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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

  • #124,021
  • Mar 22, 2013 8:21am Mar 22, 2013 8:21am
What a sharp contrast to see kind souls in this thread so willing & ready to help other traders, in an industry that is infested with sharks that are ever ready to steal money from unsuspecting traders. I know these benign beings will be abundantly rewarded, both materially & spiritually, in this life & beyond… I look forward to joining the league soon.

Having read some initial posts & write-ups in this thread & watched some videos I’m happy to see that many of my earlier ideas & notions abt fx trdg are being confirmed, while some are sort of challenged.

The very 1st thing to do when we open a chart is to determine whether price is:

1. trending on an impulse leg;
2. pulling back on a corrective leg of a trend; or
3. going sideway / consolidating.

We wld next look left to identify past swing highs, swing lows, congestion areas, which will act as support & resistance levels (some quarters call them supply & demand levels; I call them road blocks.) Other road blocks include fibo retracement & extension levels, major EMAs / SMAs, big round numbers…… Diagonal trend lines are something I wld look at as well.

When trending price (either on impulse or corrective leg) moves to these road blocks it often wld stall / hesitate before deciding to reverse or break through. It’s at these levels that we wld enter trades.

I did not pay much attention to bar (or candle) formations for the following reason: daily bars & 4-hourly bars from different brokers wld start at different time of the day. Most start the day at 5pm EST, some at 6pm EST, others at 7pm EST, 12 mid-night GMT, 12 mid-night EST…… So, a pin bar on some brokers’ charts need not be a pin bar on others’. An outside bar (or engulfing candle) need not be an outside bar on all brokers’ charts…… etc. In a sense, bar formations are thus arbitrary!

I also did not pay much attention to nor like to look at currency pairs other than the majors (USD pairs). My view is that all other pairs are NOT independent on their own right, but are all derived from their values versus USD. The USD pairs are the drivers. All the rest are slaves. How much significance can I attach to the road blocks on the slaves' charts?

It looks like I will need to relook at the last 2 notions above. May I hear the valued views of you folks here please?

God bless!
  • #124,022
  • Mar 22, 2013 8:47am Mar 22, 2013 8:47am
Quoting Mav13
Hi Red,
personally I would not trade this pin bar. Here is what I see. I think that right now we´re in sideways market (green box) and we´re playing this pin bar in traffic (remember as Mike and James often say we want to see bar like this on swing low, especially when we´re beginning). Also I tried to mark where price had some difficulties in past (orange line) so it might repeat. I don´t say that price won´t hit your target, it still might but I think we can find better setups. But please take this just as my personal opinion as a newbie

Mav...
great job mav!

Thanks for jumping in you are correct
  • #124,023
  • Mar 22, 2013 8:53am Mar 22, 2013 8:53am
Quoting sg_1988
Hi,
Jay

I got a very weak close on my feed on that bar which is a pin bar on your feed, I've edited your chart to show the consolidation box we were in identified by the blue box. Also you would have been trading right into the flip point of the consolidation box marked with the red line. Also trading the break of the pin you would have been trading right into the traffic of the bar high/lows which created the flip point.

Did the pin bar break by 10 pips? I can't tell if it did, if it did I would have had a stop below the consolidation...
Way to go Sanil, was just getting ready to mark up a chart for Jay(by the way welcome bud)

No wonder you are doing great Sanil

This bar is very tricky in such a tight box with the midpoint of the boxes being a STRONG pivot. I would want to see a much larger nose to fight that. Also as Sanil said a decent buffer(buying a certain amount of pips clear of the high of the bar) would never of triggered an order for me as well

Good stuff
Mike
  • #124,024
  • Mar 22, 2013 10:14am Mar 22, 2013 10:14am
Quoting Mav13
Hi Red,
personally I would not trade this pin bar. Here is what I see. I think that right now we´re in sideways market (green box) and we´re playing this pin bar in traffic (remember as Mike and James often say we want to see bar like this on swing low, especially when we´re beginning). Also I tried to mark where price had some difficulties in past (orange line) so it might repeat. I don´t say that price won´t hit your target, it still might but I think we can find better setups. But please take this just as my personal opinion as a newbie

