How to Learn Price Action

Quote from Dustin:

I incorporate overbought/oversold from ES into this style. I buy strong when market is weak, and sell weakness when market is strong. It's more art than science.

Stuff like CCOW INAP ABX worked well today. I prefer the lower priced stuff like this over NVDA type stocks.

I'm currently watching SINT ABX AGP for further breakdowns, but won't be selling them unless I get an overbought reading on ES. Hope that makes sense.

You can PM me if you have further questions as I would rather not get into more detail here.
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I understand what you are saying. (I think :) )

I learned a similar scalping method back in the day watching a tick chart of the futures. Since the S&P futures move back and forth in a wave like fashion even when trending, you buy strong stocks when there is a slight dip in the futures, and vice versa.

Anyway, I am glad I found this thread, as I am also looking into developing a similar method as Dustins.

In the past I got hung up on %volume in my intraday filters, but found it to be unreliable. (By the time the volume hits your % minimum, its usually has already made a huge move, etc)

And what triggers it is single spike bars which often lead to no follow through, IMO.

(So I am tempted to ditch intraday volume all together..)

anyway, I am looking into solely going for %gain/lost and selecting candidates from those. (from a predetermined list)

Then look for "resting points" (flags/pennants, breaking of intraday channels) to get in..

The best part about it is I found a cheap charting software that allows me to draw a trendline(s) and set an alert for each symbol, so I dont have to have 20 charts up.. just 1 or 2, that I can scroll through and set custom technical alerts, and the triggering of an alert lets me know when to pull up that stock.

I also plan on using stockfetcher to find a manageable, defined universe easier to sort through...



I really hope this works.. I have tried multiple strategies, and I think this "going back to basics" one will actually work the best.

anyway, thank you for your insight.
 
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.
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i couldn't help but notice that, (i am noob and i have made this conclusion, i read the thread and noticed the posts on pf charts so i started reading up on them, AND i couldn't help but notice thta if you follow that, in it's most basic form, ie buy when price breaks resistance you are essentially buying a strong stock. AM i right?
 
Quote from Dustin:

Most new guys make trading so complicated, because they don't know any better. The problem is they need a strong base, or starting point. I just provided them that in an incredibly simple statement.

"ONLY buy strong stocks, ONLY sell weak stocks."

Take all the indicators off of your charts except volume. Forget T&S, LII, Open Book, ticks, candles etc. Forget anything else you think you know, and just try it. And use charts, lots of them.

I know from reading this board for ten years that nobody will actually do this, but I was compelled to write it anyway.
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i did this on bigcharts.com you can take the price off and look at volume only, and i can come to some conclusions just by looking at volume BYITSelf, then i correlated it kinda with a pf chart and i can see clearer things, the only thing i hate is when volume is just average ie like almost the same for many periods.... then I can't figure out what is really happening, i noticed over the few weeks that i've been studying this that some people have some kind of logarithmic volume charts that expand the high volume days so you can see them more clearly.

thanks dustin for the advice, i am taking it into serious consideration, and hope to try some live trading within the next few weeks.
 
This thread took a turn for the worse, and I don't think anyone really understands what I do which is fine.

A lot of the questions I get are about specifics...what's a strong/weak stock...what settings on stoch...what chart time frames...etc. These are the details that you should decide for yourselves.

For you guys looking for a base to jump off from just remember to build it around the idea that strong stocks usually keep going up and vice versa for weak stocks. Build your own strategy around these ideas and your learning curve will be shortened.
 
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