What does Price Action Mean to you?

Price action is one of my bread and butter indicators and if you follow my Trader P/L thread you know it works. For me the foundation is in this action.
http://www.trade-ideas.com/Help.html#RUI

 

Please teach me. I am humbled by your wisdom, I must say.

 

ES,

You've piqued my interest. Any chance you'd elaborate a bit for the willing, but math-challenged?

Thanks,
H

 

Does anyone know how to do this, convert price into time, would be interesting to know

 

I guess he was pointing out at the characteristics of price movement like frequency of price change and pattern: higher hi/higher lo and vice versa and if this occours while momentum picks up.
I also try to study how feasible is that price action driving the stock in one direction or another could continue correlating it to time frames.


A couple of cents
PP

 

Thanks, but hcour seems to be implying a straight mathematical formula where you just plug in price and time and out comes some important understaning of the market?

 

Pardon me.

if there's a formula that would be quite something though.

 

Yes, agreed But isn't this what is implied by "A simple division problem...", would be nice to know if there is something in this

 

Just to be clear, any implying was done by ES, not moi. (I'm not nearly that smart, having selected "under 80" in the current Chit-Chat IQ poll.)

And I'm not sure he was implying a straightforward mathematical formula...

H

 

price action is reactive form of trading. the basic physics behind it is that a particular price action tends to lead to another.. certain price action have a >50% expectancy and that is all most traders need to win in the long run.

markets are considered good when there is consistent realization of price pattern, like volume breakout and followthru. markets are considered bad when historically consistent patterns continue to fail in the short term.

but imo, price action is subtier to good fundamental analysis. price is confirmation of a fundamental expectation. when paul tudor jones says in 2002 that the oil industry is going to explode on the upside, that had absolutely nothing to do with price action. in fact, the nation-centric U.S. markets had little idea about globalization and demand until it was PRICED in, recently. very late. (edit) oh also there are many crappy fundamental analysts out there.