price action

Discussion in 'Trading' started by doug456, Jan 10, 2004.

  1. doug456

    doug456

    can someone tell me exactly what price action is, and/or how to use in in trading, are there any good books on it? thanks
     
  2. nkhoi

    nkhoi

  3. I think true "price action" trading is to trade the markets strictly on an interpretation of price movements with little or no use of technical indicators. Over time, I have been leaning more and more toward this type of trading, and to be honest, my trading results have been improving. It takes time and experience, but is just as reliable as any technical indicator out there.

    Some info for primer education may be found here:

    http://www.tradersedge.biz/stock_charts.htm

    http://www.hardrightedge.com/wheel/hrebilateral.htm

    The attached chart of the 1/09/04 Dow Emini, shows how I usually view the market throughout the day. I now keep my interpretation of market action as simple as possible, and my trading as drastically improved.

    Charles
     
  4. Charles did a good job describing my opinion of price action analysis. Some traders use candlestick analysis with volume and trade only with these. It's trying to use something that all traders see. Indicators are something that only you might see etc. But, with volume and candles you are looking at something that anyone with a chart could see. Read Niha's posts. He is an exceptional candle trader.