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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

  • #103,161
  • Oct 17, 2011 6:32pm Oct 17, 2011 6:32pm
Donkey or mike or somebody, could you please explain to me why that bar on the D A/J is indicative of a short.

It doesnt look like a BEOB.

y short?


Quoting Donkey
I chose this one too. Most of the other pairs didn't close below a BRN. I would have liked to have seen this one engulf 2 days of bars, but the close on this one, location, and space to FTA make this a high probability set up in my opinion.
  • #103,162
  • Oct 17, 2011 6:48pm Oct 17, 2011 6:48pm
Quoting nikim
Donkey or mike or somebody, could you please explain to me why that bar on the D A/J is indicative of a short.

It doesnt look like a BEOB.

y short?

It is a monthly PPZ area with the 80 being the rejection area.

The H4 BEOB is probably the trigger after it broke and price cut through the 365

Just realized, that they are talking about taking the Daily PA. Same Monthly PPZ area that is in play.
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  • #103,163
  • Oct 17, 2011 6:49pm Oct 17, 2011 6:49pm
Quoting nikim
Donkey or mike or somebody, could you please explain to me why that bar on the D A/J is indicative of a short.

It doesnt look like a BEOB.

y short?
hey Nik

It's a beob on my feed since it has a higher high then previous bar, a lower low then previous bar and a close near the bottom of the bar(in this case lower then previous bars low).


Best
Mike
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  • #103,164
  • Oct 17, 2011 6:54pm Oct 17, 2011 6:54pm
Quoting nikim
Donkey or mike or somebody, could you please explain to me why that bar on the D A/J is indicative of a short.

It doesnt look like a BEOB.

y short?
Technically it's a BEOB in that the high and low are both higher and lower than that of the previous bar. In this case, on my feed, the close of the bar is actually 1 pip below the previous bar's low. I wish it engulfed a little more, but the other factors tip the scales for me and are the reasons I go short - it's gotta be more than just the bar. (I took a zoomed shot that shows that it does engulf, just slightly though).

Those are:

 

  1. Location of the Price Pivot Zone in confluence the big round number of 80, at a nice swing high. Location is probably the most important factor for me.
  2. Strong close - the close right at the bars low gives me a hint that price has momentum to carry lower. Some would call this a 2-day pinbar.
  3. Because it's got a good location, it also has an obvious point for me to reduce risk fairly quickly. This is important to me as well.
  4. There is Space for this to move if it breaks. Could be a little more, but I see enough to give a chance to properly manage the trade.

As Mike points out often, he likes to see a story. To me I see a nice story and good reason to short here. Now I could very well be wrong....just have to wait and see at this point.

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  • #103,165
  • Oct 17, 2011 7:05pm Oct 17, 2011 7:05pm
Quoting Donkey
Technically it's a BEOB in that the high and low are both higher and lower than that of the previous bar. In this case, on my feed, the close of the bar is actually 1 pip below the previous bar's low. I wish it engulfed a little more, but the other factors tip the scales for me and are the reasons I go short - it's gotta be more than just the bar. (I took a zoomed shot that shows that it does engulf, just slightly though).

Those are:
[list][*]Location of the Price Pivot Zone in confluence the big round number of 80, at a nice swing high....
I think we are all on the same page. Heee Heeeee
  • #103,166
  • Oct 17, 2011 7:35pm Oct 17, 2011 7:35pm
Thank you all for the clear explanations.

Was looking back on the chart from Pinbar's terminology and the example of the BEOB is different, so that provided some confusion for me.

But a BEOB or any engulfing bar isnt just the bar itself--- it can contain the wick of the candle- correct?

Quoting Pinbar
I think we are all on the same page. Heee Heeeee
  • #103,167
  • Oct 17, 2011 7:38pm Oct 17, 2011 7:38pm
Quoting nikim
Thank you all for the clear explanations.

Was looking back on the chart from Pinbar's terminology and the example of the BEOB is different, so that provided some confusion for me.

But a BEOB or any engulfing bar isnt just the bar itself--- it can contain the wick of the candle- correct?
Hey Nik

A beob simply has to meet the following criteria to be a BEOB(doesn't mean you trade it if it meets the criteria, simply what is considered a beob)

So for a beob

You want a high higher then the previous bars low.
You want a low lower then the previous bars low
You want the close to be near the bottom portion of the bar

So for aud/jpy we can see we meet all those criteria to be called a beob.

Hope that clears it up, let me know
Mike
  • #103,168
  • Oct 17, 2011 7:42pm Oct 17, 2011 7:42pm
Quoting nikim
Thank you all for the clear explanations.

Was looking back on the chart from Pinbar's terminology and the example of the BEOB is different, so that provided some confusion for me.

But a BEOB or any engulfing bar isnt just the bar itself--- it can contain the wick of the candle- correct?
The candle conists of the body and the wicks (body reps open/close, wicks high/low).

Min requirements as I see them on the bearish engulfing (represented by body), the close has to be lower than the open and the high and low must be higher and lower respectively than those of the previous bar. A couple of things can give the bar more strength - closing lower than the previous bars close and engulfing a range of bars are 2 that come to mind.

The opposite is true for BUOB as far as open and close - close must be higher than the open.

Take a look at some charts and post some charts of outside bars to see if you're spotting them correctly.
  • #103,169
  • Oct 17, 2011 7:45pm Oct 17, 2011 7:45pm
Quoting nikim
Thank you all for the clear explanations.

