Trying to learn what I can about candlestick charts as they apply to reading price action. Was reading a commentary and he was throwing out acronyms like A1 and W1P and many others. Figured before I can start reading price action I probably need to start from the beginning. I did some searches on these acronyms and it looks like they originated or are at least explained in depth by Al Brooks. Couldn't find any in depth info yet online so thought about getting a book from someone that gets into it. I have read many comments about a book called "Bar by bar" by Al Brooks but mostly not favorable. Having said that, would one still recommend this book or are there any other sources where I can get this info broken down? The one that really threw me off was here: http://ninetrans.blogspot.com/2011/09/price-action-basics-i-bar-selection.html where he gets into well-formed bars and I just don't understand it. I'm not really asking anyone to explain this specifically but want to find a source where I can learn about all of it. Thanks.
First of all, if you're only interested in learning Japanese Candlestick patterns...Al Brooks is a poor source for such. There are lots of free online resources for learning Japanese Candlestick patterns. Thus, maybe I misunderstood and you're just interested in learning Al Brooks methods via candlestick charts instead of via bar charts. Therefore, you're not really interested in learning Japanese Candlestick patterns. Did you know there's a dedicated trader forum for those using Al Brooks methods that I quickly found in Google search. Maybe you should join them @ http://www.brookspriceaction.com/portal.php to learn all the acronyms like A1 and W1P assuming its Al Brooks that's using them instead of one of his followers. Yet, if its one of his followers that's using those acronyms to replace the acronyms used by Al Brooks... You will obviously need to contact the follower (not Al Brooks) and I did another quick Google search and found the same blog as you did too. The blogger Cadaver uses those acronyms instead of the ones Al Brooks. His blog @ http://ninetrans.blogspot.ca/ Simply, you should join Al Brooks forum, get his books regardless to the negative commentary about the books and you should also contact Cadaver assuming he's actually the originator of those acronyms that has replaced the acronyms used by Al Brooks. Yet, just be aware that Cadaver may be using many different types of price action methods instead of by Al Brooks alone because there are hundreds of traders teaching "price action trading" instead of just Al Brooks...freely (e.g. Elitetrader.com, Traderslaboratory.com, ForexFactory.com, Babypips.com, blogs, trader magazines). Price action trading was here before Al Brooks was born. It just wasn't refer to as such and it gain popularity via the phrase "price action trading" as the debate between price action versus indicators heated up in the late 1990's. Al Brooks forum is free, his books are cheap and Cadaver blog is free. You can quickly form your own opinions about price action trading or Al Brooks on your own. Thus, at this point, you should value your own opinions instead of those of anonymous members at Elitetrader.com By the way, Al Brooks does use indicators and they are called price moving averages. Thus, you need to make a decision if you want to learn price action trading merged with one indicator or price action trading without indicators because there's lots of resources out there by traders using indicators but calling themselves price action traders. Last of all, Elitetrader.com has some good "price action trading" threads (no indicators) and journals that has nothing to do with Al Brooks. Thus, you can also begin your journey into price action trading here at Elitetrader.com if you're not interested in learning it via Al Brooks.
Thank you wrbtrader for that info. The point you make above is something I am struggling with at the moment. I thought price action trading was supposed to be the least complicated brings in the least amount of distractions. I was getting the impression though that some may not be trading just price in its purest sense. Not sure I am either. I am currently learning with a 2000T chart with a 21 EMA. So there is a point then that it is no longer price action trading and more a hybrid then? Thanks again.
Yes, traders using a price action method with one indicator "to help" with their trade decisions is just a hybrid as you called it. Thus, I personally wouldn't refer to those types of traders as "price action traders". Also, I've never seen someone using more than one indicator refer to themselves as price action trading. Oddly, its something I've only seen with traders using only one indicator with a price action analysis that refer to themselves as "price action traders". In fact, you will see these hybrid types of price action traders when you see them "only" talking about the price action method/analysis their using without using the word "indicator" even though you can clearly see the indicator on their charts. In fact, these types that may write books...you'll never see them use the word "indicator" in their books about "price action trading" even though you see the indicator on the charts. In contrast, the pure price action traders uses price charts without indicators or bid/ask screens without charts. There's also the rare types that don't use charts or bid/ask screens...I've never met these rare types of traders but have heard they exist. By the way, there's nothing wrong with using "only" one indicator with whatever price action analysis your doing...especially if you're profitable.
well, you just met one. I can trade with nothing but my account window open. Charts just tell me what happened when I wasn't watching, and bid/ask just tells me who is in control when I'm near to getting filled or stopped.
You can re visit threads like this too for more candlestick discussions http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&highlight=candlestick
Three black crows Outside my window Saying if you're short don't worry Every little things gonna be alright