Best Thread Everything you always wanted to know about trading...but were afraid to ask!

[tenbobtrader]

price is price & time is time

Hey berti, you have to play around with it a bit. I tried weekly and daily and got the concept but I moved quickly to 1hr and that's where I found my comfort zone.

All I can say with any degree of accuracy is that the lower TF you go, the harder it becomes. If you can't make money on the daily TF, why should it be any easier on the 15m? lol

If someone tells you they are successful on the 15m, make sure they haven't graduated on down from the higher TFs (which is the proper way to do it).

TD

price and time

Time ?

connected ?

price is price ~ time is time TD

take time out of the equation (noise reduction filter) and give yourself one less thing to think about imho

 

[epetrov]

Hi TD,
very interesting thread to me.
I'm trying the tripple sceen method, and I think it works quite well (described also in this thread as modification).
The problem that I have is that I'm very very selective. I wait for the perfect opportunity. ... and what happens then? Like a maiden waiting the perfect man who never comes. ))
So I very seldom find any opportunity to trade. What yould you advise me about that?
(I follow the 1h or 4h chart in order to see the market direction, 15min or 30 min as intermediate TF, in order to get to the correction of the current trend, and 1 min or 5 min in order to perform the trade.)

 

[kingoftrading]

This one is for the total newbies

Who should I listen to on these boards?

Anyone as long as they DON'T tell you that something CANNOT BE DONE. If someone says those three magic words, run a mile.

This is the most important point you make in the whole article IMHO, and I would say you err on this point. You shouldn't listen/not listen to someone based on what they say can or cannot be done, but you should listen to them if their views accord with common sense and good reasoning. for it is our sense of logic that enables us to distinguish between good advice and bad advice. Just because something is technically possible doesn't mean it is feasible or makes good business sense. Use your judgment.

 

[jonboy123]

also.......what does price action mean?

 

[pedro01]

also.......what does price action mean?

It seems to mean different things to different people. I think the idea is that you base your decisions purely on the price and not on indicators.

To me, it means looking at the price at different levels :

- Is the market in a trend or range ?
- Has the market broken a major trend, had a pullback & then continued its reversal ?
- Do we have strong trend bars or wishy-washy overlapping bars ?
etc. etc.

I use that high-level view to determine if I can trade at all as well as the direction I would like to trade in. This kind of price action is looking at a high level across many bars.

Then you have price action that looks at fewer bars

- Are we in a pullback ?
- Do we have a pullback leg that weakens and gives us a with-trend entry before the breakout of the last with-trend swing ?
- As my exit is based on price action - is the exit point too far from my entry to trade ?

Then some individual bars - for example common reversal bars such as Gravestone Doji where many people may have made countertrend trades. If the countertrend move turns out to be just a pullback, many people have to get out when the Gravestone Doji fails.

So - I think price action is basically looking at the bars on different levels and trying to figure out what is happening, where other people got in & may have to get out of their trades.

It is as dull as watching paint dry though.

I don't believe that you can just watch charts & learn this. I think you need someone to tell you what to look for, then you can watch charts & learn it. I am trading 5 min bars on the ES right now and am making between 0-2 trades a day. I place more orders than that but many don't get filled.

I am actively looking for something to keep me busy whilst doing this though as I fear trigger-happiness is going to start creeping in.

 

[WFTrader]

I just noticed something which is abit strange to me... I was drawing a channel line for an uptrend on a weekly time frame. I then switched to daily timeframe, but the daily candles don't appear to conform with the channel line that I drew for the weekly ? Has anyone experienced this before? I'm using market maker on natwest index.

Thanks alot!

 

[meanreversion]

I am a professional trader and I think Dante's opening text is very well written. The more 'newbies' (man I hate that term) who read it, the better. I've not been through the whole thread, but one thing he omitted to mention is the excellent books on trading available. Amazon always seems to have them on sale, 'Market Wizards', 'Come into my trading room' etc. Spend 100 quid on some of these excellent books before commiting a single penny to the market, you'll be amazed at how much good information is in there.

 

[Claudia123]

I just noticed something which is abit strange to me... I was drawing a channel line for an uptrend on a weekly time frame. I then switched to daily timeframe, but the daily candles don't appear to conform with the channel line that I drew for the weekly ? Has anyone experienced this before? I'm using market maker on natwest index.

Thanks alot!

All time frames will show different situations. Try looking at the 1 minute that should scare you. The longer the time frame the smoother the chart will be.

 

[Claudia123]

In practice, how far should you go back when drawing support/resistance lines? Is 10 years on a weekly timeframe overkill?

WFT i suggest you change careers and yes 10 years is 'slightly overkill'. Just consider what has happened in the world in that time. Look what has happened in the past year alone. If you serious about trading look to the future not what happened last century.