Mav...
Thanks for your comment! I knew we were in a boxed area and thus the situation presented higher risk (and less reward). Should a beginner ignore those zones completely or trade them as a breakout?
  • #124,025
  • Mar 22, 2013 10:19am Mar 22, 2013 10:19am
Quoting mbqb11
Also as Sanil said a decent buffer(buying a certain amount of pips clear of the high of the bar) would never of triggered an order for me as well

Good stuff
Mike
Thanks Mike and Sanil for the feedback. About the entry, maybe using a larger buffer would have been better. I lost out twice here, as I placed another entry at the 50% retrace of the pin bar candle. I like the idea, as often there is a little pullback, and its makes your stop loss very tight. Do you or others place entries at 50% retraces? Further, what are the deciding factors between the two different entry techniques.

Thanks,
  • #124,026
  • Mar 22, 2013 10:23am Mar 22, 2013 10:23am
Hi mike ,
I found chanya's pdf on jaroos style it seemed so complicated reading the charts but chanya made it very clear and seems so easy to understand. Thank you chanya! My question is, is there something similar a pdf or an area in this thread explaining james16 and your style without other confusing post's. just wondering, I believe I am starting to understand the method much better and am still waiting for a good signal on the pairs I follow to post and see if I am correct or not. just wondering if there is something similar that I can drill into my thick skull.
  • #124,027
  • Edited 11:01am Mar 22, 2013 10:50am | Edited 11:01am
Quoting makwana
Hi Donaciello,

Cheers for your feedback, your charts makes sense and as the market is still in a downward motion, it does make sense to go short than long. However another question is that - is a HCR valid regardless of how many times price has bounced off it, thus giving numerous entries into the trade at different times. For instance this HCR mentioned by yourself has been 'touched' twice so far and has just been touched again for a short.



Wow that is a super pin bar didn't know that until your mentioned it! Cheers for that
Krunal,

For as far as I've understood, a HCR remains valid for as long as price reacts to it in the way we want it. meaning that if price start to get choppy at a HCR, it loses it's significance.
However, the touches don't really matter, because we look for closes.
When PBT&CA a HCR, or in the G/U example PBT&CB a LCS, gives you the opportunity for a short triggered at the broken LCS.
This short would ofcourse get trigger by a touch of that level.
But, after your trade is triggered, new touches do not provide new entries.
We look at closes to find our entries and if we are already in a trade, we move on to look for areas to move the SL to.
Only after you've been taken out of your position, you start looking at the closes for a new (touch) entry.

I hope I've understood correctly and I'm glad to have notified you of that possible monthly PB .

As from your post I sense you think I would suggest going short rather than long at setup, but I want to make clear that I don't think so.
I too, am looking for a potential long, but my HCR is just a little higher and closer to an earlier LCS.

Right now, price hoovers above these levels, so a firm close above (would like to see it close above 1.5250), would make me setup a limit buy.
But that's just my 2 cents .

Take care,
Donaciello.
It's a sport, an artform and a science.
  • #124,028
  • Mar 22, 2013 12:34pm Mar 22, 2013 12:34pm
Quoting Pinbar
Thanks Meshka

Are you working mainly on the Daily tf, then finding weekly levels that line up with the daily ones, or only looking at the daily tf then, going down to a lower tf?

Always so simple, unlike my way of looking at them.

Would you do me a favor and show me your AUD/JPY chart, and explain why you chose those levels?

Thanks in advance
yes main frame is Daily timeframe for me. Sometimes I go to H4 to check things out through the trade ... but decisions i make are based on Daily charts. Yes Weekly levels if they line up with daily makes me super confident about the PA if it happen around those places.
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all is eternal - this is good news for people who loves bad news
  • #124,029
  • Mar 22, 2013 12:34pm Mar 22, 2013 12:34pm
  •  sg_1988
  • | Joined Dec 2011 | Status: Cause I'm P*ssed Off For Greatness | 70 Posts
Quoting jaypatel33
Thanks Mike and Sanil for the feedback. About the entry, maybe using a larger buffer would have been better. I lost out twice here, as I placed another entry at the 50% retrace of the pin bar candle. I like the idea, as often there is a little pullback, and its makes your stop loss very tight. Do you or others place entries at 50% retraces? Further, what are the deciding factors between the two different entry techniques.

