Trading on Price Action

[dla133]

I have been reading this forum with great interest of different trading styles and methods. I have come to the conclusion that I want to base my trading around price and volume action to help me read ther markets. I am looking for a book or DVD that will help me achieve this skill. I know that there is some excellent information in different threads, but I would rather sit down with a book than trawl through the many thousands of posts on this site. Does anybody have any suggestions?

Kind Regards
Lee

 

[brutusdog]

I have been reading this forum with great interest of different trading styles and methods. I have come to the conclusion that I want to base my trading around price and volume action to help me read ther markets. I am looking for a book or DVD that will help me achieve this skill. I know that there is some excellent information in different threads, but I would rather sit down with a book than trawl through the many thousands of posts on this site. Does anybody have any suggestions?

Kind Regards
Lee

http://www.trade2win.com/boards/members/dbphoenix.html

contact the above he doesnt post here anymore but has done a book...

 

[dla133]

Hi Brutusdog

Thanks for replying to my post.

Does this mean that there are no books out there that deal with this subject, or the person you have told me to contact has the best material on the subject?

Kind Regards
Lee

 

[rbbsmith]

Recently I found an updated version of Tom Williams' book "The Undeclared Secrets of the Stock Market" free online. I didn't bookmark the site, but I'm sure you could google it.

 

[tomorton]

I suggest Street Smarts by Raschke and Connors. Very few indicators featured in their work, which concentrates on short-term trade set-ups which have a high success probability. Marc Rivalland on Swing Trading focuses on swing trading set-ups, and I think he only gives much weight to RSI.

 

[Chorlton]

I have been reading this forum with great interest of different trading styles and methods. I have come to the conclusion that I want to base my trading around price and volume action to help me read ther markets. I am looking for a book or DVD that will help me achieve this skill. I know that there is some excellent information in different threads, but I would rather sit down with a book than trawl through the many thousands of posts on this site. Does anybody have any suggestions?

Kind Regards
Lee

There are a number of excellent publications on this subject. Google:

1. Richard Wyckoff (he was pretty much the founder of this P&V relationship)
2. Tom Williams (Follower of Wyckoff & has continued on from Wyckoff' work)
3. Hank Pruden (Follower of Wyckoff)

There is also a software package that focuses purely on this relationship and produces appropriate signals. Personally, I don't use it as I prefer to eye-ball the charts myself but others find it useful. Check out TradeGuider if interested...

 

[dla133]

Thanks to the people who have replied to this thread so far.

Learning to trade by price and volume movement facinates me and I am looking to learn to improve my trading for the long haul. I have one quick question, some of the markets I would like to trade don't have volume data available. Currencies and commodities for instance only show me price action. Can you trade by just looking at the price action with the volume data missing, or are you only getting half of the story?

Kind Regards
Lee

 

[Chorlton]

Thanks to the people who have replied to this thread so far.

Learning to trade by price and volume movement facinates me and I am looking to learn to improve my trading for the long haul. I have one quick question, some of the markets I would like to trade don't have volume data available. Currencies and commodities for instance only show me price action. Can you trade by just looking at the price action with the volume data missing, or are you only getting half of the story?

Kind Regards
Lee

I only trade Equities so cannot really comment on the other instruments. With Equities, I believe that volume compliments price and creates a more complete snapshot as to what is actually happening.

Price will tell you what is going on and when, Volume will tell you how much conviction there is (by the Mrkt) in a particular price movement.

On the otherhand, trading price alone is of course possible and I'm sure there are many successful traders who trade this way. Personally though, it just doesn't "feel" right to me, so I choose to rely on both pieces of information to make my trading decisions.

Just my 2cents,

Chorlton

 

[dla133]

Thanks for your reply Chorlton.

Does anybody have any other thoughts?

Kind Regards
Lee

 

[yoramv]

Book on Price Action

Thanks for your reply Chorlton.

Does anybody have any other thoughts?

Kind Regards
Lee

Hi, i know some people will not agree with me, but from my experience the best books for price action are Joe Ross books.They will give u a good start at understanding price action, and then u are on your own to develop your setups.

