james16 Chart Thread | Page 6639 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Where can I learn more about Price Action like those in James16 charts? 9 replies

Attachments: james16 Chart Thread
Exit Attachments

james16 Chart Thread

  • #132,761
  • Oct 28, 2014 2:47pm Oct 28, 2014 2:47pm
Quoting mbqb11
{quote} Hey P You hit on some important points that i'll give you my opinion on and hopefully gives you some direction -Firstly james always talks about small accounts and how most people lose because of small accounts. When a dollar amount on a trade becomes WORTH something you will trade differently. Now I agree with james but also know that if you can trade that account true that it doesn't matter in theory. But in real time most people have trouble with this. Let's for example take a trader who open a $1000 account and risks 3% a trade. That's...
Thanks for sharing your thoughts on this one. I do agree with you that the nature or price movements is the same irrespective of the timelines. To share my thoughts on this one, trading with a big account is definitely easier because one need to take only two or three best setups in a month and they can hit their targets. Small accounts is an issue here but the main thing is to take only the best setups irrespective of your trading capital. It get increasingly complex to trade on lower time frames because of faster price movements and this also puts the mind in a faster thinking mode resulting in errors and losses. The real issue with trading on smaller time frames is complexity. With a micro account I think I can still stick to daily and weekly charts and only take the best setups if I want to.

Now coming to the advantage of trading on a small account rather than paper money....real money though in small amounts brings in some discipline and seriousness to trading. We all need a structure and should bring in a sense of commitment to the craft. We all know this in the software world where the students take learning seriously when you charge some money for that. The biggest advantage is losing the fear of trading with real money. If one is doing a well paid job he can slowly add to his trading account while trading with a micro account. The main thing here is to be able to practice the trade all the time.

The main issue here with a small account many people tend to trade on lower time frames and that results in failure most of the times. It just gets real hard below 4hr. The pace of price movement on smaller time frame simply puts the mind in a framework that tends to give losing trades and with losing trades your confidence tanks and that goes downhill. My bad luck is that when I had capital I did not have confidence in trading and now I have some confidence but no capital. Life throws up curve balls all the time.
  • #132,762
  • Oct 28, 2014 3:08pm Oct 28, 2014 3:08pm
I dont know how many people took these trades in the past on EUR/USD. I can see two great entries, one is BOB at price high and another breakout from a major PPZ. I could have taken these trades but I was lost in job and other things. THe one off a major ppz is a touch trade but it was simple.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 62 KB
  • #132,763
  • Oct 28, 2014 7:19pm Oct 28, 2014 7:19pm
These are a couple of setups I'm watching. IMHO they are very good A+ setups. However the manner of breakout will determine if these setups turn out to be good trades. To find these setups I went through 75+ pairs looking at weekly, daily, H4 and H1 time frames. It took me maybe 30 minutes to do this. I scan the pairs 2 or 3 times per week. I think the best setups start occurring Tuesday or Wednesday. Setups occurring on Sunday are often sucker trades so be careful.

This is in contrast to watching 5 or 10 or even 15 pairs. If you only watch a limited basket of the same pairs you might accept "B"setups/tradse because your not finding good A+ setups. I used to struggle with scanning so many pairs but I finally accepted it as a necessity to find GOOD set ups rather than settle for mediocre setups on the pairs I was stubbornly watching. Don't fall in love with ANY pair. None of them like you or give a damn about you. Find the ones that will make you money and leave the rest behind.

There are a lot of other methods, systems, strategies, etc that focus on very particular market movements, thus one can watch only a few or several pairs. I've found that these methods require no less time (and perhaps much more) than analyzing many pairs because you will get so involved in the minutia of a particular pair.

So one has to choose their poison.

