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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

  • #97,281
  • Jun 25, 2011 7:26am Jun 25, 2011 7:26am
Friends. I was going to PM one of the seniors out of humility but thought I'd share the trade with the group.

Pair: eurgbp
Action: Long on 4h PB

What I liked about the setup is that price broke through the 0.8900BRN, traded above, retested and formed a 4h PB. I knew of the greater trendline above (daily chart), but thought the small bearish PB that tested it was insignificant compared to the bullish PB that formed almost straight after.

Mistakes on my behalf:
- Went long with a very small buffer on close of the PB.
- Perhaps I was overly confident from previous winners and got lazy?
- Was I too presumptuous to think that this 4h PB would break the daily trendline?

Interesting how the 4h trendline is still valid/active, despite being broken.

Discussion:
As a general rule, would you apply more weight to the higher timeframe's trendline in the same way you would/could apply a greater weight to a daily PB over an opposing 4h PB (For example)?
Did I analys the story correctly or have I missed the point entirely?

Conclusion:
Can we now presume that we should be careful when trading into a trendline much like a BRN or S/R level?

Mike, SC, Jim, I'd be really interested to hear your views on this one. Also, feel free to share your thoughts everyone.

Thanks, Tomek
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  • #97,282
  • Jun 25, 2011 7:50am Jun 25, 2011 7:50am
Quoting 5.25
Friends. I was going to PM one of the seniors out of humility but thought I'd share the trade with the group.

Pair: eurgbp
Action: Long on 4h PB

What I liked about the setup is that price broke through the 0.8900BRN, traded above, retested and formed a 4h PB. I knew of the greater trendline above (daily chart), but thought the small bearish PB that tested it was insignificant compared to the bullish PB that formed almost straight after.

Mistakes on my behalf:
- Went long with a very small buffer on close of the PB.
- Perhaps I was overly...
Some do, and most of the time they work. But if you really want to be picky (which I learn myself) choose only those that STICK OUT. Meaning the BEOB must have it's high above previous bars and be the swing bar (i.e. it's high represents the swing high).

the same with pinbars i believe, but that just my thought.
  • #97,283
  • Jun 25, 2011 7:58am Jun 25, 2011 7:58am
Quoting g_j_hook@yah
heres my buissiest charts and they are like this cos i trade them regulary...

jon
Hey Jon,

Can I ask, what was your sell trade on the gbpusd pair around the 0.61760 mark?

I've been studying this pair and 1 or 2 others on the lower time frames and saw a nice looking PB with a classic "price breaks through and closes below", pull back and continuation scenario. Only this was based on trend lines not S/R levels. (I did not trade this). Was this your entry plan?

This is something new I've begun looking into.

Thanks, Tomek
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  • #97,284
  • Jun 25, 2011 8:15am Jun 25, 2011 8:15am
related to that aud/cad discussion - at "1" I was sure I should short abit more; at "2" was sure I was wrong and should go long.

on the other hand, if you like the bar on weekly and plan to go long, I'd be careful at "1" on the second chart(a previous fake signal) - on the other hand it looks like the setup which started the previous move from 0.965... There isn't that much room till all time high(which could pop, but which could also be retested before popping, or which might not pop at all...).

and depending on the feed - who has nice pinbars or beobs or whatever on chf - someone threw in(at least on my broker) an order in the last 10-12 mins of the market and everything went kaboom for 5 mins probably due to huge illiquidity - probably shorted eur/chf like everyone. Unfortunately wasn't at the comp.(I noticed it 1st hand since like a moron I moved a sl to be thinking there are only 10mins left and I won't be at opening sunday and got popped by this idiot).

On the over the weekend feeds, franc is back where it was before so maybe one should count this too when looking at the setup.
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  • #97,285
  • Jun 25, 2011 8:19am Jun 25, 2011 8:19am
Quoting huskyboy
Some do, and most of the time they work...just my thought.
Thanks Husky, but are you referring to the PB I flagged or have I over complicated the chart? Maybe this will clear things up?

