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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

  • #133,081
  • Nov 21, 2014 8:03am Nov 21, 2014 8:03am
Quoting Juri
excellent thread guys ...i hope to learn a lot from you here i took EUR/NZD short after big BEOB {image}
but you didnt trade the beob itself? looks like you sold long time after?
Hero calls followed by margin calls...
  • #133,082
  • Nov 21, 2014 8:09am Nov 21, 2014 8:09am
Quoting Winston Reed
{quote} Nice trades/charts Z


Just had to repost this...what a move on CAD news... locked 100+ pips.

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  • #133,083
  • Nov 21, 2014 8:09am Nov 21, 2014 8:09am
Quoting zamfir
{quote} Which one are you talking about? info about IB is all here. you play it the same way like PB or OB. All three are reversal pattern. But like i have said earlier. The signal is the last piece of the puzzle. IB bar forms all over the place. Not all of them will work. But somehow people are not getting this point. They still believe a pattern is all that is needed to take a trade. Don't focus too much on the patterns. Focus on story.
Thx Zamfir for your advice "Don't focus too much on the patterns. Focus on story."
  • #133,084
  • Nov 21, 2014 9:22am Nov 21, 2014 9:22am
Quoting srt
{quote} Hi Joe, I would have to say one of the main benefits of options trading is that it requires so much less capital than to trade the underlying stock so I think someone with limited capital is much better off to trade options than stocks. I can get so much more exposure with options than with the stock. The time decay is definitely something to pay attention to but not too difficult to cover that cost. I could take almost any stock portfolio & cut the dollar amount required by 75% and still have the same exposure to the upside & dramatically...
Thanks for putting this out in an excellent way that shows the advantage of trading with options. It is a blessing for those with less capital. Having said that it still demands that one master the trading strategy and predict the price movement. Also this price movement has to happen within the stipulated time period. Also unless the delta is 1 any upward movement in the stock price will not result in the same appreciation of the options contract. To buy an option contract with delta 1 is a bit expensive. I have seen that the option contracts with a delta of 0.5 are quite affordable. But in the case of delta being 0.5 the stock price has to appreciate by at least 5 dollars for the contract to go up by 250 dollars. So if the options contract value is $200 and add to that $30 broker fee ...if you have to sure about at least $5 dollar stock movement to hit the breakeven. Options trading is good but it is not easy either.
  • #133,085
  • Nov 21, 2014 9:58am Nov 21, 2014 9:58am
Pinbaaaaar : p..... anyway I'll looking for longs again

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Hero calls followed by margin calls...
  • #133,086
  • Nov 21, 2014 10:00am Nov 21, 2014 10:00am
Quoting PhAnTi'
Pinbaaaaar : p..... anyway I'll looking for longs again {image}

That too on a weekly...great find.
  • #133,087
  • Nov 21, 2014 10:09am Nov 21, 2014 10:09am
Quoting PhAnTi'
Pinbaaaaar : p..... anyway I'll looking for longs again {image}
I see a nice pin bar even on daily chart but the price has already moved. one has to watch the BRN 145.00
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  • #133,088
  • Edited 1:41pm Nov 21, 2014 12:28pm | Edited 1:41pm
Last night's trade...
Quoting PhAnTi'
Pinbaaaaar : p..... anyway I'll looking for longs again {image}
Quoting prasad99
{quote} I see a nice pin bar even on daily chart but the price has already moved. one has to watch the BRN 145.00 {image}
Apparently I wasn't the only one :-) Probably I should've waited until the PB had been taken out.
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  • #133,089
  • Nov 21, 2014 3:14pm Nov 21, 2014 3:14pm
Two day engulfing on the EUR/CAD Daily and the price breaks the BRN 1.40000--Not the best trade to take in my opinion but there was an entry at 1.40000 that has the potential to take us to break even so that we can sit on the risk free trade and watch what the market does. I love watching my trade when I am break even and out of risk on a trade.
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  • #133,090
  • Nov 21, 2014 3:27pm Nov 21, 2014 3:27pm
Another thing I have found is that if one currency is trending let us say JPY then we have to check all the pairs that have JPY because there is a potential for a better setup of JPY with another pair. Here is what I found on CHGJPY chart a great pin bar and price movement. One should be in this trade...price has already moved on the Daily but we can still trade it on the Weekly chart next week.
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  • #133,091
  • Nov 21, 2014 4:38pm Nov 21, 2014 4:38pm
Quoting prasad99
{quote} Thanks for putting this out in an excellent way that shows the advantage of trading with options. It is a blessing for those with less capital. Having said that it still demands that one master the trading strategy and predict the price movement. Also this price movement has to happen within the stipulated time period. Also unless the delta is 1 any upward movement in the stock price will not result in the same appreciation of the options contract. To buy an option contract with delta 1 is a bit expensive. I have seen that the option contracts...
You're pretty much correct in your comments. However, it still requires much less capital than trading the underlying. In the GE example I gave, the delta on that option is nearly 1 & costs $200 compared to $2,700 for underlying stock.

