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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

  • #133,661
  • Jan 26, 2015 1:49pm Jan 26, 2015 1:49pm
Bullish outside bar on the GBPJPY daily...if it breaks the BRN 179.000 the FTA is at 180.000. Not a great trade but there is some PA
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  • #133,662
  • Jan 26, 2015 2:30pm Jan 26, 2015 2:30pm
Never traded this pair before and may not be great pair to trade but I see a pin bar forming at the price extreme. The higher chart has a PPZ at this point so adds strength to this setup. There is no PA on the lower charts so may have to wait for the break of the pin bar.
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  • #133,663
  • Jan 26, 2015 3:39pm Jan 26, 2015 3:39pm
Quoting mbqb11
one im watching for the coming week {image}
Mike

A nice setup. I am not sure but I find it harder to find good setups on stock charts when compared to forex charts. Is it possible that PA does not show up on stock charts as frequently as forex charts.

Now I happened to open the Daily chart for the same and it shows some wild moves. It dropped from 114 to 105 so it lost like 9 dollars in a gap. And then it shows hammer formation , probably the downward move is losing steam. Forex seems to be easier than stocks to me at this point.
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  • #133,664
  • Jan 26, 2015 6:28pm Jan 26, 2015 6:28pm
Quoting prasad99
{quote} Mike A nice setup. I am not sure but I find it harder to find good setups on stock charts when compared to forex charts. Is it possible that PA does not show up on stock charts as frequently as forex charts. Now I happened to open the Daily chart for the same and it shows some wild moves. It dropped from 114 to 105 so it lost like 9 dollars in a gap. And then it shows hammer formation , probably the downward move is losing steam. Forex seems to be easier than stocks to me at this point. {image}
Hey P

I find no difference really. I probably trade Forex and stocks equally some months one more than the other. Part of the reason I only trade weekly/monthly is that it smooths out those gaps. I never trade daily stock charts, or maybe once in a blue moon if it is "smooth".

The look of any chart is the key to price respecting things. I highly recommend getting into stocks/futures more as you get comfortable. It greatly helps the ability to remain picky and have more things to "pick" from

Buckling down now for 3 feet of snow here in NY

Mike
  • #133,665
  • Jan 26, 2015 7:24pm Jan 26, 2015 7:24pm
Quoting mbqb11
{quote} Hey P I find no difference really. I probably trade Forex and stocks equally some months one more than the other. Part of the reason I only trade weekly/monthly is that it smooths out those gaps. I never trade daily stock charts, or maybe once in a blue moon if it is "smooth". The look of any chart is the key to price respecting things. I highly recommend getting into stocks/futures more as you get comfortable. It greatly helps the ability to remain picky and have more things to "pick" from Buckling down now for 3 feet of snow here in...
Mike

thanks for the input , that helps a lot. I agree with you and my trading has improved a lot after I started looking at stock charts. It helps us to pick only the best setups.

Regarding snow they created so much hype that we got out of office at 1PM but it is not that bad so far. I am in edison NJ and the downpour is expected over the night and entire day tomorrow. I will be working from home tomorrow. The snowfall is expected to be much more in NY and up north. They are expecting a record snowfall...

it is all ok but it seems like there is power cut in some parts of NJ and that is going to be hard if it happens in my town. Hopefully you are stuffed up on all sorts of things.
  • #133,666
  • Jan 26, 2015 8:42pm Jan 26, 2015 8:42pm
Quoting mbqb11
{quote} Hey P I find no difference really. I probably trade Forex and stocks equally some months one more than the other. Part of the reason I only trade weekly/monthly is that it smooths out those gaps. I never trade daily stock charts, or maybe once in a blue moon if it is "smooth". The look of any chart is the key to price respecting things. I highly recommend getting into stocks/futures more as you get comfortable. It greatly helps the ability to remain picky and have more things to "pick" from Buckling down now for 3 feet of snow here in...

I dont know how I am going to spend the whole day tomorrow at home. Also we have to take out all that snow before we can get the cars out.

Now my idea is to scan the charts on the weekly time frame during the weekend and select a few with good PA. If there is PA on the weekly chart there is a chance that the price will move in our direction at least for one week. And if it is a monthly chart at least for a month. And then we have to use the Daily chart to get a good entry once the market opens on Monday. If you are doing options trading you need some price movement to make at least a reasonable profit.

There is a website called www.barcharts.com and it gives 52 week highs and lows and other categorization. One can easily find break out trades (trades that break out of consolidation) from this list but still if you target for PA you have to scan a lot of stocks. Is there any website or tool that can help us select stocks with good PA or the way only way is to scan all the stocks.
  • #133,667
  • Jan 26, 2015 10:00pm Jan 26, 2015 10:00pm
Also as a trader after mastering the technique the biggest challenge one can face is to prevent oneself from over trading and impulse trading. Though I have a full time job I still find that I over trade or do take trades that are less than perfect.