Quoting 5.25
Pair: eurgbp
Action: Long on 4h PB
Is this a valid setup based on the following principles:

- PBT&CA
- PB on retest of BRN
- With immediate trend line (not overal trend line)
- FTA close but achievable?
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  • #97,286
  • Jun 25, 2011 8:34am Jun 25, 2011 8:34am
So this is the Weekly EURCAD as you see , the price couldn't break this Support level since 2 week and made JCS "Japanese candle sticks " patter it called Pin bar ,that simply shows that the traders couldnt break this level and always closed above it . Plus there is a Trend line and the price closed above it . So how we will use this Setup ..

We will go to the smaller time frame which the daily time frame , as we see the price closed above the 50 DMA , above the trend line and support too on the daily , always the closest S or R to the price is the most important one ..

And its pin bar too , so when this high is broken will go Long and our target is the 100 SMA on the Weekly chart and at the same time the high of the Last week the green line , which is 1.4100 level if it breake it ,the next target is 1.4163 ... so this is my next target , My Stop loss is " 1.3820 ...

You can risk in this trade just 1% of your account
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  • #97,287
  • Jun 25, 2011 8:48am Jun 25, 2011 8:48am
Quoting 5.25
Thanks Husky, but are you referring to the PB I flagged or have I over complicated the chart? Maybe this will clear things up?



Is this a valid setup based on the following principles:

- PBT&CA
- PB on retest of BRN
- With immediate trend line (not overal trend line)
- FTA close but achievable?
I am a juniour here and it looks a very attractive PB in H4 chart to me, however I did not take this, main reason for me is that for lower TF (maybe H4 is not a so low TF), the PPZ may not be exactly the 0.89.

IMHO, 1st of all, actually I drawed a 0.89210, the price touched this price and turned back 2~3 times, which can be considered as a Resistance.(if we look back the history).
2nd, If you put your entry price just above the PB, you will find that the entry price touched backside of another bearish PB.
IMHO, actuall the Pinbar is the retracement of previous Bearish bar (that break through the 0.89210).

Cav
----------------------------- Discipline makes the difference.
  • #97,288
  • Jun 25, 2011 8:56am Jun 25, 2011 8:56am
Quoting 5.25
Thanks Husky, but are you referring to the PB I flagged or have I over complicated the chart? Maybe this will clear things up?



Is this a valid setup based on the following principles:

- PBT&CA
- PB on retest of BRN
- With immediate trend line (not overal trend line)
- FTA close but achievable?
If I may, since it is quiet here today. My thoughts are on the chart.
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  • #97,289
  • Jun 25, 2011 9:02am Jun 25, 2011 9:02am
Hey 5 my answers below

Quoting 5.25
- Went long with a very small buffer on close of the PB.
In a scenario like this I can't see the benefit to trading off the close of the bar on a 4hr chart. Intraday charts are tough and saving 10 pips to get in right away always seems more impulsive to me when I see people do it. If you see someone enter on the close usually the trade has strong support reasons beyond just the bar and getting in early.
Quote
- Perhaps I was overly confident from previous winners and got lazy?

Something tells me the fact you are bringing this up that it probably is an issue, but I wouldn't be able to make that judgment call
Quote
- Was I too presumptuous to think that this 4h PB would break the daily trendline?
Why not wait till the trendline actually breaks To me if you simply forgot about the daily and focused solely on this bar alone you probably would have said. Hmm Pinbar swing high, is that enough to go long off the 4hr?

In a scenario like this I can't see the benefit to trading off the close of the bar on a 4hr chart. Intraday charts are tough and saving 10 pips to get in right away always seems more impulsive to me when I see people do it. If you see someone enter on the close usually the trade has strong support reasons beyond just the bar and getting in early.



Quote
Discussion:
As a general rule, would you apply more weight to the higher timeframe's trendline in the same way you would/could apply a greater weight to a daily PB over an opposing 4h PB (For example)?

I tend to stick to the same timeframe I am trading off. So in this case I would have never once peeked at the daily in most cases.
Quote
Did I analys the story correctly or have I missed the point entirely?

See chart

Quote
Conclusion:
Can we now presume that we should be careful when trading into a trendline much like a BRN or S/R level?

