Price Action / Lagging

[badtrader]

...i did explain the difference between indicators and price action btw....one is absolute and pure....the other is a personal distorted image of the former......an indicator useually compares to itself....so what is the point ...no xtra information is gained ..and also to add i never wait for a bar to close etc on volume or price....i can see most traders do this as it is reflected in the way price action forms...its pretty simple to see what time frames the bulk of traders are using for any particular market
esignal is my charting package.

cheers mark j

mr marcus

I have read you thoughts. But you trade differently to most, by using 2,5 sec charts with Volume. so I would say you are trading price action. but you must have some chart patterns that you look at, To take these trades, by banking the majority of people get they trading expectations wrong by the way of fear and greed.then you Zoom in and try to figure out with Volume.


How many points you try to take out of single a trade by doing this method. and do you only use 5 point stop on the YM

I got esignal,but I cant seem to get the volume bars you show on your chart

Thanks for you replies

 

[fxmarkets]

Badtrader what are you naturally drawn to when observing price? is there a particular price move action or interaction that gets you thinking this is opportunity? what are your observations on it all at this stage?

 

[badtrader]

fxmarkets

What I call Price action is not watching every trade that passes by but rather keeping an eye out for unusual impulsive action, unusual volume, or just observing the way the price trades at significant levels. Each price swing has forecasting value as to what the next most immediate move should be. I then follow the price action to see if that move plays out..But to me this is still lagging,because I am looking at past levels and volume that have already been shown to me.

 

[fxmarkets]

by "then follow the price action to see if it moves out" are you in it at that point or waiting untill it moves out ?

 

[badtrader]

by "then follow the price action to see if it moves out" are you in it at that point or waiting untill it moves out ?

I think I am being to critical. But I am correct in my thinking that 99% of trading is lagging in some way or form.

 

[fxmarkets]

yeah maybe you just wanted or needed to resolve a technical point that all this talk of indicators lagging,but hang on the price action that poeple term as the way they trade is also lagging. maybe its helpful to hold a view that we ourselves should at least not lag if we are utilising opportunity even if price is stale to a small degree.

 

[JumpOff]

one of the best reasons to watch tick charts is that you get to see hundreds of events (break outs, retracements, reversals,spikes,normal oscillations, trendline breaks) *per day.* You may never want to trade in that time frame, but it is a great way to get familiar with how these look as they are developing in real time.
JO

 

[Anonymous]

look as they are developing in real time

Look at the prices in action but not to profit from the prices in action? I have to pay for electricity and internet charges, you know.

 

[chump]

Given there are only really two types of price action and a limit number of timeframes to perform those within then I give you the leading indicator to my crapola system...let's keep it a secret

 

[fxmarkets]

I like it chumpy..........

 

[fxmarkets]

one of the best reasons to watch tick charts is that you get to see hundreds of events (break outs, retracements, reversals,spikes,normal oscillations, trendline breaks) *per day.* You may never want to trade in that time frame, but it is a great way to get familiar with how these look as they are developing in real time.
JO

hmm yeah, something about 1 min bars in a session , I note all those trends will appear in the outer timeframes, It may be of use for some to immerse in at least one minute bars to (I hesitate to use the word fastrack,not to give any false sense of ease of time required) but accelerate market activity exposure maybe and exeperience more events in this timeframe,detail, yes lots of concentration needed, but when you begin to be able to respond or sense in that timeframe and it becomes normal everything becomes slow I mean the market action, a second seems plenty of time enough to engaged, assess etc. but you are continually assessing anyway, reading the market ,so a mouse click doesn't need minutes,maybe thats where the ultimate lag can creep in , in the individual.

 

[Anonymous]

When the time frame is reduced to the minimum, say 5 seconds or so, one can play One Shot One Kill with the price action. Assuming the computer and internet connection is fast enough, it depends on whether the mouse clicker can react fast enough when the target appears.

If he lags behind in his action and reaction, then, tough luck, waste bullet.

 

[fxmarkets]

Thinking about the ultimate lag creeping in, in the individual, at some point when perhaps starting out this lag may?/will be driven in,installed with great force like a stake in your head, it is that lag you have to unistall within yourself, which can take time . And humans perhaps always will look for shortcuts especially with themselves maybe.

 

[badtrader]

Another question for you to ponder over. When one say, they trade pure price action, they see a fast up or down move ,on a 5 sec chart and jump on for a short term ride. But who are the ones who start off this fast move. is it the so called Pros. and the one who jump on for the ride think they are the Pros

 

[Anonymous]

When there is a fast up in 5 secs, there is high likelihood of going back home, when there is a fast down in 5 secs, there is an equally high likelihood of going back home. When one sees a fast up or down in 5 secs and jumps on for a ride, he may be really going for a ride, maybe not home but away.

 

[badtrader]

Or maybe its the public being the wrong way round and all getting out the same time?that causes the fast moves

 

[Anonymous]

When the demand and the supply is unlimited, how influential is the number of contracts trapped at the bottom?

 

[Anonymous]

How do you know they are taking profits and not cutting losses?

 

[jcwonder8]

...if its a down climax like we had there and we had heavy net bid volume around the lows on fast momentum.....chances are its your typical late money.it cant be profit taking unless they are getting out on the bid.however having played the same ym patterns over and over and have a accurate profile of how and when pro scalpers,numtpies etc take plays....i know that this to be the case on most occasions.
the flow of the market shouldnt be taken out of context on one particular instant though....when i start the day i have a good idea what the open interest is on both sides and this is confirmed by the reactions at the open.i will then keep in mind the longer term open interest and the shorter term intraday pattern open interest.....why...because markets move most on pain cheers mark j

thanks for more thoughts mrm, as usual good stuff, though I had always assumed that the climax volume on the peaks and troughs was locals/serious cash loading up to move price the other way rather than the last retail investors getting in to late, might be wrong. In any event I've found a big vol spike on a peak or trough on a 2 min or 3 min chart often signifies a reversal before price action indicators confirm. Those 2, 5 second charts you are using look good as does the bid ask volume stuff you get with esignal, cant get with my charting package unfortunately. You must be absolutely killing it imo, I am still some way off but seeing the light, moving into positive expectation territory. Thoughts as to how you deal with choppy periods such as the opening period today on es would be appreciated if you get a chance.
for price action some good resources others might be interested in are all the dachart archives at dacharts.com, and enthios.com, check out price action article on dacharts and market structure article on enthios.
Good trading all
JC

 

[Spcboe]

and market structure article on enthios.
Good trading all
JC

I couldnt locate the article. which section is it under?