james16 Chart Thread | Page 5223 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Where can I learn more about Price Action like those in James16 charts? 9 replies

Attachments: james16 Chart Thread
Exit Attachments

james16 Chart Thread

  • #104,441
  • Nov 15, 2011 8:29pm Nov 15, 2011 8:29pm
Quoting Fx7877
Thanks Mike. I think I got myself abit confused with congestion areas vs FTA ? Becos in this chart, I see alot of traffic in the boxed up area, so I wasn't sure if the BUOB can make it.

Btw, can u share your rules why u won't be taking 2nd one? Thanks!
Yeah I don't blame you FX. I wouldn't normally post that chart here but since I spoke about watching this area I wanted to give a follow up since it ended up coming to fruition

As for the second one, it would be way to small for me and trading back towards a BRN, which intraday for me is mostly a no-no

Best
Mike
  • #104,442
  • Nov 15, 2011 8:29pm Nov 15, 2011 8:29pm
Quoting Fx7877
I mean both the high and the low of the box. Perhaps the high of the box is around 105 BRN and once closed below it,its cleared? I think I have already answered my own question here, lol!
bingo
  • #104,443
  • Nov 15, 2011 9:15pm Nov 15, 2011 9:15pm
Thanks for the heads up mbqb1. It really is my chrome browser indeed. Firefox works fine
  • #104,444
  • Nov 16, 2011 12:46am Nov 16, 2011 12:46am
Quoting Donkey
How about the 61.8 on AZ?? This is what I call confluence: RN,well-defined PPZ, and the fib. All we need now is a little PA.

Oh Yeah D.

Let's throw this TL in the mix as the Icing on the cake. LOL
Attached Image (click to enlarge)
Click to Enlarge Name: pic.jpg Size: 155 KB
  • #104,445
  • Nov 16, 2011 1:43am Nov 16, 2011 1:43am
EUR/CAD loks ready to cave in at 1.3800 after breaking through and closing below the 50% ret. Entered a bit early so if I get spanked on this one I thoroughly deserve it
Attached Image (click to enlarge)
Click to Enlarge Name: eurcad.gif Size: 22 KB
Anything can happen.
  • #104,446
  • Nov 16, 2011 3:07am Nov 16, 2011 3:07am
Quoting ddinnov
EUR/CAD loks ready to cave in at 1.3800 after breaking through and closing below the 50% ret. Entered a bit early so if I get spanked on this one I thoroughly deserve it
I thought the same and just got a good spanking myself. Maybe too tight SL at 1.3860, just above yesterdays open? Ouch!
  • #104,447
  • Nov 16, 2011 3:40am Nov 16, 2011 3:40am
Quoting dropkick-cat
I thought the same and just got a good spanking myself. Maybe too tight SL at 1.3860, just above yesterdays open? Ouch!
I'm seeing the 50% ret as the crunch area on this one but I'm thinking my stop at/above yesterday's high might be a bit too tight as well. Should really have waited for a breakout, pullback, retest or put a sell stop somewhere below the BRN. A lesson in patience methinks!
Anything can happen.
  • #104,448
  • Nov 16, 2011 4:56am Nov 16, 2011 4:56am
Quoting pinbar
oh yeah d.

Let's throw this tl in the mix as the icing on the cake. Lol
hi pinbar
it is true ?
Attached Image (click to enlarge)
Click to Enlarge Name: Chart_EURGBP, H4_20111116_115450.jpg Size: 167 KB
  • #104,449
  • Nov 16, 2011 5:40am Nov 16, 2011 5:40am
Quoting gol_chin88
hi pinbar
it is true ?

Not sure what your question is but, on the weekly & daily charts, we can see this is a PPZ area, that price broke below, pulled back and met resistance.

To be honest, I am a little reluctant to answer questions on time frames below Daily from new members.


Maybe there should be a limit of 500 posts before anyone answers questions about lower than daily time frames.

