHLC below due to all the traffic?

Or can it have some significance?
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  • #85,218
  • Jan 11, 2011 10:13am Jan 11, 2011 10:13am
a nice area for some pa.
resistance + rn + fib.
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meine augen sind die sterne
  • #85,219
  • Jan 11, 2011 10:17am Jan 11, 2011 10:17am
Quoting Ifmyante
Hi MB
beautiful simplicity! I hope I'll always notice the little vital details like that.
..
Hello Ifmyante,
u will, in time.
we all improve through experience.

Quoting Ifmyante
Am I right to ignore the DBHLC below due to all the traffic?
Or can it have some significance?
in general, yes, u are right to ignore it. it's not in an ideal location.
but it would not hurt for u to be aware of it.
  • #85,220
  • Jan 11, 2011 10:17am Jan 11, 2011 10:17am
Quoting aserbfx
a nice area for some pa.
resistance + rn + fib.
I didn't even have that pair charted- the 7 pip spread has alienated me. But it does look prone for something
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