Did DB and the Price Action Scribblers Throw in the Towel?

[marketsurfer]

Years ago back in the late 90's, my definition of a pure price action trader was someone that didn't use charts or indicators. He/she was only a DOME trader, bid/ask screens, times & sales info only. Back then, I prefer to just use the traditional phrase...tape reader.

Nowadays, I don't believe they exit via a different definition. Thus, it seems like that phrase pure price action trader has morphed into something else.

Regardless, I do disagree with the nothing else statement but only because I've seen so called pure price action traders talk about other important things in their trading plan that they use besides price action to make trade decisions.

Therefore, it looks like that you would call someone a pure price action trader that's heavy into money management (risk management) if they uses chart analysis and nothing else on their charts ???

How about a price action trader that also uses volume analysis and no other studies on the chart...would you call that trader a pure price action trader ???

Tape reading can and does work because its looking at the "book" prior to trades being made. Its tough and a real skill but it Makes / made SENSE at one point in the market.

In contrast, chart readers only see the past then try to extrapolate into the future what way to bet. There's no edge doing that in and of itself.

I think we are in agreement here.

surf

 

[marketsurfer]

Brother Surf is the main biyayatch on ET, constantly pointing out inconsistency of other traders in comparison to what, his virtual track record? He even posted himself that he has many losing trades, yet it's somehow not an issue for Price Drivers, but is a problem for everyone else.

Im ranked in the top 10% of ALL published stock pickers over a multi year period. Dats da fact, brother.

 

[marketsurfer]

But as stated earlier, practically no known patterns show an edge...

Thats correct. The same patterns emerge when random numbers are tweaked to resemle stock prices. Heck, its absolutely bizzare to me that these pure price actioners even exist at all.

 

[marketsurfer]

Surf,

Seeing as the discussion is intensifying, here's something for your reading pleasure during the summer holidays. I know you'll probably say you've read them all, so maybe as a refresher. I think P&F is the least complicated.

http://www.bloomberg.com/news/artic...rt-learn-to-lose-less-money-learn-these-books

Thanks, i have all of those except George Klienman's. The author of the article states he "owns the study of moving averages". Huh?? I am intrigued, so thank you!! surf

 

[samuel11]

In contrast, chart readers only see the past then try to extrapolate into the future what way to bet.

If the past shows at what price and when there were buyers and sellers, don’t you think it could give a very small indication when and where they may exit their positions?

 

[NoDoji]

How about a price action trader that also uses volume analysis and no other studies on the chart...would you call that trader a pure price action trader ???

For the sake of definition, a trader who used volume analysis would not be a "pure" price action trader. Not that definitions or styles matter, because in the end all that matters is whether or not you're achieving your trading goals.

 

[NoDoji]

But as stated earlier, practically no known patterns show an edge...

Key word here is "practically". I trade at least three patterns that show an edge.

 

[marketsurfer]

If the past shows at what price and when there were buyers and sellers, don’t you think it could give a very small indication when and where they may exit their positions?

no, that's impossible. surf

 

[JTrades]

Do you think there's a correlation between a trader's Performance IQ (PIQ) and his/her ability to recognize chart patterns?

The variance in this ability would go some way to explaining the perpetual disagreements on the subject.

Identify the missing symbol in the sequence.

 

[marketsurfer]

Do you think there's a correlation between a trader's Performance IQ (PIQ) and his/her ability to recognize chart patterns?

The variance in this ability would go some way to explaining the perpetual disagreements on the subject.

No, I base my opinion on numerous academic studies, 1000's of hours as a technical analysis, starting as a hand drawn chartist---conversations with the BEST proven traders in the world, and all the evidence of success of the TA brigade---NONE or so small it can be dismissed as irrelevant.

See, I THOUGHT it worked for years and made money using it-- but I realized that I made profits DESPITE patterns not because of them.

The evidence is overwhelming against the value of chart patterns.

surf