james16 Chart Thread | Page 5535 | 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

  • #110,681
  • Apr 24, 2012 11:50am Apr 24, 2012 11:50am
Quoting Quezoy
I have a question about divergence, I've attached a chart.

The green line is divergence, is the yellow line also divergence or is it not appliable anymore?
Hey Q

Yep according to the settings you are using on your oscillator both would be. Yours seems to be very sensitive so you are having more of the smaller peaks which will show divergence in more situation(RSI is a lot like this too)

Best
Mike
  • #110,682
  • Apr 24, 2012 12:02pm Apr 24, 2012 12:02pm
Quoting mbqb11
Hey H

There are a few things that I would be watching out for

Firstly notice your BUOB is up at a swing high point. Remember we want buobs at swing low points where James teaches us. Continuation bars are where I start to see people get tripped up when moving away from the proper locations to start with. This is why we stress so much about building the basics(including sticking to larger timeframes until we can accomplish the minimum requirements). I know the urge is always there but that foundation is very important in my experience.

In...
That clarifies things alot. Thanks mike.
  • #110,683
  • Apr 24, 2012 12:06pm Apr 24, 2012 12:06pm
Quoting 4tiger
Hey Everyone,
I have a few questions regarding Martin Pring on Price Patterns, for those of you who have read it! I went back to the 'source' because to my understanding, some of the methods taught here have their origins from there.

1. Arithmetic VS Logarithmic Charts
There are advantages and disadvantages to both charts, how do I go about viewing a Logarithmic scaled chart on MT4? Does anyone use logarithmic charts?

2. Trendlines
I find drawing TLs to line charts more comfortable, price spikes (highs and lows) are not shown in...
Hey T

Here are some answers

1. MT4 is not very flexible with a lot of things you would want to look into a more advanced platform. You can play with some of the scaling if you right click and go to properties, but not quite log vs arithmetic

Logarithmic scales represent an equal amount of percentage change. Arithmetic scales represent an equal amount of numerical change.

2. I have seen people do it both ways. One uses the close of price(line charts are closes) and the other highs and lows(max min values of price). I use highs and lows, but sometimes it overlaps. Closes are extremely important to the market so I think it's also good to have an understanding of both.

3. I would say sort of, but for me it would be noticing if we are losing momentum thus the potential breakout may not sustain as well. Often a bit too lagging for me, but I can't comment if that works or not since I never used that tool in that way.

Just a few thoughts for ya

Mike
  • #110,684
  • Apr 24, 2012 12:07pm Apr 24, 2012 12:07pm
Quoting DBallerz
This stuff is so powerful it just hurts!!!
hahah don't be hurting yourself DB!
  • #110,685
  • Apr 24, 2012 12:08pm Apr 24, 2012 12:08pm
Quoting mbqb11
Hey Q

Yep according to the settings you are using on your oscillator both would be. Yours seems to be very sensitive so you are having more of the smaller peaks which will show divergence in more situation(RSI is a lot like this too)

Best
Mike
Statistically I have studied divergences from RSI (as well as Reversals as per Andrew Cardwell). My findings regardless of time frame (or the currency pairs I have study, primarily US majors) show that divergences most often signal a retracement rather than a reversal of trend and that reversals, as discovered by Cardwell signal actual reversals of trend, in particular if the trend continues for any length of time. I don't imagine anyone here uses reversals but can anyone speak to the idea of divergences reflecting a retracement more than a continuation of the trend?
  • #110,686
  • Apr 24, 2012 12:16pm Apr 24, 2012 12:16pm
Quoting pdean123
Statistically I have studied divergences from RSI (as well as Reversals as per Andrew Cardwell). My findings regardless of time frame (or the currency pairs I have study, primarily US majors) show that divergences most often signal a retracement rather than a reversal of trend and that reversals, as discovered by Cardwell signal actual reversals of trend, in particular if the trend continues for any length of time. I don't imagine anyone here uses reversals but can anyone speak to the idea of divergences reflecting a retracement more than a continuation...
Hey P

That's interesting stuff, I tend to look at the overall situation to decide the type of reversal(of course defining what one calls a reversal vs a large retracement etc is another story) that may occur. To me it's all about the confluence story and location PLUS that divergence that may signify a larger reversal verse a short term pullback(like in a strong trending market divergence is a lot less sustainable until the market has a significant enough reason to reverse). I don't even use MACD/RSI etc anymore as you can see this on the chart, but I always say to use divergence as a tool to begin to take a heads up. Start taking notice. I also like nice clean divergence(that's why I use standard macd as opposed to a more sensitive one). This makes it easier for me to see the more important ones, that then might line up with a very strong confluenced area. They are of course happening less than a more sensitive oscillator which will be more sensitive to price fluctuations.

