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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

  • #122,141
  • Jan 6, 2013 11:05am Jan 6, 2013 11:05am
Quoting meshka
here is my view on EURUSD.. Cable is similar also. I think its not worth to risk to go up in this picture. maybe if You good enough with intraday countertrend trading.. i dont know.
Inverted weekly H/S will be actual if last big BEOB candle will become invalidated next week and we will face clear strong close above 1.3120 level. but I dont think so...
Loved your analysis
  • #122,142
  • Jan 6, 2013 11:18am Jan 6, 2013 11:18am
Quoting meshka
here is my view on EURUSD.. Cable is similar also. I think its not worth to risk to go up in this picture. maybe if You good enough with intraday countertrend trading.. i dont know.
Inverted weekly H/S will be actual if last big BEOB candle will become invalidated next week and we will face clear strong close above 1.3120 level. but I dont think so...
I see 4 possible areas to short...
Attached Image (click to enlarge)
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  • #122,143
  • Jan 6, 2013 11:38am Jan 6, 2013 11:38am
Quoting Microtrader_
And thank you everybody in this forum ones more:

This was a nice one

NZDUSD:
A triangle is over, a strong pivot is broken and retested, the SL is in breakeven and a nice profit is progress
very nice PPZ and confluence there. That's a more advanced entry but you sure nailed it

Best
Mike
  • #122,144
  • Jan 6, 2013 11:48am Jan 6, 2013 11:48am
Quoting Forexgogo
I see 4 possible areas to short...
when (if) price will come to these zones, will you short blindly or waiting a pattern of PA?

in the second case, at what timeframe?

many thanks

good pips
Don't give up
  • #122,145
  • Jan 6, 2013 11:56am Jan 6, 2013 11:56am
Quoting geomink
when (if) price will come to these zones, will you short blindly or waiting a pattern of PA?

in the second case, at what timeframe?

many thanks

good pips
When the price reaches the area then turns around downward (1h bar close below the area) would be a sign to short. I only trade on 1H charts -- not even 30minute. BTW, SL will be 10pips above the fib.

Hope it helps
  • #122,146
  • Jan 6, 2013 11:58am Jan 6, 2013 11:58am
Quoting meshka
here is my view on EURUSD.. Cable is similar also. I think its not worth to risk to go up in this picture. maybe if You good enough with intraday countertrend trading.. i dont know.
Inverted weekly H/S will be actual if last big BEOB candle will become invalidated next week and we will face clear strong close above 1.3120 level. but I dont think so...
is this the jarroo method, or a touch trade,,, man it just looks really scary lol
my name is tom and i like crayons
  • #122,147
  • Jan 6, 2013 12:46pm Jan 6, 2013 12:46pm
Quoting tc640
is this the jarroo method, or a touch trade,,, man it just looks really scary lol
I really do not know if it is bona fide Jarroo method all is mixed in my BearHead lol ... dont follow my trades blindly. try to understand the market and find your own niche from where You could trade comfortable.
all is eternal - this is good news for people who loves bad news
  • #122,148
  • Jan 6, 2013 1:02pm Jan 6, 2013 1:02pm
weekly chart.
Attached Image (click to enlarge)
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all is eternal - this is good news for people who loves bad news
  • #122,149
  • Jan 6, 2013 2:45pm Jan 6, 2013 2:45pm
Quoting mbqb11
Hey Micro

Welcome to the forum glad it has helped you thus far

Gaps are definitely another concept which we can profit off, and another tool to have in our tool box. I have trade gaps more aggressively in the past. Where I would buy/sell on the open with a VERY VERY low risk amount and then I can add into that position using a fixed equity stop instead of a pip amount as the gap closes. This works fine, I have done that for a long time. BUT it's also a lot of work sometimes. Sometimes gaps can run and run. Look at the yen pairs....
Hi Microtrader,

I'm not Mike, but I'd be happy to try and answer your question! Below I have attached a chart of a gap trade that occurred on the opening week of December 14th for the EURJPY pair. It was a very ideal gap trade situation.

1. The answer to this question is ultimately "well, it's a practiced art." My personal rule for taking gaps (and I think the rule shared by most members of this thread) is never to trade more than one gap for a given currency. On the week of Dec 14th, several gaps formed across JPY pairs. So why did I choose only to trade the EURJPY? Well, after analyzing all the pairs, this gap had the greatest chance of filling, since price opened right beneath a big resistance level, and the gap was right above a big support level. IMO, the only way this gap would have been more ideal is if the previous daily bar was a good PA bar...unfortunately those setups are very very rare.

2. SL for this trade was right above the resistance line. Again, SL really varies trade by trade, but you should always place it at a sensical location. Above a resistance line is sensical. As per James16 rules, you should never risk more than 2% of your account on a trade.

3. Like the SL, the TP is going to vary trade by trade, and is also more of an art. I tend to be somewhat conservative with TPs, so I put mine a little bit above where the gap filled. Most traders put their TPs right above the gap fill line. Either way works. If you put your TP right above the gap fill line (the lower blue line), your TP would have been hit.

4. Pretty much any timezone you choose (and thus any broker you choose) will show a gap of some kind if one is present at all. Though these gaps may be slightly different because of timezone offsets, pretty much all of them have an equal likelihood of being filled. Personally, I use 3 different time zones, and I plot the most conservative entry/exit for my gaps. So far, this hasn't proved beneficial, but it makes me feel more confident about my trade. Just FYI, (as far as I know) gaps appear on the opening of Sundays, not Mondays. You'll want to look at Sunday openings when considering gaps. Most gaps will be filled within several hours after the Sunday open...usually during the beginning of the London session.

