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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

  • #127,261
  • Aug 12, 2013 2:59pm Aug 12, 2013 2:59pm
This has been on my mind for some time and I would like to see your view on the subject. Trend lines - What added value do trend lines actually bring to your trading?

I wrote a post a while ago, but nobody commented, so here I'll post it again:

Quoting mbqb11
{quote} One of the worst mistakes I see new traders make using TLs, is drawing them all over their charts and just trying to buy sell whenever one breaks. That can lead to one big headache! Best Mike

And here's my post.

My thinking on the trend lines goes like this (and bear with me, I am being theoretical, but trying to make a valid point ). Every and any trend line will eventually be broken, since we are moving forward in time it is inevitable that the brake will occur at some point. This is due to trend line nature, they cross a path of charts, as charts are always 'travelling' in the same direction - from left to right. My point being and I refer to Mike's quote here is, that we should not trade breakouts of trend lines blindly. So if we are only waiting for a brake of a trend line to happen and just shoot the trade without considering the whole story, we may find ourselves in trouble.


On the contrary, not every support and resistance level will be broken, so that's why I see more significance when a brake of S/R occurs. Trend lines don't form boxes, but S/R levels do. And it is the boxes that we need to recognize and take into account how price behaves around those as Mike explains in the video he shared a few posts back.


Would you agree?



  • #127,262
  • Aug 12, 2013 3:24pm Aug 12, 2013 3:24pm
Quoting Magestic
{quote} I'm in also. But its a sideways market. I moved me SL below the left eye and will TP at FTA. {image}
Worked out fine.
Attached Image (click to enlarge)
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If not up, then down, otherwise sideways :-)
  • #127,263
  • Aug 12, 2013 4:21pm Aug 12, 2013 4:21pm
Quoting mbqb11
{quote} yep that can make for a much stronger solid pattern in my observations. Not 100% necessary but something that can help those learning to find patterns too Best Mike
Cheers mate.

On another note, i was browsing through my old posts just for fun and one thing i noticed is that i seem to ask you and other members for confirmation on patterns/setups that I have found myself. Its like I constantly need reassurance that what im doing is right or wrong. It seems like I have difficulty trusting myself but im not quite sure why. Have you witnessed this in the past with other members learning your style of trading. Do you have any words of wisdom that may help me to understand why I need this reassurance and how I can get past this problem. I know this may be a big question to ask but any help/advice would be much appreciated.

Many thanks
Dan
  • #127,264
  • Aug 12, 2013 5:05pm Aug 12, 2013 5:05pm
Hey guys,

Thank you so much for your feedback Dave and Mike.

Quoting dmc
{quote} Makwana, Yes, those two bars can be combined to make a 2 Day BUOB.
Bang on and it's great to get it confirmed that we can potentially look at 'merging bars'.

Quoting dmc
{quote} Not one I would necessarily trade as there is not much space before the first trouble area, but it did as much as we could expect it would do.

Quoting mbqb11
{quote} You are correct as Dave said above. We can see the BRN just above us where "space" runs out If you have more questions let us know! mike
Ah I can now see we had the 0.9000 level just above us as well as the prevailing trend to the downside.

Quoting mbqb11
{quote} If you have more questions let us know! mike
I'm sure I'll have plenty, lol

Kind regards

Mak
  • #127,265
  • Aug 12, 2013 6:01pm Aug 12, 2013 6:01pm
Quoting bee24
This has been on my mind for some time and I would like to see your view on the subject. Trend lines - What added value do trend lines actually bring to your trading? I wrote a post a while ago, but nobody commented, so here I'll post it again: Quoting mbqb11 {quote} One of the worst mistakes I see new traders make using TLs, is drawing them all over their charts and just trying to buy sell whenever one breaks. That can lead to one big headache! Best Mike And here's my post....