A few more points:
1-Buying 10-15% in-the-money options removes most of the premium for many stocks (better than spending 100% for the stock)
2-If you buy lower delta options, say .5 delta, you can purchase twice as many options to get the delta to 1
3-What's your plan for holding period? If holding for less than 5 days, purchase front-month option (requires you to go not as deep in-the-money to get to delta of 1). If swing trading for weeks, purchase option farther out in time & use call spread to remove some premium if needed. If expiration getting close & you want to hold, you can roll position to a farther-out month.
4-Paying $30 commission is a bit too much IMHO unless you're holding period is longer. Find a broker with lower commissions & do your research elsewhere if they don't provide the info you need. I pay less than $1.50 per trade.
5-Correct, trading options still requires you to get the direction right :-) unless you're an option writer (selling call/puts) which is something I do quite often so I can be wrong in the direction & still make a profit. Requires larger margin amounts though.
6-An option holding is good for surviving periods of high volatility. A stock position might get stopped out with a whip-saw move only to see it go in your direction later. An option stays alive until you close it so no SL needed. If a stock starts dropping & you don't know where the bottom is you might sell. An option position limits your risk so easier to ride it out as long as you're willing to lose the amount you paid for the option.
  • #133,092
  • Nov 21, 2014 7:19pm Nov 21, 2014 7:19pm
On monday starts my third and last trading month I need for qualifying for job. I will post my trade ideas tomorrow. Meanwhile I was playing on bookmaker site on their ,,finance" tab. This is ridiculous how easy I could get money there, what a pity they have set strict limits already. In two days I managed to earn there 1400% with simple strategy of double tops/bottoms on low-violence markets. Quite easy money for me but this is unfortunately just a game since one can not make too much money by that. Bookmakers will simply not allow it. But at least now I know how professional poker players feel when playing with beginners
  • #133,093
  • Nov 21, 2014 7:36pm Nov 21, 2014 7:36pm
Update - I'm out now. Trading with the trend from key levels is awesome.

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Confluence is king.
  • #133,094
  • Nov 21, 2014 11:49pm Nov 21, 2014 11:49pm
Hello,

I read the Pin Bar Introductory Material and was going through some charts looking for pin bars.

Would this be considered a good pin bar?
The price does protrude from the previous bar, but not from the ones before the previous bar.
On the hindsight, it does look like it would have made some profit, but I was wondering how others would see this.

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Sorry if a similar question was answered already. I'm still trying to go through the whole thread.

Thanks in advance.
  • #133,095
  • Nov 22, 2014 12:15am Nov 22, 2014 12:15am
Quoting srt
{quote} You're pretty much correct in your comments. However, it still requires much less capital than trading the underlying. In the GE example I gave, the delta on that option is nearly 1 & costs $200 compared to $2,700 for underlying stock. A few more points: 1-Buying 10-15% in-the-money options removes most of the premium for many stocks (better than spending 100% for the stock) 2-If you buy lower delta options, say .5 delta, you can purchase twice as many options to get the delta to 1 3-What's your plan for holding period? If holding for less...

