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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

  • #117,821
  • Sep 7, 2012 3:38pm Sep 7, 2012 3:38pm
Hello,

Can you show on chart what you mean ??? best, Rosa.

Quoting DaGrizlyBull
There you are wrong my friend. Anticipatory trading = Low risk, high reward. Reactionary trading = High risk , low reward.
  • #117,822
  • Sep 7, 2012 3:39pm Sep 7, 2012 3:39pm
Quoting DaGrizlyBull
There you are wrong my friend. Anticipatory trading = Low risk, high reward. Reactionary trading = High risk , low reward.
The core of James 16 is price action. If a nice pinbar occurs at a significant support level and one initiates a trade based on this set up I would call this reactionary not anticipatory. But I can see that one could say "Because of the pinbar I anticipate that price will go up" But in actuality you are really reacting to price action. Anticipation without price action is therefore nothing more than anticipation. Anticipation with price action is therefore reactionary. Damn i need a beer now!
  • #117,823
  • Edited 4:02pm Sep 7, 2012 3:50pm | Edited 4:02pm
Quoting Rosa
Hello,

Can you show on chart what you mean ??? best, Rosa.
It's just a saying.

If you react to price, you get in when the move is already taking place for a while, and thus you catch less of the move, with a bigger SL and a smaller position size., which translates to poor risk/reward ratio. If you trade this way, you need a bigger winrate % to make up for that poor RR ratio and become profitable.

Of course, if you anticipate price, you don't have confirmation like reactionary trading, which translates into lower winrate, but bigger RR ratio (tighter SL and you catch the move in its initial phase), which makes up for the poor winrate given by the higher % of the times you get stopped out. Some may call this "picking tops and bottoms" .

The key is to find a balance between these 2 variables and find out what works best for you . Every person has a different personality, tolerance to risk, tolerance to variance etc. For me, it's more worth it to anticipate price than to react to it.

That's just my opinion anyway...May be wrong

Good luck!
I don't need easy. I just need possible.
  • #117,824
  • Sep 7, 2012 4:03pm Sep 7, 2012 4:03pm
Hello,

And it closed below , but eur/usd close also below hcr, and this is for short setup, so which is fake usdchf long, or eur/usd short .

Quoting dan89
Keeping things simple - we look for shorts when pbt&cb LCS and longs when pbt&ca HCR. Currently price has not yet CLOSED below that first LCS level. When it does we can look for short opportunities. Im still learning this method myself so it would be a good idea to wait for Jarroo himself to reply

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  • #117,825
  • Sep 7, 2012 4:09pm Sep 7, 2012 4:09pm
Quoting DaGrizlyBull
It's just a saying.

If you react to price, you get in when the move is already taking place for a while, and thus you catch less of the move, with a bigger SL and a smaller position size., which translates to poor risk/reward ratio. If you trade this way, you need a bigger winrate % to make up for that poor RR ratio and become profitable.

Of course, if you anticipate price, you don't have confirmation like reactionary trading, which translates into lower winrate, but bigger RR ratio (tighter SL and you catch the move in its initial phase), which...
On the contrary. A good price action set-up is reason to max out position size. A good price action set-up gives confidence to enter with maximum confidence and therefore one would not enter with a smaller position. Your win rate will actually improve with good price action trading. Your risk/reward is based on market structure and where key points of problem areas are expected to be encountered. Your risk/reward is actually improved. You have lower risk on such trades and in fact your reward will be greater.
With anticipatory trading as you describe your losses will exceed your wins and the lucky successful trades will not in the long term overcome the numerous losses you will incur. Picking tops and bottoms is a proven failed venture.
  • #117,826
  • Sep 7, 2012 4:18pm Sep 7, 2012 4:18pm
Quoting Rosa
Hello,

And it closed below , but eur/usd close also below hcr, and this is for short setup, so which is fake usdchf long, or eur/usd short .
Im not sure what you mean. On your chart you can clearly see that price has broken and closed ABOVE the green HCR level. We would be looking for longs at a retest of the green HCR level or wait for a daily close confirmation. I think you may be getting mixed up with HCR and LCS
  • #117,827
  • Sep 7, 2012 4:23pm Sep 7, 2012 4:23pm
Quoting Rosa
Hello,

And it closed below , but eur/usd close also below hcr, and this is for short setup, so which is fake usdchf long, or eur/usd short .
Chart may help explain

red lines are first targets

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  • #117,828
  • Sep 7, 2012 4:27pm Sep 7, 2012 4:27pm
Hello,