Hey B


I would agree to an extent. I look at everything as having it's time and place depending on the situation. So some situations a TL is much more important than certain s/r(horizontal) but everything is usually intertwined. I always like to say trading is not a one size fits all. This allows me not to get to hung up on one thing but rather evaluate the specific situation I am trying to tackle. I would say TLs are very important if we pick the right ones. Same goes for S/R. Overall if I had to pick side to side support and resistance as a whole is critical to what I do

Hope that helps a bit
Mike
  • #127,266
  • Aug 12, 2013 6:02pm Aug 12, 2013 6:02pm
Quoting Magestic
{quote} Worked out fine. {image}
good job M

Mike
  • #127,267
  • Aug 12, 2013 6:05pm Aug 12, 2013 6:05pm
Quoting dan89
{quote} Cheers mate. On another note, i was browsing through my old posts just for fun and one thing i noticed is that i seem to ask you and other members for confirmation on patterns/setups that I have found myself. Its like I constantly need reassurance that what im doing is right or wrong. It seems like I have difficulty trusting myself but im not quite sure why. Have you witnessed this in the past with other members learning your style of trading. Do you have any words of wisdom that may help me to understand why I need this reassurance and...
Hey Dan

It's a time and experience thing. You just can't substitute the experience gained from trade after trade after trade after trade etc. This is how you will gain confidence in yourself and your method(which goes hand and hand). This is why no one over night "gets" it. Their are so many phases and deeper understandings that go into it. So while I can throw up a trade, show the simplicity that is built into the trade and my thinking. Someone can SEE this but then to have the confidence themselves to learn and do it takes time.

My advice is keep demoing, or going through your trading slowly. Over time you will start to slowly build that confidence. In fact you won't even notice it happening more times than not because I think it's such a gradual process. When you look back all of a sudden you can see how far you have come and how your mindset , trading, and confidence is molded slowly. It is an ongoing process, even for me after over a decade now.

Take good notes, evaluate and be honest with yourself as well

Best
Mike
  • #127,268
  • Aug 13, 2013 2:57am Aug 13, 2013 2:57am
Quoting LamerTrader
Why is it such a great setup. Damn I feel like a dumb kid, as if i were missing something here. {image}
I guess it is a question of "edge" then. I mean after the time you KNOW how to play such tight setups you can do it...
Mike! Do you trade such trades as well? I mean not nice A+ setups, that you don't post here cause you don't want to confuse people? O.o

Thanks,
Stephen
It's all psychology...
  • #127,269
  • Aug 13, 2013 3:56am Aug 13, 2013 3:56am
Hi Mike , hi guys,

I closed my position on EURAUD 'cause of that little tiny pinbar but mostly because it was a counter trend trade.

Then i have a doubt on which is the right trendline to draw : red one or black one?

Anyway my not-hit target was set on the resistance of the blue box....now i want to see a double top and then a big fall

Cheers
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  • #127,270
  • Aug 13, 2013 4:20am Aug 13, 2013 4:20am
Quoting aioico
Hi Mike , hi guys, I closed my position on EURAUD 'cause of that little tiny pinbar but mostly because it was a counter trend trade. Then i have a doubt on which is the right trendline to draw : red one or black one? Anyway my not-hit target was set on the resistance of the blue box....now i want to see a double top and then a big fall Cheers {image}
Im not a huge TL fan, but I would vote for the black one, since price restricted it much more. However if you are entering short on a TL break you might consider the redone as some sort kind of FTA.
Scroll back on your chart, draw 1000 trend-lines and then you will know what you are looking for

Cheers,
Stephen
It's all psychology...
  • #127,271
  • Aug 13, 2013 5:17am Aug 13, 2013 5:17am
Quoting aioico
Hi Mike , hi guys, I closed my position on EURAUD 'cause of that little tiny pinbar but mostly because it was a counter trend trade. Then i have a doubt on which is the right trendline to draw : red one or black one? Anyway my not-hit target was set on the resistance of the blue box....now i want to see a double top and then a big fall Cheers {image}
Hi aioico, I would go for the black one. Price didnīt go anywhere near red trendline for a very long time, we had some touches at the beginnig of trend but thatīs it. I think that black trendline is better defined, price approached it three times recently, so that gives it more weight. Just my 2 cents though

