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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

  • #127,121
  • Aug 6, 2013 4:00pm Aug 6, 2013 4:00pm
Quoting kaka_ht
{quote} Hi Mike!Thanks for your help!But I want to ask u something!If u see a good pinbar,when and where u take a entry(when pinbar closes u immediately go in or you put buy stop or sell limit above/below this pinbar)? Thanks!
Hey Kaka

I take most of my entries on a break of the bar. I'd say roughly 95% or so. That's just my preference. Each entry method has advantages and disadvantages and I think certain situations and styles warrant different entries due to the situation.

Play around with different entries and see what feels comfortable and works


Best
Mike
  • #127,122
  • Aug 6, 2013 4:50pm Aug 6, 2013 4:50pm
hey guys
can someone pls tell me why didn't work or did it go exactly where it should??
pinbar of ppz round number
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  • #127,123
  • Aug 6, 2013 5:09pm Aug 6, 2013 5:09pm
Quoting mbqb11
{quote} Hey Aioico Price is in a tight box here so always remember the midpoint of that box is a major trouble area or PPZ(marked in purple). I like the location of where you are looking at previous Resistance but would personally like a longer nose on that bar to be sure. I drew in an example of what would make me more confident. Hope that helps Mike {image}
Sure it helps, Mike. Thanks.

I've to become picky....long way to go!

Cheers.
  • #127,124
  • Aug 6, 2013 5:10pm Aug 6, 2013 5:10pm
Quoting albus999
hey guys can someone pls tell me why didn't work or did it go exactly where it should?? pinbar of ppz round number {image}
Hey Al

This one did go where it should, here was my chart I dug up from the private forum

I also said due to lack of confluence I believe it's best to take profit quick or get to breakeven on this one
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  • #127,125
  • Aug 6, 2013 5:13pm Aug 6, 2013 5:13pm
Quoting aioico
{quote} Sure it helps, Mike. Thanks. I've to become picky....long way to go! Cheers.
This was a problem that i had when starting off. I just wasnt being picky enough. I decided to start trading using a method tha forced me to wait and wait for an A+ setup. Now I usually get around 2-3 trades per MONTH - and thats on the H1 charts Anyway, I now find it quite easy to wait and be picky when taking trades.
  • #127,126
  • Aug 6, 2013 5:30pm Aug 6, 2013 5:30pm
Quoting dan89
{quote} This was a problem that i had when starting off. I just wasnt being picky enough. I decided to start trading using a method tha forced me to wait and wait for an A+ setup. Now I usually get around 2-3 trades per MONTH - and thats on the H1 charts Anyway, I now find it quite easy to wait and be picky when taking trades.
that's fantastic Dan

I think many traders struggling could have a chance to make it if they just became more picky


Once you do that and see how it is to be profitable it changes your mindset

Keep it up
Mike
  • #127,127
  • Aug 6, 2013 5:47pm Aug 6, 2013 5:47pm
Hello everyone! Thank you so much for taking the time to answer me and provide your wisdom and insights. I can see I've found some great people.

Quoting LamerTrader
{quote} Look for bearish patterns at swing high, and bullish patterns at swing low. Stop placement: Always place stops to areas that have meaning to price. Fibs are good for adding some extra confluence to a trade, but personally I like to set my stops under/over candle highs/lows. Just in this case: Your stop wouldn't have been hit then However if you are really new I would go to Weekly. Mark the Swing highs/lows and major PPZs and then on daily look for PA at these areas. If you do it for a few days / weeks you will have an idea how A+ setups...
Thanks for a ton of great advice all in a short space! I realized my mistake with the swings about half an hour after I posted--there also turned out to be a much more appropriate (and profitable) BEOB shortly later, signaling a reversal. Thanks for your advice on stops as well - that should definitely lead to some improvements. I will take your advice on the rest too. I doubt I'll get it down in a few days, but we'll see Frankly I'll be happy if it's weeks, and not months or years.

And thanks for the encouragement - I certainly don't take any of these comments as negative though. Constructive. How many places online can you post a question and get five rational, helpful responses overnight from intelligent people? Not too many. I'm glad I'm not trying to learn this stuff in a vacuum.

About those abbreviations. Can you (or anyone else) point me toward some kind of a glossary? I've figured out some of them but not others.

Quoting Pinbar
{quote} You can't learn to trade PA on H1, it just does not happen. I am not saying you can't trade PA on H1 or even lower, I am saying you can't learn to trade PA on that time frame.
That's an interesting distinction. I do have a number of reasons for wanting to trade on the H1 (not just the small account issue either), but you're right - I'm not going to learn that way. Back to dailies.

Quoting zamfir
{quote} Now you will think i will not get many setups on daily's weekly's. To solve that problem you need to look at more instruments(Equities,Commodities,Indices,other Forex pairs) and have a large account size.

