Price action trading.

[Tradingkid09]

Just wanted to start a thread on what methods people are using to trade via price action. I like the idea of not having any lagging indicators on my charts. I am just curious to see what's out there as far as price action educations or price action courses. I have read some encouraging information about trading strictly off of price and I am just trying to get a better idea of what other people think about it and what resources they have found helpful. I also thought it might be a good idea to post up some charts of price action signals I have found to be successful in the markets. Thanks a lot.

 

[HawkTrader]

Check this out.

http://www.trade2win.com/boards/forex-strategies-systems/77580-trading-naked-part-2-a.html

 

[Black Swan]

You know the bit in the Dracula films, where, for example, Peter Cushing gets out the crucifix and Drac. bricks it? I often wonder if Priceactionistas do the same when they hear the words "Expert Advisors"*...



*retires to a safe distance having lit the firework...

 

[virtuos0]

Is trading 'price action' where you make uneducated guesses using a bare chart rather than making uneducated guesses with a chart full of indicators?

 

[macdSurfer]

Is trading 'price action' where you make uneducated guesses using a bare chart rather than making uneducated guesses with a chart full of indicators?

The way I view price action in simple terms is
first sentiment. Has the market up on bad news (bullish),
down on good news (bearish). up on good news (bullish) etc..

2nd the price action of the previous few days leads me to believe that will continue
unless some catalyst shakes the market out, then breaks in either direction - hard.

3rd most of the year buying on dips has been the way to go or after the market is semi-oversold buyers jump in and squeeze out the shorts.

Also, look at the groups leading the market the previous days.
When tech, banks and energy are all up its not a good day for shorting.

4th watch the $VIX, $TRIN and A/D line. When the TRIN has been over 2 or
more for several days, switch from shorting start looking for oversold bounces
getting some aggressive shorts leaning to hard for a short squeeze.

When I'm wrong within 2 trades - I go to the sidelines, maybe for the rest of
the day. I mostly trade futures.

 

[TAjammy]

guh, every time i hear 'price action' it reminds me of me and the reasons i was attracted to it- an easy way to trade , ignoring market context, fundamentals, etc, just waiting for pins at support. etc...

maybe you're different but with so many people just getting into PA do you really think pin bars will work in 5 years time?

 

[squall321]

Just wanted to start a thread on what methods people are using to trade via price action. I like the idea of not having any lagging indicators on my charts. I am just curious to see what's out there as far as price action educations or price action courses.

I still don't know what the definition of price action is meant to be.

seems to be a copy of dow theory/classical TA and candlestick patterns which you could find in any TA book

 

[Trader333]

Is trading 'price action' where you make uneducated guesses using a bare chart rather than making uneducated guesses with a chart full of indicators?

Presumably this is in contrast to the absolute certainty of an approach that you use ? and if so can you say more about it ?


Paul

 

[amnonco]

I don't know what Price actions uppose to mean.
I can tell you what I do - that most others don't

I look only at facts (price), and I trade on a reactive basis not a predictive one.
that is - you'll never hear me say the market had done so and so ->conclusion: the market's gonna end up here or there -> therefore I buy.

for me the process is more like:
price here -> buy/sell.
after I buy or sell -> price here -> exit/stop.

that's it. the only way I make my money is through statistical robustness of the system.
every time I take a trade the underlying conditions (where price is), is the same in relative terms (not the same in absolute terms).
that's it.

 

[Trader333]

that's it. the only way I make my money is through statistical robustness of the system.

So it sounds like you use some form of statistical indicator ?


Paul

 

[macdSurfer]

Presumably this is in contrast to the absolute certainty of an approach that you use ? and if so can you say more about it ?


Paul

maybe this will help as there is no one way to scalp/daytrade price action
along with sentiment:

Investopedia explains Price Action
No two people will analyze every bit of price action the same way, and that is why a lot of traders find the concept of price action so elusive. Quite literally, price action is everything that a security's price does, and just like every other facet of analysis, it is purely subjective.

What Does Price Action Mean?
The movement of a security's price. Price action is encompassed in technical and chart pattern analysis, which attempt to find order in the sometimes seemingly random movement of price. Swings (high and low), tests of resistance and consolidation are some examples of price action.

The candlestick and price bar are important tools for analyzing price action, since they help traders visualize of price movement. Candlestick patterns such as the Harami, engulfing pattern and cross are all examples of visually interpreted price action.

http://www.investopedia.com/terms/p/price-action.asp

 

[virtuos0]

Presumably this is in contrast to the absolute certainty of an approach that you use ? and if so can you say more about it ?


Paul

I just do what a 'Global-macro' hedge fund does, in that I look for exploitable opportunities based on fundamental value or market sentiment in the main. I take no half-assed trades, if there isn't a good trade in a month, then I don't trade for a month.

I find that the harder I work, the more luck I seem to have!

 

[Devilicus]

maybe you just didn't give TA style trading long enough, Virtuoso?

Im sure that i remember you posting on the FTSE thread about 6 months ago and you said you were new to trading and were trading off of support and resistance. Maybe only a few months of success isn't enough for you to be sure that what you use is profitable and to dismiss other methods with such conviction?

 

[macdSurfer]

https://www.redoption.com/shadow_video.php

last week's price action - to look for this week's sentiment (is it a carry-over?)

 

[virtuos0]

maybe you just didn't give TA style trading long enough, Virtuoso?

Im sure that i remember you posting on the FTSE thread about 6 months ago and you said you were new to trading and were trading off of support and resistance. Maybe only a few months of success isn't enough for you to be sure that what you use is profitable and to dismiss other methods with such conviction?

We've already gone through this, in my thread "Hunting secrets revealed". Have a read through it, there's a lot of detritus but a few gems too. I don't trade TA, never have, never will.

 

[amnonco]

So it sounds like you use some form of statistical indicator ?


Paul

I don't use any indicators. at least not a "popular" technical one (i.e MACD, sthocs, etc. etc.).
the only non price parameter on my system is a form of volatility measurement (similar to ATR) that I use.

 

[Black Swan]

I don't use any indicators. at least not a "popular" technical one (i.e MACD, sthocs, etc. etc.).
the only non price parameter on my system is a form of volatility measurement (similar to ATR) that I use.

Is there a rough rule of thumb, as to a max number of securities, Priceactionistas can keep a 'weather eye' on at any given time?

 

[Splitlink]

Goes with age. I'm good for two.

 

[amnonco]

Is there a rough rule of thumb, as to a max number of securities, Priceactionistas can keep a 'weather eye' on at any given time?

my english (which I thought of as pretty good) isn't good enough.
don't know what 'weather eye' means...

but as for portfolio management, I trade mainly futures, and I have a strict margin/equity limit. other than that it's FIFO.

 

[Tradingkid09]

Anyone ever hear of the "fakey setup"? It works pretty good, like the one below are the only way that I trade.