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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

  • #137,761
  • Dec 6, 2015 7:38pm Dec 6, 2015 7:38pm
Quoting Gregory_
I guess, my perspective is that, through experience, I learn to determine what types of scenarios are worth the risk. For instance, 3% of my account is worth a certain amount of USD, and as an American, I know that I can go out and buy stuff with that USD. Therefore, it places a value on that 3% for me. (This is also where a lot of the emotional turmoil can come into play.) After some experience, I learn what is more likely to eat my account and what *MIGHT* increase my account. Then, when a similar scenario arises, I then make a determination that...
Every trade has a value whether it be financial or emotional (pride, frustration etc - emotional trading is where the trouble lies hehe). But of course everybody has their own value thresholds such as how much money they have or have not got in the bank, how hurt their pride gets after a loss (revenge) or does it just roll off their back, learn their lesson,get onto the next one.

FX is new to me and although i'm a 'veteran' of successful share trading, FX trading has been up until recently a completely different approach to my shares trading. With shares I don't consider bar indicators (BUOB's, PB's and the others) or swings high/low or BRN/PPZ's but with my new FX experience, when I have more time, I will backtest these into my shares to see if there is an improvement. On the flipside, these past few weeks I have integrated more of my share trading methodology into FX with immediately positive results. The point of this paragraph is to wholeheartedly concur with you regarding experience. It is essential to successful trading, no matter what trading field you're playing on.

So with experience and only experience I am learning! Happy days.

Gregory, at the risk of being sanctioned by the moderators for going off topic (just 1 last question I promise), do you trade shares largely the same way you do currencies?

Bill
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  • #137,762
  • Dec 6, 2015 8:05pm Dec 6, 2015 8:05pm
And to address my original question about understanding swing highs/lows, after a few hours research I have come to the conclusion that i do not yet have the experience to pick a swing high/low as it's forming (the exception to this is when price is at a Support/Resistance/ppz/trendline area which then makes it a whole lot easier). So i will continue to learn, as most of us are, about the basics and finer points of fx trading.

I also learnt that people wait for swing highs/lows to be fully formed and confirmed and use fib retracement of that swing high/low for trade entry. That's a whole other discussion for another time

Happy trading!
Bill
  • #137,763
  • Dec 6, 2015 9:17pm Dec 6, 2015 9:17pm
Quoting Bill618
Gregory, at the risk of being sanctioned by the moderators for going off topic (just 1 last question I promise), do you trade shares largely the same way you do currencies? Bill
Hi, Bill!

I would say that I trade A+ PA pretty much the same way on any chart. If I saw that pin bar setup I posted on a futures, currency, stock, etc., I would trade it the same way. That is the beauty about PA setups. However, stocks are definitely more sluggish than currencies! After spending some time learning many things from James16 and Mike (I still have much to learn, trust me!!), I would have to say that I think currencies are actually easier to trade than stocks. Most people would say that is crazy, but that is my experience. (If I met myself from 5 years ago, I would have told myself I was crazy for sure.) I have made maybe 15 stock trades this year.

I must emphasize, however, that there are many other group members that trade stocks differently than me. Everyone has their own style.

At this point, I probably have 2 stock strategies that I trade and 4 currency strategies. Lately, my primary focus has been trying to work on the M30 currency charts. I am trying to break down into the M5 charts. However, I find the M30 charts SO MUCH EASIER. That might change in the coming weeks though. I have some ideas I am working on. Right now, I just do not have the tools I need to trade M5 charts. It takes too much work.
The game taught me the game.
  • #137,764
  • Dec 6, 2015 9:56pm Dec 6, 2015 9:56pm
Quoting Gregory_
{quote} Hi, Bill! I would say that I trade A+ PA pretty much the same way on any chart. If I saw that pin bar setup I posted on a futures, currency, stock, etc., I would trade it the same way. That is the beauty about PA setups. However, stocks are definitely more sluggish than currencies! After spending some time learning many things from James16 and Mike (I still have much to learn, trust me!!), I would have to say that I think currencies are actually easier to trade than stocks. Most people would say that is crazy, but that is my experience....




Possible trade for me. EUR/CAD D1 BUOB. It's a solid downtrend but the BUOB is more than solid and perhaps strong enough to counter-trade successfully. Will keep an eye on this one but needs to come down to and bounce off of the T/L again, which i'm hoping expecting to be the new support (and leave me a very small risk).
Bill

P.S. I am looking forward to Mikes exciting news. And Happy Birthday Mike!
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  • #137,765
  • Dec 6, 2015 10:34pm Dec 6, 2015 10:34pm
Quoting Bill618
{quote} Possible trade for me. EUR/CAD D1 BUOB. It's a solid downtrend but the BUOB is more than solid and perhaps strong enough to counter-trade successfully. Will keep an eye on this one but needs to come down to and bounce off of the T/L again, which i'm hoping expecting to be the new support (and leave me a very small risk). Bill P.S. I am looking forward to Mikes exciting news. And Happy Birthday Mike! {image}
thanks Guys

Big news tomorrow !!