I'm not sure why I've always been leery of trading a larger number of assets. You've persuaded me though, along with the others. I'd rather take the time to get to know half a dozen assets and take one or two great trades a month on whichever ones offer the opportunity than take a dozen so-so trades on the hourly timeframe on one pair.


Quoting mbqb11
{quote} For example for me(someone who trades bars at all locations), by zooming out we can not only see this small bar but we can see price is trading into massive divergence(see chart). This makes it very unappealing to want to be a buyer into that aspect So when starting like my last chart to kaftka look for big bars and start with looking for buobs at swing lows Hope that helps Mike {image}

Can you please refer me to a good introduction to using divergence in trading? I notice a lot of folks here do it, but I'm totally new to that aspect. And at this point, anything that can help me understand market context without convoluting things would help.


Not long after that BUOB that was in the wrong place (close to the swing high), there was a BEOB which did work. I circled it on the attached chart. Is that a better example of a BEOB in a good location? I also circled an I4B in conjunction with one of my questions below. And I noticed there was a pinbar back on April 9 around the beginning of the first chart I posted. Despite some choppiness on the way up, it looks like it would have been a good pinbar. At a swing low, plenty of space around it, well formed.


Now for some questions for anyone who will answer them:

 

  1. Can anyone point me toward a list of abbreviations? I know a lot of them, but not all.
  2. What is the ideal location for an I4B? Most of the other patterns seem to be best at swing highs/lows for reversals. I know an I4B signifies consolidation or indecision, but are they useful in trending markets as they are in sideways markets? See attached chart. That I4B would have produced good money. Unless I'm wrong and it would've been a win-by-coincidence.
  3. How do I figure out if a swing high/low is forming? I can recognize them well enough when they're already over, but how do you know if you're at a new swing/high low in the present, and not just heading into a brief retracement before price resumes its previous trending movement?

Thank you everyone, again. This is my fourth go-around with this stuff, after a long break trying to get other things in my life in order. I think one of many reasons I did poorly before was because I thought I could learn to trade in a vacuum. I don't think that anymore - so I'm really grateful to you all for the community you have created here.


Haadiyah

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  • #127,128
  • Aug 6, 2013 5:51pm Aug 6, 2013 5:51pm
Quoting dan89
{quote} This was a problem that i had when starting off. I just wasnt being picky enough. I decided to start trading using a method tha forced me to wait and wait for an A+ setup. Now I usually get around 2-3 trades per MONTH - and thats on the H1 charts Anyway, I now find it quite easy to wait and be picky when taking trades.
Pickiness is exactly what I'm here to learn. I actually had really great backtest results for years (several years ago) before my system abruptly "broke" when the market conditions changed a bit. Then I realized my non-picky setups had probably been working all that time through coincidence only. Time to REALLY learn how to trade now.
  • #127,129
  • Aug 6, 2013 7:23pm Aug 6, 2013 7:23pm
Can a break of this beob be taken as a valid entry? Comments please
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  • #127,130
  • Aug 6, 2013 7:35pm Aug 6, 2013 7:35pm
Quoting giggles
Can a break of this beob be taken as a valid entry? Comments please {image}
I would say yes, although i cant open the chart on my broker. Is that hungarian forint?
  • #127,131
  • Aug 6, 2013 7:36pm Aug 6, 2013 7:36pm
Quoting mbqb11
{quote} Hey Al This one did go where it should, here was my chart I dug up from the private forum I also said due to lack of confluence I believe it's best to take profit quick or get to breakeven on this one
hey mike,
i'm a little confused about it lacking confluence cos i see a weekly ppz or do i have my ppz wrong?? and what about the round number?
thanks a lot in advance.

AL
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  • #127,132
  • Aug 6, 2013 7:58pm Aug 6, 2013 7:58pm
Quoting giggles
Can a break of this beob be taken as a valid entry? Comments please
these are my thoughts on the setup.

Al.
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  • #127,133
  • Aug 6, 2013 8:00pm Aug 6, 2013 8:00pm
Nice beob formed at swing high. 4 hr chart shows a nice pinbar
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  • #127,134
  • Aug 6, 2013 8:04pm Aug 6, 2013 8:04pm
Please ignore the above chart. It was a buob and not a beob
  • #127,135
  • Aug 6, 2013 8:11pm Aug 6, 2013 8:11pm
Quoting albus999
hey guys can someone pls tell me why didn't work or did it go exactly where it should?? pinbar of ppz round number {image}
Possibly Mike, is talking about a different bar, or at least it looks like it, looking at both your charts.