It takes time and practice to go through many pairs and find the best setups. I struggled with this for years. Now it is much easier. Scan....find....set alarms and wake up at horrific hours of the night....trade breakouts with good PA with well-defined SLs and TPs. No emotion. The trade works or it doesn't.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYH1102814.png Size: 56 KB


Attached Image (click to enlarge)
Click to Enlarge Name: AUDJPYH4102814.png Size: 51 KB
  • #132,764
  • Oct 28, 2014 7:19pm Oct 28, 2014 7:19pm
Well I have to say when I started trading Forex I was taking too much trades on too small account. This usually was ending in badly because of too big margin even if trades I was taking after some time were going in good direction. Overtrading is a thing.
Another big mistake I was doing was trading in front of big chunks of Really Important news. I'm really bad with predicting economy
Well mbqb11 I think higher TFs are more reliable than lower because of size of moves and how much of profits will be taken by spreads. Of course there is no much of difference between H4 and D1 but lower than H1 requires different approach to trading.

Regarding your previous post mbqb11, thanks for your concern! The thing is I'm currently applying myself for a job as Forex Trader. I need a three-month statement where I can prove that I can do at least 8% (but my boss said 10% is better so I'm aiming more for that) profit a month. It's not much for me I had more than that for more than half of a year. Sadly I did not trade on any of my forex accounts enough so I'm forced to do that statement from zero It's just no Forex broker seems good enough for me... My current broker too so when I'm done with that I will search for another one
I'm currently at 9,5% profit in a first week of trading of second month. Because apparently I can't do math (I forgot with how much many I started a month and I got out from trades prematurely ) I want to do remaining 0,5%. I'm currently out because of FOMC today. I will try to catch some easy pips after FOMC will be defined.

Good luck everone!
  • #132,765
  • Oct 28, 2014 7:31pm Oct 28, 2014 7:31pm
Quoting Dovilo
Well I have to say when I started trading Forex I was taking too much trades on too small account. This usually was ending in badly because of too big margin even if trades I was taking after some time were going in good direction. Overtrading is a thing. Another big mistake I was doing was trading in front of big chunks of Really Important news. I'm really bad with predicting economy Well mbqb11 I think higher TFs are more reliable than lower because of size of moves and how much of profits will be taken by spreads. Of course there...
Hello Dovilo,
I wish youh all the luck. Trading is really not much different than obtaining an education and degree whether it be a Bachelors, Masters or PHD. Any of these degrees takes a minimum of 4+ years. I would venture to say becoming successful in trading requires even more time. I think your trading goals are a bit lofty. I would be happy with 10 or 15% per year. If I get more then great but I don't plan or set goals to achieve some extraordinary monthly or weekly %age. This will only lead to overtrading and losses. Instead I think it is best to find the best setups, trade them and take what you get. If it turns out to be a stellar month then awesome!. If not then wait for the setups to come rather than chase after "B" or "C" setup/trades.

All the best to you,
  • #132,766
  • Oct 28, 2014 8:01pm Oct 28, 2014 8:01pm
This is looking good from this vantage point.

Attached Image (click to enlarge)
Click to Enlarge Name: EURAUDH4102814.png Size: 79 KB
  • #132,767
  • Oct 28, 2014 9:45pm Oct 28, 2014 9:45pm
Quoting doerpn
Hi Mike, I like your detailed and well-founded explanations! This is the most useful thread I ever joined. Thanks, thanks and thanks! May I add that its a good idea to experience with a small real account instead of a demo one. So one is more picky, carefull and concentrated from the begin on - if not than cash is away.... That´s what helped me. Good trades to all.
Cool brotha

Yes I consider a small live account basically demo. As long as that money isn't anything one will miss if they do lose it. I always did that myself. But I go through the same things as you guys. James is teaching me options now and I have begun to paper trade them just as I would tell someone who is learning to directional trade.