Just got back from marthas vineyard after a nice little rest and recharge for the bday

Yes that's my baby LOL
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  • #137,766
  • Dec 6, 2015 10:54pm Dec 6, 2015 10:54pm
happy birthday mike. long time lurker and occasional poster. really appreciate your contribution to this thread over the years. I as well look forward to your big news tomorrow.
  • #137,767
  • Dec 6, 2015 11:57pm Dec 6, 2015 11:57pm
Happy birthday, Mike! All the best!
  • #137,768
  • Edited 2:47am Dec 7, 2015 2:27am | Edited 2:47am
Good to see you have that beast on a leash Mike. lol. Happy birthday mate!

EUR/JPY H1 BEOVB. price broken below 133.000 level. Nice clear run down if it gets past that bit of traffic below.

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GBP/USD H4 IB. At BE. Will lock in some profit soon

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EUR/USD H4 IB. At BE. Locking in profit very soon.

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'Fail to plan, plan to fail'
  • #137,769
  • Dec 7, 2015 2:36am Dec 7, 2015 2:36am
Quoting Gregory_
{quote} This is a thought provoking statement. I agree that swing highs and lows are easy to identify after the fact, and I remember struggling with this as well. The best way I can explain it is a PA (price action) bar can predict price movement, in the right circumstance. This is extremely important: a PA bar can be predictive. Most people in this thread probably already agree with this, or they would not be here. Armed with the above idea, in order to predict a swing high, I must understand how PA bars predict price movement. For example, a BEOB...
Hi G,
I wonder, are you saying that each swing will be predicted by PA?
For me personally it took some time to understand it is not the case.
Cheers.
  • #137,770
  • Dec 7, 2015 2:44am Dec 7, 2015 2:44am
Happy birthday, Mike, thanks for what you are doing.
  • #137,771
  • Edited 5:37am Dec 7, 2015 5:00am | Edited 5:37am
Hi Gregory ,your not quoting me ? there not my words ,price always comes first I agree you thought swing because of the pin ?
please explain further re no pivot ,



Quoting Gregory_
{quote} I would say that it can be different. To explain, I will post a chart. Now, this is not a currency chart. I know this is ForEx Factory, but I like to trade currencies and stocks. Here is one of the stocks I traded earlier in the year. As you can see, this chart describes one aspect of what I am trying to emphasize. {image} As you can see, there is a huge pin bar at a swing high. How did I know that this was a swing high before it formed? That is a difficult question to answer. Firstly, there is not a major resistance zone or PPZ at the pin...
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On-site guru & also FF member's' psychiatrist, when not drinking tea
  • #137,772
  • Dec 7, 2015 8:49am Dec 7, 2015 8:49am
Quoting Bones
Hi Gregory ,your not quoting me ? there not my words ,price always comes first I agree you thought swing because of the pin ? please explain further re no pivot , {quote} {image}
Hey, Bones!

Yes, I see the W1 PPZ from 4 years ago. However, I did not consider it when I took the trade. It is fairly minor, and for me, it was not relevant to my trade. Everyone is different, of course.

Generally, I only trade stocks with PA bouncing off of extensive support/resistance. However, in the case of VLTC, the strength of the pin bar was enough on the technical front for me. I also liked the fundamental situation.
The game taught me the game.
  • #137,773
  • Dec 7, 2015 8:51am Dec 7, 2015 8:51am
Quoting vanilla.sky
{quote} Hi G, I wonder, are you saying that each swing will be predicted by PA? For me personally it took some time to understand it is not the case. Cheers.
Hello. No, every swing is different. However, some swing highs/lows are predicted by PA. Those, I can latch onto and trade, if the situation is ripe. I more or less ignore most of the other swings, unless there is a nice touch trade.
The game taught me the game.
  • #137,774
  • Dec 7, 2015 9:21am Dec 7, 2015 9:21am
Quoting Gregory_
{quote} Hey, Bones! Yes, I see the W1 PPZ from 4 years ago. However, I did not consider it when I took the trade. It is fairly minor, and for me, it was not relevant to my trade. Everyone is different, of course. Generally, I only trade stocks with PA bouncing off of extensive support/resistance. However, in the case of VLTC, the strength of the pin bar was enough on the technical front for me. I also liked the fundamental situation.
I want to clarify something. I believe Bones was trying to make a point. He was indicating that the pin bar did cross a W1 PPZ. Therefore, that swing high was influenced by a PPZ and other support/resistance.

