It is your interpretation of patterns. We look at them all the time and experience shows us what to expect in terms of probabilties with relation to similar, previous, patterns or movements.
There is nothing more to it than that and, if you are a trader, looking at charts, you are learning something every day without knowing it. That's experience.
Don't pay for a course. There is a free resource on forexfactory. Just search for James16 there and you will get more than any crappy paid course.
timsk
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Split',
For the benefit of the OP, perhaps it's worth clarifying that (I assume) you mean price patterns - as opposed to indicator patterns?
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Ingot,
As far as I know, there is no hard and fast definition of price action trading. That said, I think it's a fair generalization to say that exponents of the art choose to strip away all extraneous matter and focus solely on the movement of price alone, be it in the form of a chart, or a depth of market (DoM) price ladder, Level II and Time & Sales etc. The key thing is they don't rely upon indicators such as Bollinger Bands and RSI etc. Purists wouldn't even have a simple moving average on their charts. Anything that does appear on their charts is usually hand drawn by the trader him/herself, such as trendlines and support and resistance lines (S&R). The only 'indicator' that price action traders allow (and encourage even) is volume. There is an entire sub-forum devoted to this subject here:
Price & Volume
Keep an eye out for the threads and posts by dbphoenix - he's probably the most expert and eloquent exponent of it here on T2W - although he no longer posts.
Enjoy!
Tim.
FireWalker
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I agree. dbphoenix is very good to review. Basically, price action is the movement of price with volume only. Chart patterns are more reliable when accompanied by volume.
dbphoenix frequently said "look left". That's your support and resistance. Trendlines might point out where that left part of the chart is.
Most price action intraday in most stocks every day is manipulated. Daytraders are the marketmaker's food source. They lure daytraders in and knock them out.
Order flow is key. Order flow is usually large traders adding to or unloading a large position. Sometimes that takes days or weeks. It might be a news event. It might be an internal change to the company. It might be a weather event. It might be a new technology or business spin off. Remember, most companies' profits don't change much day to day. Only events create order flow. Or it might be manipulation or it might be an institution building a long term position.
DionysusToast
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"Price Action" is a bit of a buzz word that gets bandied about and used for many different things.
I'm not sure there is an 'official' definition...
I'm not sure there is an 'official' definition...
Futures Hunter
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Price action is the skill - combining chart pattern & price pattern to determine where the support & resistance
i THINK Lengendary traDER Jess Livermore is one of them
i THINK Lengendary traDER Jess Livermore is one of them
Tradingkid09
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Price action is the "footprint" of money, it is the end result of all variables in the market and gives us a way to trade that is not confusing and or difficult to understand. It is basically just analyzing the natural ebb and flow of price to trade the market.
Tradingkid09
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To properly define price action trading I have found a good article on the matter for anyone interested: price action trading
Bint_Crusher
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Critical price points during ranges do it for me every time. Low risk, pre planned rule based execution and profit taking.
Find Critical Price point Cable always ends in 60 mark zones above and below 17pips making a total risk of 40 pips when price trades above and pulls back to zone then moves up again BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY sooner or later it is either going to accellerate out of the range so trade over until you find the next CPP whatmorelikely happens against the " wishes" of those who choose to believe the law that "The more times support or resitance is hit the stronger it becomes as a level"
hahahahahahahahah wristjob the price plunges through the level and stops you out so when it retraces back to that level then SELL Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so SELL Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so SELL Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so cuntinue in that vein.
Good game easy.
Find Critical Price point Cable always ends in 60 mark zones above and below 17pips making a total risk of 40 pips when price trades above and pulls back to zone then moves up again BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so BUY sooner or later it is either going to accellerate out of the range so trade over until you find the next CPP whatmorelikely happens against the " wishes" of those who choose to believe the law that "The more times support or resitance is hit the stronger it becomes as a level"
hahahahahahahahah wristjob the price plunges through the level and stops you out so when it retraces back to that level then SELL Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so SELL Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so SELL Stop as above at 1:1.5 stop to breakeven then manage profittaikng as per rules all profits off table when price starts to retrace until it hits the zone again so cuntinue in that vein.Good game easy.
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Kitchen Sink
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^
How about some full stops, commas and maybe even paragraphs to make your text easier and not give the reader a headache?
How about some full stops, commas and maybe even paragraphs to make your text easier and not give the reader a headache?
Bint_Crusher
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brewski1984
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All I kept seeing in that long post was the word profit repeated over and over again!
Bint_Crusher
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profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
profittaikng as per rules all profits off table
On reflection I did repeat myself several times but I used the term stop as frequently. For the benefit of the ill educated stop=stop LOSS.
Stop as above at 1:1.5 stop
Stop as above at 1:1.5 stop
Stop as above at 1:1.5 stop
Stop as above at 1:1.5 stop
Stop as above at 1:1.5 stop
Stop as above at 1:1.5 stop
Stop as above at 1:1.5 stop
Stop as above at 1:1.5 stop
Last edited:
brewski1984
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Ah man don't ruin my dreams with talk of stops! Stops don't buy you lambos!
Bint_Crusher
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Its just a quick basic strategy to trade ranges. The cable is a fave of mine and its probably against all the people who say make money on the way down as well as the way up. Why be greedy get a rule based structure and stick with it.
No indicators except maybe a moving average and a parabolic sar to get me to move the stop.
No indicators except maybe a moving average and a parabolic sar to get me to move the stop.
There are various technical indicators that are derived from historical data. These indicators are designed with a goal to predict the future direction of the price. I have always interpreted price action trading is trading methodology based on these indicators (as opposed to based on economy, balance sheet)
Kitchen Sink
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This is how it works:
You see the price, and then you take action against that price, hence "Price action"
The action you take against the price is one of two things.....buy or sell.
It really is as simple as that.
You see the price, and then you take action against that price, hence "Price action"
The action you take against the price is one of two things.....buy or sell.
It really is as simple as that.
Tradingkid09
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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.
