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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

  • #133,201
  • Dec 2, 2014 8:47am Dec 2, 2014 8:47am
One thing that I have observed that is common to spiritual pursuits and trading is that one seems that one knows how to trade but one never gets there. The learning curve is trading seems to be a moving boundary. This is because theory is one thing but the real learning is in practicing the trade. There are a lot of minute things in terms of technique and in terms of psychology and one has to be on the right side of all of this to be able to trade well. I think a lot of people including me will get lost in the details...but it is the ability to let the market work for us that can give us an edge in this one. When we curve fit there is wear and tear and we lose trades but when we go with the market there there is a chance of winning a few big trades.

We may lose a few trades due to market volatility but if we focus on becoming break even traders we can let the market do the rest of the job for us. Even if we do this we have to be ultra picky and take take trades with a good story etc and then move the stop loss to break even once the price moves. The market may take out some trades due to volatility but once we are at break even we can let the trade run to get maximum profit. We should have the ability to let the trade run to its maximum using a combination of FIBS and S/R

I would not worry about reward ratio ,counting pips etc but just get it to break even and then stay in the trade as long as possible.
  • #133,202
  • Dec 2, 2014 9:12am Dec 2, 2014 9:12am
i've bought a retrace on the gold daily buob back to the daily flip and massive weekly support. Being in the states ive used an ETF but they run the same
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  • #133,203
  • Dec 2, 2014 9:20am Dec 2, 2014 9:20am
Quoting prasad99
One thing that I have observed that is common to spiritual pursuits and trading is that one seems that one knows how to trade but one never gets there. The learning curve is trading seems to be a moving boundary. This is because theory is one thing but the real learning is in practicing the trade. There are a lot of minute things in terms of technique and in terms of psychology and one has to be on the right side of all of this to be able to trade well. I think a lot of people including me will get lost in the details...but it is the ability to...
hey P

I always tell people the more logic you put into your trade and the less you leave up for yourself mentally the more you will minimize a lot of these mistakes that come from the mental side of things. Losses are a big part of trading, it's just what trading involves. But it's how you take those losses that will often define someones ability to become profitable. If you use a lot of logic in building your trade plans you'll take a lot of the mental side out of things, or I should say minimize the impact of it which is important to be consistent in the long run.

Keep at it
Mike
  • #133,204
  • Dec 2, 2014 9:53am Dec 2, 2014 9:53am
Quoting mbqb11
i've bought a retrace on the gold daily buob back to the daily flip and massive weekly support. Being in the states ive used an ETF but they run the same {image} {image}
Mike

What is the ticker name of the gold stock that you traded. I am trying to check this chart on stockcharts.com that I have but I dont see it.
  • #133,205
  • Dec 2, 2014 10:13am Dec 2, 2014 10:13am
Quoting prasad99
{quote} Mike What is the ticker name of the gold stock that you traded. I am trying to check this chart on stockcharts.com that I have but I dont see it.
that chart is spot gold which is xau/usd, i used GLD etf
  • #133,206
  • Dec 2, 2014 10:28am Dec 2, 2014 10:28am
Quoting mbqb11
{quote} that chart is spot gold which is xau/usd, i used GLD etf
I was looking at gold etf in stockcharts but on forex it is clear. A great bullish bar and a retest
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  • #133,207
  • Dec 2, 2014 11:19am Dec 2, 2014 11:19am
Quoting mbqb11
{quote} that chart is spot gold which is xau/usd, i used GLD etf

I could not get on to xau/usd , the broker says not enough margin for a $250 account. Seems like it has to be like 1500/- at least. I look at another chart USD/CAD that has some PA but the price seems to be a in a range here and a breakout may provide a better entry.
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  • #133,208
  • Dec 2, 2014 12:09pm Dec 2, 2014 12:09pm
Quoting prasad99
{quote} I could not get on to xau/usd , the broker says not enough margin for a $250 account. Seems like it has to be like 1500/- at least. I look at another chart USD/CAD that has some PA but the price seems to be a in a range here and a breakout may provide a better entry. {image}
spot gold is a pain to trade in the states with the new laws on margin. That's why using an ETF can be very beneficial
  • #133,209
  • Dec 2, 2014 1:13pm Dec 2, 2014 1:13pm
Quoting mbqb11
{quote} spot gold is a pain to trade in the states with the new laws on margin. That's why using an ETF can be very beneficial
Mike

the broker explained me that there is a different margin requirement to trade xau/usd. one needs a minimum of 1500 to offset the risk of a margin call.

