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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

  • #88,541
  • Feb 9, 2011 3:56pm Feb 9, 2011 3:56pm
Quoting fxgroup
fxp,regarding ppz and trendline,I have a different point of view.PPZ and trendlines are just levels of demand and supply,the difference betwen them is that ppz are static levels for demand/supply and the trendlines are dynamic levels .Both are the same thing:demand/supply (support/ressistence) levels.Just mine.
We all see the markets in our own way. I'm consistently profitable trading break outs of precise trendlines. I appreciate that others can make money in other ways. If it makes you money it's all good.
  • #88,542
  • Feb 9, 2011 4:06pm Feb 9, 2011 4:06pm
Quoting Kalbar
Hey chap

90% of trading is waiting............for the A+ setups. Worth the wait rather than look back in anger at one's own impatience etc. What I sometimes find difficult with the thread is that you see people taking trades all over the place and you feel that you are missing out. That's when you get the itchy finger and try to force things IMHO. I am starting to clear this hurdle now but many more ahead I think!!

Good trading to all,

Kal
Hey Kal,

I had that exactly same feeling 1 month ago, i looked at the forum people posting: this possible setup, I took this trade, +90 pips ... and ended up thinking that I was missing trades by being too picky.

Then I think of weeks like this one in which by Thursday I haven't taken any trade.

Imagine you take a trade which is a C setup just because you´re impatience cause you have been waiting ..watching the screens 8-10 hours a day for 3 days with 0 profits, you look at the charts and think well.. this is a kinda of PB, i see a div, candle not very strong close but its a PB so im gonna take it, I haven't taken a trade in 3 days !!! let see how if it works (maybe ull say.. no no im not like that..well... think it twice hmmmm, i personally been thru that) and well that setup didn't went the way you wanted -100 pips, some people will say .. uff from now on im gonna take only A+ setups or you have the other kind that will take a revenge trade (ive been in both sides)

Then you see an A+ setup the next day, you trade it and you gain +100 pips.. then you have lost all the week with 0 pips due to your impatience, for not waiting for an A+ setup.

What really helps me is : the amount of pips you make doesn't matter, you can make 2000 or 200 pips a month (well if I make 2000 pips much better ).

Why doesn't matter ? You can trade as many lots you want !!

You can make really really good money by just making 200 pips a month.. the key is being consistent.

Then you'll say well i don't have the money to trade higher lots bla bla... if you can proof any invest/fund managed company you can make consistently 200 pips a month ... im sure they'll hire u.

Hope this helps someone....
Trade Smart
  • #88,543
  • Feb 9, 2011 4:12pm Feb 9, 2011 4:12pm
Quoting fxprocessor
Sorry Dan but your trendline makes no sense to me. You have ignored all of the bars I circled. Do you think others will draw like this and notice your trendline?
My trendline is more of an indication of the wave cycles as we go downward. I hardly use trendlines, I'm far more concerned about horizontal S&R, and the 1.55 VBRN is great.

Sure there are times you will see a to-the-pip break and retest of a trendline, that's not the purpose of this long term indication of trend. In fact, that gold chart mike made is another example of rough trendlines drawn to indicate slope of price movement....

I see more reasons for price to go down, than for it to go up at this juncture...

I would encourage anyone who sees it on their charts to go long, to do so. It's all about what the trader sees for themselves...
Many choose unhappiness over uncertainty.
  • #88,544
  • Feb 9, 2011 4:18pm Feb 9, 2011 4:18pm
Quoting stewrigh
Not sure I understand the point you are trying to make here.

Are you implying that trendlines are of no use.
If you can make money off the trendline I commented on fair play to you.
Apologies if my post did not make sense to you.
  • #88,545
  • Feb 9, 2011 4:22pm Feb 9, 2011 4:22pm
Quoting Dan Gilbert
My trendline is more of an indication of the wave cycles as we go downward....
Tom DeMark's trendline theory seems to hold water well, but I also agree with you.
I mean, if a market mover wants to place his pending order on a trendline, how can he be sure of the momentum of price towards it and the exact price at which the line will be met? Surely the're not all waiting for a touch and yelling 'sell. sell,sell!'
  • #88,546
  • Feb 9, 2011 4:27pm Feb 9, 2011 4:27pm
Quoting Ifmyante
I mean, if a market mover wants to place his pending order on a trendline, how can he be sure of the momentum of price towards it and the exact price at which the line will be met? Surely the're not all waiting for a touch and yelling 'sell. sell,sell!'
Pretty much. Real money looking to build a position will be stacking it on everytime there is a pullback. They wont always be looking at the trendline per se, but the result is the same. Even if they see the trendline, they often wont care about it - they are trying to lower their vwap while still building a position. The end effect is that their orders absorb the liquidity from the people looking to exit, and eventually it ends the pullback and continues the trend.