 

[nile_croc]

Here's an interesting guy: run a Google on Dan Zanger. Dan Zanger is a U.S. equity swing trader who has turned like 100K into 50 million+ in just a few years (not exaggerating). All he uses is price and volume. He hasn't written any books, but you can find some articles and interviews with him online. Interesting guy.

 

[dla133]

I have done some more reading over the past few days and have gained a better understanding of the basics of supply, demand, support, and resistance. I understand that one way of trading is to look for key areas of support and resistance and watch the price and volume action around those areas. The tape reading books that I have read so far put volume as the most important indicator to highlight supply and demand. At this moment I can only get price action on my charts. If I wanted to trade via volume rather than mainly price, how would I go about doing this?

Cheers
Lee

 

[ben2k9]

Thanks to the people who have replied to this thread so far.

Learning to trade by price and volume movement facinates me and I am looking to learn to improve my trading for the long haul. I have one quick question, some of the markets I would like to trade don't have volume data available. Currencies and commodities for instance only show me price action. Can you trade by just looking at the price action with the volume data missing, or are you only getting half of the story?

Kind Regards
Lee

You get volume in the commodity futures market, except it's called OPEN INTEREST.

Volume is secondary to price. it is used to reinforce the validity of the price movement, or to create skepticism where there is divergence.

I would recommend the following books:

-The Successful Investor _ By William O'Neil. Covers position trading for stocks, and for understanding broad market trends.

-Technical Analysis of Financial Markets - John J Murphy. Basically the bible of technical analysis.

 

[ymanly]

candlesticks

candlesticks have more gold for me than anything other than price...

 

[dbphoenix]

Hi Brutusdog

Thanks for replying to my post.

Does this mean that there are no books out there that deal with this subject, or the person you have told me to contact has the best material on the subject?

Kind Regards
Lee

Whether or not DbPhoenix has the best material on the subject depends on what you mean by "the subject".

"Trading by Price Action" means assessing the relative strengths of buying power and selling power (or, if you prefer, demand and supply) at support and resistance. It has only to do with the result of the transaction, whether it's plotted on a chart, a digital display, a tape, or the back of an envelope. It has only to do with what is in front of you, independent of you, not with what is in your head, e.g., Bollinger Bands, MAs, Fibonacci levels, calculated "Pivot Points", or even bars or candles.

Books, therefore, aren't going to be of much help. They may point you in the right direction, but you're not going to learn how to trade by PA via a book, even mine. If you learn it at all (and you may not want to if you're a casual trader), you'll do so by spending many, many, many hours in front of a computer screen watching price move (as opposed to reviewing hindsight static charts in which price does nothing).

The following is an excellent example of what trading by PA is all about: price and volume, demand and supply, support and resistance. Clean and simple.

(Note that the charts will be found at the end of the text)

 

[ymanly]

so i take it the supply demand resistance support all being the same means pivots/support resistance is not relevant to the real trader...

Whether or not DbPhoenix has the best material on the subject depends on what you mean by "the subject".

"Trading by Price Action" means assessing the relative strengths of buying power and selling power (or, if you prefer, demand and supply) at support and resistance. It has only to do with the result of the transaction, whether it's plotted on a chart, a digital display, a tape, or the back of an envelope. It has only to do with what is in front of you, independent of you, not with what is in your head, e.g., Bollinger Bands, MAs, Fibonacci levels, calculated "Pivot Points", or even bars or candles.

Books, therefore, aren't going to be of much help. They may point you in the right direction, but you're not going to learn how to trade by PA via a book, even mine. If you learn it at all (and you may not want to if you're a casual trader), you'll do so by spending many, many, many hours in front of a computer screen watching price move (as opposed to reviewing hindsight static charts in which price does nothing).

The following is an excellent example of what trading by PA is all about: price and volume, demand and supply, support and resistance. Clean and simple.

(Note that the charts will be found at the end of the text)

 

[michael25]

hey dla,
go to google and type in beginnertrader blog.
he has some fine articles on naked trading...helped me alot- (i trade forex naked with no indicators-just price).