Here is the area I had marked on my charts for this pair.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: w.jpg Size: 119 KB
Click to Enlarge Name: d.jpg Size: 124 KB
  • #104,450
  • Edited 7:18am Nov 16, 2011 7:03am | Edited 7:18am
Quoting mbqb11
Hey Hiten

This is a huge huge red flag for me that frankly scares me. No one should do that in my view. Of course I am super glad you are demoing, but I think the pressures and the tons of pitfalls are nearly impossible to overcome in this manner. If this is confusing as to why please let me know. Of course I can't comment on peoples personal financial situation in any way, but just as an in general here.

please please please be careful

Mike
I know, and I appreciate your concern, and it is great to know that there are people out there who care, but I think what will help me is that I'm still living at home so I don't have the pressure to pay bills or anything. This is my 3rd week demoing. The first week I made a profit of £5.00, the second week £50, and this week I've made £100 so far. I think I'm slowly improving. I never risk more than 2% of my account on one trade and make sure my expected reward is at least double that. I'm only going to start trading for real if I have another 9 weeks of profit.

Here are a couple of trades I made last night. You might have to click on the pictures to enlarge them because otherwise they're not very clear.

You can see the red arrow pointing to a doji that just happened to line up with a previous support level, as well as the 50% fib retracement level. I shorted and took my profits around the 61.8 fib extension level for a profit of £44.48.




Attached Image (click to enlarge)
Click to Enlarge Name: Trade 4.JPG Size: 170 KB




For this next one I again went short (most of my best trades have been shorts, and I just feel more comfortable with them than going long. I don't know why that is). If you look at the circled area you can see a hanging man followed by a bearish engulfing pattern. What's more is that the highs of the candles before and after the hammer are the same height, forming a tweezer top. All of this just happens to take place on the 38% fib retracement level. As a result of these things, I shorted at 1.01778 and took my profits at 1.00700 for a profit of £68.40.



Attached Image (click to enlarge)
Click to Enlarge Name: Trade 5.JPG Size: 199 KB



Let me know what you think. Out of the 17 trades I've made since I started, 11 have been winners. I want a win percentage of at least 80. 50/50 would make me feel like I was gambling, even if I had a 2:1 reward to risk ratio. As for the pitfalls of trading, if there's anything you feel I should know, then please tell me. I'm always open to the advice of veteran traders, even though sometimes I might be too stubborn to listen.
  • #104,451
  • Nov 16, 2011 7:12am Nov 16, 2011 7:12am
Quoting Hiten123
I know, and I appreciate your concern, and it is great to know that there are people out there who care, but I think what will help me is that I'm still living at home so I don't have the pressure to pay bills or anything. This is my 3rd week demoing. The first week I made a profit of £5.00, the second week £50, and this week I've made £100 so far. I think I'm slowly improving. I never risk more than 2% of my account on one trade. I'm only going to start trading for real if I have another 9 weeks of profit.

Here are a couple of trades I made last...

Be careful, these small gains on demo can sometimes be worse than a loss.
The time frame is way too short to really get a feel for what the market is doing.

I mean come on, 5 posts and you are trading H1?
Have you read James 16 first post about sticking to the weekly and daily time frames.
J16 made that post for a reason. Think about it, he knows what he is talking about, he's been there and done it and much worse.

This post is meant for all new people to read.
  • #104,452
  • Nov 16, 2011 7:21am Nov 16, 2011 7:21am
Quoting Pinbar
Be careful, these small gains on demo can sometimes be worse than a loss.
In what way?
  • #104,453
  • Nov 16, 2011 7:27am Nov 16, 2011 7:27am
Quoting Hiten123
In what way?
You mean the small gains on demo?

Well, demo trading and trading real money are psychologically a different ball game. Also, trading a small account to live by,means we need to make more pips or trade larger lots, this means, over trading. The pressure of having to make X amount of money on a small account, by small I mean under US$100,000 is the road to ruin.
  • #104,454
  • Nov 16, 2011 7:28am Nov 16, 2011 7:28am
MINIMUM REQUIREMENTS

If you are new to trading and/or you have had difficulty finding some consistent success, you must understand something. This is not a game and it's not a way to get rich quick. I suppose there is the odd exception of the person with a ton of money to play with, but if you approach this business without a business plan and the willingness to follow it, you are almost certainly doomed to failure. A doctor spends ten plus years in a grueling learning curve to be successful and earn a six figure income; anyone who thinks that their pot of gold in this business is a couple of months down the road is in for a rude awakening.
Below is a minimum requirement (in my opinion) to find out without losing your @#!@#$%$# if this business is for you. By following these recommendations, you will be treating trading like a business and you will be learning and gaining confidence. I think this is so important, I am going to make the following statement: If you start out in this business using no common sense, you have no one to blame other than yourself when you lose all your money. There is no reason to ever lose a dime of your money while learning to trade. A well thought-out business plan, common sense and hard work is required for anyone who wants a chance at success. Many people meet those requirements and still fail, but it does not mean you have to watch your bank account go to zero.
  • #104,455
  • Edited 7:59am Nov 16, 2011 7:30am | Edited 7:59am
MINIMUM REQUIREMENTS / THIS IS A BUSINESS