I did put in thousand bucks but still I cannot take this trade. Probably I will trade in future. Right now I have to get the broker pay my deposits back...which he said will do 15 bucks at a time each time I take a trade.

Do you use MT4 trading platform to trade both currencies and stocks??
  • #133,210
  • Dec 2, 2014 4:33pm Dec 2, 2014 4:33pm
Quoting prasad99
{quote} Mike the broker explained me that there is a different margin requirement to trade xau/usd. one needs a minimum of 1500 to offset the risk of a margin call. I did put in thousand bucks but still I cannot take this trade. Probably I will trade in future. Right now I have to get the broker pay my deposits back...which he said will do 15 bucks at a time each time I take a trade. Do you use MT4 trading platform to trade both currencies and stocks??
Hey P

No you can't trade stocks through an mt4 based FX broker

Best
Mike
  • #133,211
  • Dec 2, 2014 4:54pm Dec 2, 2014 4:54pm
Quoting prasad99
{quote} Mike the broker explained me that there is a different margin requirement to trade xau/usd. one needs a minimum of 1500 to offset the risk of a margin call. I did put in thousand bucks but still I cannot take this trade. Probably I will trade in future. Right now I have to get the broker pay my deposits back...which he said will do 15 bucks at a time each time I take a trade. Do you use MT4 trading platform to trade both currencies and stocks??
Hi Prasad,

This is another example where you could trade gold with a smaller account size by using options.

GLD (gold ETF) 115.14
Buy Dec. 110 Call: 5.80 (Bullish position equivalent to 100 shares of GLD)
Cost $580
Premium $65 ($5/day)

GLD closed down 1.44 today so the $5/day premium decay would only remove .05 from 1.44 in today's trade. Today's move owning 1 call would be -$144 less decay. Options closer to at-the-money will have less delta so smaller move but larger time decay loss.

A bearish trade would be the same except you'd buy a Put instead of a Call so buying Dec. 120 Put would be in-the-money similar to 110 Call being in-the-money.
  • #133,212
  • Dec 2, 2014 10:18pm Dec 2, 2014 10:18pm
Hi Mike,

I am bit struggling to give more value for strategy when facing this kind of chart..From my point of view, i listed down pros and cons here.. I expect your help to decide which one take lead and shall I take Entry or or wait for more confluences...

Pros:
Last Thursday Bar strongly closed below PPZ
Nice Breakout and price failed to cross PPZ
Monday Bar day close at below PPZ and BRN 0.97 (BRN Act as Resistance line)
Fib 61.8% retrace
4Hr chart formed a PA ( IB and BEOVB)
Weekly Pin bar formed a PIN bar, but last week closed lower than previous bar low (Not consider as valuable PIN bar and possible to price move further low)

Cons:
All the pros near to major support line and today bar touched it.(Major Reason to stay away)
Daily Chart not formed any PA bar.
Price near to minor support line

I hope this will help me to get more clarity to decide the entry...

Adhav
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  • #133,213
  • Dec 2, 2014 10:38pm Dec 2, 2014 10:38pm
Quoting Adhavan
Hi Mike, I am bit struggling to give more value for strategy when facing this kind of chart..From my point of view, i listed down pros and cons here.. I expect your help to decide which one take lead and shall I take Entry or or wait for more confluences... Pros: Last Thursday Bar strongly closed below PPZ Nice Breakout and price failed to cross PPZ Monday Bar day close at below PPZ and BRN 0.97 (BRN Act as Resistance line) Fib 61.8% retrace 4Hr chart formed a PA ( IB and BEOVB) Weekly Pin bar formed a PIN bar, but last week closed lower than previous...
Hey Adhavan

Yep keep it simple here don't overthink most situations

If were looking at the 4hr beob as you said price is right near support. So we wouldn't want to be sellers into the last buying point. Or at least I wouldn't. This is one reason we tell new traders to look for beobs at swing highs. Continuation outside bars are more advanced in my view. So really it's just a situation where I don't see enough information

one thing that gets new traders into trouble is the 'top down' analysis where you look at the weekly make some sort of inference, go to daily try to make another judgment on what price is doing then go to the 4hr and want to jump in. Really it's mostly much better to do all your analysis on one timeframe and any additional timeframes things should be obvious and simple. If you look back at my gold trade i just posted you can see the long term and short term confluence are one in the same. The story is simple.