That's great you are examining stuff like this and questioning all tolls you use as a trader. Super important. So not much help for you here, but felt like throwing my hat in again

Best
Mike
  • #110,687
  • Apr 24, 2012 12:31pm Apr 24, 2012 12:31pm
Quoting 4tiger
Hey Everyone,
3. What was I going to ask... oh right, Volume Analysis:
This is my main question, I have read that VA is not really applicable in the forex market because there is no centralized market? But Martin Pring talks a lot about VA and how it helps to confirm breakouts and completion of price action patterns.
http://www.forexfactory.com/showthread.php?t=297275

Some stuff on VSA m8.
  • #110,688
  • Apr 24, 2012 12:34pm Apr 24, 2012 12:34pm
Quoting Rust
Yo !
Attachment

How I made 0.5% in 5 minutes It was so quick , that it was over before i could get the chart ready to post


UPDATE :
Attachment
Nice trade...contiuation bars are tricky and taking quick profits or reducing risk quickly is pretty crucial for those plays....well done.

Here is how how I'm seeing EURNZD using jarroo's concepts. I have a pending order in at the top of a strong ppz as defined by weekly HCR/LCS levels. The HCR already gave a little rxn as seen on 4H.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurnzd 042412.gif Size: 25 KB
Click to Enlarge Name: eurnzd 042412a.gif Size: 26 KB
Click to Enlarge Name: eurnzd 042412b.gif Size: 32 KB
  • #110,689
  • Apr 24, 2012 12:43pm Apr 24, 2012 12:43pm
Quoting mbqb11
Hey Q

Yep according to the settings you are using on your oscillator both would be. Yours seems to be very sensitive so you are having more of the smaller peaks which will show divergence in more situation(RSI is a lot like this too)

Best
Mike
Tnx Mike.

My settings are standard however - 12/26/9
Thoughts are things
  • #110,690
  • Apr 24, 2012 12:56pm Apr 24, 2012 12:56pm
Quoting Quezoy
Tnx Mike.

My settings are standard however - 12/26/9
Hey Q

I saw that but the MACD is not the standard one that comes with MT4, looks like you downloaded one that probably had adjustments to it.

Not a huge deal, really it's always going to be about the situation and how relevant it is for price to be showing a fade in momentum(meaning we want to confirm it via price always)

Best
Mike
  • #110,691
  • Apr 24, 2012 1:20pm Apr 24, 2012 1:20pm
Quoting Donkey
Nice trade...contiuation bars are tricky and taking quick profits or reducing risk quickly is pretty crucial for those plays....well done.

Here is how how I'm seeing EURNZD using jarroo's concepts. I have a pending order in at the top of a strong ppz as defined by weekly HCR/LCS levels. The HCR already gave a little rxn as seen on 4H.
Well , it happened to be good for some more profit , but entering late NY session stopped me from experimenting what will happen on the marked area (actually price stalled and bounced just there quite good before brake it up). Still a decent profit . As Mike says , these little ones add up.

Good luck with your trade
  • #110,692
  • Apr 24, 2012 1:45pm Apr 24, 2012 1:45pm
Quoting mbqb11
Hey Bullzeye

Just be super super careful and monitoring ones like this close. We are in a TON of traffic and a very very consolidated and sideways market(we can see all that chop up and down as well as if we zoom out see how much this pair has been consolidating). Just watch these very very very close or they can be painful and quick.
Thanks Mike ...yes the situation is unclear and the conditions are very choppy. I set my SL to BE and see what will happens
  • #110,693
  • Apr 24, 2012 2:56pm Apr 24, 2012 2:56pm
Quoting mbqb11
Hey T

Here are some answers
Thanks!
1. I don't really want to use different scaling but I thought I'd ask about it.. If I switched up to logarithmic then I would have to look at charts quite differently then haha. I guess it shouldn't be necessary or make too much of a difference with the method being taught here, or people would be using it.

