I'm so confused when trying to find reliable sources to learn about Price Action. Can anyone recommend me?
Young grasshopper...read the following threads... Trade Journals @ https://www.elitetrader.com/et/forums/journals.29/ Technical Analysis @ https://www.elitetrader.com/et/forums/technical-analysis.33/ Psychology (learn about yourself as a trader) @ https://www.elitetrader.com/et/forums/psychology.35/ Hall of Fame Threads @ https://www.elitetrader.com/et/pages/hall-of-fame/ All the above will keep you busy and join any of their discussions that catches your eyes or you have questions. Yet, if you're looking for "reliability"...learn to backtest and keep a detail journal of your learning process. P.S. Stay away from the Political and Chit Chat threads. No price action discussions there. wrbtrader
Spend time watching charts and price as it unfolds. pay attention to where price changes direction. Write down the price every 5 minutes. Don't try to guess where price will go next, just observe what price does and how it reacts to different levels. Do that for a week and then see if you can determine if the buyers or sellers are in control.
Al Brooks videos are on youtube for free. He is a renowned expert on price action trading. He has three books and a trading course available as well as a trading room for ES. (costs a $100/month) but you can check it out for free for 2-days. No risk or costs to look into this.
Price action is fractal in nature however. If the OP is not inclined to sit in front of a computer screen all day, then they could use the same thought processes on daily or weekly data. It's tempting for a person to think of day trading as a faster way to grow wealth than swing trading, but that is flawed logic. What the OP needs to do is find a positive expectancy method first by backtesting ideas. Only then should they trade. However, backtesting is an art and science in and of itself, and can take many months or even years to learn properly.
The only problem I see with back testing is you already know where the market is when you start. Leads to a bias. The OP asked for a reliable source to learn price action. The best way is to observe price action.
Ima disagree. You dont have to spend hours in front of a comp screen to utilize PA. You look at the context (previous bars) look for your setups, and make the trade and manage your trade correctly. Its the most versatile trading concept out there. Price is the only thing that matters. IF the price is right people will buy/sell. a lot of people out here like to overcomplicate things because they think thats going to make them money or they think because they put in millions of hours of work means they will be successful. ITs not true in any other type of business and its no different when it comes to trading.
deaddog, I disagree. If back testing day to day there is no bias to what the markert will do 2 or 3 months from now. When manual backtesting day to day, don't look forward to the next day market conditions. The goal in back testing is XXX or 1 year of trading daily and evaluate results. The test can be an evaluation of Brooks price action methods.
It's hard not to look forward when you know where the market is today. I guess it depends on what you are back testing. If you have a strategy where you define a set-up and exit criteria you can back test over a known time period to see if the strategy is profitable. I don't see the value in reviewing a chart for price action when you know where the price was at the end of a period. Watching in real time when you don't know what will happen is one way to learn. By watching in real time you can develop a strategy based on what you observe. Then you back test on different markets and timeframes to see it it is viable. Try it you might like it.