One has to cross this psychological barrier and deal with it to become a successful trader. Probably different people deal with that in different ways..but to stay on the sideways for weeks or months just because we don't have a setup is kind of hard and arduous. Once you are in trading you want to trade all the time , that is human nature. This is where touch trading is dangerous as it can set you on a path of impulse trading.

My first rule to avoid over trading is to have a minimum of 3 criteria satisfied with each trade that we take. The first one being PA (the main purpose of PA is to prevent one from over trading) and it should be supported with two other criteria such as major PPZ's . fibs or BRN etc. The second rule is not to be in more than two trades at any given point of time. This reduces the focus and impacts the trade management. Being in more than two trades means juggling and this increases complexity exponentially.

We should find freedom, space and creativity within the bounds of these rules. Provided the above two rules are satisfied I want to be trading all the time or whenever I get time. These are just my personal thoughts and this may not work for everybody. Each one has to find what works for them in trading.
  • #133,668
  • Jan 27, 2015 12:19pm Jan 27, 2015 12:19pm
Quoting FrenchPips
Hi everyone I'm sort of new - last time I properly looked in to this thread was over 5 years ago when I was thinking about starting to trade. After waiting a little bit , I have now set up to start trading small, and I'm planning on learning via J16 and Mike. Just marking up some charts and this popped up on gold - daily pin: Edit: I'm in this one - sold at 1302 - decided to fade the ECB reaction after waiting it out for a while. Obviously, I have a tight stop above 1306. {image} Interestingly, I also noticed a DBHLC on the 4 hr around the same...
Hey Andrew

Sorry I missed this post. If I ever miss anyones post please just drop me a PM. My time is taken up nearly entirely with the PF and development of the new site. So please let me know guys

I don't have a pinbar on my feed but a neutral bar but my comment would be the same. This is a very tiny pinbar with our FTA just under us. I don't see any real confluence here which is what I would like to see you focus on andrew. That's the key to these setups. Nice strong bars at nice strong locations. These smaller bars can often reach their FTAs(first touble areas) but they can also give new traders a lot of trouble if you don't manage them very tight. Heck even experienced traders that's why I avoid a lot of them. Also be careful for a DBHLC we want to see matching highs but the close must close under the previous bars low. I wouldn't go jumping down timeframes though stick to the same timeframe to develop your trade plan it's much easier

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Silver gave a similar example yesterday of how a situation is what is crucial to understand the bar.

Someone asked me about the beob that formed on silver. Here was there question and chart

Quote
I assume that this Beob would be too small for you Mike? That area it is from is a fantastic area but I'm not 100% sure if we have fully tested it. On a break I would expect it to get beyond first blue line towards 17.30-35 where the more major area is. Bit messy for me to really feel confident on especially with bar size not being huge. If I was to take it I would probably play on retrace back to 18 RN and have my risk reduced immediately to only a 20-30 pip stop with original stop being around 55-60. Not going to pull trigger though as I'm not...
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here was my response and chart

Quote
glad you brought this one up Strader

Price is coming near that major weekly previous support I had emailed out here
.

Now I think that could trick people into thinking we should short here. This beob looks more like a stall then anything. i could see price reversing at the bullsih confluenced area on my cart. I would not be comfortable shorting this one myself

actually the ideal situation would be a buob forming tomorrow closing back above the weekly support http://www.james16group.us/forums/im...es/biggrin.png

I might have...

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Here is todays chart

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So yes we had a bit of room to run but if you weren't nimble you are now caught in a bad spot. Trouble areas and overall story are the key to success

Good to see you back and hope this helps
Mike
  • #133,669
  • Edited 3:13pm Jan 27, 2015 3:12pm | Edited 3:13pm
Daily silver. It seems to have broken resistance and retraced to form a pin bar with room to move. Any thoughts greatly appreciated guys. I'm just a beginner and on demo but I love this thread. I'm reading 20 pages a day so I'll be caught up soon lololol.
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  • #133,670
  • Jan 27, 2015 10:15pm Jan 27, 2015 10:15pm
BEOB closes below 1900. Probably a few traders might have taken this trade.
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  • #133,671
  • Jan 28, 2015 3:52am Jan 28, 2015 3:52am
Quoting prasad99
BEOB closes below 1900. Probably a few traders might have taken this trade. {image}
I get the feeling that there is a fair bit of support at 1.90. I was actually waiting to pounce on a breakout of 1.92, now its back in the range though.
  • #133,672
  • Jan 28, 2015 4:41am Jan 28, 2015 4:41am
Quoting ontoast
Daily silver. It seems to have broken resistance and retraced to form a pin bar with room to move. Any thoughts greatly appreciated guys. I'm just a beginner and on demo but I love this thread. I'm reading 20 pages a day so I'll be caught up soon lololol.{image}
Hi Ontoast!

I've been looking at this too. Not an A++ in my opinion, but I'm giving it a go.