Keep at it my friend and thanks for dropping in
Mike
  • #132,768
  • Oct 28, 2014 9:46pm Oct 28, 2014 9:46pm
Quoting prasad99
{quote} Thanks for sharing your thoughts on this one. I do agree with you that the nature or price movements is the same irrespective of the timelines. To share my thoughts on this one, trading with a big account is definitely easier because one need to take only two or three best setups in a month and they can hit their targets. Small accounts is an issue here but the main thing is to take only the best setups irrespective of your trading capital. It get increasingly complex to trade on lower time frames because of faster price movements and this...
Absolutely P! Take the best setups no matter your account size. That's THE MOST IMPORTANT THING. If you can do that it's only a matter of time building and adding to your account to get there.

Grass is always greener, keep at what you are doing and time and hard work you'll no doubt get to where you are. I always like to think it's the journey that's what really is the most important when things are over

Glad to hear your thoughts

Mike
  • #132,769
  • Oct 28, 2014 9:47pm Oct 28, 2014 9:47pm
Quoting Dovilo
Well I have to say when I started trading Forex I was taking too much trades on too small account. This usually was ending in badly because of too big margin even if trades I was taking after some time were going in good direction. Overtrading is a thing. Another big mistake I was doing was trading in front of big chunks of Really Important news. I'm really bad with predicting economy Well mbqb11 I think higher TFs are more reliable than lower because of size of moves and how much of profits will be taken by spreads. Of course there...
Great D sounds like you have a good plan and you are being smart. That's what matters! Different ways to approach the overall aspect of trading and that's great

Mike
  • #132,770
  • Oct 28, 2014 9:49pm Oct 28, 2014 9:49pm
Quoting Winston Reed
This is looking good from this vantage point. {image}
sure is Winston

I was watching the initial break of the rising TL but price kinda just trickled out. Not all that interesting. We can see price sqeezing too. SOMETHINGs gonna happen. Just gotta wait for solid PA here


Nice charts recently bud

Mike
Attached Image (click to enlarge)
Click to Enlarge Name: 10-28-2014 10-48-58 PM.gif Size: 30 KB
  • #132,771
  • Oct 28, 2014 10:03pm Oct 28, 2014 10:03pm
Quoting prasad99
It seems like it is easy but when try to trade real time it is not. If you are doing a job and try to trade it is possible to trade only on Daily and Weekly. I wish I could build a huge account starting with this 250.....
This post is directed to you, but also to everyone who feels like they're not making progress in forex. I've been there, it sucks.

First of all, if you're trying to build a huge account from $250, you've got the wrong ideas about forex. Even if you double your account in a year, (which is an amazing achievement), you'd likely still be unhappy because it's not a 'huge account' yet. You've got to start thinking in percentages. % risk per trade, % drawdown, % trades won, etc. Let's say you risk 2% per trade with an average R:R of 1:2. In a month you do 3 trades, 2 wins and a loss. So you make 6%. 6% of $250 is $15, so your account is now at $265 at the start of your second month. Doesn't sound like a very good, right? But if you make 6% a month, you'll double your account over a year. Now imagine you have a larger account. Pretty exciting, isn't it? Obviously, this isn't an easy process. But it's achievable.

Now, I don't want to sound like I'm flaming you or anything, but it seems like you're not treating this as a business. I'm saying this because I wish someone had told me this a year ago. If you're trading real money, regardless of the account size, you should be treating this as a business. End of story. If you're trading money, you should have a trading strategy. Not just a vague concept of what a good set-up is and what a bad set-up is. Trust me, I wasted roughly a year knowing all this information, but not implementing it in any consistent way over time.

Which time frame(s) do you trade? Which currency pairs? Do you trade only pin bars, or engulfing bars as well? What percentage of your account will you risk per trade? Will you ever exit a trade manually, or wait until it hits either your SL or TP? Will you move your stop loss to break even at the first trouble area? Will you take partial profits? What percentage of your account are you willing to lose before you stop trading, take a step back and reassess what you're doing? Do you take news releases into consideration?