If you are talking about the bar, I marked, I believe it went exactly to where we could reasonably expect it to from looking at the bigger picture.
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  • #127,136
  • Aug 6, 2013 9:00pm Aug 6, 2013 9:00pm
Quoting Pinbar
{quote} Possibly Mike, is talking about a different bar, or at least it looks like it, looking at both your charts. If you are talking about the bar, I marked, I believe it went exactly to where we could reasonably expect it to from looking at the bigger picture.
thanks pinbar i think i now know that i should not ignore HCR's or LCS's even when they seem to be far away.
mike& pinbar,could this pattern have been in play also.

PS: pinbar i sent you a PM concerning another topic would be eagerly awaiting your reply.
thanks you guys are great.
AL
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  • #127,137
  • Aug 7, 2013 12:26am Aug 7, 2013 12:26am
Quoting Haadiyah
Hello everyone! Thank you so much for taking the time to answer me and provide your wisdom and insights. I can see I've found some great people. {quote} Thanks for a ton of great advice all in a short space! I realized my mistake with the swings about half an hour after I posted--there also turned out to be a much more appropriate (and profitable) BEOB shortly later, signaling a reversal. Thanks for your advice on stops as well - that {image}
Hi Haadiyah

Thought i would help out with some of the questions. The more advance guys can hopefully help you out with the rest.
This link is to another thread that has a nice summary of the abbreviations. Its help me learn some of them. Not sure if its complete. Its just helped me . http://www.forexfactory.com/showthre...76#post6789476

In terms of the divergence. I found the following a good introduction to the subject. http://www.babypips.com/school/divergence-trading.html

Trust this will help with some of your questions.
Rudolfo
  • #127,138
  • Aug 7, 2013 12:48am Aug 7, 2013 12:48am
Quoting rudolfo
{quote} Hi Haadiyah Thought i would help out with some of the questions. The more advance guys can hopefully help you out with the rest. This link is to another thread that has a nice summary of the abbreviations. Its help me learn some of them. Not sure if its complete. Its just helped me . http://www.forexfactory.com/showthre...76#post6789476 In terms of the divergence. I found the following a good introduction to the subject. http://www.babypips.com/school/divergence-trading.html Trust this will help with some...
Awesome, thank you Rudolfo!

H.
  • #127,139
  • Aug 7, 2013 1:20am Aug 7, 2013 1:20am
Quoting Haadiyah
Hello everyone! Thank you so much for taking the time to answer me and provide your wisdom and insights. I can see I've found some great people
Hi Haadiyah!

- Abbreviations: 2nd post of this thread http://www.forexfactory.com/showthread.php?t=435416

- Bars at good location -> Get a random expert advisor from the internet (i think you got 2 already in your mt4 platform) start the expert-advisor. (If it does some traded as time goes by simply ignore it.) What it does is that it will simulate real time trading enviroment. (Well you will have to calculate your trades in an excel file but who cares. Personally I find MT4 much more better then the 200 Bucks ForexTester.) So just go back in time set your indicators etc, and focus on one thing. "Not im going to look for inside bars only" -> And then mark EVERY SINGLE inside bar on your chart. You will see that maybe 5-10% had some normal confluence and worked out actually well. Take a screen shot of these and save them on your drive, so later if you are confused what you are looking for it's easy to look it up
(For me it works well - I mean yesterday I had a weak fake-out setup and I was thinking taking it or not. Then I simply looked up the "how should it look folder" and then I said "Damn - Did i just want to trade that tiny thing?!"

- That's a tough question. I refer to an area as major swing low if there has been a swing low on the weakly earlier. So if we entered this area I say - we are at a major swing low. If we broke down (even more) - well then we are just making a new swing low. I mean really - just mark the highs / lows on weekly and go back to daily. And if you look back in time you will see that most of the nice pinbars happened at such highs/lows

-However I think noone will be able to tell you if price has actually changed it's direction or it's going to continue it's way up - I mean with time you will just feel it - Price is trickling back to the former high for a retest. It has a nice rounded shape then you might say it will bounce.

Hope this helps
Stephen
It's all psychology...
  • #127,140
  • Aug 7, 2013 1:32am Aug 7, 2013 1:32am
Quoting giggles
Can a break of this beob be taken as a valid entry? Comments please {image}
Hi giggles!

Beob - yes. High - yes. However here is the thing: If you set a huge stop that means you must have a huge space where price will fall. In this case we don't have much.
Maybe you see that big white bullish bar followed by a bearish inside bar. That would be my FTA. For me this trade doesn't have the required R/R with that stop. Entering on ret to the 50% of the bar - maybe yes.
What we (so me included) must have is statistics of our trading. Like hit rate or win rate (call whatever you want). If your winrate is over 80% you might take a trade like that. If you are 40% you might not.

However I think if we dont get a close above over the former high, then this trade will work out. So price will have some pull-back. But never enter a trade where the TP and the SL are not fixed. You have to know where you want to quit or at least manage your trade.

Cheers,
Stephen
It's all psychology...
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