Danger point- if you look on the weekly chart, you will see a strong S/R around 18.57, and indeed price has stalled there a few days ago. So I will be watching this one carefully and probably moving to BE once we hit that line.
We are what we repeatedly do. Excellence, then, is not an act, but a habit
  • #133,673
  • Jan 28, 2015 5:00am Jan 28, 2015 5:00am
Thanks Berserker. Good to know I'm on the right track. I've put a pending order in (on demo) and I'll be looking to remove my risk asap too.
  • #133,674
  • Jan 28, 2015 5:59am Jan 28, 2015 5:59am
Quoting mbqb11
{quote} Hey Andrew ....
Thanks for your feedback Mike - FTA - haven't come across that acronym in the thread yet but i get what you mean. And I'll focus on location too. In terms of location, I was leaning against the downside sloping trendline on the daily but I see what you mean - there could have been a better location so I need to work on the concept of confluence.

Thanks again
  • #133,675
  • Jan 28, 2015 12:59pm Jan 28, 2015 12:59pm
Quoting prasad99
BEOB closes below 1900. Probably a few traders might have taken this trade. {image}

I have taken a half bar loss on this trade. The price reverted back but I see that the trade is still valid provided your stop is at the top of the bar. I had a thought of re entering the trade today in the AM and recovering my loss but that I am not that confident and aggressive yet. But if you place the stop at the top of the bar the chances of loss are much higher especially if you enter the trade at odd hours (I entered the trade at night). Need to know the responses of other traders if they have taken this trade.
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  • #133,676
  • Jan 28, 2015 1:04pm Jan 28, 2015 1:04pm
Quoting prasad99
BEOB closes below 1900. Probably a few traders might have taken this trade. {image}

I have taken a half bar loss on this trade. The price reverted back but I see that the trade is still valid provided your stop is at the top of the bar. I had a thought of re entering the trade today in the AM and recovering my loss but that I am not that confident and aggressive yet. But if you place the stop at the top of the bar the chances of loss are much higher especially if the price reverts back (I entered the trade at night). Need to know the responses of other traders if they have taken this trade and want to know if they could have avoided this loss.
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  • #133,677
  • Jan 28, 2015 2:11pm Jan 28, 2015 2:11pm
I think the learning curve in trading improves when we discuss the craft with other traders. I am thinking of doing something to accomplish this. I am not satisfied with my learning curve and looking for faster progress.
  • #133,678
  • Jan 28, 2015 5:57pm Jan 28, 2015 5:57pm
Hi guys, can someone please explain to me why my MT4 has entered this trade? I put a pending buy order on but I didn't intend for it to buy until 18.180. As far as I can see, the price hasn't reached there yet but it's entered the trade anyway. Ignore the lot size and risk etc, this is only demo (luckily for me).
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  • #133,679
  • Jan 28, 2015 10:01pm Jan 28, 2015 10:01pm
Quoting prasad99
{quote} I have taken a half bar loss on this trade. The price reverted back but I see that the trade is still valid provided your stop is at the top of the bar. I had a thought of re entering the trade today in the AM and recovering my loss but that I am not that confident and aggressive yet. But if you place the stop at the top of the bar the chances of loss are much higher especially if the price reverts back (I entered the trade at night). Need to know the responses of other traders if they have taken this trade and want to know if they could...

I just did some analysis of why this trade failed. This was a BEOB from a major ppz and at a price high so there was a good chance that this should have worked out. And then I checked the weekly chart and found that the bullish PA on weekly is pushing against this PPZ and that made this a risky trade. I think before we place a trade we have to just check two lower time frames and two higher time frames to get a complete sense of what the market is doing. The lower time frames will give an optimum entry point for the trade and the higher time frames will show if there is any PA that is working against us and if there are any support and resistance zones that we need to know before placing the trade.

I am not sure there may be other reasons why this trade might have failed or just failure once in a while may be just part of nature of trading itself.
  • #133,680
  • Jan 28, 2015 11:38pm Jan 28, 2015 11:38pm
Quoting ontoast
Hi guys, can someone please explain to me why my MT4 has entered this trade?
Hey mate. On your charts, there is always a bid price (the price you can sell at) and an ask price (the price you can buy at). The price that is charted is the BID price. The ask price will always be slightly above the bid price. This slight gap between the two prices is the "spread". When you place a buy stop, like in your trade, you will be entered into the trade when the ask price (the price you can buy at) hits the buy stop. This is how you got entered even though the price that's charted (the bid price) never hit your buy stop. You effectively got triggered into this trade by the spread. Once you are in the trade, your Stop Loss and Take Profit are both sell orders and therefore the charted (bid) price will have to hit one of them before you are exited out of your position.

Let's do another example where you place a sell stop below the current price (as you would if you are shorting a break of a pin bar from a resistance area). You will get triggered into the trade by the charted price. Once you're in the trade, your TP and your SL would be buy orders. The price that triggers them will be the ask price (the one not charted). Thus, the charted price could stop just shy of your SL and it could be hit by the ask price (resulting in a loss for you). Also, the charted price could fall downwards stop right on your TP, but you would not take profit as the Ask line hasn't hit your TP (which is a buy order).

Hope that makes sense.
Confluence is king.
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