Is price action trading the most insightful(& most accurate)?

[Overnight]

I remember the joke about Elliot.
Man #1 - Do you know how to start a fight?
Man #2 - No, how?
Man #1 - Walk into an Elliot Wave seminar where they are discussing a chart and ask, "What wave are we on"? and walk out of the room. Immediately you will begin to hear glass break.

I think the older writers of Star Trek content knew about E-Wave theory and it's folly, and put it into ST:TSFS as an Easter egg.

I.E. If you follow Elliot Waves theory, you will self destruct.

 

[S-Trader]

Sorry, Charlie, but "Japanese Candlesticks" are indicators: in one symbol, they contain 4 pieces of price/trade information per single slice of time.

IMO, the word “indicator” in trading is more “properly”/“purely" defined as a derivative of price, volume and time, which are pure data. Since candlesticks reflect pure price data (OHLC) for a specific time period, they're not really “indicators” by that definition.

However, I suppose you could argue that by *coloring* them (red/green, black or white), you’re implementing a visual aid that essentially acts as a “derivative" of price -- i.e., color indicates price direction… and therefore candlesticks could qualify as “indicators” in that sense.

But other than that... when you utilize candlesticks in your read of PA, technical patterns, etc., you *are* using them to “indicate” something. But to therefore call them “indicators” seems like a “tail wags dog” argument.

 

[volpri]

Most of us active traders use price action., however the entry signal you choose to use has far less bearing on your performance than risk/trade mgmt & your mind set.

Novice traders obsess over the wrong things, trade identification is majoring in minors.

View attachment 206844

Buy1sell2 says Prudent Risk Management is the only edge. PRM

 

[SimpleMeLike]

Orbit, one more thing. Don't think of what you are trying to achieve with PA trading as predicting so much as reacting. You want to react what is happening on the chart at any given moment to give you the greatest potential for profit until you see a specific reason to react again to either get out or reverse your position.

Reactive Analytics,

This is very very true. I don't give damn about predicting nothing , just wanna react. I'm not greedy, just let me get some on the way up or on the way down.

 

[volpri]

Reactive Analytics,

This is very very true. I don't give damn about predicting nothing , just wanna react. I'm not greedy, just let me get some on the way up or on the way down.

What are you reacting to and why?

 

[lovethetrade]

most professional traders don't use Elliot wave.

Many coaches and newbie traders use Elliot wave.

In real life, market can move in various FORMS, SHAPES, AND SIZES.
first wave could be very short or very long.
last wave could be very short or very long.
retracement could be simple or complex shape.
retracement could ended up as reversal.
Reversal could actually be retracement.
There might be only one retracement, or tens of it.
There could be multiple waves could be of same pitch.
Market could move like saw tooth pattern.
or market could swing up and down massively numerous times.

That's why some people pronounce Elliot as Idiot.

Amen!

 

[maxinger]

Amen!

hallelujah !

 

[SimpleMeLike]

What are you reacting to and why?

I am reacting to whatever shape price is creating and whatever momemun going. Directional trading.

 

[SimpleMeLike]

I am reacting to whatever shape price is creating and whatever momemun going. Directional trading.

And do not want to do nothing else when it comes to trading, but manage the trade after entry. It just comes to a point when it is time to put all the bullshit away and keep things simple.

 

[volpri]

I am reacting to whatever shape price is creating and whatever momemun going. Directional trading.

So you have a directional bias that is formulated before you take a position? If so, then you are in a sense predicting. At the very minimum extrapolating into the future from the present and past.

“A prediction is what someone thinks will happen. A prediction is a forecast, but not only about the weather. Pre means “before” and diction has to do with talking. So a prediction is a statement about the future. It's a guess, sometimes based on facts or evidence, but not always.” Source: Vocabulary dot com

For instance, I predict Mr T will win with a landslide based upon the evidence, or should I say lack of evidence, that the other side can muster up. This lack is in itself evidence. In addition, they are losers and sore losers at that. They cannot come to grips with reality. ROFL

Extrapolate: “extend the application of (a method or conclusion) to an unknown situation by assuming that existing trends will continue or similar methods will be applicable.” Source: Lexico dot com

Prediction...extrapolation...are not dirty words. Every time I sit in front of my computer to trade I am almost constantly predicting and extrapolating for every trade. And I like the challenge. I am not always right in my predictions but if I am right, more often than I am wrong, and all other things being close to equal, then I have an edge.