Price Action vs Technicals

[momothebored]

Hello.

Met someone that supposedly makes great amounts of money largely trading by price action.

Anyway he was kind enough to advise me on his trades last week.

Penny / micro cap stocks that were in play.

The problem was, i was observing this and it made no sense.
He would often trade against the intra-day patterns that were forming.

e.g. A bullish ascending triangle broke down on increasing volume, at which point he bought a lot more.

Another e.g. In another example a stock that was doing *nothing* , no trend, no patterns, just random erratic movements, no consolidation. He bought in, and the next day it gapped up +10%.


(i) Where can i learn how to analyze price/action? Any good books?

(ii) Volume can easily be faked, especially if the trader or syndicate is more than 1 party. How can you find dependable patterns observing the buy ups / sell downs?

 

[Solas0077]

Another e.g. In another example a stock that was doing *nothing* , no trend, no patterns, just random erratic movements, no consolidation. He bought in, and the next day it gapped up +10%.

I would think this was pure luck because to be sure you must also account for all failed calls.

Some good article son how to analyze price action can be found in this blog. This site has info for beginners. I would stay away from vague calls with methodology that is not clear.

 

[numbertea]

I trade price action but with the computer analyzing it. I consider price action to be a technical indicator. I stay away from trading low volume instruments, I find that the price action is less likely to be a good predictor the lower the volume is. The ES is my instrument of choice.

Cheers

 

[NVP]

Hello.

Met someone that supposedly makes great amounts of money largely trading by price action.

interesting - I meet loads of vendors claiming this as well .....still waiting for the concrete and audited proof though

N

 

[rawrschach]

Just cuz it works for him doesn't mean it will for you.

 

[Babyblush]

To know more about he price action strategy you may refer to the neil's website which throws light on price action strategy. It may be helpful for you.

 

[Joshua20]

I would think this was pure luck because to be sure you must also account for all failed calls.

Some good article son how to analyze price action can be found in this blog. This site has info for beginners. I would stay away from vague calls with methodology that is not clear.

Hello all, I am actually the owner of the site Trading with Price Action, the one that was listed above, and I decided to make an account so I could answer any questions that any of you may have about price action. So if you have any questions feel free to ask!

 

[Dick Lexic]

nice site joshua20

 

[Joshua20]

Thank you Dick Lexic!

 

[hybrid]

I recently watched 13 DVDs of Steve Nison on candlestick Price Action (I got them free, and nearly opened a vien during the boredom), and also went thro all of Nial Fuller's free stuff on price action.

I am really glad I went throught all this, but without linked knowledge of S&R, trendlines, MA's, money management, market personality, and pyschology, it's pretty useless.

 

[Joshua20]

I recently watched 13 DVDs of Steve Nison on candlestick Price Action (I got them free, and nearly opened a vien during the boredom), and also went thro all of Nial Fuller's free stuff on price action.

I am really glad I went throught all this, but without linked knowledge of S&R, trendlines, MA's, money management, market personality, and pyschology, it's pretty useless.

Without knowledge of S/R zones, trend lines, money management, market personality and psychology and trading strategy is pretty useless. Knowledge of all these things is vital to be a successful trader and are fundamental aspects of trading that all traders should have.

That is why it is important to know the basics of Forex before you learn any trading strategies, even though price action is the simplest and easiest trading strategy to learn it is still necessary to know the basics.

 

[Giovan]

lots of info all over the internet. price action is unique to each trader.....A trader's executions may never make sense if you look at this technically ,but the trader is still profitable.. watch lots of you tube vids, check out those guys at 2ndskies too...
All the best lad

 

[George A]

Hello.

Met someone that supposedly makes great amounts of money largely trading by price action.

Anyway he was kind enough to advise me on his trades last week.

Penny / micro cap stocks that were in play.

The problem was, i was observing this and it made no sense.
He would often trade against the intra-day patterns that were forming.

e.g. A bullish ascending triangle broke down on increasing volume, at which point he bought a lot more.

Another e.g. In another example a stock that was doing *nothing* , no trend, no patterns, just random erratic movements, no consolidation. He bought in, and the next day it gapped up +10%.


(i) Where can i learn how to analyze price/action? Any good books?

(ii) Volume can easily be faked, especially if the trader or syndicate is more than 1 party. How can you find dependable patterns observing the buy ups / sell downs?

--------------------------------------------------------------------------------------------------
I also trade price action ,, BUT my trading is based 100% on FIBS . both go hand in hand and both give advance signals rather than the many lagging indicators .
Cheers
George

 

[Joshua20]

--------------------------------------------------------------------------------------------------
I also trade price action ,, BUT my trading is based 100% on FIBS . both go hand in hand and both give advance signals rather than the many lagging indicators .
Cheers
George

Interesting that you only use fibs to trade with price action, could you go into more detail? I am very interested on how you trade using these two things

 

[DAX30DayTrader]

Interesting that you only use fibs to trade with price action, could you go into more detail? I am very interested on how you trade using these two things

Should you not have a vendor badge here for promoting your ****?

 

[George A]

Interesting that you only use fibs to trade with price action, could you go into more detail? I am very interested on how you trade using these two things

Well Joshua, Fibs are very simple to use , BUT the application of them is the hard part .
There are very strict theories to using Fibs ,and they can NOT be explained verbally .
Every swing on every chart is related mathematically and IS based on fibs , this has been MY finding and there is NO doubt on my mind about this as charts ARE facts and NOT opinions , Facts can NOT be doubted .
U can message me , as i have had much rubbish from some , and i will NOT go into details publicly .
Cheers,
George

 

[Solas0077]

Hello all, I am actually the owner of the site Trading with Price Action, the one that was listed above, and I decided to make an account so I could answer any questions that any of you may have about price action. So if you have any questions feel free to ask!

Hi Joshua. You site is well written and informative. Keep up the good work!

 

[Joshua20]

Hi Joshua. You site is well written and informative. Keep up the good work!

Thank you I appreciate it Solas