understanding price action

as a confused newbie i have tried to learn the art of reading price action via candle charts
have failed miserably can anyone point me in the right direction

cheers

peter007 said:

as a confused newbie i have tried to learn the art of reading price action via candle charts
have failed miserably can anyone point me in the right direction

cheers

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What exactly don't you understand?

peter007 said:

as a confused newbie i have tried to learn the art of reading price action via candle charts
have failed miserably can anyone point me in the right direction

cheers

Click to expand...

This is wot u need to kno....

R U REDDY?

How can a noobie know PA?

to me price action is : a pin bar means there was some strong buying/selling , a doji means indecision .
what else is there to know about price action ?

Is it you or your method that is failing,the only shortcut is a long time learning!

To me the "Price Action" and "Support and Resistance" that is talked about on trading forums is like magic beans; everyone at the bottom of the beanstalk keeps prodding at the dirt and waiting for their magic beans to shoot up from nowhere and into the sky.

and there are so many people prodding the dirt that magic beans get a following.

the market

DashRiprock said:

To me the "Price Action" and "Support and Resistance" that is talked about on trading forums is like magic beans; everyone at the bottom of the beanstalk keeps prodding at the dirt and waiting for their magic beans to shoot up from nowhere and into the sky.

and there are so many people prodding the dirt that magic beans get a following.

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Its not written in stone but price does bounce or retract from certain levels of S/R the market itself cannot be that random would like to know your'e opinion on that DR.

I wonder to what extent tech analysis in general and price action in particular is self fulfilling as DashRipRock seems to be suggesting (?) ? There is probably anacdotal evidence of this but nothing empirical...Whatever the case Support/Resistance and PA are indisputably important aspects of technical trading.

Good eg today on cable, as a Pinbar candle forms at the Previous swing lo zone confluence with the 61.8% fib...What probability that price will move higher than the Friday close at some point ? Re DashRipRock's point, will participants buy the PB beacuse it is a PB/hammer ?

To me, price action is simply understanding how price moves and what participants are going to do at certain prices.

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This is what I would call a PA set up. In fact I think I may take it Sunday.

Jason

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trader_dante said:

To me, price action is simply understanding how price moves and what participants are going to do at certain prices.

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what do you think about heiken ashi candles ?

price777999 said:

what do you think about heiken ashi candles ?

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Never looked at them.

I use ' em and i like em

DashRiprock said:

I use ' em and i like em

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What do you use them for, trend confirmation, entry, exit, trailing stop?

Vaco said:

What do you use them for, trend confirmation, entry, exit, trailing stop?

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When it's going up, so are they.
When it's going down, so are they.
When it's going sideways, so are they.

I'm not being facetious. What more is there?

DashRiprock said:

I'm not being facetious. What more is there?

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they change colour too.

I think maybe I should un-facetious a bit of this.

if you don't know, heikin ashi are a type of bar/candle but they're not just OHLC. Heikin ashi mean "average candle" and that sort of what they are. you can google for the proper definitions.

the reason I use them instead of normal candles is that well, the entry, stop and exit of my trading is all done from the tape / DOM, so I'm not ar$ed about triple-dopple-ganger-three-green-frogs-in-a-tree candle patterns (at least intra-day). I said somewhere else, for me, OHLC on candles is only good when the Open and the Close mean something structural in the market (mostly appropriate on daily timeframes). I don't think hourly or 15m opens and closes are important at all whatsoever, do I don't give them any attention.

Some things to know about heikin ashi are that they make it look easier than it is. in a good trend the open of a new bar is the average of the old bar, which isn't always a price you can trade at. on the plus side, it means you don't get shaken out of a long or short bias on insignificant price action.

as well another thing about heikin ashi is that in chop it can be dead obvious. I use them with an EMA on tick / volume charts (NEVER time charts intra day) along with volume histograms (V. important) and tape/DOM for my trading.

Italia Italia Italia

Good time to "un-facetious" - there was a risk that some of your readers could have wondered about your intelligence!

HA is an indicator, a kind of average, a way of making it easier for people who get shaken out of trends by small pullbacks to stay in. But they are not Price Action ... they are derivatives of PA and should be traded on that basis. I seem to recall, once when I did HA for Sierra Chart that you could gain information from having long vs short tails on the bars - like having some shorter and longer timeframe mas on a chart.

But they are not PA ... they are another derivative indicator.

And a HA pinbar is not a pinbar because it is derived from prices in this bar AND the prior bar.


IMO it is ultimately better for your trading (if you can do it and maybe it is not in your nature to be able to) to be able to stay in during the pullbacks without a crutch/training wheels like HA. But for some, particular indicators will always speak well to them and PA won't, in which case they are useful.

hmmm interesting ....i think HA candles are the ducks nuts .....much easier to read .