Price Action Traders

Discussion in 'Technical Analysis' started by bearmountain, Jul 15, 2010.

  1. #141     Aug 22, 2010
  2. NoDoji

    NoDoji

    Using Fib lines isn't actually price action trading. Pure price action is really nothing more than where price is going right now and what price would have to do to signal continuation of the current move vs a change of sentiment (direction).

    So if price is moving up, that means buyers are outnumbering sellers. If you want to join the move up as a pure price action trader you have 3 choices: you either enter long immediately and place a stop loss at a price that would signal a change of sentiment, or you wait for a pullback followed by a price-confirmed signal that the up move is continuing off the pullback and will likely test previous resistance, or look to buy if price breaks through the previous resistance level.

    No lines or indicators are needed to trade this way.

    Nothing guarantees that price will continue as you expect it to, but the odds are in your favor if you follow price, because price tells you who is in control right now, and it takes a shift in sentiment to change that.

    I credit my long-time mentor Bighog for patiently spending many months trying to get me to grasp this concept :cool:

    And thanks to Geez as well for posting trades in real-time day after day and proving it.
     
    #142     Aug 22, 2010
  3. Did you check that link? There are no fibs there.

    edit: And according to recent searches, you use indicators in your trading.

    http://www.elitetrader.com/vb/showthread.php?s=&postid=2542256&highlight=bollinger#post2542256

    "Stochastics are an ATM machine when price is moving within a range.

    I've no idea what MACD is good for. "

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    And here is a chart of yours from your journal http://www.elitetrader.com/vb/attachment.php?s=&postid=2250474

    Did you just start trading PA rather recentl?y, because using any indicator is not pa only trading, and using lines in your trading doesn't make someone "Not a price action only trader".

    Price action trading --> http://www.elitetrader.com/vb/attachment.php?s=&postid=2927255
     
    #143     Aug 22, 2010
  4. :)
     
    #144     Aug 22, 2010
  5. NoDoji

    NoDoji

    When I clicked on the link there was a discussion of Fib levels.

    I started trading PA rather recently, yes. When I kept my journal I never really understood what was meant by PA. I didn't understand a lot of things, like trend behavior and breakouts. It wasn't until this year that I really began to understand these things.

    I do keep a 20-bar EMA on my charts for choosing counter-trend profit targets, and to quickly gauge value entry points in a very strong trending move.
     
    #145     Aug 22, 2010
  6. Redneck

    Redneck

    Oh for Christ sakes I suppose no one is allowed to grow, change, adapt, expand……

    Funny how we get so wrapped around some esoteric definition


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    NOD

    Welcome to the dark side Ma’am :)


    RN
     
    #146     Aug 22, 2010
  7. I believe I looked at it initially when you originally posted. researched it some, someone mentioned it took him 2-3 years to master pitchforks, so I moved on!

    What is your methodology, do you just trade that one pattern?

    Regarding using fibs etc, even price action guru al brooks uses measured moves. As he says, our goal is to transfer money from other people accounts to ours.
     
    #147     Aug 22, 2010
  8. Who are you talking about? And what do you mean by if i trade just that one pattern? The lines are always different for each stock.
     
    #148     Aug 23, 2010
  9.  
    #149     Aug 23, 2010
  10. wrbtrader

    wrbtrader

    I haven't read Al Brooks material but if he's using Moving Averages...

    Why is he being discussed in this thread considering that's not "Price Action" trading as in without indicators.

    However, I do understand some traders like to use indicators in combination with their primary price action method. This allows for them to loosely call themselves "price action traders".

    Regardless, I see a great difference between "Price Action Only" trading versus "Price Action" trading.

    At least this thread "Price Action Traders" is in the section called "Technical Analysis" here at ET because there's many TA bashers that doesn't consider price action trading as a form of TA.

    Ok...I think I get it. :D

    Mark
     
    #150     Aug 23, 2010