Decent D1 PB forming on EURCAD - rejecting the 1.46 PPZ. There's one on the 4 hour as well. 
james16 Chart Thread
- #137,203
- Edited 3:42pm Oct 7, 2015 3:18pm | Edited 3:42pm
Hi All 
Firstly i would like to thanks ALL those who have positively or otherwise contributed to this thread as it is speeding up my education.
Secondly i have some questions about a few J16 things that i am confused about. I would dearly love some comments from all you Forex Gurus if you have the time.
Although i am a veteran of successful share trading (short term trend trading), i am new to currency trading and it's a different world, that's for sure. My main questions revolve around the chart attached and IB's....
1. Do you buy of break of IB (blue arrow) or of the preceeding bar (red arrow)? (Note: upon the open of the new bar after the IB, price basically moved upward to its high before "crashing back down").
2. Easy in hindsight but would you have never bought at either of these places as you fully expect the price to move back down to the trendline (which it did today). Was i wrong to think that with its upward movement after the formation of the IB that it might go for a nice solid upward ride for much longer than it did (to the blue T/P area), such as the IB from a few days earlier?
3. Bullish or bearish bars - does it matter what the IB and preceeding bar are? Example, in this case the IB was bullish and the pre-bar was bearish, is that an indication of where price might head in relation to the break of the IB?
4. Are momentum indicators such as Stochastics or Commodity Channel Index (CCI is the one on the chart) any use at all in improving better entry/exit points?
5. What EMA's are widely used with J16, if any. The ones on my chart are 365, 150 and 21 as i thought that was what J16 used?
Sorry for the looong post but these questions (and more) have been brewing for awhile now
Without a doubt my biggest problem at the moment is my losses are much larger than my wins despite a 7/3 win/loss ratio - but that's a discussion for another time....
Have a great day,
Bill
Firstly i would like to thanks ALL those who have positively or otherwise contributed to this thread as it is speeding up my education.
Secondly i have some questions about a few J16 things that i am confused about. I would dearly love some comments from all you Forex Gurus if you have the time.
Although i am a veteran of successful share trading (short term trend trading), i am new to currency trading and it's a different world, that's for sure. My main questions revolve around the chart attached and IB's....
1. Do you buy of break of IB (blue arrow) or of the preceeding bar (red arrow)? (Note: upon the open of the new bar after the IB, price basically moved upward to its high before "crashing back down").
2. Easy in hindsight but would you have never bought at either of these places as you fully expect the price to move back down to the trendline (which it did today). Was i wrong to think that with its upward movement after the formation of the IB that it might go for a nice solid upward ride for much longer than it did (to the blue T/P area), such as the IB from a few days earlier?
3. Bullish or bearish bars - does it matter what the IB and preceeding bar are? Example, in this case the IB was bullish and the pre-bar was bearish, is that an indication of where price might head in relation to the break of the IB?
4. Are momentum indicators such as Stochastics or Commodity Channel Index (CCI is the one on the chart) any use at all in improving better entry/exit points?
5. What EMA's are widely used with J16, if any. The ones on my chart are 365, 150 and 21 as i thought that was what J16 used?
Sorry for the looong post but these questions (and more) have been brewing for awhile now
Without a doubt my biggest problem at the moment is my losses are much larger than my wins despite a 7/3 win/loss ratio - but that's a discussion for another time....
Have a great day,
Bill
- #137,206
- Oct 7, 2015 4:15pm Oct 7, 2015 4:15pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Hi All
Welcome to the thread glad to have you
Certainly no guru here, just sharing experiences that's for sure
Inside bars are in my opinion the trickiest of the bar formations we use here in the thread. Simply put an inside bar is showing a consolidation period. So knowing which way to buy/sell will come down to the same types of confluence we want to use on the more directional based bars(like beobs/buobs/pinbars etc)
I don't play many Inside bars myself. But when I do I like to know the preferred direction. So for example in your chart I actually wouldn't want to be trading that inside bar long or short because of the heavy resistance and heavy support just below.
So i'd rather look for established support/resistance confluence that gives us the better direction to trade. If you look in my chart for example I show what I mean
As for bullish and bearish bars they are more just information then bars we tend to trade off. So it's just the context in which they exist that I would note down. Meaning location/story.
There is always a place for indicators for some if they add value. Many use an oscillator to help located divergence. I used to use MACD(stoachastics is fine too) but over time you'll be able to spot divergence just by observing price alone. Since the indicator is just a calculation based off that price too. It's actually quite easy to spot here is a chart explaining how(obviously we have different degrees of divergence but the underlying effect is the same)
Here is a chart
Again nothing wrong with using indicators and price action combined.
Lastly in terms of EMAs, the main ones you will see on most peoples is the 365 150 and a faster like the 50/25 etc. It's not magic line at all just another tool. I dont' personally use MAs after many years of realizing it just got in my way.
Hope this helps and again welcome
Mike
- #137,207
- Oct 7, 2015 5:57pm Oct 7, 2015 5:57pm
{quote} Nice PB, rejecting good level, but I see a resistance at 1.4710 coming from higher time frame, don't know if it could pass through it
- #137,208
- Oct 7, 2015 6:26pm Oct 7, 2015 6:26pm
{quote} Hey Bill Welcome to the thread glad to have you Certainly no guru here, just sharing experiences that's for sure Inside bars are in my opinion the trickiest of the bar formations we use here in the thread.
The substantial support and also decent resistance on that chart, is that what is referred to on this forum as "noise" or "congestion".... or is that something else altogether??
Bill
Is this what Jim is talking about or have I got this completely wrong? Anyone?
https://www.james16group.us/Guests/g...20Page%201.htm 
https://www.james16group.us/Guests/g...20Page%201.htm
- #137,218
- Oct 8, 2015 9:35am Oct 8, 2015 9:35am
- | Commercial User | Joined Aug 2006 | 12,004 Posts
{quote} Thanks Mike. I had a feeling IB's were trickier than others and now i understand a better way to look at them before trading. The substantial support and also decent resistance on that chart, is that what is referred to on this forum as "noise" or "congestion".... or is that something else altogether?? Bill
Depending on the context of the words used. The support and /resistance area itself are not congestion. What we are trading back into can be considered a sideways market but that is ok to trade into under the right circumstances. Mostly we'll use the term traffic when you are trading into a lot of potential areas that can "bounce" price which is also what can happen when trading back in a sideways range. It's when I tend to take profit quicker under those circumstances or protect my risk quicker.
You can see my video of space vs traffic which might help with how we view things
Inserted Video
Best
Mike
