Price action - does it make any sense?

Discussion in 'Strategy Building' started by jcl, Mar 10, 2012.

  1. That is why in another thread I said you must be a newbie:

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=238236&perpage=6&pagenumber=2

    Harris has been around for as long as I can remember with other names like L. Williams and LBR. I attended one his talks as an invited speaker by Tradestation Technologies in New York back in 2000. I read his first book in 2001 if I recall correctly. Some of the patterns he has at the end of that book are still profitable. His program looks simple only to newbies like you who cannot understand why a shorter time period is an easier fit than a longer time period and think the usefulness of WFO is to help mitigate that effect.

    If the purpose of every business website is to promote its products why is it a scam when Harris or anyone esle is doing that in their website? Even this good website and forum promotes its sponsors. Is it a scam?

    I freqeuntly see posts of R. Vince here promoting his book. Do you think that is a scam? On the contrary I think people like you with extremely limited understanding of trading and virtually no experience as it seems will benefit reading his book - actually he is making a favor to you promoting his book.

    As far as the subject of this topic: Yes, price action makes a lot of sense and it doesn't have the problems of other methods but as someone already pointed out the significance issue is very important. I will rank methods below based on my experience, worse to best:

    1. Indicators
    2. Chart patterns
    3. Basic candlesticks
    4. Support/resistance, trendlines, swing high/low, etc.
    5. Price action, algorithmic or patterns with no parameters (Harris)
    6. Arbitrage/pairs trading/RTM - very difficult to do (Big funds)
    7. HFT (Collocation, low latency trading)
     
    #11     Mar 10, 2012
  2. Rita

    Rita

    Do you use a certain time frame for PA or does the time frame not matter? And does PA also work for Forex?
     
    #12     Mar 10, 2012
  3. Use a TF that enables you to accurately process information. I trade FX alone, and I use price action alone.

    Again, find a time frame that lets u leisurely make trades, when it gets boring, advance.
     
    #13     Mar 10, 2012
  4. ssrrkk

    ssrrkk

    Yes, it works in most time frames. I use it exclusively for day trading but the journals on this site show that it works very well in swing trading.
     
    #14     Mar 10, 2012