What does Price Action Mean to you?

Discussion in 'Technical Analysis' started by kevinmclark, Sep 20, 2005.

  1. It seems like you are right on point.
     
    #11     Sep 20, 2005
  2. BSAM

    BSAM

    If you're interested in trading profitably, then price action isn't merely relative to the trader. Hint: Some entries are way better than others. Of course, timeframe can be a factor, also. But, I don't want to stray too far away and cause more confusion for you.

    Again, do you believe that you understand the concept of support and resistance?
     
    #12     Sep 20, 2005
  3. Yes, I believe I do.
     
    #13     Sep 20, 2005
  4. No, price is the only absolute in the market. All indicators depends on the number of price points input into the equation.

    Volume is almost a completely ramdom entity.

    Regards
    Oddi
     
    #14     Sep 20, 2005
  5. BSAM

    BSAM

    Okay.....When you believe you know the location of S/R (and there are many who think they do, but they really don't.....but that's another story), watch very carefully what price does. For example, does it hesitate or does it fall right thru? This is one example of what is meant by "price action". Price action serves to give traders an idea what may happen to the security you are monitoring.

    Hope this helps a bit.
     
    #15     Sep 20, 2005
    K-Rock likes this.
  6. BSAM

    BSAM

    But, volume oftentimes provokes a profound effect on the price action. For example: When price falls thru support on increased volume.
     
    #16     Sep 20, 2005
  7. hcour

    hcour Guest

    Watch for wide range bars vs narrow range bars (ease of movement vs lack of movement). Watch interaction of price w/trendlines, channel lines, support/resistance. Watch for follow-thru or failure to follow-thru on breakouts and breakdowns. Watch for upthrusts and shakeouts. Note the position of the close w/in the range of the price bar - at the high, the low, mid-point? Watch for tests of "vertical" areas where trends accelerated.

    H
     
    #17     Sep 20, 2005
    K-Rock likes this.
  8. BSAM

    BSAM

    Hold up hcour. Don't give it all away. ;-)
     
    #18     Sep 20, 2005
  9. It’s the best definition I’ve heard to date. Thanks!
     
    #19     Sep 20, 2005
  10. Now we're getting somewhere. Thanks!
     
    #20     Sep 20, 2005