Yes everything holds weight if it has held weight in the past

Quote
Mike, SC, Jim, I'd be really interested to hear your views on this one. Also, feel free to share your thoughts everyone.

Thanks, Tomek

Hope this helps

Mike
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  • #97,290
  • Jun 25, 2011 9:08am Jun 25, 2011 9:08am
Oh and also, I saw that many times and I pay attention to this.
I call them Inner Pivot, many times they will hold the price (for some reason) I even read about the method that suggests setting a touch trade at this level. So here again that level worked... I guess...

If you look at other charts you will see them, maybe just a coincidence maybe not... but I notice this more and more, could be simple S/R like Jarroo said about it some time ago...
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  • #97,291
  • Jun 25, 2011 9:08am Jun 25, 2011 9:08am
Quoting 5.25
Is this a valid setup based on the following principles:

- PBT&CA
- PB on retest of BRN
- With immediate trend line (not overal trend line)
- FTA close but achievable?
it's a 20 pips move(with at least 35 pips to go against you anytime till .8885). Also .8920 was ress. before on daily(not on h4).

and the 2nd trendline is so abrupt it's hard to hope it'll hold for long.

and it's eur/gbp - one of the ugliest pairs to trade 'xcept for obvious swing highs lows. Every 20 pips it's an important line...

p.s. - also, the 0.8975 previous high is misleading. The area of .894-.895 would've held just fine if it wasn't for some chick from moody's coming up and saying in an interview that they consider the scenario of UK default. Obviously, 30 mins afterwards their spokeperson came and said that's not the scenario they're working with...
  • #97,292
  • Jun 25, 2011 9:16am Jun 25, 2011 9:16am
Quoting CavinK
Hey Friend there,

This is a previous BEOB but I got some confusion here, a nice looking BEOB which engulfs previous 4 bars, I saw someone entered that trade, but looks like the BEOB did not break through the 1.605 that is a small RN and PPZ of support, however the price DID go down as the BEOB enforced...

Did I misundestand some point of the BEOB definition?
Here are my thoughts CK....and keep in mind that I have become ultra picky, maybe too much so. Reason is I went through a losing streak earlier in the year and tightened up a lot of my entry rules.

Anyway, you'll see many on here say that location trumps everything. In this case there was a lot that I saw going for the bar. Very nicely shaped, engulfed the 4 previous bars, strong close, close below the 150 ema and a rising trend line.

When I looked at I saw 3 things that kept me out - mostly related to the location. 1st was trading into a strong BRN at 1.6000. I don't like to baby sit trades and this would have been quick to BE or a quick take profit for my style. One of my rules is not to trade directly into BRNs.

The 2nd is that it is not at an extreme swing high and is more of a continuation trade. These are much more difficult for me personally so things have to be "perfect" to my eyes.

The 3rd is that I would have liked to have seen a close below the bar low I marked several over. (This is probably me being too picky).

The bar broke hard and made it to 1.6000 which is no surprise. The next bar has long lower wick showing that we did get an initial rejection at the BRN - which is no surprise either.

For me the bar was A+ and the location was B...and I ultimately sat this one out. Sorry to ramble, just wanted to share what I was seeing.
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  • #97,293
  • Jun 25, 2011 9:32am Jun 25, 2011 9:32am
Quoting Donkey
Here are my thoughts CK....and keep in mind that I have become ultra picky, maybe too much so. Reason is I went through a losing streak earlier in the year and tightened up a lot of my entry rules...
.
Thank you Donkey, perfect analysis, I did not take it also but my view on that was not such technical and not clear.
"Location is everything", very nice.
----------------------------- Discipline makes the difference.
  • #97,294
  • Jun 25, 2011 9:41am Jun 25, 2011 9:41am
Quoting Adilius07
Oh and also, I saw that many times and I pay attention to this.
I call them Inner Pivot...
I even read about the method that suggests setting a touch trade at this level...
It isn't something by Rick Ackerman by any chance is it? http://www.rickackerman.com/

Husky Boy, Calvin K, Adilius07, Snowly and Mike. Thanks for sharing, quite a bit to digest.