2. Thanks for the confirmation about using TLs on line charts. They fit better... But with the TL drawn to price closes, when I switch the view back to bars, the highs and lows stick out of the trend line looking like a few small false breakouts haha... It's a tighter trend line that's for sure.. Is it okay to trade when prices cross a trend line or should a trade only be placed after a breakout is confirmed with a price close?

3. It was pretty cool reading about pin bars in the Price Pattern book, knowing that it's been talked about so much in this thread. but I was surprised when I was reading about VSA since it's hardly mentioned here! Is it just another extra indicator or should TL PPZ BRNs and Fib lines be enough?

Quoting beebolbod
http://www.forexfactory.com/showthread.php?t=297275

Some stuff on VSA m8.
Thanks! There's a bit of arguing in that thread lol. But it cleared up some questions I had, I assume if I want to use volume in FX then what I should be looking for is tick volume.
  • #110,694
  • Apr 24, 2012 3:44pm Apr 24, 2012 3:44pm
Quoting 4tiger
Thanks!
1. I don't really want to use different scaling but I thought I'd ask about it.. If I switched up to logarithmic then I would have to look at charts quite differently then haha. I guess it shouldn't be necessary or make too much of a difference with the method being taught here, or people would be using it.

2. Thanks for the confirmation about using TLs on line charts. They fit better... But with the TL drawn to price closes, when I switch the view back to bars, the highs and lows stick out of the trend line looking like a few small...
Check this guys posts too.... very cool.
http://www.forexfactory.com/hiddengap
  • #110,695
  • Apr 24, 2012 4:05pm Apr 24, 2012 4:05pm
AUD/JPY

Attached Image (click to enlarge)
Click to Enlarge Name: audpy.gif Size: 21 KB
  • #110,696
  • Apr 24, 2012 4:21pm Apr 24, 2012 4:21pm
Quoting bullzeye
AUD/JPY

Attachment
Was looking at that, but this 0.85 trouble area is strong. (green rectangle)
Besides its in a range for a few days and at the moment just in the middle of it - traffic. (blue rectangle)
Attached Image (click to enlarge)
Click to Enlarge Name: 24.4.jpg Size: 193 KB
Thoughts are things
  • #110,697
  • Apr 24, 2012 4:26pm Apr 24, 2012 4:26pm
Quoting bullzeye
AUD/JPY

Attachment
When you toss these up if you want good feedback more info helps. As of right now depending on how you manage this trade it could be a fairly decent trade or a severe gamble of a trade. Without more info (like your SL and TP) who knows though.


Ryan
  • #110,698
  • Apr 24, 2012 5:37pm Apr 24, 2012 5:37pm
Quoting beebolbod
Check this guys posts too.... very cool.
http://www.forexfactory.com/hiddengap
Haha I definitely saw him while I was browsing the VSA threads, seems like that's a whole 'nother crowd haha. I picked out a new book to read from the VSA threads though- Master the Markets
  • #110,699
  • Apr 24, 2012 6:07pm Apr 24, 2012 6:07pm
Quoting Quezoy
Was looking at that, but this 0.85 trouble area is strong. (green rectangle)
Besides its in a range for a few days and at the moment just in the middle of it - traffic. (blue rectangle)
that is the perfect chart with the exact areas and information we need to watch. Well done
  • #110,700
  • Apr 24, 2012 10:24pm Apr 24, 2012 10:24pm
Any thoughts on the NZDUSD? I know most people on here don't trade these pin bars, but there are somethings to consider here. I've been riding this pair up and down since the first bullish pin bar in the current consolidation area on the 4h. Thoughts? It's going to for sure retest the .81 again. We need a solid close below the level for it to drop nicely.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: nzdusdd1424.gif Size: 40 KB
Click to Enlarge Name: nzdusdh4424.gif Size: 36 KB
81 traders viewing now