Often, that will coincide with a trendline. Often, it wont. So, in a way, everyone is right. And you can all be friends now.
When you have to shoot, shoot. Dont talk.
  • #88,547
  • Feb 9, 2011 4:29pm Feb 9, 2011 4:29pm
Quoting joelcf
Pretty much. Real money looking to build a position will be stacking it on everytime there is a pullback. They wont always be looking at the trendline per se, but the result is the same. The end effect is that their orders absorb the liquidity from the people looking to exit, and eventually it ends the pullback and continues the trend.

Often, that will coincide with a trendline. Often, it wont. So, in a way, everyone is right. And you can all be friends now.
all round
  • #88,548
  • Feb 9, 2011 4:32pm Feb 9, 2011 4:32pm
Hi, guys! Can anybody say me, why i must ignore this trade (good PB, PPZ, RN)??
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  • #88,549
  • Feb 9, 2011 4:36pm Feb 9, 2011 4:36pm
Quoting makron
Hi, guys! Can anybody say me, why i must ignore this trade (good PB, PPZ, RN)??
If that's a good pinbar, then I am a good astronaut.

And I'm not. I'm scared of heights, dont like planes and look terrible in silver or white jumpsuits (I assume).

(big bar. big move. little pin. iffy ppz. no trade.)
When you have to shoot, shoot. Dont talk.
  • #88,550
  • Feb 9, 2011 4:37pm Feb 9, 2011 4:37pm
Quoting Atc
Quoting jarroo
Hey Bill.

I like that 1.5375 area and you are showing good confluence at that level. . .and we can see that Price reacted bearishly and consolidated at that area.

I picked the 1.5375 because Price could not close above this level for some time recently . . Resistance. Now we have Price closing above on the Daily. . .I'm looking for this level to now act as strong Support.

The neutral looking PB does not have a close below this level. . .more signs to me that upward movement is at hand.

If we can get a strong close below the 1.5375 I can...

Hey Bill . .you can see that the 1.5375 acted as Support. I have found that these confluenced area can work in reverse . .meaning this confluenced area of Resistance we would be looking for bearish PA but without that crucial Close below the 1.5375 (previous Resistance) ..this confluenced area will act a strong Support.

I hope that makes sense .

Jim
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Indicators show the past. Price Action "Indicates" the future.
  • #88,551
  • Feb 9, 2011 4:42pm Feb 9, 2011 4:42pm
Market, if you're listening, I'd like a pullback to .85 by 8am. Thank you in advance
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  • #88,552
  • Feb 9, 2011 4:46pm Feb 9, 2011 4:46pm
Quoting johoma
Jarroo,
I've spent a lot of time on the private forum and hadn't checked this forum for a long time until around Christmas when I noticed a lot of your guidance for Pinbar. This got me digging. Until then, I thought I had understood the PPZ concept fairly well according to the James16 teachings you mention above. BUT, while remembering that they are "zones", your emphasis on looking for the price breaking through and CLOSING above or below so that you can better define these zones was an eye-opener for me. I hadn't really understood all of what...

Hey John and Thanks.

Yes, I do put more emphasis on the CLOSE when qualifying Support and Resistance of PPZ levels. James talks about it as well but I view it as comfirming event.

Just remember the clearer, cleaner, more obvious, more multiple Highs, Lows and Closes, etc . and throw in there some other confluences . . .the stronger the level.
Indicators show the past. Price Action "Indicates" the future.
  • #88,553
  • Feb 9, 2011 4:58pm Feb 9, 2011 4:58pm
Quoting jarroo
Yes, if that BEOB was up at the 1.4000 BRN with some Space, little traffic, etc., it would be a much better setup.

You can see the problems this BEOB is having at the 1.3500 BRN. Its at swing High but not very high to give it Space. Running dead on into previous Highs, which was a Resistance level, 1.3360ish. Price breaks through it and closes above and we can see its now acting as Support.

Could you image taking a long trade at the 1.3360, with that BEOB looking straight at you? . . This transformation of Resistance turning into Support...

