Price Action Strategies

Discussion in 'Strategy Development' started by krtrader09, Dec 23, 2009.

  1. Hello,
    I would like to concentrate on price action analysis in this thread. I will post up charts of price action setups that I have learned from learn to trade the market and would like feedback and advice by other price action traders, also if anyone has any of their own unique strategies to share that would be cool.
  2. if you do nothing else learn about shooting stars and tweezer tops. fade em both whenever they appear - but ya better be a quick draw.
  3. BSAM


    What is price action?
  4. Here's a summary of price action only trading.

    * It is a form of technical analysis.

    * It does not involve technical indicators (e.g. rsi, macd, stoch, cci).

    There are different types of price action only traders and you need to look at it like a track n field meet with different types of athletes specializing in a particular form.

    * One type may use chart with volume.

    * One type may use only s/r levels or zones.

    * One type may only use trend lines.

    * One type may only use price quotes involving bid/ask, time & sales or market depth with or without charts.

    * One type may use Japanese Candlesticks or other types of Asian technical analysis.

    * One type may use intermarket analysis.

    * One type may use traditional chart patterns (e.g. double tops/bottoms, triangles, wedges etc).

    * One type may use other types of chart patterns (e.g. dragon, gartley etc).

    * There's types that use a combination of the above forms of price action only trading (very common).

    Some try to design codes for the above while others do not use codes nor care about such. Those that don't use codes will often describe themselves as discretionary traders even if they use a rule base system that's not codes.

    The usual debates involves stuff like volume, fibs and moving averages that results in a flame fest. However, regardless to the tool someone saids they sure it's not the only thing their using.

    Any of the above topics I've mentioned have separate threads of their own here at ET or at other forums and the above topics may have their own sub-groups (e.g. there are dozens of different types of ways to determine a s/r level or zone).

    The key thing to remember about any of the above tools that if someone is profitable in using's not the only thing in their trading plan.

  5. BSAM


    Mark, I appreciate your usual thorough response. But, I was trying to coax the original poster into conversation of his opinion of price action to see where the thread might be headed.

    Price Action: The relationship of current price to a previous price.
  6. Yeah...usually threads like this the OP (thread starter) must define their description of price action trading along with chart examples in the first post instead of doing such several posts later or after many replies.

  7. The way that I trade using price action is as follows:
    1) I use a few specific price action setups that I have found to be profitable for me.

    2) I trade with the dominant trend.

    3) I mark the important support and resistance levels and watch these are areas for price action setups.

    4) I sometimes use a few moving averages just to draw my eye to support and resistance, I never use volume or any lagging price indicator, I think they are extremely counter-productive.

    Here is a chart of some of the things I look for.

  8. yeah Anekdoten and SusannaDT could shed lots of light on that!

    Anyone remember them?
  9. Nice chart krtrader.

    A question ... assuming your strategy is trading the inside bar breakout in the direction of the trend, would you have bought the breakout of the solid i.b. preceding your "Fakey"? ... stop and reverse on the downside B.O. on the next bar?
  10. Alot of people don't seem to be using volume anymore. This is because volume is barely useful on longer timeframe charts, and can be very erratic and seemingly illogical on smaller timeframes.

    Whenever people watch volume of the ES, do they realize it´s mostly volume by speculators? Plus if you look at a 15 min chart, volume is always in the shape of a half a moon. How can volume be still useful then?
    #10     Dec 25, 2009