Price Action v Indicators

Discussion in 'Trading' started by mgabriel01, Nov 17, 2007.

  1. OK - the noob is at it again

    Reading lots of threads here and getting awsome feedback
    Thanks especially to WestWall, HWKaiser, Anek, Optimistic and 2ManyWhiners

    Im trying to get my arms around the reasoning behind using price action v technical indicators to find entry/exit points

    From the posts Ive read it seems day traders prefer price action
    and dont find value in technical indicators

    Do I understand this correctly or am I pissing in the wind?
  2. rickf


    I daytrade the ES mini and have found that price action is helpful, but a combination of indicators and TA will give more confidence to my planning and analysis.

    Right now I look at price, trend volume (ie long/short pressure), RSI, MA, and Keltner Channels as my primary sources of information on when to enter/exit positions.
  3. whats the ES mini?
  4. rickf


  5. Unless the indicator is based on price action chances are your inability to read price action correctly will force you to look what does not exist in commonly used indicators.

  6. Lucrum


  7. hmmm ok so....
    let me play that back see if I understand

    some of the indicators are based on price action and you need to understand price action to interpret the indicator correctly

    followup question......

    which indicators are based on price action (all of them or some of them)

    You rock Anek!
  8. Mostly stuff based on highs and lows. Learn geometrics for high probability patterns, 50% areas between any two points of interest and time and sales.

    Looks like you are a newcomer to technical analysis. If you start without relying on stochastics, rsi, macd, cci, ergodic, smi and any of that lagging crap, you will already start with an edge because you will learn to be faster than the typical daytrader. Don't let any of the fans infect you with divergence either, divergence is a product of the imperfection of the indicator which leads to results as good as 50% or also commonly known as flipping a coin.

  9. RedDuke


    I use price action and momentum indicator (cci) for entries and price action only for exits. I trade of constant volume bars. If interested read the thread " why people use odd tic, volume and range bars"
    #10     Nov 17, 2007