How to Learn Price Action

Forrest Gump Jr · Mar 22, 2008

Quote from SoCalTrader619:

Ok... I know that most "successful" traders will agree that Price Action is the basic key to trading. I have been doing a lot of research into price action recently, staring at charts forming, watching the L2, T&S, etc. But sometimes I feel like I don't really know what I'm looking for. I'm hoping that some Price Action traders can chime in and give a bit of advice. What exactly do you look for in Price Action that gives you the information you need to place a trade? What can I do to enhance my Price reading skills? Most say it's hundreds of hours of screentime, but looking for what? I'd appreciate any advice. Thanks!!!

I look at many things when watching price action, but here is a simple one to ponder. Either there is consistency, inconsistency or a combination of both.

timbo · Mar 22, 2008

Quote from Dustin:

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.

Your terms "strong" or "weak" means nothing. Where do you think price action comes from?

Dustin · Mar 22, 2008

Quote from timbo:

Your terms "strong" or "weak" means nothing. Where do you think price action comes from?

It's not hard to look at a gainers/losers list and find the ones with better than average volume. Again...people making things too complicated.

timbo · Mar 22, 2008

Quote from Dustin:

It's not hard to look at a gainers/losers list and find the ones with better than average volume. Again...people making things too complicated.

I suggest you look at kinggyppo's BSC chart. If you have real money, you don't fuck around.

Dustin · Mar 22, 2008

Quote from timbo:

I suggest you look at kinggyppo's BSC chart. If you have real money, you don't fuck around.

A stock falling off a cliff...what's your point?

timbo · Mar 22, 2008

Quote from Dustin:

A stock falling off a cliff...what's your point?

I'm asking for the reversal. What's the strong/weak lesson? Oh, is it stochastic?

Dustin · Mar 22, 2008

Quote from timbo:

I'm asking for the reversal. What's the strong/weak lesson? Oh, is it stochastic?

I can't figure out what your asking, so I'm giving up the debate. Moving on...

Joab · Mar 22, 2008

Quote from Dustin:

I can't figure out what your asking, so I'm giving up the debate. Moving on...

I don't think he even knows what he's asking

Dustin great posts thanks for the input there are people who listen and take notes.

mdl060374 · Mar 22, 2008

A quick question to anyone who cares to respond.

When trading trending stocks, does anyone care to elaborate on their entries?

Assuming its an uptrending stock, do you wait as it touches the base of a channel and get in? or do you wait for for a consolidation?

If if you wait for a consolidation, do you buy in it (early) or wait for confirmation (breaking out) to get in?

dandxg · Mar 22, 2008

Quote from mdl060374:

A quick question to anyone who cares to respond.

When trading trending stocks, does anyone care to elaborate on their entries?

Assuming its an uptrending stock, do you wait as it touches the base of a channel and get in? or do you wait for for a consolidation?

If if you wait for a consolidation, do you buy in it (early) or wait for confirmation (breaking out) to get in?

I buy on pullbacks to trend with lesser volume on the pb. Sometimes on the close of bar or candle and sometimes when the bar or candle I use for entry is broken on the high or low. Each has it's pros and cons. This work for any traded instrument as I trade futures. If you are interested get techniques of tape reading by graifer and shumacher. It show different entries and exits.