I'm on the pure price action side also, but I do find it useful to use trendlines and measurement tools. And volume.
Whoever thinks that price action alwasy stells the truth is in for quite a few realy big surprises (losses) .. lol.. nothign in trading tells the truth all the time..lol
Take your balls, and clubs and dom and go home, home again, home again wiggly pig, home again, home again you know my name, Jack....
WOW, SPEAKING OF SURPRISES! Look at today's (5/15/08) market action. The financials were on a bull tear, volume was in alingment with the move, the internals confirmed it, and the bankers supported it. So what happened at 2:30pm ET? Blamo! The market reverses, catching all the Bulls by surprise, and the Bears too I might add, who (no doubt) were reluctant to jump aboard what proved to be a substantial drop, closing the days' GAP UP for the ES and NQ, and nearly so for the YM. What was the one tool that a trader could have used to determine what the most appropriate action to take would have been, out of all of those mentioned? Price Action Hey, thanks for posting ...
Jayford, MandelbrotSet, You know the old saying about leading a horse to water? Let's not give away the farm now gentleman! Regards, JP
Hey mandel We made a little bot taking price action based entries only. It 1st calculates the direction of the trend usind a TRENDicator (cute name hey?), its a tool that recognizes price swings high and lows, and if higher high/low = uptrend, lower high/low = downtrend. Then it tries to enter on a pullback/dip. No indicators of any sort like EMA CCI MACD RSI etc are used. only price action. We named it The MandelBot. In your honor.
RULE OF 10! On a more serious note, I used to run it all, macd 12,26,9 stochastics, bollinger bands, rsi etc. The problem is every indicator is a derivative of price and they all lag. One of the turning points in my journey as a trader was when I threw every indicator away and started trading strictly price with a couple of simple theories that i had worked on over the years that had strong correlations. I have never looked back since. I 100% agree with Austinp, information overload has no benefit in trading and the multiple indicators will only cause you to have traders block because there will often be times when the indicators conflict and you don't know which one to follow. KISS. Golden words to live and trade by.
Will this book teach me price action? http://www.amazon.com/Price-Action-...d_bbs_1?ie=UTF8&s=books&qid=1210844242&sr=8-1