Hi, For those that trade strictly price action (ie: price bars only, candles, bars whatever but no ma's, no fibs, no macds, stochs, nada else just pure price on the chart, not even volume) post a chart or explanation (chart better) of a setup you like to play based on price action that occurs several times per day on a 1 min - 5 min chart). Here is one I like to look for, the classic double bottom or double top with a slight penetration through the prior support or resistance followed by a counter move: Here are a couple of setups from yesterday's morning session on ER2, 1 min. Of course there will always be discretion of when to take these and when not to but that is trading You have to be disciplined to take a tight stop and look for a 3/1 or more r/r. Can we please have some others posts their favourite price action only setups. Cheers
thank for not starting yet another thread ETisdoomwhenIlookintomirror or something like that This pattern is called 3 drives then a drop I think
profitable 90-95% of time hanging gap after key reversal, works both directions but makes more on downside
Thank you for the replies Not sure what your setup is showing risky and there is a lot of indicators on there Was hoping to keep this on price action setups only....even the 20ma nkhoi I would prefer not to see on there Do you really need it, couldn't you just watch the price action after the three drives and then short on a pullback ? Just a thought Keep um coming
From yesterday. Oldie but goooooooooooooooodie <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1396531">
rsiky63, care to elaborate a little more, hanging gap ? define key reversal ? entry / exit criteria ? Cheers
here's a simple hanging gap from13 down to 12.4. it was formed during an advance (previous 6 bars) not during a decline. gaps formed during declines( usually at key support levels) will "back and fill" to the opening price of the gap and sometimes fill all the way to the previous days close. this type of gap (hanger) usually trends for 3-7 days in direction of gap, then reverses. savvy options players can make easy money in a spread because of the increase in volitilty premium. reversals and key reversals look like when you make a fist, face palm towards you and stick up middle finger. means the same thing on a chart. theres also the thumbs up patern.