Price Action Traders

This raises an interesting question. If you see the chart, do you really need the news? Isn't good or bad news revealed on the chart? News interpretation can be risky business.

 

To be fair, I haven't read your message post elsewhere here at ET nor at any other forum. Thus, I don't know whom you've been receiving recommendations from.

Secondly, I can only respond to your OP thread question...

Basically you asked "whom are the pure price action traders that are active here at EliteTrader.com" (please re-read your opening statement in this thread). Thus, my entire response has been based upon that question. Also, I believe it was NoDoji that recommended AL Brooks to you in this thread.

Simply, the reason why I never recommended Wyckoff or Edward and Magee or Humphrey Neil or Vadym Graife is due to the fact they are NOT ACTIVE ET members based upon your question. Just the same, I never recommended Al Brooks (as stated before) because he's not an ET member in the past nor current.

Ok...now that we got the above facts cleared up.

Here's another fact, I don't use indicators. Therefore, I have no interest to learn how to use indicators from anyone. Thus, I'm not interested in learning Al Brooks methods after learning from No Doji that he does uses an indicator. Hopefully you can understand why I'm not going to explore his method especially considering I have my own method that works for me. Thus, don't take it personally, the issue isn't that he has helped others or not...he uses a method that's not suitable for my trading style nor am I willing to explore the method of anyone else that uses indicators.

However, I do understand now that your initial question has changed from PURE PRICE ACTION to those that uses INDICATORS in combo with PRICE ACTION. Thus, now that No Doji has given me confirmation about Al Brooks and this thread has now seem to be about Al Brooks and not about active ET members using Pure Price Action.

I no longer have a reason to post in this thread. Good luck with Al Brooks method and if you read long enough here at ET you'll find out own your own whom are the pure price action traders that are still active in posting at EliteTrader.com if you haven't gotten answers to your original question.

Also, if indicators work for you...more power to you and continue using them.

Mark

 

I have no idea what the actual news report is if I manage to get an order in edgewise when price starts moving. I just trade in the direction of price. I can pretty much figure out the news was good or bad based on whether I bought or sold to enter.

 

Anyone desiring to debate brook’s book – start a thread and I’ll join in…

Just realize I am in the process of rewriting every page of that hard reading thing – into plain ole easy to understand English…

So I get what he’s written - frankly some of it I agree with, some of I don't..

But no matter as it is simply another tool to be utilized - to the best of our ability - to make money


And should anyone wonder why I would go to all the trouble – because I am first…, foremost…, and always…, – a student of the market – and to be a student – I must study…



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Alrighty BM

Here’s a few thoughts on actual PA




PA can be used on an over all chart…a section of a chart… or bar by bar – (I think most take the 50,000 foot view and never dive into the heart of PA) – May I recommend you dive into the heart of PA


Print out some charts and role play – put your self in the short’s place, then the long’s place – how would you feel, how would you react, where would you enter/ exit place your stops for each… And compare that to what actually happened – This will give you insight on how to take advantage of the other side – and the psychology involved

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Every bar gives information, and is tradable (the information part I’ll leave for you to figure out…, the tradable part is; enter, exit, stand pat – while either in a trade, or on the side lines)

A bar can mean two completely opposite things – the specific context in which the bar occurs is all important

Btw one reason I think people have such a hard time with PA is they want things to fit in nice tidy packages – unfortunately not much in trading is nice or tidy


Notice how – at times – a bar will do one thing – then right before it closes – do the exact opposite… (games to catch the inexperienced)

Also notice how up – is sometimes down – and down – is sometimes up… let me explain

On some trending days all the large (large being relatively of course) bars/ “set ups” are in the opposite direction of the trend – but at the end of the day a trend in the opposite direction is clearly visible…. (more games to catch the inexperienced)


Look for failures, and/or failures that fail


Small bars = lack of interest… or a huge fight ensuing where neither the longs or shorts are in charge – but want to be

Big bars = one side is in charge… and the other side is changing their minds

Small and big are relative – again context is all important…



Strength is reflected in down bars/ candles
Weakness is reflected in up bars/ candles

however

An up bar/ candle with no upper tail = strong buying (buying occurring right up into the close)
A down bar/ candle with no lower tail = strong selling (selling occurring right up into the close)

Appears I’ve just contradicted my self doesn’t it… remember context… always context…The devil is truly in the details

To keep it real – There are two big ass caveats to this – be on the look out for them…


Think of each bar as a trading range – don’t buy high or sell low – unless you truly think price is headed in that direction – most of the time buy low and sell high…


Come to expect overruns and overshoots as SOP (remember things seldom fit in to nice tidy packages with regard to trading)


As you develop a PA trader’s eye – think about where you would place your stop – if you were a less experienced trader – the goal is make that one of your entry...


Learn to visualize how bars / candles are forming on your “trading” chart – as they’re forming… It’ll give you insight to what has occurred on smaller time frames (smaller time frame bars make up larger timeframe bars) and what is likely going to happen on larger time frames (the larger timeframe bars are forming right before your eyes)


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For each buy transaction there is a sell transaction – and vise versa

But price only moves because of demand – either someone is willing to buy at higher prices – or they’re not…

(btw it’s important to understand who the “some ones” are/ could be – but that’s a completely different conservation for another day perhaps)

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I hope this gives you some food for thought to press forward….


RN


eta - this is only the very teeny tip of the iceberg

 

Print out some charts and role play – put your self in the short’s place, then the long’s place – how would you feel, how would you react, where would you enter/ exit place your stops for each… And compare that to what actually happened – This will give you insight on how to take advantage of the other side – and the psychology involved


eureka to the fortunate.

 

Great post, Redneck, and thanks. You've given this beginner a lot of food for thought. I will be chewing on it for a while!

I've got Al Brooks book...not an easy read. I'd sure love to see your rewrite. Maybe that way I can at least have some of this stuff figured out before I'm too old to use it!

 

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Bear Trader;
While thats a good question[pppa/pure price action trade];
probably no such thing-because E mini market in no way resembles real estate,mrket evenas your question suggests, one could trade profitably with price action alone, why handicap yourself??????

If one had to chose price or fundamantals , chose price;
but why handicap yourself???????.
Wisdom is profitable to direct.

 

When you finish up re-writing. Can I have a first copy? Thanks in advance!

 

Just finished up chapter 5 this past weekend

Man what a chore – so far filled up 1 1/2 notebooks


Don’t know if my chicken scratches are any better – but at least I understand them....




I still don’t get the H1/ H2… L1 L2 thing at all….

And I don’t use the micro trend lines either

But the rest – not bad…. so far


RN

 

I watched the Las Vegas webinar with Al Brooks
last week.

He mentioned that he was writing a new book.
It is coming out next year, around May, if I recall
correctly.

He said the new book will be easier to understand. It is reviewed
by actual traders so that explanations are more
clear.

He said it will be 3 separate books.
Each book will have a different theme.