Yes, you are right, but I wrote about red hcr level (close below), so now short for green hcr level and then long . I see something strange, see the chart:

Quoting dan89
Im not sure what you mean. On your chart you can clearly see that price has broken and closed ABOVE the green HCR level. We would be looking for longs at a retest of the green HCR level or wait for a daily close confirmation. I think you may be getting mixed up with HCR and LCS
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  • #117,829
  • Sep 7, 2012 4:32pm Sep 7, 2012 4:32pm
Quoting Rosa
Hello,

Yes, you are right, but I wrote about red hcr level (close below), so now short for green hcr level and then long . I see something strange, see the chart:
PBT&CB stands for Price Breaks Through and Closes Below. Price has only closed below that red HCR level on the EURO. It has not broken though AND closed above (for longs at that level - a retest)

If your looking to short at a HCR level where price breaks though and DOES NOT close above then we need a bigger wick going through the level then the one that is currently on EU
read the following post by jarroo on this subject - http://www.forexfactory.com/search.p...earchuser=3572

Hope this helps
Dan
  • #117,830
  • Sep 7, 2012 4:36pm Sep 7, 2012 4:36pm
Hello,

My HCR level is about 1,28174, and the high of today bar is 1,28188 so was PBT&CB . best, Rosa.
  • #117,831
  • Sep 7, 2012 4:38pm Sep 7, 2012 4:38pm
Quoting Rosa
Hello,

My HCR level is about 1,28174, and the high of today bar is 1,28188 so was PBT&CB . best, Rosa.
1-2 pips ....
  • #117,832
  • Sep 7, 2012 4:42pm Sep 7, 2012 4:42pm
Quoting Rosa
Hello,

And it closed below , but eur/usd close also below hcr, and this is for short setup, so which is fake usdchf long, or eur/usd short .
OOOwww , Nice short setup brother , Specially the stop loss ...
Human
  • #117,833
  • Sep 7, 2012 4:44pm Sep 7, 2012 4:44pm
Quoting Rosa
Hello,

My HCR level is about 1,28174, and the high of today bar is 1,28188 so was PBT&CB . best, Rosa.
Its a daily chart . and its a Friday close which is always messy ... it is not a PBT&CA .... Relax ...
Human
  • #117,834
  • Sep 7, 2012 7:43pm Sep 7, 2012 7:43pm
Quoting Rosa
hello,

I am searching and searching Jarroo method, but sometimes I don't understand basics . Can you tell why lower lcs level is good, and upper is not good , chart is usd/chf. best, Rosa.
I see this in tghis way:
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  • #117,835
  • Sep 7, 2012 7:44pm Sep 7, 2012 7:44pm
Good looking pinbar.
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Price is beautiful. A repetitive method is a competitive method.
  • #117,836
  • Sep 7, 2012 9:16pm Sep 7, 2012 9:16pm
Quoting jarroo
Nice charts, Steve . .

That EurSek is fun to watch . .we watched the birth of an uptrend from its beginnings . .didn't we . .
Attached Thumbnails
http://www.forexfactory.com/attachme...1&d=1346993970
Quoting Pinbar
Yeah, but I kept too tight of an rein on it and it took me out before the run.
Another dimension to think about.
That said, if I had played it according to these levels, I would still have been in the trade. Just goes to show that management is equally as important to the entry, in the long term.
Thank you guys for this whole exersize. WOW!!! To see the thought process for initiating a trade. it doesn't get any better for someone trying to learn. Thanks again this exersize explained volumes!!!
  • #117,837
  • Sep 7, 2012 9:24pm Sep 7, 2012 9:24pm
Quoting bullzeye
how about this...

http://www.forexfactory.com/showpost...postcount=7738
Something I've had issues with also. Figuring out the subjective PPZ levels. This helps a lot. Thanks!!
  • #117,838
  • Edited 9:48pm Sep 7, 2012 9:34pm | Edited 9:48pm
Quoting Chanya
I can solve your problem with a couple of charts giving you reasonable info if you ask ...
I'll ask!! Learning how to set things up right in the 1st place insures confidence for potential trades when they arise and we are all here to learn. Thanks!!!
  • #117,839
  • Sep 7, 2012 10:27pm Sep 7, 2012 10:27pm
Quoting nwo-trader
Good looking pinbar.
A real beauty!
Imo, this would be the first trouble area:

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I don't need easy. I just need possible.
  • #117,840
  • Sep 7, 2012 10:53pm Sep 7, 2012 10:53pm
What do you guys think about this? Is it a good story? Did anyone take it?

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I don't need easy. I just need possible.
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