What Is Price Action Trading?

[Bint_Crusher]

Price action trading refers to trading based solely or mainly off price patterns alone. Sure, indicators are derived from price, but when price forms repetitive patterns itself, what's the point of looking at indicators? If you learn to analyze the raw price action of the market you will spot setups that occur again and again, so you don't really need indicators in my opinion.

I agree with you to a greater extent, but people did not develop and publish these indicators because they SUCK. MOst of them are a derivative of a Moving Average or distance between opening and closing prices bt the very fact that some geek has taken the effort to chart their relationship does not mean that they SUCK. Google robots that dont suck and yu will see what I mean.:-0:-0:-0:-0:-0whistling

 

[Tradingkid09]

I agree with you to a greater extent, but people did not develop and publish these indicators because they SUCK. MOst of them are a derivative of a Moving Average or distance between opening and closing prices bt the very fact that some geek has taken the effort to chart their relationship does not mean that they SUCK. Google robots that dont suck and yu will see what I mean.:-0:-0:-0:-0:-0whistling

Well, I have no idea why people developed any of these indicators, probably to sell them. I don't really care, I just personally think it's a waste of time to trade with them when you can simply trade off the raw price action of the market, which is what the indicators are based off of anyways. People like to make trading a lot more complicated than it needs to be, and they also like to try and mechanize it to create the "holy-grail" trading system, that's probably the real reason why all these indicators were invented.