Was looking back on the chart from Pinbar's terminology and the example of the BEOB is different, so that provided some confusion for me.

But a BEOB or any engulfing bar isnt just the bar itself--- it can contain the wick of the candle- correct?

I showed the H4 BEOB originally because I thought Donkey had taken the H4 BEOB after it broke the Monthly PPZ & the 365. I later discovered he had actually taken the daily BEOB. Both the Daily & H4 bars are BEOB, they meet the criteria of both bars totally engulfing the previous bar by their wicks. Shouldn't be confusing because, they are both exactly the same. I personally liked the H4 setup better, because of the small stop and being able to use the 365 that has confluence with the Monthly PPZ, as the SL area.
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  • #103,170
  • Oct 17, 2011 7:46pm Oct 17, 2011 7:46pm
Quoting mbqb11
Hey Nik

A beob simply has to meet the following criteria to be a BEOB(doesn't mean you trade it if it meets the criteria, simply what is considered a beob)

So for a beob

You want a high higher then the previous bars low.
You want a low lower then the previous bars low
You want the close to be near the bottom portion of the bar

So for aud/jpy we can see we meet all those criteria to be called a beob.

Hope that clears it up, let me know
Mike
I personally think the FTA is too close (77.75) afer that its got room to run for another 100 pips.
Trading is a test match not a Twenty20.
  • #103,171
  • Oct 17, 2011 8:58pm Oct 17, 2011 8:58pm
I am looking at the BEOB on NZD/USD. It looks good to me but I may be missing something as I am new to this. Confluence includes 150 EMA, 200 SMA, PPZ at 0.800, 382 and 50 fibs.

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  • #103,172
  • Oct 17, 2011 9:08pm Oct 17, 2011 9:08pm
Quoting decentchap
I personally think the FTA is too close (77.75) afer that its got room to run for another 100 pips.

I think Donkey is looking at the possible Bigger picture.
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  • #103,173
  • Oct 17, 2011 9:10pm Oct 17, 2011 9:10pm
USDCAD had formed an BUOB, bounce off around 1.000 area and 365 EMA and lower trendline of an uptrend and bullish divergence.

looking quite nice to go for a long on the break.

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FTA 1.0347
  • #103,174
  • Oct 17, 2011 9:18pm Oct 17, 2011 9:18pm
Quoting fascist
USDCAD had formed an BUOB, bounce off around 1.000 area and 365 EMA and lower trendline of an uptrend and bullish divergence.

looking quite nice to go for a long on the break.

Attachment

FTA 1.0347
Watch out for this area.


This is where, Location, Location & Location Trumps PA.
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  • #103,175
  • Oct 17, 2011 10:13pm Oct 17, 2011 10:13pm
Quoting Pinbar
Watch out for this area.


This is where, Location, Location & Location Trumps PA.
Excellent point Pinbar ..One could say that PA formations are a "product of" or a result of these strong locations . .( PPZ levels, Locational Confluence, etc)

That Daily BUOB is also off a strong Monthly LCS level, 1.0150 and you have a good eye seeing that Monthly PPZ level (in blue) that it is running into . .it may have the momentum to break through it . .we shall see.

Great charts Pinbar . .
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Indicators show the past. Price Action "Indicates" the future.
  • #103,176
  • Oct 17, 2011 10:22pm Oct 17, 2011 10:22pm
Quoting jarroo
Excellent point Pinbar ..One could say that PA formations are a "product of" or a result of these strong locations . .( PPZ levels, Locational Confluence, etc)

That Daily BUOB is also off a strong Monthly LCS level, 1.0150 and you have a good eye seeing that Monthly PPZ level (in blue) that it is running into . .it may have the momentum to break through it . .we shall see.

Great charts Pinbar . .

Actually, I see how the Monthly PPZ should be a little lower because of the consolidation area on the left. I mistook that area for the PPZ in the previous post.
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  • #103,177
  • Oct 17, 2011 10:28pm Oct 17, 2011 10:28pm
Jarroo

I can not find that M LCS that the daily BUEOB came off on my chart.
It is the green line on my chart.
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  • #103,178
  • Oct 17, 2011 10:33pm Oct 17, 2011 10:33pm
Quoting Pinbar
Actually, I see how the Monthly PPZ should be a little lower because of the consolidation area on the left. I mistook that area for the PPZ in the previous post.

I would look at both levels.

Quoting Pinbar
Jarroo

I can not find that M LCS that the daily BUEOB came off on my chart.
It is the green line on my chart.
Sure you can, its right there . . .
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Indicators show the past. Price Action "Indicates" the future.
  • #103,179
  • Oct 17, 2011 10:39pm Oct 17, 2011 10:39pm
Quoting Pinbar
Jarroo

I can not find that M LCS that the daily BUEOB came off on my chart.
It is the green line on my chart.
I would not call that a Highest Close of Resistance level (HCR) on your chart . .its not at a Swing High nor at the Top of a Consolidation area.
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Indicators show the past. Price Action "Indicates" the future.
  • #103,180
  • Oct 17, 2011 10:44pm Oct 17, 2011 10:44pm
Quoting Dan Gilbert
Maybe this week price will reach the 1.4000 and give us some PA.
Hey Dan good to see ya . .great freaking level on the Euro . .
Indicators show the past. Price Action "Indicates" the future.
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