As a final note, I avoid trading gaps caused by holidays. These seem less likely to fill in my experience. The Christmas time gaps are good proof of this. Go back in your charts and look. Also, if it's any consolation, I have been told that only 3% of Sunday gaps don't fill. I haven't tested this hypothesis, so while I can't say it's true, I can say that gap trades ARE highER probability trades. As long as you are smart cherry-picking them, you'll usually walk away with pips in less time than a normal daily bar trade. Hope this helps!

ElectroGypsy
Attached Thumbnails


Hello Mike and ElectroGypsy,


Thank you very much for your time and replies.
Details of SL and TP are clear. It is also clear that more investigation is needed to choose an applicable broker for the method for me.
Well I agree that trading gaps requires a lot of work (just like practically everything in the world of Forex) and the example of the Yen pairs definitely proves it.
This is why I had to ask for your assistance.
I understand what you did with trading the gap on EURJPY pair in the middle of December. In this case the gap directly appeared between two price pivot levels and this made the planning of this gap trade much more simple. This is highly connected to your trading style, price action.
But I didn't completly understand what to do exactly when the gap is absolutely not caged between two pivots.
So you would not trade these gaps at all, in spite of the high probabilty of "autofilling" any gaps?

Many thanks ones more.

Microtrader
  • #122,150
  • Jan 6, 2013 4:44pm Jan 6, 2013 4:44pm
Anybody taking a peak at Silver and Gold?
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Price is beautiful. A repetitive method is a competitive method.
  • #122,151
  • Jan 6, 2013 7:59pm Jan 6, 2013 7:59pm
Let's see if this weekly BUEOB fails.
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  • #122,152
  • Jan 6, 2013 8:26pm Jan 6, 2013 8:26pm
Quoting Microtrader_
[color="Red"]Hi Microtrader,

I'm not Mike, but I'd be happy to try and answer your question! Below I have attached a chart of a gap trade that occurred on the opening week of December 14th for the EURJPY pair. It was a very ideal gap trade situation.

1. The answer to this question is ultimately "well, it's a practiced art." My personal rule for taking gaps (and I think the rule shared by most members of this thread) is never to trade more than one gap for a given currency. On the week of Dec 14th, several gaps formed across JPY pairs....
Hey Micro

Gaps may fill but we still need a game plan around them. They all don't fill right away so we can't just automatically blindly buy and sell all gaps. That's a disaster waiting to happen. Look at gbp/jpy. It gapped hard but there was nothing to hold it down and has not looked back yet. Without a game plan that one gap could wipe someone out. I use gaps as just another tool. It's like a pinbar. We can't blindly take every pinbar, but we can decipher the good ones from the bad ones

Hope that helps
Mike
  • #122,153
  • Jan 6, 2013 8:49pm Jan 6, 2013 8:49pm
Hey Mike

What's with the Big Guy no posts since Mar 22, 2012

Almost 10 months.
Hope he is ok.
  • #122,154
  • Jan 6, 2013 8:51pm Jan 6, 2013 8:51pm
Quoting Pinbar
Hey Mike

What's with the Big Guy no posts since Mar 22, 2012

Almost 10 months.
Hope he is ok.
he's doing great Pin, he'll be back very soon. We are very close to launching the new site(he's been working with new team on it). That's when James is gonna be back in full force again

Best
Mike
  • #122,155
  • Jan 6, 2013 9:07pm Jan 6, 2013 9:07pm
Glad to hear everything is ok.

New site sounds great.
  • #122,156
  • Jan 6, 2013 10:45pm Jan 6, 2013 10:45pm
Quoting mbqb11
he's doing great Pin, he'll be back very soon. We are very close to launching the new site(he's been working with new team on it). That's when James is gonna be back in full force again

Best
Mike
I am counting hours...literally.

g.
I believe . . .
  • #122,157
  • Jan 6, 2013 11:13pm Jan 6, 2013 11:13pm
Hi guys! Do you all mean we will see James at ForexFactory again or just at his new site?
Sorry for my bad English..
  • #122,158
  • Jan 6, 2013 11:34pm Jan 6, 2013 11:34pm
Yeah, I am looking forward to Jim doing another M5 real time webinar like the last one I caught.

What a cracker that was.
  • #122,159
  • Jan 7, 2013 1:49am Jan 7, 2013 1:49am
Hey Pinbar!

Do you have some saved template for MT4 platform? (The one, that you are currently using) Could you attach it in a comment?
Thanks,
Stephen
It's all psychology...
  • #122,160
  • Jan 7, 2013 4:16am Jan 7, 2013 4:16am
Quoting mbqb11
Hey Micro

Gaps may fill but we still need a game plan around them. They all don't fill right away so we can't just automatically blindly buy and sell all gaps. That's a disaster waiting to happen. Look at gbp/jpy. It gapped hard but there was nothing to hold it down and has not looked back yet. Without a game plan that one gap could wipe someone out. I use gaps as just another tool. It's like a pinbar. We can't blindly take every pinbar, but we can decipher the good ones from the bad ones

Hope that helps
Mike

Thanks Mike, I understand what you mean.
This has already been a serious help.

Best
Microtrader
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