James16

[fxozgirl]

Before Christmas I came across a humungous thread at FF by James16...
it's over 7000 pages (with the thread first started in 2005) and still getting plenty of current comments.

I figured any thread that has gone that long and that many posts must have something worth looking at, so I have started the mammoth task of reading through from the start...I'm up to page 100

So was wondering if anyone here has any experience of this system?
In particular I like the candle patterns he trades eg.

1. dblhc;double bar low with a higher close on second bar
2. dbhlc; double bar high with a lower close on second bar
3. the above can be triples or more
4. two or more matching highs or lows which if broken usually mean a resumption of the current trend
5. beovb; bearish outside verticle bar; second bar totally encompasses the
prior bar with a lower close on the second. usually signals a continuation
of the current trend.
6. buovb; bullish outside vertical bar; same as above just reversed.

Also, is it possible for this type of candlestick pattern trading to be automated?

Any feedback, information would be great, before I continue on for the rest of the 7000 pages

The first few pages of this thread have some excellent charts depicting all of the above patterns and trades taken. Here is a link to the thread
http://www.forexfactory.com/showthread. ... 947&t=2331

[SteveHopwood]

Also, is it possible for this type of candlestick pattern trading to be automated?

Candlestick patterns are easily recognisable and so can be automated.

How about a partnership here, Shelley. You spot 'em, and I will code 'em. I have tried to read James' thread, but always lose the will to live about half way down post 1.

[fxozgirl]

Also, is it possible for this type of candlestick pattern trading to be automated?

Candlestick patterns are easily recognisable and so can be automated.

How about a partnership here, Shelley. You spot 'em, and I will code 'em. I have tried to read James' thread, but always lose the will to live about half way down post 1.

Sounds like a plan...I'll go wade through the thread again and I'll post some example charts shortly
Thanks Steve

[fxozgirl]

This post is reserved for the rules James16 trades by. I will update as we go along and I identify the different patterns to trade. The information in the thread is quite fragmented with a lot of the rules posted on charts, rather than in the posts.

Please post comments in the thread, however at least to start with I would like to stay true to the original concepts so we can get the basics right first before we start looking at variations.
If I make a mistake or get something wrong, please feel free to correct me, as I am learning this along the way as well...

So.....


1. Trade Daily or Weekly time frames

[fxozgirl]

DBLHC = Double bar low with a higher close on second bar

Bar low's must be within 2 pips of each other, take buy trade at open of next candle
Place stop just below Bar Low


DBHLC = Double bar high with a lower close on second bar

Bar high's must be within 2 pips of each other, take sell trade at open of next candle
Place stop just above Bar High


Please note: There is no restriction to the number of bars in this pattern, provided all rules are met

Chart attached with samples of both types of trades. The chart is for oil, but at this point we are only interested in the candle patterns not the trading instrument.
This chart has been reposted from the James16 thread

dblhc_dbhlc chart example001.jpg

[fxozgirl]

BEOVB = Bearish Outside Vertical Bar
Second bar totally encompasses the prior bar with a lower close on the second usually signals a continuation pf a downtrend

Once signal has occurred, open sell trade at start of next candle

BUOVB = Bullish Outside Vertical Bar
Second bar totally encompasses the prior bar with a higher close on the second usually signals a continuation of an uptrend

Once signal has occurred, open buy trade at start of next candle


Chart attached with samples of both types of trades. Again we are only interested in the candle patterns not the trading instrument.
This chart has been reposted from the James16 thread

BEOVB_example001.jpg

[SteveHopwood]

BEOVB = Bearish Outside Vertical Bar
Second bar totally encompasses the prior bar with a lower close on the second usually signals a continuation pf a downtrend

Once signal has occurred, open sell trade at start of next candle

BUOVB = Bullish Outside Vertical Bar
Second bar totally encompasses the prior bar with a higher close on the second usually signals a continuation of an uptrend

Once signal has occurred, open buy trade at start of next candle


Chart attached with samples of both types of trades. Again we are only interested in the candle patterns not the trading instrument.
This chart has been reposted from the James16 thread

BEOVB_example001.jpg

I shall start with this one because I understand it.

Taking the buy as an example, the post talks about "a continuation of an uptrend." Does this mean that the EA has to establish that there is an uptrend before taking a trade, or is James simply using the term 'uptrend' in the usual wooly manner that means, "I hope the market is going to rise because my system triggers a buy and so prove that there is an uptrend"?

[fxozgirl]

BEOVB = Bearish Outside Vertical Bar
Second bar totally encompasses the prior bar with a lower close on the second usually signals a continuation pf a downtrend

Once signal has occurred, open sell trade at start of next candle

BUOVB = Bullish Outside Vertical Bar
Second bar totally encompasses the prior bar with a higher close on the second usually signals a continuation of an uptrend

Once signal has occurred, open buy trade at start of next candle


Chart attached with samples of both types of trades. Again we are only interested in the candle patterns not the trading instrument.
This chart has been reposted from the James16 thread

BEOVB_example001.jpg

I shall start with this one because I understand it.

Taking the buy as an example, the post talks about "a continuation of an uptrend." Does this mean that the EA has to establish that there is an uptrend before taking a trade, or is James simply using the term 'uptrend' in the usual wooly manner that means, "I hope the market is going to rise because my system triggers a buy and so prove that there is an uptrend"?

I was thinking about this myself...he's not really clear about this in his posts, but I think we would want to have a defined trend first before the trigger.

Could we use scoobs trend-spotting method?

20 period D1 Rsi identifies a trend:

Rsi > 55: trend is up.
Rsi < 45: trend is down.
Rsi in between these two numbers: market is ranging.

[fxozgirl]

TML = Two or more Matching Lows

TMH = Two or more Matching Highs

At least 2 consecutive candle Highs/Lows must be within 2 pips of each other.
Price must break low in the next candle after 2 consecutive lows for a signal to enter trade in the direction of the trend

eg. 2 consecutive candles form with the same low, price continues to move down and breaks the low of the previous 2 candle's, sell trade is triggered on the break

opposite for matching highs

James16 notes the more consecutive matching highs/lows the stronger the trade will be if the break occurs
James16 also says this is a trend continuation trade, trend needs to be determined first, then take trade

Chart attached with samples of TML trades. This chart has been reposted from the James16 thread

TML_example001.jpg

[fxozgirl]

BEOVB = Bearish Outside Vertical Bar
Second bar totally encompasses the prior bar with a lower close on the second usually signals a continuation pf a downtrend

Once signal has occurred, open sell trade at start of next candle

BUOVB = Bullish Outside Vertical Bar
Second bar totally encompasses the prior bar with a higher close on the second usually signals a continuation of an uptrend

Once signal has occurred, open buy trade at start of next candle


Chart attached with samples of both types of trades. Again we are only interested in the candle patterns not the trading instrument.
This chart has been reposted from the James16 thread

BEOVB_example001.jpg

I shall start with this one because I understand it.

Taking the buy as an example, the post talks about "a continuation of an uptrend." Does this mean that the EA has to establish that there is an uptrend before taking a trade, or is James simply using the term 'uptrend' in the usual wooly manner that means, "I hope the market is going to rise because my system triggers a buy and so prove that there is an uptrend"?

I was thinking about this myself...he's not really clear about this in his posts, but I think we would want to have a defined trend first before the trigger.

Could we use scoobs trend-spotting method?

20 period D1 Rsi identifies a trend:

Rsi > 55: trend is up.
Rsi < 45: trend is down.
Rsi in between these two numbers: market is ranging.

Thinking further on this...perhaps we could have the option to turn this function on/off so we could test with & without trend identification :