Thanks,
Hey,
Jay

I think Mike very rarely plays bar retraces, he usually plays the break of a bar (not always 10 pip buffers, each set up and time frame is unique in its own right). However James said the big bars almost always retrace and a fib retrace of the bar is a good play (sometimes you will miss out on the entry, but that's just the way it goes) - so I try to play retraces on big PA bars, but you need to have confluence, i.e. a pullback to s/r at a round number and also lining up with a fib retrace level) and maybe even a trendline for killer confluence!

I would recommend going through your charts, and looking for PA bars in good LOCATIONS! and seeing how these retraces play out - If i remember correctly, this is off the top of my head, I think I remember James saying get yourself an ice tea or your favourite beverage (mine would be a beer haha!) and look for outside bars which straddle round numbers and notice how price will often pull back to the RN before making a up/down (depending on the set up) - this added with confluence i.e. 150 or 365 ema (if you use them) or a fib..etc - this can make for killer set ups!

There are a number of ways to play PA bars, location is incredibly important! more important than the bar itself, but beginners are taught to play breaks of PA bars so they can get used to the basics, but retraces are great plays (with confluence)

This is my opinion and how I play them currently, look forward to hearing what Mike and others think.

By the way Mike, thanks for the kind words! Still learning from the great traders in this forum

Kind Regards
Sanil

Man i'm gonna find you one of James' charts just because I enjoy looking through his great charts (might be able to find more than one pullback example)
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  • #124,030
  • Mar 22, 2013 1:09pm Mar 22, 2013 1:09pm
Quoting inditrader
Pin or pillar at 5200? For me it is the latter.

In the process of reducing the risk for this trade.

Attachment
It was a crawling breakout. All the chances of a small pillar on daily.

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Regards Inditrader
  • #124,031
  • Mar 22, 2013 1:20pm Mar 22, 2013 1:20pm
Quoting Red1324
Thanks for your comment! I knew we were in a boxed area and thus the situation presented higher risk (and less reward). Should a beginner ignore those zones completely or trade them as a breakout?
Hi Red1324,
you don´t have to ignore these zones, in fact they are valuable information for us and we can wait for possible breakout situations (when the story is right), it´s just difficult for us to trade inside them because trade management is more difficult (a lot of traders, not only beginners. get killed here).
In this particular situation I will wait how this box develops (i ď like to see more bounces) and then we will see if there will be some good breakout situation. But again please take this just as my personal opinion as a newbie.

Mav
  • #124,032
  • Edited 8:01pm Mar 22, 2013 7:31pm | Edited 8:01pm
Quoting meshka
yes main frame is Daily timeframe for me. Sometimes I go to H4 to check things out through the trade ... but decisions i make are based on Daily charts. Yes Weekly levels if they line up with daily makes me super confident about the PA if it happen around those places.

Thanks Meshka

Yeah, I see now what is the problem and the source of the problem is probably the way I originally mistakenly perceived the two tfs, weekly & Daily.

Jarroo told me a long time ago to work off the daily tf but, as I had gotten used to using the monthly & weekly, it was difficult to plot monthly and weekly levels, then sit on my hands for weeks or months waiting for a daily level to be created there, if there was not already one there.

This makes sense that, if we use the daily as the main tf, then see if the weekly or monthly line up with them to give us greater confidence in the level. That is to not to say that, the daily level alone is weak and unreliable. We just need to use daily targets instead of weekly ones.

Thanks Meshka this, confirms a lot about the error in my thinking.
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  • #124,033
  • Mar 22, 2013 8:23pm Mar 22, 2013 8:23pm
Quoting Pinbar
Hmm, Jarroo what do you think about simple setups like this one?

Not too much space but, a lot of confluence.


Quoting Pinbar
Thanks Meshka

Yeah, I see now what is the problem and the source of the problem is probably the way I originally mistakenly perceived the two tfs, weekly & Daily.

Jarroo told me a long time ago to work off the daily tf but, as I had gotten used to using the monthly & weekly, it was difficult to plot monthly and weekly levels, then sit on my hands for weeks or months waiting for a daily level to be created there, if there was not already one there.

This makes sense that, if we use the daily as the main tf, then see if the weekly or monthly...

Simple setups is where its at, Steve. . .We'll fix that complex brain of yours soon enough, lol . . . .the Space is good.