These are just some of the questions that you should be able to answer instantly if someone asked you them. If you can't, you're not treating trading as a business, and you won't be able to evaluate your system and your personal performance. You'll be wasting your time.

So if you're frustrated, join in and start posting some charts. Decide on a strategy and start thinking in percentages. We're all here to learn from each other.
Confluence is king.
  • #132,772
  • Oct 28, 2014 10:20pm Oct 28, 2014 10:20pm
I see people talking about account sizes. I think the focus is entirely in the wrong direction for beginners.

The focus is on the end result rather than the journey to that end.

your main focus when you begin trading is get a consistent profitable strategy that YOU are comfortable with. the risk and position sizes are secondary as these are matters of psychology which is different for each trader.

Now getting a the point where you are confident that you actually have a profitable strategy takes time. I mean a lot of time, varies from months to years before you can say i have a decent strategy. you also have to build the discipline to trade your own strategy with confidence. This again is a personal struggle for each one of us and again takes time.

Most of the time the newbies think they have a profitable strategy after 1 month , only to see it fail after 2 months or so.

The other matters related to account size will not become a problem once you build the discipline and found a decent strategy.

So to all the struggling traders out there, keep at it. Don't get distracted.
  • #132,773
  • Oct 28, 2014 10:30pm Oct 28, 2014 10:30pm
Hello!

I follow this thread for several months and trading demo now.

What do you think about AUD/CAD D1?
There PB, from the high point of consolidation, also confluence with PPZ, fib ret 50% and divergence.
Can we say that this setup is at least A-class?

Thanks.

Dmitry

Attached Image (click to enlarge)
Click to Enlarge Name: AUDCAD.eDaily.png Size: 37 KB
  • #132,774
  • Oct 29, 2014 2:52am Oct 29, 2014 2:52am
Quoting DmAlenn
. What do you think about AUD/CAD D1?
Hey mate, I've got a support area marked on my charts around 0.9850 that might give that trade some trouble. It's been pretty well respected in the past. Just something to consider, I guess.
Confluence is king.
  • #132,775
  • Oct 29, 2014 3:08am Oct 29, 2014 3:08am
Quoting Liquidity
{quote} Hey mate, I've got a support area marked on my charts around 0.9850 that might give that trade some trouble. It's been pretty well respected in the past. Just something to consider, I guess.
Yup, you may want to consider take some profit there or just move SL to BE when the price moves to your advantage.
  • #132,776
  • Oct 29, 2014 5:44am Oct 29, 2014 5:44am
Hii all,thanks very much for the help you are giving.I have a question regarding stop loss.As i have been reading the thread,i have seen that james16 never takes full bar losses,in daily he never takes more than a 30 pip loss.

I have been using a 30 pip sl and a 30 pip tp on the daily charts.I wait for a good pinbar to form at a good place,then i place a buy/sell stop order 10 pips above/below the pin.so far this month i have made 4 trades all winners.

I wanted to know from the senior members,is this approach good for long term success in this business.
  • #132,777
  • Oct 29, 2014 9:48am Oct 29, 2014 9:48am
Quoting DmAlenn
Hello! I follow this thread for several months and trading demo now. What do you think about AUD/CAD D1? There PB, from the high point of consolidation, also confluence with PPZ, fib ret 50% and divergence. Can we say that this setup is at least A-class? Thanks. Dmitry {image}
Hey Dmitry

Welcome to the thread

When starting out try to look for pinbars at nice swing highs with space. This bar is in a lot of traffic. Meaning we have no room to move and thus we are in consolidation. Bars like that can give traders a lot of trouble because of the nature of a sideways market. If we look here we can see price boxing on top of boxes. And thus there is a box low and box top right under this pinbar as well too.