Quoting mbqb11
Something tells me the fact you are bringing this up that it probably is an issue, but I wouldn't be able to make that judgment call
Could have been the most significant factor in this scenario as opposed to justifying the strategy.
  • #97,295
  • Jun 25, 2011 9:55am Jun 25, 2011 9:55am
Quoting 5.25
It isn't something by Rick Ackerman by any chance is it? http://www.rickackerman.com/
No, have not even heard about Ackerman before. I saw it on some site called forexmagic..something, or magicforex something... But honestly most looked BS to me, just this little trick about pivots, I liked it as I saw it happens often. Maybe that is just where S/D starts (like with Sam Seiden)..something like this. Anyway it don't hurt knowing about it, so I watch it too
  • #97,296
  • Jun 25, 2011 10:09am Jun 25, 2011 10:09am
In July it will be 1 year as I am on this forum, and I registered on Forum to post here only. Because this is the only place I believe will work for ME, not saying others are bad, just don't really fit my personally I guess. I love J16 method, period.

I have grown a lot as a trader I know that and I greatly appreciate the help that Seniors did for me, especially Mike, thank you very much!

However, I have one problem. Is my equity curve! It keeps on goin down see. Month after month. There is something that won't let me make the step further, to profitability.

So my question to the Seniors is this. If I join the PF do you think I will find the answers there? You know where I stand what I know and what I don't know (or don't know that I don't know...)

I am not asking to be spoon fed (or I am) is just whatever I do the damn equity curve will go down!

I will appreciate any kind of answer, if you could PM and tell me the scary, unplesant truth about myself or maybe some advice YOU SAW I lack...I will appreciate that too and keep it a secret.. I promise.

It cannot be that I am so stupid that whatever I do I will have a lossing month? Or it can...
  • #97,297
  • Jun 25, 2011 10:53am Jun 25, 2011 10:53am
Quoting Adilius07
In July it will be 1 year as I am on this forum, and I registered on Forum to post here only. Because this is the only place I believe will work for ME, not saying others are bad, just don't really fit my personally I guess. I love J16 method, period.

I have grown a lot as a trader I know that and I greatly appreciate the help that Seniors did for me, especially Mike, thank you very much!

However, I have one problem. Is my equity curve! It keeps on goin down see. Month after month. There is something that won't let me make the step further,...
You're not stupid. I am for all the stupid comments I've posted recently.

IMHO. Trade less, use proper timeframes, take a+ trades and listen to Supreme's very recent comments.

I trade a lot of break outs and have hinted at some of the stuff which helped me (Gann, Crabel etc.). The stuff J16 uses (I would suggest) often complements different break out strategies too.

I thought Pinbar made some excellent comments on his video.

http://www.james16group.us/Guests/guestmaterial.html

Good luck Adilius. Believe in yourself and cut your risk. If you are disciplined (which I am sure you are), you should not be failing to grow your account. Your account should be taking care of itself!

Best,
  • #97,298
  • Jun 25, 2011 10:56am Jun 25, 2011 10:56am
Quoting Knight Rider
You're not stupid. I am for all the stupid comments I've posted recently.

IMHO. Trade less, use proper timeframes, take a+ trades and listen to Supreme's very recent comments.

I trade a lot of break outs and have hinted at some of the stuff which helped me (Gann, Crabel etc.). The stuff J16 uses (I would suggest) often complements different break out strategies too.

I thought Pinbar made some excellent comments on his video.

http://www.james16group.us/Guests/guestmaterial.html

Good luck Adilius. Believe in yourself and cut...
Hi KR, yeah I think I tried them all. Seems that nothing works though...(to make a positive change in my bottom line)
Thanks for the good ecouraging words!
  • #97,299
  • Jun 25, 2011 11:07am Jun 25, 2011 11:07am
remember what i said in your journal thread?
  • #97,300
  • Jun 25, 2011 11:08am Jun 25, 2011 11:08am
Quoting Razorman
remember what i said in your journal thread?
The R/R ?
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