Anyone else swing trading by reading pure price action? pure interpretation of weakness and strength in OHLC/candles in the larger context. Minimalist approach with no indicators, oscillators, trend lines, etc. Using only horizontal support and resistance areas as an addition to pure price.
If automated backtest (no curve fitting) and forward test show there's a positive expectancy, why not?
I think trading off of pure price action isn't the best idea. But hey, if you can maintain a solid W/L ratio then it obviously works. I just haven't seen anyone that's been able to do this over the long term.
I read daily candles/bars. They capture the full session in a single bar, in my mind I often split the session in two parts, first and last of the day. I like to visualize it all like I'm watching a football game with two teams playing off against each other, trying to advance on the field.
Yes, I have started experimenting with trading off single candlesticks - set a buy at the high and a sell at the low, stop-loss is the other extreme. Actually, I favour setting only a buy or sell according to the slope of the 13SMA, but it would be easy to filter the order direction by eye instead of using a MA.
I have complete system that is automated and works on 60 minute bars, and other systems that have signals based on price patterns. Much harder to program complicated price patterns especially if you developed them to have variances of the originals in books, life has curves and even a needle under microscope the tip is curved. And I hedge all timeframes above 14 minutes now, want to maintain small drawdowns. I think slopes work best, on my bucket list of things to test, i.e. take like three minute bars for trend then one minute bars looking for deep retracement as per RSI or Stochastics and get in near bottom of next three minute bar, if you look at a bar than seldom reaches previous bar's low in strong trends, it might be just enough to get in smaller timeframe to get in cheap and risk few ticks to make points.
I do. Been doing so professionally for a long time. Trade the ES and NQ exclusively. Use a simple moving average and a Bollinger band only to help me gauge where price is at. Don't use it for any trade decisions. My eyes just got accustomed to those indicators over the years when I was trying to backtest to see if they provided worthy signals......which they don't. what questions do u have ?