WHATEVER / WHICHEVER WAY YOU DECIDE TO TRADE YOU MUST (AT A MINIMUM):

  1. ON DAILY AND WEEKLY TIME-FRAMES, YOU ONLY DEMO-TRADE FOR THREE CONSECUTIVE PROFITABLE MONTHS IN A ROW. YOU DO NOT PROCEED TO STEP TWO UNTIL COMPLETED.
  2. OPEN AN ACCOUNT WITH HALF OF THE INVESTMENT YOU INTENDED TO GO FULL WITH AND CONTINUE TO ONLY TRADE DAILY AND WEEKLY TIME-FRAMES UNTIL YOU ARE PROFITABLE THREE MONTHS IN A ROW MINIMUM. YOU NEVER RISK MORE THAN TWO PERCENT OF YOUR ACCOUNT ON ANY ONE TRADE. YOU DO NOT PROCEED TO STEP THREE UNTIL STEP TWO IS COMPLETED.
  3. FUND A FULL ACCOUNT AND CONTINUE TO ONLY TRADE DAILY AND WEEKLY TIME-FRAMES UNTIL YOU ARE CONSISTENTLY BUILDING YOUR ACCOUNT FOR AT LEAST SIX MONTHS. YOU NEVER RISK MORE THAN 2 OR 3 PERCENT OF YOUR ACCOUNT ON ANY ONE TRADE.
  4. IF AND WHEN YOU DECIDE TO DAY TRADE ON A SMALL TIME-FRAME AND YOU DON'T FOLLOW THIS TEMPLATE, AT A MINIMUM, YOU ARE ALMOST CERTAINLY GOING TO FIND YOURSELF IN TROUBLE. IF YOU ARE GOING TO FOLLOW A SYSTEM OR ANY TRADING STYLE AND YOU DON'T FOLLOW THIS TEMPLATE AS FAR AS THE DEMO PROCESS, YOU ARE NOT TREATING IT AS A BUSINESS AND YOU HAVE NO ONE TO BLAME OTHER THAN YOURSELF IF YOU LOSE YOUR MONEY.
  5. IF YOU EVER SUFFER THE LOSS OF 30 TO 35 PERCENT OF YOUR ACCOUNT, YOU STOP TRADING. PERIOD-PARAGRAPH. YOU GO BACK TO DEMO AND FIGURE OUT WHAT WENT WRONG. WHILE DOING THIS, YOU REFUND YOUR ACCOUNT BACK TO ITS ORIGINAL AMOUNT. YOU DO NOT GO BACK TO LIVE TRADING AGAIN UNTIL YOUR DEMO HAS SHOWN YOU WHAT WENT WRONG AND YOUR ACCOUNT IS BACK TO FULL STRENGTH BY WHATEVER MEANS. IF IT TAKES ONE MONTH OR SIX MONTHS, IT DOES NOT MATTER. YOU MUST FOLLOW THIS APPROACH IF YOU DON'T WANT BLOWN ACCOUNT AFTER BLOWN ACCOUNT.

Your goal should be this. Learn, learn and learn some more and don't do anything stupid while your getting your feet on the ground. The ultimate goal of any trader is to build an account to a size where just a few good trades a month produces a staggering income. Hardly anyone ever gets there because they don't treat it as a business. They do stupid things that they would never do in any other area of their life and it's because of the money that can be made. If it takes you a couple of years or even five or ten to reach the level of a staggering income, is it worth it? The choice is yours.

  • #104,456
  • Nov 16, 2011 7:35am Nov 16, 2011 7:35am
Quoting Pinbar
You mean the small gains on demo?

