Price Action

Discussion in 'Trading' started by Outlawed_One, Mar 19, 2010.

  1. I've been a lurker for quite some time now. I usually do searches. I've seen some threads here that have a wealth of information & am wondering if anyone can point me to some of the better threads that are dedicated to price action.

    Thanks!
     
  2. Wow, one post since 2009, you are a lurker!

    Here's a thread I made when I was pissed off at the term "price action" being thrown around without being defined.

    It started out as a good thread, but eventually I had to put some people in the thread on my ignore list cuz they were either "gurus," or they weren't contributing, or they were harassing me via PM because I wouldn't pay them thousands of dollars to "teach" me to trade when they wouldn't provide proof that they were profitable or actually capable of teaching (something all ET "gurus" are guilty of), or random vague and ambiguous bullshit that doesn't explain anything, or people who are known to be unprofitable giving advice, etc. But as figures, most of that shit is expected on this forum.

    My last few posts in the thread summarize my findings. They're pretty long.

    Here's the thread:

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=146764
     
  3. I'd say Iron's thread is one of the best price action threads on et, but unfortunately like most other PA only threads it dies out because everyone has a different way of trading, and therefor their advice is in a constant state on conflict among other posters. Then you have to take into account who actually knows what they are talking about, and who doesn't which is almost impossible. I'm not sure how much usefull information Iron was able to get from his thread, but I posted a few things on there (under a different name). I hope it helped, but in the end he probably was right back at square one.

    In Iron's first paragraph he says "Price Action has no definition. For the longest time I got pissed off every time I read a thread where someone said "indicators are useless, it's all price action." There was never a definition of it. It's like "go do task xyz" but not being given a definition of what xyz is or how to actually do it."

    This statement reminds me of 1a2b3cppp's fibonacci thread when he gets mad at fibs because there is no clear way of trading them. If he's reading this ---> There is NO clear definition :)

    Trading in simple terms is about what the market is most likely to do after a certain event, and then using your analysis to support your opinion.

    Kon
     
  4. I agree there's no consensus on what defines PA, but for me I never thought price action had anything to do with charts, or more specifically, charts are not needed to trade price action if the time frame is short enough (intraday ~ a week). For me it's all tape -- just bid/ask/last and a decent memory.

    One thing I'll say is: if you're trading intraday using only a chart (aka last price), you are not trading PA.
     
  5. Again simple terms

    1. A bull trend is defined by Higher highs, and higher lows

    2. Bear trend is low highs and lower lows.

    Knowing these two things is really all you need to know because this is the ONE true thing that defines a trend. All that other crap is too subjective, but this is the one thing that remains true. When I take a trade long or short, I always look and ask myself if a previous high or low was broken

    As you'll see in the chart, taking a trade when price breaks a previous high is trading with the trend, and therfor should have a higher probabilty of success. I myself like to buy the dips rather than buy the high of the market..thats just my personal preference. It really depends on how strong the market looks, and I MIGHT take 1% risk. The orange arrows show areas where price broke highs, and continued higher

    The next chart is the same stock, but here I drew a trend line. It's so common for the books to show a trend line break and then the market does a full reversal and thats bullshit, because it rarely plays out like that. The red box is where price broke the TL, but price failed to break below the black support line, and continued its trend up. HAD the support line been broken, the game changes. But notice the 2 areas on the black line that pose as support, the 3rd would have been if the market came down to test that last arrow which didnt happen.

    Just keep in mind higher highs / higher lows
    and lower highs, and lower lows..thats the best way to go about it. I'll post some trades I'm currently in as well, so its not all "After the fact" :)
     
  6. Chart 1
     
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  7. AXW

    AXW

    Check out the James16 Thread of ForexFactory. Great price action discussion but very long.
     
  8. Chart 2
     
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  9. I'm not mad at fibs because there's "no clear way to trade them." I'm mad at "fib gurus" because they're bullshit artists who say things in hindsight. I know how to trade with "fibs." There's no ambiguity and no after-the-fact bullshit "oh lol look price reversed here it's magic." Fibs are bullshit and they have no magic values and work just as well as any other randomly chosen percentages. Did you see my journal? I made over $4,000 last week using less than $10k in margin. How much did you make with your fib lessons that you're paying for on that other forum?
     
  10. You are not a profitable trader. Why are you giving advice as if you are?

    That is one of the things that is wrong with the trading world.

    It's like the threads where some noob is all "look at how I trade with [insert some indicator that doesn't work]." Why would he be giving advice? For e-cred?
     
    #10     Mar 20, 2010