 

[jonboy123]

price action means the change in price and the movement in price, right?

if 10p goes to 20p
or if 10p goes to 15p

the first example = strongest price action, correct?

so price action is simply the % increase or decrease in price?

 

[mr.marcus]

price action means the change in price and the movement in price, right?

if 10p goes to 20p
or if 10p goes to 15p

the first example = strongest price action, correct?

so price action is simply the % increase or decrease in price?

...qualify strongest?

 

[jonboy123]

...qualify strongest?

people say "strong price action"... "weak price action"

my post was clear... am i wrong in the things i said?

 

[mr.marcus]

people say "strong price action"... "weak price action"

my post was clear... am i wrong in the things i said?

...my point is that when "people" use the terms strong and weak to describe merely rate of change they are attributing a quality which is not understood.These terms will then program the user to make trading decisions which velocity alone can not qualify.Indeed,this is probably the most primal trigger that "weak" hands react too because of incorrectly "seeing" strength when really only an understanding of the controlling players directional intent and ultimate "liquidty zone" objective would suffice to qaulify a market as strong and weak.Strong being with the intenet,weak counter intent if you like regardless of velocity.

 

[jonboy123]

dude...... so give me an example of strong price action compared to weak price action

what is price action to you?

 

[jefftheripper]

hi, if someone can explain what i am asking about in this thread:
http://www.trade2win.com/boards/first-steps/97016-trendline-confusion-daily-hourly.html
thankyou

hi jonboy, I took a look at your charts. With the first chart it almost looks like an anomaly. The up trendline on the daily chart shouldn't even be showing on your hourly timeframe since price is far enough below it. Are you sure the hourly timeframe doesn't have a 3rd trendline that is visible only on the hourly chart? Try scrolling to the left on the hourly chart and see if you find the trendline at a price and day where you'd expect it. With your second chart, the channel trendlines are not perfectly spaced (they are larger at the bottom). This is more exagerated and apparent on the daily. For example, when you draw a trendline on the hourly, the degrees of incline/decline are much greater (steeper) on the daily, got to monthly and it'll be almost straight up or down.

As far as your questions on price action. That is simply price reacting to a level, trendline or whatever. For example. price is going up...hits a certain level and bounces off severely leaving a change of direction signal with candles sticks...like a pin bar, engulfing bear candle etc. That is considered PA and a signal that price is giving confirmation for a down move. Strong PA is an obvious move, usually bigger candle.

 

[jefftheripper]

Here is a chart showing an example of price action. There was a s/r level at 1.2389, when price hit that level it retreated and formed a pin bar on the hourlly time frame. Also, notice the tall upper shadow on the candle before it. This is considered price action in relation to that level. If price would have blown right through the level with no bounce, then there would be no price action.

 

[jonboy123]

jefftheripper, thanks...
no there was no 3rd trendline, the other people say its not a fault, this is how software shows it...i kinda understood at the time, but got tired of this situation and have taken a break from it. Ive deleted the trendlines. Someone also said to NOT use the same trendline on diff time frames, and to use trendlines specific to the time frame. I guess theres 2 schools to this.

price action, so youre just saying it relates to sup/res and if it reacts to it. but breaking through is still price action, i think price action is just movement in price, however you can read it to decipher whats happening. But i think diff people think of price action in diff ways.

cheers.

 

[jefftheripper]

You are correct, price action can happen anywhere. Looking for price action to react off of a support/resistance line is just a technique. What many traders are referring to by "price action" is some sort of formation on the chart. like an inside bar, pin bar, doji, engulfing candle etc.

As far as trendlines, I haven't seen that issue on my platform MT4. I leave my trendlines on all timeframes. However, a 1 hour trendline may appear almost verticle on a weekly TF.

I hope some of this helps.

jeff

 

[jonboy123]

thankyou

another query: IG index advanced charts, im trying to change the time zones and trading hours, i hear i should set FTSE to the actual hours of 8 to 4.30, rather than have the chart show 24 hours 7 days a week data. But i cant seem to do it in IG. I go to options time zones and wehn i enter what i want it just ignores it and goes back to 0.00 to 0.00. Ive emailed IG.

And also what else should i change (times) for the charting? USA indices? commodities?

FX too..

Shall i uncheck weekend data option?

just wondered how one should look and set up their charts for indices.
(Im in UK)

cheers

 

[jefftheripper]

great question jonboy. I think changing different indicies, futures etc. to match the market their own market hours would make things faily complicated. But that said it would be up to the trader. It may make things more simple for you. I used to trade futures and it seemed almost everything had different hours (even though they trade after hours on globex). Wheat would shut down trading in the morning for me for about 45 minutes or so while ICE had different hours.

I left my charts times alone, but had the different market hours posted above my computer so I could see them at a glance. I'm not sure if I answered your question. Basically, it's up to you and what makes thing the easiest.