IN THIS THREAD: IronFist learns (the elusive) PRICE ACTION

maybe i can help im not much for price action because much of price action i feel is mysterious and only true users know the answers but no one tells you...

Ive heard thing like move like a tea leaf in the ebb and flow of the market .....

and when a stone enters the stream the waters push around it as if it where not there...

i even also heard "remember its not the market that bends it is only yourself."

this left me going .... well should i go to a monk temple to learn how to trade PA or is there a more logical answer?

so far what ive found is and i dont know how much of this is true....

The market is dynamic and thus you need dynamic SR RR lines...

dynamic SR RR line move ever X period of bars creating new SR RR Lines from back X period bars to high /low of lowest and highest...

draw short trigger and long trigger based on Pivot of Prev Bar using H+L+C/3

when Price moved to areas that are considered "ZONE BUYS" buy and "ZONE SELLS" sell

stops are placed on other sides of the SR RR lines in THe next set trigger area...

depending on movement wanting to be achieved

DRAW FIB from SR to RR or from RR to SR

and look for price action patterns like double low candle with break... and etc.

also color of bar than your trading in 3 levels lower gives direction.-- i guess this is the part about being a leaf.

oh and i heard we are only deceiving ourselves their is no "trend" only interpretation of observation that is incorrect only observation is true.

good luck iron i got a bunch of PA indicators / buy zone/sell zone books pdfs and such if you want me to post em itll take you months to sort it all out i got it under my price action documents folder haha i got a folder for everything

true price action doesnt use candlesticks either apparently ..? because they are indicators..

personally i tried the dynamic sr rr thing up top i like it im trying to refine it and understand it better but i like to use an indicator called level sensor that pushes price against left side of chart in accumulation chart basically shows you value areas and it helps me alot with this most trades are almost no brainers...

oh aaannnndddd ... i read that you should have a spec r/r ratio that you will only trade above and let the market determine its own Risk reward and you decide whether you want to take it or not.
 
Quote from osorico:

TTE should definately be in the toolbox! Good one!

And here is the "intro" if you will, to fully understand the concepts that are part of TTE...
http://www.trading-naked.com/library/Law_of_Charts.pdf

FWIW; Trading-naked has a decent library of free reading material, specific to trading. Even a few worth more than the cost, like TTE. :) Here's the direct link to the library...
http://www.trading-naked.com/Articles_and_Reprints.htm

Osorico
More...
ironfist ,go to osoricos site (articles and reprints above)and read up on market profile,,and learn to use trendlines,Learn about 4 or 5 patterns, i.e.head and shoulders ,bear/bull flags,wedges,now follow 2 or 3 correlated industries, right now the usd/jpy,djtrans and spu's are moving in sinc,have charts on all 3 on your screen with supp and res lines,,u will be able to guess where the market might go,trade til it gets there,then sit and wait for another setup,if your wrong ,you will stop yourself out and wait for another setup,if you can guess right enough times,you will build the confidence to stay in the trade til it gets there,and your profits will outway your losses That is modern day price action,the old days they called it tape reading and you watched 3 or 4 stocks with ,the tick and trin, uvol and dvol,and noticed the size of the trades and whether they were on the bid or the offer and how fast they were occuring.You should be able to find one trade a day that is a setup right off the bat,this will keep you alive,as you go along it'll become 3 or 4 or 5 and you will be able to make a decent living. Keep it simple and barely trade ,wait for setups
 
Quote from ggoyal:

couple of things:..............................

You have to have patience. very important. just stay calm.
More...

Now here is an interesting case in point for IF to ponder upon and no doubt add to his confusion.

I am certainly not disagreeing with anything in this post, after all it is not my position to disagree with anything to do with trading.

However ..... I never draw trendlines
..... I would never wait half a day for a trade

just to mention two things.

Staying calm and relaxed we do both share .. muy importante along with deciding what makes you tick and how to put this knowledge to best use.

regards
f9
 
What is PA.

Like most things in life PA is much simpler than our brains are trained to handle.

When price is at a tick it will chew through the limit orders at that level and then it is either stuck or along comes a market order and pushes the little sucker to another level.
I know that there are slight variations to this tune but essentially a tune is a tune.

Everything else piled on top of this performance is the result of our brain hunting to protect us from the unknown.

Funny really, because it is the macro 'out of our control' events that shape our future.

regards
f9
 
picasso started out with a peice of burnt stick and a wooden shingle for a canvas,1 step at a time,when you start out,if you stick around long enough,you find out that this business is about staying in business,you may have to go broke 2 or 3 times to learn this,it's not about making money,that's easy,it's about not losing money,it's hard to hang onto once you've made it,how many times did you give back your profits, and then some. That's the lesson that you learn over and over. The way to stop doing that is to wait for setups and then trade. You may still lose,but your odds of winning are much higher. The longer you're at it ,the more setups you will see,til then ,and forever more,only trade the setups.
 
Here's my chart for the day so far.

All trendlines were drawn in real time, not after.

Currently it looks like price is heading down as it just broke the most recent trendline around 8500.

comments?

edit - i reduced the size of the chart but because the trendlines were kind of dark to begin with, they're a bit hard to see now. sorry.
 

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you should have a daily ,a weekly ,a 30 min ,trendline,now you have the bigger picture,imagine an ant at a picnic,he can see the crumb an inch away but he cant see the shoe coming from 3 feet away
 
you r drawing inconsequential trendlines that are bound to be less respected and break more often = lower probability trades.

i will post a chart a little after the market closes to post what i mean. I only took two trades today, missed the middle 3 hours. i took 1 before and 1 now. 8 points total. there were a few potential that i missed out on.

just connect the bigger swings, not the small ones.
 
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