Therefore, the question posted earlier about whether swing highs are different from PPZs, support, or resistance, I suppose, is still on the table.

Also, this was not a quote from Bones. I am not sure why FF thought it was. It was a quote from Bill:
http://www.forexfactory.com/showthre...18#post8627918
Quote
So my real confusion with swing highs/lows is how is it different to a resistance/support/ppz area.


It is an interesting contrast. I generally consider swing highs/lows as a separate entity. Meaning, price is simply moving. When price reaches a support/resistance area (such as a PPZ), it could stall and create a swing high. Therefore, I would not say that a swing high is the same thing, by any means. I would state that support/resistance can merely influence price to create a swing high or low.

These are all obvious statements, probably. However, I find the question intriguing.
The game taught me the game.
  • #137,775
  • Dec 7, 2015 9:28am Dec 7, 2015 9:28am
Perhaps, what Bill is saying is that when a swing high or low is formed, it is proof of support/resistance. I can agree with that. Otherwise, price would not be rejected in the opposite direction.

However, the more important question I ask myself when determining to trade is this:
Is the support/resistance area I am examining important, in relation to the move I am expecting?

One swing high may not be important to me, especially if it is minor. Therefore, to consider swing highs/lows as another form of support/resistance is okay. Yet, the better thing for me to do is to determine the strength of every support/resistance point I may have to manage a trade through, which comes from experience.

For instance, in regards to the pin bar I posted, I did not feel that any support below the pin, above $5-6, was significant in relation to the pin bar. Therefore, I traded.

There were definitely support/resistance areas under that pin, and if you zoom into an M5 chart, I guarantee there will be many swings that are invisible on the D1 chart. However, I did not feel that those were relevant to me at the time.
The game taught me the game.
  • #137,776
  • Dec 7, 2015 10:31am Dec 7, 2015 10:31am
Hi Gregory ,yes thats true but the round number adds weight ,
I think your still explaining the strength of something by what it looks like , I would do the same then think about other factors ,
Im a firm believer there are signals that if read right can take you a very long way ,but I'm in no way saying its easy



Quoting Gregory_
{quote} Hey, Bones! Yes, I see the W1 PPZ from 4 years ago. However, I did not consider it when I took the trade. It is fairly minor, and for me, it was not relevant to my trade. Everyone is different, of course. Generally, I only trade stocks with PA bouncing off of extensive support/resistance. However, in the case of VLTC, the strength of the pin bar was enough on the technical front for me. I also liked the fundamental situation.
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  • #137,777
  • Dec 7, 2015 10:54am Dec 7, 2015 10:54am
Quoting Bones
Hi Gregory ,yes thats true but the round number adds weight , I think your still explaining the strength of something by what it looks like , I would do the same then think about other factors , Im a firm believer there are signals that if read right can take you a very long way ,but I'm in no way saying its easy {quote} {image}
Yes, I definitely agree in localizing support/resistance to an RN, if possible. I do not do it very often though. I generally only look at BRNs, importantly. However, RNs are definitely something I watch in every situation. They can be utilized in so many ways. For instance, if I am on the M30 chart, and I see an RN in the path of my trade, I will definitely be watching the reaction. On the other hand, however, if I am on the D1, and a gigantic pin forms, I probably will mostly ignore an RN. I am definitely watching BRNs though.

However, I want to contrast the basic movement of price vs. watching symbols on the side of the screen.

Most of the time, I am drawing shapes on charts and just watching how price reacts. An RN is frequently associated with the area. However, the number on the side of the chart can be just another distraction for me, I guess. I want to merely look at price, on its most basic level, which is the ebb and flow of movement. It is the movement that dictates my trading and not so much the numbers on the sides of the chart.

Now, with that said, the numbers on the sides of the chart are what dictate the scale of the chart, which is important. That is certainly clear. Yet, I suppose the point I am making is that I could put Egyptian hieroglyphs on the sides of the chart, and basic price movement would still accomplish enough to understand where price is going.
The game taught me the game.
  • #137,778
  • Dec 7, 2015 11:41am Dec 7, 2015 11:41am
EUR/AUD D1 BUOVB. Moving up nicely so far.

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  • #137,779
  • Dec 7, 2015 12:47pm Dec 7, 2015 12:47pm
GBPJPY

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  • #137,780
  • Dec 7, 2015 12:49pm Dec 7, 2015 12:49pm
GBPUSD Short Setup

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