I got hooked on the Forex Factory forums over the weekend specifically reading the price action posts by James16.  I received the following snippet of a comment a couple of days ago that turned me on to the forums:

Mate, you need to learn how to trade price action. Come over to Forex Factory and join the paid forum. I promise you will never see the market the same way again....  Once you learn how to successfully trade price action off 4 hour, daily or weekly timeframes, you never go back to trading systems again.

A lot of James16 posts are charts with some minor commentary.  Some of the patterns he mentions are:

1. DHLHC - a double bar low with a higher close on the second bar
2. DBHLC - a double bar high with a lower close on the second bar
3. Two or more matching highs or lows which if broken usually mean a resumption of current trend
4. BEOVD - bearish outside vertical bar in which the second bar totally encompasses the prior bar with a lower close on the second bar.
   
5. BUOVD - bullish outside vertical bar; same as #4 but reversed
6. Bullish and bearish outside vertical bars
   

Some of these may not mean anything to you until you actually view his corresponding charts.  I found the posts pretty compelling but I'm hesitant to trust anything I read at this point.  You can view this particular post at:

http://www.forexfactory.com/showthread.php?t=2331 

Does anyone have any experience with the James16 Group?

Read or add comments about this item.

No. 1 :

Interesting patterns, they sound a lot like classic candlestick formations - and the good thing about them is they could all be backtested to see if they actually work. But I'd be hesitant too without more data to back them up - I try not to take anything on faith these days.

Submitted by Adam • 2007-03-20 02:05:48

No. 2 :

Great. You did read them. It is very easy to backtest. Take just one of these price action formations such as the pin bar, and go to usdcad or gbpusd or any pair you like. Look at the daily or weekly time frames and look for these pin bars at extreme swing highs or lows. Now do this for all 2007 and come back with the result. You have been shown the door to a whole new world of trading. And with NO LAGGING INDICATORS. Now, things become very juicy when you add a few simple trendlines, look for divergence or use fib levels. Best of luck from hereon forward.

Submitted by Forex Trader • 2007-03-20 04:30:30

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