The way I approach James16 price actions method is to look out for different types of bar formations so I dun only look for pinbar, I also look out for BEOB, BUOB and IB. There is a pdf in this thread which describes the different types of bar formations and I trade most of them. If you want to demo trade this stuffs on the daily charts then look at the time when a new day starts for your data feed and see what bar formations is there. If there is a good setup which interest you then set a order and trade it. If you are free you can take a look at james16 original thread in another forum.
One way of drawing the SR lines: start from monthly, find areas where support becomes resistance or resistance become support. Then go down to the weekly and do the same things and then down to the daily. After drawing all the SR on the three tf, wait for bar formations to form on the charts. Relax and easy way of trading too.
On my chart it looked like a tight doji more or less, I wouldn’t have classified it as a pin bar. April 06 or 28 on that pair look more like what a real pin bar should be like.
For a good explanation on pin bars you might sneak over and have a look at James16 chart thread on another (much worse of course!) forum.
Believe it or not I have actually read a lot of that thread I don’t keep up with it as it doesn’t have the same feel as BP but you’re right in saying the thread explains well the definition of a pin bar. I believe the GBP/JPY was technically a pinbar but it was rather on the short side and wasn’t really sitting on any confluence. The only reason I got excited was because at the time it was shooting up!
Might have managed it for near 1R if I was day trading it but I dont and fortunately I didn’t take it on order else I’d be sitting on a loss now.
A lot of the time it depends on who’s chart you’re looking at. Different timezones mean that a candle can look like a pinbar on one chart, and a doji on another.
The 14th looks very much like a pinbar on my +2GMT Alpari charts, but doesn’t look as good on my GMT IBFX chart.
I’ve been reading through the thread at forex factory - and I’m trying to summarize what I think I know — but I want to verify that what I think I know is accurate - - so I am hoping others will chime in with there 2cents.
I was just jotting down yesterday - some entries - because I was going to trade Pinbars ONLY - but I think these will be very few and very far between - so I was trying to remember what else triggers a possible entry just like a pinbar would.
So here is what I think - keep in mind - these entries are after you’ve determined other factors such as support/resistance - - confluence – divergence - - in other words - you think you’ve got a great setup - - and there it is - ((the pinbar)) - - so you set your order to buy or sell a few pips beyond the high or low of pinbar.
THE QUESTION is :
are the following setups - a simple replacement for the "pinbar"
Can I put the following words in the above paragraph in the paranthesis?
((BEOB)) = bearish outside bar
((BUOB)) = bullish outside bar
((DBLHLC)) = Double bar high with a lower close
((DBLLHC)) = Double bar low with a higher close
Ok - maybe there is more than 1 question here -
A) the above question -
B) is this what james16 is trying to teach? or are these terms just part of his trading - and they DO NOT actually substite for pinbar as I have outlined
Actually i Learned allot from james16 thread But there is allot of things i dont agree with him on it :
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[li]Trading daily is so risky because if you have Small amount of money “10.000$” for example it will never work for you because your stop will be high .
[/li][li]Trading is not just about Candle stick pattern is about Where is the Candle? When? and allot of other elements make it succesful trade .
[/li][li]The best way is to learn Candles with Fibonacci and S and R with the trend on H4 chart Not daily for someone dont have allot of money .
[/li][/ul]
I tried Price Action system on interaday trading i succeeded allot of times but i was Break Even most of the time for 2 years and this achievement in my opinion that you don’t lose your capital .
I learned that always follow the bigger time frames , For example if there is on the daily reversal pattern says long never go short because the H4 says short but When both of them says long go and be comfortable you will be winner .
I don’t know i feel kind of confused until now if i use indicators or not , i used stochastic for intraday but i don’t know what i should use for long term strategy like H4 ??? If someone can help me with that would be nice .
The problem of the Candle Reversal pattern that could your broker show it to make you lose but other Broker don’t show it , for example Alpari show Pin Bar , Interbank show it normal , Which one you should believe? from where i can get the best , Clear and Honest data feed? Does anyone knows???
anyway I’m still student and i like to learn but just i give my opinion about this kind of trading from my experience in trading since 3 years
I also trade on Pin bars in H4 chart but do look at other high time frame charts also. So far I am not very successful on this. At the same time, I also have not done lot of trades on Pin bar. When I spotted the pin bar, I make sure the following qualities exist.
1)Open & Close must be with in the left candle
2)Open and close should be close together (the closer the better)
3)Open and close should be at the end of the candle (The closer the end the better)
4)A long nose that stuck out of the left eye (the longer the better)
The high or low, depending on the direction, also should be within the left candle
5)Are we in a sideways market or trending ?
6) Is it prceeded by a space ?
I don’t look at any other indicators but do like it close by resistance and support lines (Horizontal & Trend) to set my SL and TP targets.
Just use whatever your charts show you, if you have a A class setup on your chart but my chart do not show that A class setup, I will just wait patiently for the next A class setup to appear on my chart. i will not worry that the broker is out to lose me. I know that if I grab that A class setup which will eventually appear on my chart I can beat the broker.
I don’t think so , Because if you know a little bit about brokers , that they can manipulate the prices and the shape of the candles , even if they show it to you A+ , it could be wrong .
I respectfully have to disagree with you here. There may be some dodgy back-street brokers that manipulate price but in those cases most people would avoid them and if you are using one - why not go and find one that doesn’t manipulate price?
It is not hard to compare feeds from brokers to see that they show essentially the same data. The only differences will be their point of reference for the start of the candle and maybe a few pips difference is highs/lows as FX is not centralised so it would depend on what market maker they are involved with.
The accusation of broker price manipulation is covered extensively in other threads but the gist of it is that it is not really in their interest to do so.
Hey guys its been a while. Wow what a long crazy couple of months. I just wanted to drop by and say hi. and to those who are naysayers of j16 I humbly suggest keep an open mind. No matter what your trading style is or what your instrument is. J16 will give you the long view with deadly accuracy!! All you have to do is wait for the good setups. Now that I am working again full time I will focus my trading soley on this material I would love to trade H4 but I am not sure if it is possible. Although I have been looking for a reason to ditch my blackberry and pick up a phone with windows mobile 6.
You should not let the broker manipulation price issue affect you. How about you do a simple experiment, learn the price action trading thingy and demo trade on the daily with different data feeds and experience for yourself.
I don’t keep up with it as it doesn’t have the same feel as BP but you’re right in saying the thread explains well the definition of a pin bar. I believe the GBP/JPY was technically a pinbar but it was rather on the short side and wasn’t really sitting on any confluence. The only reason I got excited was because at the time it was shooting up! 