Understanding price action

Discussion in 'Technical Analysis' started by Erin, Apr 23, 2020.

  1. 4ex

    4ex

    It started out as a good thread and interesting ... its amazing what jealousy can do ... some that hang around here just can't stand someone other then themselves getting attention. Poor babies.
     
    #161     Apr 28, 2020
    Shailesh, rcsmie, speedo and 2 others like this.
  2. volpri

    volpri

    If every bar is random then the culmination of bars is also random and you have no story to tell nor anything to guess.

    Actually, ALL bars regardless of time frame tell a story. You just have not learned to read. This thread has really driven home to me how closed mind and blind people can be! Longterm investors follow their brokers advice and their funds advice as price goes down...and down...and down...and they hold and hold and cry and cry and blame and blame...mostly mr T they blame...SO WHO ARE THE CULTIST? Roflmao.
     
    #162     Apr 28, 2020
    Shailesh likes this.
  3. Sekiyo

    Sekiyo

    It’s Okay to be wrong for the Egg.
    But wrong about your job ?!

    ...
     
    #163     Apr 28, 2020
  4. themickey

    themickey

    #164     Apr 28, 2020
  5. volpri

    volpri

    Traders use “more buyers” or “ more sellers” in a generic sense to describe the forces at work. It is possible to have fewer sellers than buyers and price go down. You could have buyers backing away and price go down. You could have sellers backing away but the sum total of orders on either side staying the exact same and price moves up. You could have an institution (1 seller) hitting the bid over and over and 500 buyers and price goes down on 1 seller in spite of the fact there are 500 buyers. Or you could have 1 buyer and 500 sellers and price goes down...or up lol.

    You could have a buyer wanting to buy 1000 contracts but he chips his way in on small size not wanting to drive the price up. He may even sell a few he buys to drive price down so he can buy his 800 contracts he lacks at a cheaper price.

    So, yes it is a scenario of what is greater (usually) supply or demand that results in price movement. But saying more buyer than sellers or more sellers than buyers are just generic expressions. You are nitpicking which is exactly what happened and the reason why Erin left. Can’t say I blame her. Who wants to waste their time over the trivial BS.

    Think about this: have you every heard of price “moving towards the wall?”

    See there are all kind of scenarios. Variables known and unknowable. We can never know all the details of why price moves. It is IMPOSSIBLE. But we can know what happened when we see a bar. Who and why we may not know but “what” happened can easily be known unless you got birdshit in your eyes.

    What you cowboys are leaving out is that the market has inertia. The finished bars, their range achieved, and their dynamics as they were being formed live tells the ASTUTE trader something about that inertia. Especially, when you look at each bar in terms of the larger context. LISTEN BOYS THE MARKET TENDS TO DO WHAT IT IS DOING UNTIL SOMETHING HAPPENS THAT MAKES IT DO SOMETHING DIFFERENT AND AS AN ASTUTE TRADER I ACT UPON THAT INERTIA AND TENDENCY AND the bars to the left indicate to me when inertia is about to change. YES, they indeed have a story to tell. Sorry but you are FLAT WRONG.
     
    Last edited: Apr 28, 2020
    #165     Apr 28, 2020
    Shailesh and rcsmie like this.
  6. NQurious

    NQurious

    No way to convince anyone whose mind is already made up the other way.
     
    #166     Apr 28, 2020
    Shailesh, speedo and volpri like this.
  7. themickey

    themickey

    I largely agree with this post regarding movement on price.
     
    #167     Apr 28, 2020
  8. volpri

    volpri

    You are right but getting a few counter punches in .....well there is some fun to it. And who knows just maybe something will clik on one statement...one sentence...one word..but the R:R is not good as they don't even believe in one bar. LOL
     
    #168     Apr 28, 2020
  9. volpri

    volpri

    WHAT??? No way Jose. You must have had a really good capuchino or expreso minutes ago.
     
    #169     Apr 28, 2020
    themickey likes this.
  10. savoir

    savoir

    Conventional wisdom in trading is dominated by myths and fuzzy thinking. The phrases "more buyers than sellers" and "more sellers than buyers" are part of the CW explanation of why price goes up and down. For that reason, I did highlight this mistaken viewpoint.

    Any person can espouse whatever viewpoint he or she has about trading and disseminate it online. There are various motivations for doing so. You have yours. I was motivated by the desire to state the obvious about supply and demand which apparently is not obvious to everyone.
     
    #170     Apr 28, 2020
    wrbtrader likes this.