Price Action Traders

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

  1. Fletch

    Fletch

    Don't you think "inexcusable" is a bit overly dramatic for someone that is voluntarily writing a book for the public market to which he has no obligations? It is very simple, if you don't like the writing of the 2nd edition, don't buy it.
     
    #151     Aug 23, 2010
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    #152     Aug 23, 2010
  3. For those of you who don't know, Fletch is the owner/administrator of Al Brooks website, Brooks Price Action.

    Fletch, I find it interesting that Al Brooks for whatever reason seems to invoke a 'strong' response in people. People very quickly develop a love/hate response. I believe most intuitively recognize the value of price action. However upon purchase of Al's book, some are put off by 5 min charts, others, the purist, put off by his use of 20 EMA indicator. Still others find endless nuances in Al's setup quite troubling.

    I am new to discretionary price action trading, I must say reading Al's book has had a tremendous positive effect on my trading.
     
    #153     Aug 23, 2010
  4. wrbtrader

    wrbtrader

    The word "inexcusable" is very appropriate when he has resources to resolve all the complaints I keep reading about his book.

    As for myself, never did I say I was interested in reading the book. Simply, it never even crossed my thoughts to buy it especially considering I've already read the "negative reviews" in several different threads here at ET by those that have read the book.

    Regardless, I've read many messages at several different discussion forums by those that have read his book and two particular users of his method have offered to help him in ensuring it's professionally written in comparison to the 1st edition (they did mentioned they are members of his support forum). Lets see if he takes them up on their offer. If not...I can then use that word "inexcusable" once again if I see complaints here at ET about the 2nd edition.

    Further, it's not personal.

    By the way, my thoughts are based upon those that have access to his books and have read it more than once...more negative than positive about the way the material is written/explained. Thus, don't attempt to bust my nuts. Instead, go tell them their being overly dramatic in their reviews by traders at several different discussion forums. :cool:

    P.S. Can anybody answer the following...those Al Brooks use moving averages?

    Mark
     
    #154     Aug 23, 2010
  5. NoDoji

    NoDoji

    He uses a 20-bar exponential moving average.
     
    #155     Aug 23, 2010
  6. wrbtrader

    wrbtrader

    Thanks...then maybe the title of the thread should be "Price Action Traders that Uses One Indicator". :D

    Regardless, this is the thread starter primary question when the thread was started...

    I don't know about you folks but I wouldn't consider Al Brooks a pure price action trader (not even close due to the fact he uses an indicator for whatever reason) nor would I consider him to be an active ET member.

    That's the thing about these "Price Action Trading" threads (there's many others like it)...the reason why traders switch from using indicators to price action trading is too get away from indicators...main reason why newbie traders get confused about what is price action only trading or pure price action trading is that they forget that it does not involve the use of indicators or think using only one indicator is ok to allow them to believe they've traversed in getting away from the use of indicators.

    Mark
     
    #156     Aug 24, 2010
  7. Redneck

    Redneck

    It sure gets old seeing someone say this / that doesn’t work…. Or if you don’t do X or Y “specifically” then you ain’t this or that


    And why is it whenever I see someone pissin over trading PA – or more specific labeling an approach / methodology as PA – or not… I get this reoccurring mental picture…


    Trader thumping his/ her chest saying “I am a PA trader”…

    Meanwhile some know nothing newcomer is looking at this trader and saying – “Yeah but if you would only draw a trend line you would see you’re position is underwater and price is heading further against you in a strong way”…

    To which the PA trader responds – “I am a PA Trader”


    Why not let the academics define terms / ague meanings / assign labels – while we traders focus on applying whatever tool(s) – we deem necessary – toward making money the best way we’re able


    End of Story…


    =============================================================================

    BM;


    Let take that 20 EMA…., or any MA/EMA for that matter – and see if we can put it to use

    As for a definition – don’t have one – don’t need one – don’t care….

    As to what we can use it for…..

    We can use it as an MA / EMA – obviously…

    Meaning let’s pick a setting that characterizes/ defines the normal price movement of whatever we’re trading…

    Then we’ll know if whatever we’re trading – is or isn’t acting normal….

    If 20 works for ya great – if not change it…

    One important note though – if you’re using multiple time frames – make sure you use different settings (different on each chart that is) so your getting the same exact read amongst all your various charts – and obviously they should be in sync with your designated trading chart (I’m assuming the 5 minute is your trading chart – but maybe not)

    Multiple charts with conflicting information is not good



    As to other uses…

    We can use it;

    As a Trend line
    As a S or R Line
    To identify an over extended condition – which conversely happens to be an RTM approach
    To identify emotion/ conviction – and/or the lack thereof


    An MA/ EMA is pretty versatile…and has its uses…..

    --------------------------------------------------------------------------------------------------------------------------

    On another note

    We could discuss bars/ candles – as I find it amazing how much information they contain – but unfortunately I’d be giving out some hard earned knowledge I’d rather not share outright…

    If however if you have specific questions – ask – and I’ll answer the best I’m able.

    And you have my word we won’t argue semantics

    ------------------------------------------------------------------------------------------------------------------------

    Closing thought


    What ever you decide to use/ place on your chart(s) in order to characterize price – it is vital you place it so price is able to freely show you its characterization…

    Never place anything you’re using in such a way that you are trying to force price to appear the way you want

    Granted my last two sentences are confusing – but eventually they will make sense – and it’s when they start making sense that price begins revealing its story


    Always remember – price controls you – you will never control it


    RN
     
    #157     Aug 24, 2010
  8. When I started this thread, new to PA, a bunch of people recommended Al Brooks book. No one mentioned Wyckoff or Edward and Magee or Humphrey Neil or Vadym Graifer, they all recommended Al Brooks. Regardless if he is a purist or not, his ideas seemed to helped quite a few people. I believe he is worth reading. mr mark, Why are you resisting exploring his methods?

    Purest PA traders say to not even look at price charts, just look at the order book, bid/ask. In their minds, price chart is TA and not pure PA.
     
    #158     Aug 24, 2010
  9. good post RN
     
    #159     Aug 24, 2010
  10. NoDoji

    NoDoji

    When I enter a momentum trade (based on news or a breakout through a major level), I don't even glance at the chart. I have previous S/R levels in my head and I follow the price action on the DOM and nothing else. I find this method to be a hindrance on any other type of setup, though, and prefer to set profit target zones based on the chart.
     
    #160     Aug 25, 2010