How to Learn Price Action

Quote from dozu888:

to some, the 'abnormal spikes' (or the lack of them) are the key indication of things such as:

professional accumulation
professional distribution
lack of demand
lack of supply.

How do you observe the above using CVBs?
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Exactly. I don't have time to go into this now, but in my experience it has been easier for me to see this kind of action with minute bars. The same info can be extrapolated from CVB bars by noting the speed at which new bars are generated. For me, it is easier just to see the volume spikes on min bars.

gotta go
 
Quote from Joab:

Dustin,

Thanks for the feedback.

I've used gainers and losers myself screened with volume but found this doesn't always produce directional moves so well.

I find that screening for important news releases (earning etc..) as well as volume helps a lot.

Your comments on expanding volatility are interesting care to give an example.
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Most stocks on the leader board are news plays so that's what I'm playing also. Sometimes I see guys on ET posting trades that are in stocks that just have no reason to move. That's what I mean by finding the volatility instead.

Example: Today I'll be short ANAD and ABB amongst many other trades. If they don't work no big deal, I lose a little. If they do work with proper scaling they could each be $5-10k plays today.
 
Quote from dozu888:

to some, the 'abnormal spikes' (or the lack of them) are the key indication of things such as:

professional accumulation
professional distribution
lack of demand
lack of supply.

How do you observe the above using CVBs?
More...

Spikes in "time based" charts are generated from abnormal volume executed in short spans of time (based on a specific chart), regardless of professional accumulation, professional distribution, lack of demand or lack of supply because one doesn't KNOW which, if any, it could be generated from.

Constant Volume Bar charts NEVER spike. When an increase in volume enters into the market, more bars are created (the chart speeds up). It doesn't matter where the volume is generated, it is all read the same. What a concept, a chart that MATCHES price movement. The oscillations created on CVB charts are smooth and consistent not choppy and erratic like "time based" charts.
 
Quote from ProfLogic:

Spikes in "time based" charts are generated from abnormal volume executed in short spans of time (based on a specific chart), regardless of professional accumulation, professional distribution, lack of demand or lack of supply because one doesn't KNOW which, if any, it could be generated from.

Constant Volume Bar charts NEVER spike. When an increase in volume enters into the market, more bars are created (the chart speeds up). It doesn't matter where the volume is generated, it is all read the same. What a concept, a chart that MATCHES price movement. The oscillations created on CVB charts are smooth and consistent not choppy and erratic like "time based" charts.
More...

Some of us like the fact that minute bars show volume spikes and do not mind the occasional choppiness of the chart.

High volume often accompanies market turning points. Minute charts effectively provide that info.
 
For those who need to see volume spikes, the best charts are constant range bars. Just like cvb they only move when something is happening in the market and also allow you to observe volume.

The biggest draw back of fixed time bars is that each bar is created regardless of what is happening in the market, and market does not really care if 1 or 5 min time span just finished.
 
different charts, different pros/cons.

whatever makes the trader the most comfortable is whatever one should use..... they all taste like chicken anyway.

learning price action is a process to wire the brain thru repetition of pattern recognitions..... one should stick to a relatively stable chart set up.
 
Quote from smilingsynic:

Some of us like the fact that minute bars show volume spikes and do not mind the occasional choppiness of the chart.

High volume often accompanies market turning points. Minute charts effectively provide that info.
More...

I agree but I find some spikes turn price in the opposite direction and some push price in the direction it was going in the first place. I need more accuracy than a 50/50 shot at determining my trade set ups. I find that time charts offer no accurate read as to the direction that spikes will generate.

Now you probably have your own personal way of seeing and interpreting those spikes and that is great. I'm happy for your profitability.

For me, I trade for a living and profit is key. I have learned over many many years of reading price that I can not interpret anything, squat . . . nada. I have to read from consistent price movement to consistently make profit from it. I find it impossible to find consistancy in a chart (time) based and founded in inconsistency and variability.

I guess it comes down to what we are experts in viewing and since I created CVB charts, I'm intimately familiar with their features and benefits. I used time charts for years and migrated to tick charts before coming up with CVB charts.
 
Quote from ProfLogic:

I I find that time charts offer no accurate read as to the direction that spikes will generate.

Now you probably have your own personal way of seeing and interpreting those spikes and that is great. I'm happy for your profitability.

For me, I trade for a living and profit is key. I have learned over many many years of reading price that I can not interpret anything, squat . . . nada. I have to read from consistent price movement to consistently make profit from it. I find it impossible to find consistancy in a chart (time) based and founded in inconsistency and variability.

I guess it comes down to what we are experts in viewing and since I created CVB charts, I'm intimately familiar with their features and benefits. I used time charts for years and migrated to tick charts before coming up with CVB charts.
More...


You make some interesting assumptions in your comments.

You quotes above imply that what you cannot do others cannot. Since you cannot interpret volume and price together you became an expert at CVB. That is good for you but not a direct proof that non-CVB is impossible. Why is it that you trade for a living and profit is key but for the rest of us profit is not key?

I understand your points but little stretch to assume that CVB is the grail for trading when it simply is just another view of the same market.
 
Price action is independent of whatever the trader chooses to display it. Whether one chooses time bars, volume bars, range bars, or no bars at all is irrelevant to the movement of price.

Therefore, if one wants to understand the movement of price, study the movement of price. Then decide what is the most informative means, to him, of displaying that information: bars, dots, lines, Xs, whatever.

LC
 
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