So much for the previous bar Low (1.3500) of this BEOB . . wow . . .although there was a bit of a bounce of about 60 pips to the downside . .enough to cover your risk . .(check the Hourly and 4 hour)

Looks like its going to test that 1.3700 again.
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Indicators show the past. Price Action "Indicates" the future.
  • #88,554
  • Feb 9, 2011 5:19pm Feb 9, 2011 5:19pm
I was asked for an example about multiple Highs, Lows and Closes lining up as a sign of a strong PPZ level. Then you can qualify it as Support or Resistance by how it Closes.

The Weekly Eur/Cad is a good example. In white we can see the Closes and Highs lining up together. They can be just High or just Lowslining up like we all know about. But if we get some of them lining up with Closes, especailly on a higher TF, the better.

I understand that different feeds will present different Closes but its just something to look for to show more strength in a level. imo

(Bundy talk about this many many posts ago . .Thanks Bundy.)
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Indicators show the past. Price Action "Indicates" the future.
  • #88,555
  • Edited 6:11pm Feb 9, 2011 5:27pm | Edited 6:11pm
Quoting jarroo
Price may want to start another consolidation area between the 1.0150 and 1.0. . . . it wouldn't be surprising.

I see your what your saying at the 1.0730 and Price will have a reaction there. I also like the 1.0110.

The key is that Price couldn't close above the 1.0150ish level. . .and when it did, it didnt stay up there long. If we start seeing closes above the 1.0150 the 1.02 is very possible. But I can see the 1.0 being tested again.

Just some thoughts.

Jim

gotta go

later
No surprises here . . .markets spending most of there time sideways or consolidating can be a good thing.

Notice that Price is breaking through the 1.0110 . .I wonder if it will now act as Resistance ( from acting as previous Support)

Just something to watch.
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Indicators show the past. Price Action "Indicates" the future.
  • #88,556
  • Feb 9, 2011 5:43pm Feb 9, 2011 5:43pm
EUR/JPY - PPZ breakout, H1 beob
GBP/USD - PPZ, BUOB, TL

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  • #88,557
  • Feb 9, 2011 5:56pm Feb 9, 2011 5:56pm
I gotten more then one question like this . .(I'm paraphrasing) "This is all neat and dandy, jarroo. . .this PBT&CAorB PPZ levels . . but when do you take a trade? when do you enter?"

The Daily Gbp/Aud . . . we see a line on Support building at the 1.5830 . .I will aslo take note of the lowest close of that support level, 1.5865.

PBT&CB the 1.5830 Support level. We now look for the 1.5830 level to act as Resistance (in white) . When and only when this event occurs I'll look at the 4 hour or Hourly for Bearish PA. I'll let those that asked look on the 4 hour and/or hourly to see if any bearish PA was there . .
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Indicators show the past. Price Action "Indicates" the future.
  • #88,558
  • Feb 9, 2011 5:57pm Feb 9, 2011 5:57pm
Quoting makron
EUR/JPY - PPZ breakout, H1 beob
GBP/USD - PPZ, BUOB, TL


That a good example too, makron . .
Indicators show the past. Price Action "Indicates" the future.
  • #88,559
  • Feb 9, 2011 6:27pm Feb 9, 2011 6:27pm
Quoting jarroo
I gotten more then one question like this . .(I'm paraphrasing) "This is all neat and dandy, jarroo. . .this PBT&CAorB PPZ levels . . but when do you take a trade? when do you enter?"

The Daily Gbp/Aud . . . we see a line on Support building at the 1.5830 . .I will aslo take note of the lowest close of that support level, 1.5865.

PBT&CB the 1.5830 Support level. We now look for the 1.5830 level to act as Resistance (in white) . When and only when this event occurs I'll look at the 4 hour or Hourly for Bearish PA. I'll let those that asked...
Hey jarroo

Nice explanation on the SR phenmomenon again! I feel I am starting to learn it as I checked my GAUD chart and found that my PPZ was just about the same level as yours give or take a few pips.

This has given my learning a boost as PPZ is core to this whole method.

Kal
  • #88,560
  • Feb 9, 2011 6:33pm Feb 9, 2011 6:33pm
Quoting jarroo
I'll let those that asked look on the 4 hour and/or hourly to see if any bearish PA was there . .
Thanks for pointing out the 4hr breakdown Jarro. I think this points out why it can be helpful for traders(especially less experienced ones) to focus on fewer pairs. A person can have the proper PPZ drawn but still can miss opportunities(cant see the forest for the trees). Now if I can practice what I preach....

Poncho
" I can read the left side of the chart, the right side's a Bitch!
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