You make nice points here and I agree with you that $30/- is a lot to pay for one trade. I know the maximum risk is that we lose the money paid on the option but in case I pay $300/- for an option contract I still want to have a stop loss if the entry is tight. My stop loss can be like one dollar and that means I will be taken out of trade when my option is still worth $200/- ..We dont have to lose all the money paid for the option.

I generally use price action like outside bars or pin bars to enter a trade and in these instances I expect two to three bars in the same direction and if that is the daily chart I will stay in the trade probably for 3 or 4 days if there is price movement. If that is a weekly chart then I may have to go for a two month contract. I also plan to take some break out trades from a major ppz when it supported by confluence with a couple of signals.

My experience with options trading is limited and hence there may be gaps in my understanding.
  • #133,096
  • Nov 22, 2014 12:19am Nov 22, 2014 12:19am
Quoting zamfir
{quote} Which one are you talking about? info about IB is all here. you play it the same way like PB or OB. All three are reversal pattern. But like i have said earlier. The signal is the last piece of the puzzle. IB bar forms all over the place. Not all of them will work. But somehow people are not getting this point. They still believe a pattern is all that is needed to take a trade. Don't focus too much on the patterns. Focus on story.

Even if we focus on the story are inside bars as effective and intuitive as pin bars and engulfing bars?? Can they be used as a major reversal indicator to place a trade. I have to paper trade the inside bars to understand how they work.
  • #133,097
  • Nov 22, 2014 12:32am Nov 22, 2014 12:32am
Quoting prasad99
{quote} Even if we focus on the story are inside bars as effective and intuitive as pin bars and engulfing bars?? Can they be used as a major reversal indicator to place a trade. I have to paper trade the inside bars to understand how they work.
Yes, IB are very much effective. Just as much as Pins or OB.

Please do paper trade and understand how they work. I have posted many IB setups if you want to refer.
  • #133,098
  • Nov 22, 2014 4:31am Nov 22, 2014 4:31am
Quoting Liquidity
Update - I'm out now. Trading with the trend from key levels is awesome. {image}

This is what offers us the necessary edge
Hero calls followed by margin calls...
  • #133,099
  • Nov 22, 2014 5:05am Nov 22, 2014 5:05am
for those that doesnt follow EU thread, here r some thoughts for next week..


..as for me, I will hold shorts for 2250/2180. Stop 2510.

octobers monthly hi/lo range has been 402 pips
september monthly hi/lo range has been 589 pips
august monthly hi/lo range has been 317 pips

november range per friday closing: 243 pips

of course that isnt any indicator for a trade setup/analysis...but worth a check.

For the buyers, 236x will offer a low risk long for 244x/2500?...
Anyway if bears dont print new LL next week we might retrace to 25xx and consolidate for a while...who knows... I will play the levels as they come. Dont gonna buy 236x.

Take care,

JB

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Hero calls followed by margin calls...
  • #133,100
  • Nov 22, 2014 6:05am Nov 22, 2014 6:05am
Quoting jr241
{quote} Thanks for your feedback. The only one I entered was a short trade on the GBPNZD, entering on a retrace to the previous bar open. Reason for taking this one was, in my opinion, it had been in a sharp downtrend for the past couple of weeks - excluding Wednesday's bar - and the upper tail looked to me like a rejection of the 2.00 price level which was also added confluence. Here's the current status. If it reaches the dotted pink line I'll be moving my SL to break even {image}
Here's how this one finished up. Got my SL to B/E after it pushed through 1.986. Closed half the position at 1.97475, for a 209 pips gain, as per the lower dotted line (perceived this as a trouble area looking at the bar highs/lows to the left). However, price didn't quite go far enough to hit TP (I think I set it perhaps a little too aggressively) and, given how far this retraced, I decided to close the remainder of the trade for a 120 pips gain at the weekly close

Happy weekend all

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