How great is that level (or PPZ) on the EurCad . .James16 is smiling time at that one. many confluences coming together . . many reasons to enter a trade . .nice.

This is where we like to see PA too . .like a big old PB . .


Excellent Steve . . and Meshka Rules . . .


Jim
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Indicators show the past. Price Action "Indicates" the future.
  • #124,034
  • Mar 22, 2013 8:27pm Mar 22, 2013 8:27pm
Quoting meshka
yes main frame is Daily timeframe for me. Sometimes I go to H4 to check things out through the trade ... but decisions i make are based on Daily charts. Yes Weekly levels if they line up with daily makes me super confident about the PA if it happen around those places.
Great chart as always, Meshka.

Why can't I explain things as simply as you do . .thanks, brother.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #124,035
  • Mar 22, 2013 8:28pm Mar 22, 2013 8:28pm
I'll be back later to answer more posts questions . .


Jim
Indicators show the past. Price Action "Indicates" the future.
  • #124,036
  • Mar 22, 2013 8:51pm Mar 22, 2013 8:51pm
Quoting jarroo
Simple setups is where its at, Steve. . .We'll fix that complex brain of yours soon enough, lol . . . .the Space is good.


How great is that level (or PPZ) on the EurCad . .James16 is smiling time at that one. many confluences coming together . . many reasons to enter a trade . .nice.

This is where we like to see PA too . .like a big old PB . .


Excellent Steve . . and Meshka Rules . . .


Jim

Haaa Thanks Jim

Probably not complex at all, I probably lost a few screws over the way.

You know, you repeatedly told me the same thing so, the problem was not exasperated by you at all, it was just my mind and TF jumping.
I think, the secret is to do as Meshka does and work off the Daily, with daily levels and targets, if they line up with a Monthly or weekly level, great.
If they don't, we treat them as the daily level.

Sorry for all the confusion Jim.
  • #124,037
  • Mar 22, 2013 9:49pm Mar 22, 2013 9:49pm
EUR/USD DAILY as of Saturday, 23 March, 2013
Elliott Waves High Volatility has detected a possible point 4 of a WolfWave (21%) pattern for Euro Dollar / US Dollar. This pattern is an expanding triangle and trades from the next point. When the peak or trough will form, usually after crossing or touching the extended line of points 1 and 3, the price will move in the opposite direction towards the target line formed by the extension of points 2 and 4.
The present wave patterns are:
fast amplitude (8%): bullish wave 1
moderate amplitude (13%): bullish wave 3
Elliott Waves High Volatility has detected a Gann Swing or Pullback that is usually a bullish pattern! It should be used with other indicators.
Euro Dollar / US Dollar is long term Bearish as the 144 days moving average of 1.31 is decreasing. The Relative Strength Index is at 45.01 in the neutral territory. The Relative Momentum Index is at 23.12 in the oversold territory. An important indicator for Elliott waves, the Elliott oscillator is at -0.02, in negative territory; this is a bearish sign. An equally important indicator, the STORSI is at 61.35. This value is in the neutral territory.


  • #124,038
  • Mar 22, 2013 10:01pm Mar 22, 2013 10:01pm
Quoting autotrader1
EUR/USD DAILY as of Saturday, 23 March, 2013
Elliott Waves High Volatility[color=black][font=&quot] has detected a possible point 4 of a WolfWave (21%) pattern for Euro Dollar / US Dollar. This pattern is an expanding triangle and trades from the next point. When the peak or trough will form, usually after crossing or touching the extended...
Reported this post as Spam as, there is no input on the content of this thread, plus link to outside URL.

And, this is not the first time.
  • #124,039
  • Mar 23, 2013 5:11am Mar 23, 2013 5:11am
  •  sg_1988
  • | Joined Dec 2011 | Status: Cause I'm P*ssed Off For Greatness | 70 Posts
Who's watching this?

Kind Regards
Sanil
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  • #124,040
  • Mar 23, 2013 6:06am Mar 23, 2013 6:06am
Quoting sg_1988
Who's watching this?

Kind Regards
Sanil
I was just marking charts and noticed it as well, however, I'm wondering if price is rejected again could we play that as well. It appears that an IB has formed, does anybody take trades off of these? Or are they not very reliable?

Thanks
Walt
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