Mav
  • #127,272
  • Aug 13, 2013 5:22am Aug 13, 2013 5:22am
I have been using period multiplier indicators to create 8 hr, 12 hr charts. The problem with this method is that after the charts have been created, they have to be opened offline one at a time. The process of opening charts one at a time is so tedious. Is there an alternate method available?
  • #127,273
  • Aug 13, 2013 5:45am Aug 13, 2013 5:45am
Quoting LamerTrader
{quote} Im not a huge TL fan, but I would vote for the black one, since price restricted it much more. However if you are entering short on a TL break you might consider the redone as some sort kind of FTA. Scroll back on your chart, draw 1000 trend-lines and then you will know what you are looking for Cheers, Stephen
Thanks Stephen.

I'd like to be a TL fan but for me it's hard because i think it is too subjective.

Aio

Quote
Hi aioico, I would go for the black one. Price didnīt go anywhere near red trendline for a very long time, we had some touches at the beginnig of trend but thatīs it. I think that black trendline is better defined, price approached it three times recently, so that gives it more weight. Just my 2 cents though

Mav

Thanks Mav.

I'm sorry but i didn't quote you properly, i don't know how to do it.

Aio
  • #127,274
  • Aug 13, 2013 6:34am Aug 13, 2013 6:34am
Quoting giggles
I have been using period multiplier indicators to create 8 hr, 12 hr charts. The problem with this method is that after the charts have been created, they have to be opened offline one at a time. The process of opening charts one at a time is so tedious. Is there an alternate method available?
You could potential use Metatrader 5 which has these facilities built in. Gutted it's not in MT4 though

Mak
  • #127,275
  • Aug 13, 2013 8:36am Aug 13, 2013 8:36am
Quoting LamerTrader
{quote} I guess it is a question of "edge" then. I mean after the time you KNOW how to play such tight setups you can do it... Mike! Do you trade such trades as well? I mean not nice A+ setups, that you don't post here cause you don't want to confuse people? O.o Thanks, Stephen
Hey Stephen

Many setups are valid depending on the trader style. For example James takes more setups I wouldn't because he also uses much tighter stops as well as gets to b/e and takes some off the table quicker. This is one reason we have different instructors in the PF who use the same material but place that material together in different ways. It's one of the best parts of PA. Many ways to skin a cat in trading


Best
Mike
  • #127,276
  • Aug 13, 2013 8:38am Aug 13, 2013 8:38am
Quoting aioico
Hi Mike , hi guys, I closed my position on EURAUD 'cause of that little tiny pinbar but mostly because it was a counter trend trade. Then i have a doubt on which is the right trendline to draw : red one or black one? Anyway my not-hit target was set on the resistance of the blue box....now i want to see a double top and then a big fall Cheers {image}
Hey A

Neither TL is really good for me right now. Like your chart shows the top one doesn't quite fit and the bottom one has very little touches in a long time.

Nice trade!

Mike
  • #127,277
  • Aug 13, 2013 1:18pm Aug 13, 2013 1:18pm
On a different note, was just wondering why is the Sonic R. System so popular! On average, you get about 300+ traders viewing the thread on FF!
  • #127,278
  • Aug 13, 2013 1:40pm Aug 13, 2013 1:40pm
Quoting danjuma
On a different note, was just wondering why is the Sonic R. System so popular! On average, you get about 300+ traders viewing the thread on FF!
It's good to know... Our living will depend on these people When we buy they will come in to push price higher, so we can sell later
It's all psychology...
  • #127,279
  • Aug 13, 2013 2:19pm Aug 13, 2013 2:19pm
FXPRO Microlot Question

As far as I know FxPro DOES support microlots, however any time I open a demo account I can only trade minilots (0.1)
Can you help me to create a microlot demo account? O.o
It's all psychology...
  • #127,280
  • Aug 13, 2013 2:26pm Aug 13, 2013 2:26pm
I have a live account with FxPro and they do NOT have micro lots only mini-lots / $10,000
18 traders viewing now