Hope that helps

Mike
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  • #133,214
  • Dec 2, 2014 11:26pm Dec 2, 2014 11:26pm
Thanks Mike..

Today I added one more Important learning point from you..

Quote
Yep keep it simple here don't overthink most situations

Adhav
  • #133,215
  • Dec 2, 2014 11:50pm Dec 2, 2014 11:50pm
Quoting srt
{quote} Hi Prasad, This is another example where you could trade gold with a smaller account size by using options. GLD (gold ETF) 115.14 Buy Dec. 110 Call: 5.80 (Bullish position equivalent to 100 shares of GLD) Cost $580 Premium $65 ($5/day) GLD closed down 1.44 today so the $5/day premium decay would only remove .05 from 1.44 in today's trade. Today's move owning 1 call would be -$144 less decay. Options closer to at-the-money will have less delta so smaller move but larger time decay loss. A bearish trade would be the same except you'd buy a...

SRT

I tried to buy a call option today when Mike mentioned ETF but the PA on the GLD chart in stockcharts platform was not clean enough to give me confidence to place the trade. The PA was clear on the forex chart but not so clear on the stock charts may be it is the settings or something like that I am not sure. I have to check that again.

And then on the forex platform I found similar PA with respect to silver and seems like margin is less there and I may take a trade there.
  • #133,216
  • Dec 3, 2014 12:30am Dec 3, 2014 12:30am
Quoting srt
{quote} Hi Prasad, This is another example where you could trade gold with a smaller account size by using options. GLD (gold ETF) 115.14 Buy Dec. 110 Call: 5.80 (Bullish position equivalent to 100 shares of GLD) Cost $580 Premium $65 ($5/day) GLD closed down 1.44 today so the $5/day premium decay would only remove .05 from 1.44 in today's trade. Today's move owning 1 call would be -$144 less decay. Options closer to at-the-money will have less delta so smaller move but larger time decay loss. A bearish trade would be the same except you'd buy a...
I was trying to enter the silver trade on forex but the price is stuck sideways and I will check this one out after a couple of hours.
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  • #133,217
  • Edited 3:58am Dec 3, 2014 1:18am | Edited 3:58am
Hi All,

been lurking in this forum for several months now, and it has been the most useful resource I found on the internet with regards to trading! After blowing up 2 accounts I decided to start working on demo until i am profitable for at least 6 month. Thanks specially to Mike for the excellent videos and Phanti for the price action trading ebook!

I would like to ask a question about divergence at key levels. I think understand the concept of regular and hidden divergence when the price is trending (up: HL/HH or down: LH/LL). My question is more in the case of the price ranging, can we still apply the concept?

If we look at the chart below for example:
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the oscillator is sloping downwards for the last 2 lows:
Now the question is:
1- does regular and hidden divergence apply to situations where the price is not clearly trending in a certain direction?

If yes:
2- when the price is ranging do we apply hidden divergence concept or regular divergence concept.
so for the chart example
-do we say: price is trending up and making higher lows, while oscillator making lower lows --> bullish hidden divergence
OR
do we say: price is trending down and there is no signal in that case because the indicator lows are not sloping up?


cheers!
  • #133,218
  • Dec 3, 2014 4:05am Dec 3, 2014 4:05am
Entry based on BEIB
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  • #133,219
  • Dec 3, 2014 6:38am Dec 3, 2014 6:38am
Quoting prasad99
{quote} SRT I tried to buy a call option today when Mike mentioned ETF but the PA on the GLD chart in stockcharts platform was not clean enough to give me confidence to place the trade. The PA was clear on the forex chart but not so clear on the stock charts may be it is the settings or something like that I am not sure. I have to check that again. And then on the forex platform I found similar PA with respect to silver and seems like margin is less there and I may take a trade there.
Hi Prasad,

Take your trades for gold & silver based upon the forex charts. Stocks & ETFs only trade 6 1/2 hours a day so the charts are missing the rest of the day that gold/silver are still trading.
  • #133,220
  • Dec 3, 2014 6:45am Dec 3, 2014 6:45am
shorted aussie at retest of pole/breakout level, target 8315.

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Hero calls followed by margin calls...
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