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How to Learn Price Action
- Thread starter SoCalTrader619
- Start date
Are you serious? No way, you dont learn to read and trade price action well by going AGAINST the buyers and sellers. That skill comes later on after you've identified how to be on the right side of trends first. Then, as you grow into a mature and able trader, you'll start to see how to properly take advantage of counter trend. And yes, there is big money in counter trend trading but its more difficult and thats why I would say noobs would be better off taking Dustins advice and then,eventually, move to doing both.
Quote from lindq:
I would suggest precisely the opposite. But that's what makes a market!
I've said this before, but I don't think anyone has really tried to learn it. Learn how to use a P&F chart. It is the truest reflection of supply and demand you will ever see on any chart. You don't need any indicators. You don't need volume. You instantly can see support and resistance without drawing any lines. Since the chart has no time interval it cuts out the noise of the market. I'm sure there are other ways as well, but once you truly learn how to use P&F you will never go back to anything else.
Quote from Dustin:
First and best advice I would give to any struggling trader:
For one year you are only allowed to buy strong stocks, and only allowed to sell weak stocks.
If every trader on this site followed this, half of you would be profitable overnight. It's just against human nature so most can't follow the rule.
Ok, but first they need to learn to consistently define and read, "What is Strong and what is Weak" and to consistently define the "Trend" of the chart they are trading.
Quote from HolyGrail:
I've said this before, but I don't think anyone has really tried to learn it. Learn how to use a P&F chart. It is the truest reflection of supply and demand you will ever see on any chart. You don't need any indicators. You don't need volume. You instantly can see support and resistance without drawing any lines. Since the chart has no time interval it cuts out the noise of the market. I'm sure there are other ways as well, but once you truly learn how to use P&F you will never go back to anything else.
HG, post a P&F chart of a common index and designate the timeframe or chart increment and I will try to match it with a CVB (Constant Volume Bar) chart for a comparison.
Price, Volume, and Speed of the price movement. Past chart doesn't help much, only real-time quote allow you to see how quickly and intensely the price is moving upward or downward, especially upward.
Any news on board members change, business, quarterly report, projection of profit, investors sentiment, earth quake, ..., and you name them; they all have a unique consequence, it does result a price change smoothly or harshly. Since they are too many and even infinite, so why pay attention too much on them. Why not just pay attention on its result, the price movement.
Any news on board members change, business, quarterly report, projection of profit, investors sentiment, earth quake, ..., and you name them; they all have a unique consequence, it does result a price change smoothly or harshly. Since they are too many and even infinite, so why pay attention too much on them. Why not just pay attention on its result, the price movement.
Quote from eagle:
Price, Volume, and Speed of the price movement. Past chart doesn't help much, only real-time quote allow you to see how quickly and intensely the price is moving upward or downward, especially upward.
Any news on board members change, business, quarterly report, projection of profit, investors sentiment, earth quake, ..., and you name them; they all have a unique consequence, it does result a price change smoothly or harshly. Since they are too many and even infinite, so why pay attention too much on them. Why not just pay attention on its result, the price movement.
The eagle has landed.
Well stated.
Quote from ProfLogic:
HG, post a P&F chart of a common index and designate the timeframe or chart increment and I will try to match it with a CVB (Constant Volume Bar) chart for a comparison.
Below is a 1 point p&f with 3 point reversal.
When I trade futures I trade with this, a .75 chart, and a .5 chart.
When they are all in agreement or close to agreement I pull the trigger. I set my target at the previous low column of 0's if I am short, or the previous high column if I am long.
Attachments
Quote from HolyGrail:
Below is a 1 point p&f with 3 point reversal.
When I trade futures I trade with this, a .75 chart, and a .5 chart.
When they are all in agreement or close to agreement I pull the trigger. I set my target at the previous low column of 0's if I am short, or the previous high column if I am long.
Ok, I'm lost. Was this a chart of the ES going into the close today? You have to give me a day and time there HG. lol