Well, demo trading and trading real money are psychologically a different ball game. Also, trading a small account to live by,means we need to make more pips or trade larger lots, this means, over trading. The pressure of having to make X amount of money on a small account, by small I mean under US$100,000 is the road to ruin.
I can imagine it being different psychologically, but I'm treating each trade as if it was real. Psychologically I already feel a huge amount of pressure. Not to make x amount of money per week, but to consistently make profits each week on demo. The reason there is so much pressure is because unless I do well on demo, I can't start trading for real, so everything is riding on me doing well in demo. I quit my job for this, so the pressure to make it work is huge.

When I start trading for real, for the first 2 years or so, I'll just be happy to build my account slowly and consistently make pips. After 2 years, I want to be earning enough money to live off. I think I can do it if I stay disciplined and think long term instead of trying to get rich quick.
  • #104,457
  • Nov 16, 2011 7:38am Nov 16, 2011 7:38am
Note the TIME FRAME.. Weekly & Daily even on demo or you are not treating it as a business.

I know, I messed around the same way and had to go back after wasting half a year and do everything again.

That half a year, wasted more than a year.
  • #104,458
  • Edited 7:58am Nov 16, 2011 7:39am | Edited 7:58am
Quoting Hiten123
I can imagine it being different psychologically, but I'm treating each trade as if it was real. Psychologically I already feel a huge amount of pressure. Not to make x amount of money per week, but to consistently make profits each week on demo. The reason there is so much pressure is because unless I do well on demo, I can't start trading for real, so everything is riding on me doing well in demo. I quit my job for this, so the pressure to make it work is huge.

When I start trading for real, for the first 2 years or so, I'll just be happy to...
Did you even read the J16 post, I put up.

Doesn't sound like it.

You won't build your account slowly on H1, you will lose all your money quickly.

That is the point J16 is making.

You are now on the important demo phase but, you are ignoring the Man's advice so, you are not treating this as a business.

Ok, you won't listen to reason. I shall cease for trying to get you to.

PS: You just answered the question as to why this is not the correct manner to go about things.

"I quit my job for this, so the pressure to make it work is huge."

This was not a good position to put yourself in & is a major concern!
  • #104,459
  • Nov 16, 2011 7:59am Nov 16, 2011 7:59am
Quoting Pinbar
Oh Yeah D.

Let's throw this TL in the mix as the Icing on the cake. LOL
Nice - I'm personally waiting on PBT&CA the LCS at 1.3209 (I think it's 1.3206) on your chart. Looks like the perfect spot for a flip from resistance to support.
  • #104,460
  • Nov 16, 2011 8:34am Nov 16, 2011 8:34am
Quoting mbqb11
Hey Hector

Write as many long posts as you need and thanks for the kind words, they mean a lot

I basically see this more as a breakout of a consolidation area with the beob as the "tip-off"

In this case the lows are very important(lower boundary of the box). This area really needs to hold on any pullback otherwise the idea of it may not be as valid.

My FTA is much closer which price has been able to get through pretty nice(see chart). Obviously where you move your stop loss or exit is going to be very trader dependent. I think moving...
Thank you Mike

So, in cases like this, where no formation is present and we have a consolidation area, we need PA to confirm the break, and dont get caught in false breaks. I will take it into account in the future!!!

What you write about the break level holding on pullback makes me think that maybe yesterday bar can be seen as a Jaroo's bar where PBT&CB a level of support, so we could see a test of the break and wait for that level to act as resistance, and it could be an opportunity to enter again. Of course, waiting for PA confirmation.

I didnt saw the FTA you pointed out, ill be more carefull next time with previous highs/lows. Used your SL recomendation on 4hr chart, using current 4hr high to place stop and was stopped @ 1,5805 (I hided the stop above a RN on last bar I saw before going to bed). I liked this way of managing the trade, think will use it A LOT, lol

I cant believe I read that it was a valid trade!!! (entry on the BEOB, not on the break of the lows, but this is a start, at least saw the confirmation once I was in the trade to stay in ;-))

I have recorded in my mind that any trade needs to have a story (i like the term you use to point that out), need to have as many reasons for price to go in any direction as you can, this is key. Luck is not going to last forever. And learn from the bad trades (why did it go in the other direction), but learn from the good ones too (why did it actually go in your direction, is that your analisis is right?, or it was luck?)

Once again, many thanks, your feedback is really appreciated, and usefull on this experience!!!

Best wishes and trading

Hector

PD: Mike gave me permission to break my promise of making shorter posts, lol
100 traders viewing now