Hmmmmm, 'Learn Price Action'. You might as well add 'The trend is your friend'. Oh, and there's "Cut your losses and let your winners run". Nice words for the "masses". Keeps you in the "box" Good luck
Price action while being important, is secondary to knowing where you need to get out and getting out when you need to get out.
Basically what I do is look for decent/high R:R setups when/if price lines up and you get a signal, start looking for volume hitting the ask (if long). If it comes you jump on board if its not there you back off. If it comes and you get on board and there's no follow through you get out etc. So in short I start out as a scalp and try to let it grow into a swing taking some off at key pivots as the trade progresses.
I have been looking to learn price action as well and came across the website Trading Zoo, which claims to teach this. If anyone has any info on any experience with Trading Zoo please share. Thanks in advance Chris
Depends on your time frame. IF you plan to trade intraday, plan to spend years watching the market in real time. I suggest that you: First, go to www.quotetracker.com and download the Quotetracker program. ITS FREE! Second, go to OptionsXpress.com and sign up for a FREE account. Third, launch quotetracker and enter your account info. from OptionsXpress in the upper menu asking for your quote source site. There you go..... Live charts/quotes and really nice charts. Next, there is a guy out there who actually teaches price action and much more for free, - go subscribe to: http://youtube.com/user/SnP500Trader Good luck
Many ways to learn the price action. One of my favorites is to read it applying a rule that can be stated in two sentences, but to program it in your mind you would need to run it on multiple examples. To gain the insight of it and to apply it you may need to talk to a human. A story related to the above is next. An ET member replied to one of my threads on whether a given price at a given time was the top of that day. His post was: " . My answer was: Well the last question would be asked of you once you obtain the two sentences and apply them. PM me if you want to know more. Oh: his answer to my last remark was:
Lots of things make little sense. Usually things work -- until they don't. Ironically, you can probably make as much money betting on PASS as DON'T PASS. The trick is to figure out both sides. Knowing your chart patterns isn't enough, you have to know when they will succeed and when they will fail -- in advance. In other words, the pattern subsequently becomes incidental.