james16 Chart Thread

you got the point.

g.

Well, it is a swing high after a long rally up or a swing low after a long rally down.

Eventually price is always going to come back to test these areas, sometimes price breaks through these areas and sometimes it appears to break through but has really not.

If price moves away quickly from these areas, that is price getting rejected by the level.
What it really means is, nobody is really interested in buying on a rally and sellers outnumber buyers so, price falls quickly.

The trick is to really understand when price means to breakthrough the level and use it as support or not.
That is what we are discussing with the SFP & indeed, Jarroo's HCR & LCS.

Hope this helps.

Yeah, that was a beauty Ghous.

ghous can you explain me what is SFP?

hey NC,

An SFP i.e Swing Failure Pattern or more generally a fake out pertains to a particular market action where price makes a move beyond a prior swing point and then fails to sustain that move by ending up closing back within the swing point. It indicates that there could be a possible reversal subject to the given circumstances at the time.

You can look at my blog post here where I explain what are SFPs and how I use them for my trading.

Or you could visit Tom's thread here and search for posts with the keyword "SFP" to get yourself familiarized with the idea.

I've also attached a few charts with recent examples.

g.

This level's getting knocked at pretty hard!

We had a fake out / SFP that was a pretty safe shot to the 5.9 RN to begin with but the level's now under the pump! What's the door made of?

USDJPY

I ended up taking a trade on USDJPY. Got lucky that I was able to take partial profit at TP1 and went to BE before it skyrocket north sometime lastnight. You never know. Also took a trade on GBPJPY, again same thing happened but I don't have the before charts.

Heres the before and after.






Rolo

Hi all (jim,steve,mike) i am not sure i am getting it correctly is the one i mark is SFP?

Great read Ghous, I wasn't aware of it. Thanks a lot.

Walt.

Hello friends I am new here, I have one small problem I do not understand the acronym that you use ,Is there a translation somewhere for these acronym?

hi yaki see this

Here is the updated J16 Terminology list.

FTA = first trouble area
PPZ = price pivot zone
BEOB = bearish engulfing outside bar
BUEOB = bullish Engulfing outside bar
PB = pin bar
DBLHC = double Bar low higher close
DBHLC = double Bar high lower close
IB = inside bar
Ib4 = inside 4 bar that is the smallest bar of the previous 3 bars
S/R = support/resistance
PA = price action
RN = round number
BRN = big round number
MA = moving average
TL = trend line
BO = breakout
BO + PB = breakout + pullback
RET = retracement
DIV = divergence
CT = counter trend
SL = stop loss
TP = take profit
BE = break even
FTB = First time back ( often used to denote the first time back to an EMA)
RT= retest
WIPG= Where is price going
(This is an exercise designed by J16, in working out where the initial push of any given PA setup is likely to stall at, before it even breaks. In other words the FTA)
WDPG= Where did price go ( This is the conclusion of WIPG)



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Price Action Bars Chart

Note that, the short horizontal line on the PA chart, is the entry point which is usually a 10-15 pip buffer on a daily chart.




Jarroo's Methodology Terminology
------------------------------------ --------------
PBT&CA = price breaks through & closes above
PBT&CB = price breaks through & closes below
LCS = lowest close of support
HCR =highest close of resistance
DCC = Daily Close Confirmation (Of Support or Daily Close Confirmation of Resistance is an indication by the Daily Close to confirm that Support level has flipped to Resistance and vise vie)
SFP = Swing Failure Pattern (Originally Formulated By the Wizard) See Jarroo's chart below for explanation or visit the Wiz thread.

Huge BUOB

hey Carbonado,

Steve pretty much made hit the nail on the head bu here's my take anyways...

Price action has a memory. This means that price and the traders behind it are aware of the major turning points in the past. This is precisely why your PPZs or S/R work.

Now we are taught here at the group that a lot of these S/R zones are quite literally "zones" in that price won't always react to them to the pip but instead react "around" them a lot of times.

Rejection of a swing point simply means that price tried to approach say a prior swing high and failed to go past it and in effect "bounced" off from the region of the swing point. The term "rejection" is a more loosely used term to merely indicate a former resistance area continuing to hold as resistance and a former support area continuing to hold as support. We're simply saying price got "rejected off of the PPZ". the rejection could be to the pip, it could be a little early (such as slightly before price actually hits a former swing high) or it could be a little late (such as a little after price goes past the former swing high). It is referring to the general idea of price bouncing off a PPZ.

The SFP is a narrower term used to indicate a special kind of a rejection, where price necessarily violates say a former swing high (as in goes past the highest bar high of the swing point) but fails to close above it and goes right back down under the swing high, leaving behind only a wick. It gains its merits from the perspective of order flow dynamics which I don't want to be going into to ensure you don't get confused, but simply put, it provides you with a bias that tells you a rejection is quite a possibility, subject to the other factors pertaining to the situation of course.

My post from earlier today "HERE" should help you further in understanding what SFPs basically are.

Please let me know if anything is still unclear.

g.

Hey Ping,

That's just a swing low, which makes up only part of the SFP story. The other part is made up from the action where price tries and fails to penetrate the LLS (in case of a swing low) or the HHR (in case of a swing high).

The chart below should clear things up,

g.

This is my first profitable deal I made by James 16 guidelines as presented in his video (maybe not quite but close) I saw a double top + PINBAR shape


Waiting for your comments

double top + PINBAR shape

I see first time SFP discussed here (i haven't read all thread). Great stuff. When I applied this concept and other stuff from Tom Piccin (price action is only an indicator - trade the source, rounded retest, BE is a bull.shit) i started to made about 20% profit per month. Read the thread "Fail better" and You wont regret it. Great thanks also to Ghous and Jaroo.

Hey Yaki,

I'm in this trade too, alothugh I don't see a double top pinbar, rather I entered when price brokes from a trend line and then retraced.

hey Yaki,

Not sure what bar you took...

And by the looks of it you're probably playing retrace entries?

A little elaboration would be appreciated.



g.

updated chart

this one went "pop"