So I like the idea of trying to look for confluence with your fib and previous swing low. That's a great former area of support that has a good chance to turn to resistance. But based on the movement of price prior to the pinbar(and after the bounce at your confluenced area) the current market enviornment makes bars like this tricky. If anything selling a retrace to the box top(top red box area) is a more profitable and easier play then trying to trade into the next level of potential support(middle red box)

Hope this helps and again welcome to the thread!
Mike
Attached Image (click to enlarge)
Click to Enlarge Name: 10-29-2014 10-45-23 AM.gif Size: 30 KB
  • #132,778
  • Oct 29, 2014 10:00am Oct 29, 2014 10:00am
Quoting philemon123
Hii all,thanks very much for the help you are giving.I have a question regarding stop loss.As i have been reading the thread,i have seen that james16 never takes full bar losses,in daily he never takes more than a 30 pip loss. I have been using a 30 pip sl and a 30 pip tp on the daily charts.I wait for a good pinbar to form at a good place,then i place a buy/sell stop order 10 pips above/below the pin.so far this month i have made 4 trades all winners. I wanted to know from the senior members,is this approach good for long term success in this business....
Hey Phil

Welcome to the thread as well too

Few comments on the above. Their is nothing wrong wtih trying to get tight stops based on daily charts. This is what James calls day trading a daily chart. BUT the key to remember here is that not all situations will a 30 pip stop loss make sense. So james might have a 15 pt stop or a 50 pt stop etc. It depends on where your entry is. So we can't take every pinbar throw up a 30 pt stop and take profit and think that trade makes sense.

For example the times a small stop makes sense is where your entry pt has no where to go but stay within your range or the trade probably isn't valid

Here is an example of a potential 2 day pinbar that may form IF price moves under the box top(white box). Now lets say price closes under that white box giving us a 2day pinbar. If we just SELL a break of the bar and put a 30 pt stop we have a great chance of losing. Here is why. The range to above the top of the white box is roughly 40 pips. so if you just stuck a 30 pip stop because that's an arbitrary number you are picking you are not placing your stop ABOVE the logical area to hold price. So you have a great chance of getting stopped out and price then moving the way you anticipated. INSTEAD if you say buy on a retrace to taht white box. Meaning a sell limit at that area you could now get a 20-30 pip stop and be in a trade that makes sense with the technicals.

Attached Image (click to enlarge)
Click to Enlarge Name: 10-29-2014 10-51-47 AM.gif Size: 38 KB


So as you can hopefully see how and where you enter is more important then a number like 30 pips. Same goes for take profits. By setting a take profit at 30 pips you are creating an arbitrary number that the market knows nothing about. I suggest looking and learning FTA(first trouble areas) and being agressive around them if you are looking to get to b/e or taking profits quick. Example on this if we did get that 2 day pinbar. We could sell a retrace to the white box, and target the midpoint of the box(dotted red line). This would actually give you a risk of a bout 25 pips and a final target of 50 pips and you are just using the basic FTA and max retrace point price should take.


Again this is jut one example and it may not materialize. Each situation is unique but this thought process is one that I use, james and many others to pinpoint our entries and keep our risk low in many instances

Hope that helps
Mike
  • #132,779
  • Oct 29, 2014 10:44am Oct 29, 2014 10:44am
Quoting zamfir
I see people talking about account sizes. I think the focus is entirely in the wrong direction for beginners. The focus is on the end result rather than the journey to that end. your main focus when you begin trading is get a consistent profitable strategy that YOU are comfortable with. the risk and position sizes are secondary as these are matters of psychology which is different for each trader. Now getting a the point where you are confident that you actually have a profitable strategy takes time. I mean a lot of time, varies from months to years...
fully agree! before you invest money in the house, you need a strong foundation for it!
Market can stay irrational longer than you can stay solvent.
  • #132,780
  • Edited 1:54pm Oct 29, 2014 1:25pm | Edited 1:54pm
US Dollar strenght after FOMC is massive. I gained some pips on it but I could get a lot more. I'm ending this month (started 22.10) today after 5 days of trading with ~15% profit.
47 traders viewing now