Price Action only Trading

I made 17 pips practicing on the method that I posted on this thread the other day. I used the set up bar from 11:00 to 11:30 on the EUR/USD and Cable...I lost 3 pips on USD/CHF and USD/JPY did not have a 15 pip range on the set-up bar... so I did not trade it.

I must quit now...as I cannot keep my eyes open...

Elec☺☺tricSavant

 

Im basically a pure price action trader.
Primarily I play bounces off trendlines and also play range breakouts.

I dont use any indicators though. What I like to do is to look for "trends within trends". So if I see a 4hour trendline, then I will look at the 1 hour or 15 min to see if there is micro trend at that particluar point on the 4 hour chart.

For range breakouts I use a customized version of the wyckoff methodology.

 

Pure price action trading does not use any technical levels or TA patterns but only price. Trendlines, S&R levels and channels are derivatives of price. Pure price action trading is based only on price. Otherwise it is not pure price action.

 

OK maybe Im not pure.

for my range breakout plays, I dont have any lines on the chart at all.

for the trendline bounce, just take the trendline off the chart---its just there for visual reasons---dont need it though.
A lot of times price is not even hitting the trendline (because it might have been violated, or it came up short)

 

I am going to have to strongly disagree with this. How can you say pure price action trading doesn't involve any levels? Pure price action means trading with only a raw price chart, no lagging indicators. Levels are not indicators, they are important areas on a chart, they are just as important as the price bars themselves. I dunno where you got the idea that support and resistance is not part of price action trading, but it is.

 

That's funny that is

Look left before you look right!

 

The following chart is of silver, a huge pin bar occurred yesterday on this metal. I personally believe this is a short-term at least, and possibly a mid-term top.

 

I don't like this pin bar for 2 reasons:

1. It didn't close close enough to it's low for my taste.

2. The next bar hasn't broken outside the range of the pin bar. It is in fact an inside bar. For confirmation I would wait for a breakout below or above the pin bar.

 

You can have your opinion and I can have mine. You trade according to your opinion and I trade according to mine. Support and resistance levels are illusions IMO. Out of the 95% of traders that lose money, 80% use support and resistance. Totally bogus concept. If it were to be valid, markets would move in channels. These (assumed) levels are violated more often that they serve the purpose of support or resistance. Price action trading is all about swing lows and swing highs. At least this is what the people that defined it associated it with. You are entitled to your opinion of course.

 

I'm not going to talk about opinions but I will state some facts. In the past I've moderated and organized different groups involving hundreds of traders that use products like TradeStation, Futuresource, QCharts and so on. I've done several surveys involving why traders lose money...

The top ten list did not involve using s/r levels.

The most common reasons why traders lose money were the following:

* Lack of a trading plan

* Poor trade method (mainly those using indicators and most tended to be inexperience traders)

* Poor trade management after entry

* Poor money management

* Poor position size management

* Under capitalized

* Lacking discipline

* Cost of trading to high (e.g. commissions, resources et cetera)

* Inadequate trading environment

* Inadequate equipment (e.g. trading via a slow internet speed)

I had listed about 50 different reasons along with an "Other" (via a required detail) as part of the poll...s/r levels never showed up by anyone that used "Other" instead of my listed 50 different reasons. In addition, there's been a few surveys (polls) done here at EliteTrader.com that basically resulted as the above.

Further, you said "price action trading is all about swing lows and swing highs". I hope you realize there are dozens of different ways that traders call something a support or resistance and swing highs/lows is one of those ways.

Thus, guys like me that use swing highs/lows as s/r levels or zones would be confused by your statement. Is it possible you're talking about another type of s/r that you feel doesn't have any merits because I myself can list a few type of s/r levels myself I wouldn't touch with a ten feet pole.

If so, please post any example or define the type of s/r levels you consider to be illusions.

Mark